SAP admits to "inappropriate downloads" of Oracle code

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Software giant SAP today responded to allegations made by archrival and competitor, Oracle that SAP US support subsidiary TomorrowNow infringed on its Oracle copyrights.

SAP has admitted TomorrowNow employees did make some "inappropriate downloads" from an Oracle website. But SAP chief executive Henning Kagermann said: "SAP did not have access to these downloads, they remained in TomorrowNow's core systems and did not pass through the SAP firewall."

In a press conference held after SAP met its legal deadlines for filing its response to Oracle last night, Kagermann said the downloads were support content and software patches. He also said they were inappropriate because they were for Oracle users using TomorrowNow's third-party services who had not necessarily licensed the products that the disputed downloads were related to.

But at the same time, he stressed: "While the investigation I authorised immediately Oracle filed its suit is far from complete, the large number of the 150 Oracle allegations appear to be unfounded."

Today's admissions come as a bit of a u-turn on SAP's initial indignant reaction to the Oracle lawsuit, filed 22 March in US courts. It alleged that TomorrowNow staff gained unauthorised access to a support website for users of Oracle's PeopleSoft and JD Edwards applications to download content, which SAP then used to offer Oracle customers cut-rate support services and which Oracle characterised as "corporate theft on a grand scale".

But Kagermann still maintains SAP did not profit from the infringements. "We regret very much that this occurred," he said. In addition, SAP has introduced a new executive chairman, into TomorrowNow to oversee a review and update or policies and training. Mark White is chief operating officer of SAP America and former chief financial officer.

SAP had until midnight, local time on Monday to file its response to the lawsuit. But it has also had to respond to requests from the US Department of Justice for documents related to the case from SAP and TomorrowNow. SAP said both companies will cooperate with the request.

The software maker also launched a website http://www.tnlawsuit.com/ where it will publish information about the case, including court filings and a timeline of events, referring questions more detailed enquiries about the findings of its investigation to it while the company is in a quiet financial period.

Kagermann did admit the inappropriate access that is alleged to have taken place at the end of 2006 was only discovered " very recently," but said it should be of no concern to SAP customers - the company will also continue to support TomorrowNow customers. And while saying he was "surprised and disappointed" that Oracle took its grievance direct to the courts instead of contacting SAP first, Kagermann did not rule out a settlement, saying: "We will not speculate on our legal options now."

David Mitchell, software practice leader at Ovum said it was likely this case would run and run. "It's a very complex case with a wide portfolio to cover, so I would expect this one to be settled in court ads opposed to outside," he told IT PRO. In the meantime, he said he didn't expect it to affect customer buying patterns. "The pragmatic position is that I don't think it's either Oracle or SAP's interests to go after customers. But it would be nice if Oracle made announcement to that effect."

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