Menu
Rimini Street did steal Oracle's intellectual property, judge says

Rimini Street did steal Oracle's intellectual property, judge says

The third-part support company had claimed defamation, but a federal judge found Oracle's accusations were true

A federal judge has dismissed a defamation claim against Oracle by third-party support vendor Rimini Street, saying Oracle was telling the truth when it accused the company of "massive theft" of its software.

"It is undisputed that Rimini engaged in theft of Oracle's intellectual property by repeatedly making multiple copies of Oracle's copyrighted Enterprise Software programs to support its software support service clients," Judge Larry Hicks wrote in a ruling filed on Tuesday in a federal district court in Nevada.

Rimini is defending itself against an Oracle suit claiming it stole Oracle's intellectual property. This week's ruling is a major setback for the third-party support provider.

Also in Tuesday's ruling, Hicks found that Rimini Street had committed copyright infringement with respect to Oracle's database software. Earlier this year, he had determined that Rimini Street violated copyrights on Oracle's PeopleSoft application.

In his latest ruling, Hicks dismissed a number of defenses and counterclaims that Rimini Street had made against Oracle, including that Oracle had made defamatory statements to the media in order to hurt Rimini's business.

"Truth is an absolute defense to defamation," Hicks wrote. An Oracle spokeswoman's statement "that Rimini engaged in 'massive theft' of Oracle's intellectual property" is truthful, he added.

No trial date has been set for the case. A Rimini Street spokesman couldn't immediately provide comment Thursday on Hicks' latest ruling.

Rimini Street provides support for SAP and Oracle software customers who no longer wish to pay for vendor-provided maintenance, offering a 50 percent discount on their current support bills. These customers tend to have well-stabilized implementations and no desire to apply the continual upgrades provided under a vendor support contract.

The company's CEO, Seth Ravin, was a co-founder of TomorrowNow, a former SAP subsidiary that offered similar services to Oracle customers. Oracle sued SAP in 2007 over TomorrowNow's business practices, saying they infringed on its copyrights. It subsequently won a sizable judgment after SAP admitted liability, although the matter is not yet concluded.

Oracle then sued Rimini Street in 2010, saying Ravin had duplicated TomorrowNow's "corrupt business model."

Industry observers expect the Oracle lawsuit's outcome will help lay out concrete ground rules for how companies can perform third-party software support legally. Right now, the market is quite limited, with just Rimini and a handful of other small companies in business.

Oracle, like other enterprise software companies, derives a large chunk of its revenue and profit from the annual maintenance fees customers pay for vendor support, and is loath to see those money streams diminished by third-party competitors.

Despite the specter of litigation, Rimini has experienced rapid growth.

Revenue for the quarter ended June 30 rose 37 percent to US$20.4 million, while the number of active support clients jumped 30 percent to 574, according to Rimini Street.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IT managementCIO roleOraclelegalservicessoftwareSAPit strategyintellectual propertyRimini StreetCivil lawsuits

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments