Dive Brief:
- Oracle has won $50 million in damages against Rimini Street in a closely watched trial revolving around third party support and copyright infringement, ZD Net reported.
- Oracle based damages on the number of customers that defected to Rimini.
- Rimini offers businesses support for “at least half” of the cost of support offered directly through Oracle.
Dive Insight:
Oracle Corp. sued Rimini Street Inc. five years ago over software that provides low-cost support for Oracle customers. Oracle was seeking $245.9 million in damages. The Las Vegas jury said Rimini chief executive Seth Ravin must pay $14 million out of the total damages.
The verdict is likely to be appealed.
"This decision against Rimini Street and Seth Ravin reinforces long established rules of fairness and honesty in business and the principles protecting investments in innovation,” said Oracle spokesperson Deborah Hellinger.
Rimini Street countered with its own statement: “As Oracle and Rimini Street agree, there is no dispute that third party support for enterprise software is permitted for Oracle licensees to purchase and for Rimini Street to offer. This case was about a good-faith license dispute regarding processes no longer in use.”
The case has been closely followed because Oracle’s victory may limit competition and options for CIOs looking to cut costs. Some CIOs say they are frustrated with big software companies that charge exorbitant costs for licensing, maintenance and support, including updates and other tweaks they don’t need.
["The support] cost was high and we never got anything out of them,” said Valspar CIO Tom Grooms, who switched to Rimini from Oracle a few years ago in an attempt to reduce costs.
Rimini has won over 800 Oracle customers since launching in 2005.
