Oracle Ruling Tarnishes SAP's U.S. Reputation

Wednesday Nov 24th 2010 by Staff

SAP will pay a record $1.3 billion fine, but says it will have no impact on its fiscal year results.

Reuters: The Oracle-SAP patent infringement case has concluded with the judge ordering SAP to pay a record-setting $1.3 billion fine. SAP, which had previously admitted wrongdoing in the case, called the judgment "disappointing," but said it did not affect the company's financial outlook.

Some analysts disagree. "Even though SAP may appeal the judgment, the huge amount should be negative for the stock price and, will weaken SAP's position in the U.S.," said Jacques Abramowicz, analyst at Silvia Quandt research. "Oracle will use the decision as a marketing tool, wielding the moral cudgel every time new contracts are negotiated."

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