Oracle v. Rimini Street Verdict Clarifies Ground Rules for Third-Party Maintenance

September 17, 2014
Author: 
Tomás O'Leary

This was originally posted on computereconomics.com

Earlier this month, the jury in Las Vegas reached its verdict in the Oracle v. Rimini Street lawsuit, a closely-watched case involving third-party maintenance (3PM) in the enterprise software industry.Although the jury awarded Oracle approximately $50 million in damages, the amount was far below what Oracle expected. Moreover, the jury found that Rimini Street’s copyright infringement was “innocent,” not “willful,” that Oracle suffered no lost profits as a result, and that neither Rimini Street nor its CEO, Seth Ravin, engaged in any tortious business conduct.

Assuming the jury’s verdict stands up against potential appeals, the case sets an important precedent for how 3PM providers should operate to ensure they are not violating the intellectual property rights of software owners. We expect customer use of third-party maintenance will increase as a result of this verdict.

Oracle: Powered by Maintenance FeesLike most large enterprise software vendors, Oracle makes enormous profit on maintenance fees paid by its customers. By Oracle’s own admission in SEC financial filings, the margin on these services is north of 90%. This is an important revenue stream for Oracle because... Continue reading

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