19 February 2014Copyright

Oracle software battle to continue after mixed ruling

A US court has backed most of Oracle’s claims that its computer software was copied without authorisation by rival software company Rimini Street.

Oracle, best known for making and licensing computer software, also provides “software support” services to its customers.

In direct competition with Oracle, US company Rimini Street provides similar “software support” services to its own customers by licensing some of Oracle’s programs.

Oracle does not oppose the legality of this service.

In 2010 Oracle sued Rimini for allegedly copying three of Oracle’s programs – PeopleSoft, J.D. Edwards and Siebel – onto its own computer systems.

Rimini had used the copies, Oracle alleged, to provide “software support” services to four of its customers, the City of Flint, the Pittsburgh Public Schools, Giant Cement and Novell.

Despite receiving these services from Rimini, each of those customers licenses at least one of Oracle’s software programs under a separate agreement.

Judge Larry Hicks, sitting at the US District Court for the District of Nevada, ruled on the case on February 13.

In its evidence, Rimini admitted copying Oracle’s programs so it could develop and test software updates for its customers. But it argued that its copying was authorised by the “express language” of Oracle’s licensing agreements with the City of Flint, the Pittsburgh Public Schools, Giant Cement and Novell.

Rimini was relying on these contracts as part of its defence.

The copying was also “implicitly” allowed, Rimini argued, because Oracle had shipped back-up copies of the licensed software’s installation disc to Rimini.

Rimini cited three defences – express licence, consent of use and implied licence.

Assessing the express licence defence, Hicks said none of Oracle’s licence provisions with either the City of Flint or the Pittsburgh Public Schools “expressly authorise” Rimini to copy Oracle’s software. He granted Oracle summary judgment on those claims.

But he denied Oracle summary judgment on its claims against Giant Cement and Novell.

With Giant Cement, Hicks said, there are “disputed issues of material fact” over whether Rimini used the copies for “archival purposes” or whether Rimini accessed the software’s source code.

Oracle’s licence with Giant Cement allows it to use copies for archival reasons, but not to access the source code.

For Novell, its contract entitled the company to make various copies of Oracle's software, Hicks found, including archival, emergency backup or disaster-recovery testing copies.

Hicks also rejected Rimini’s defences of consent of use and implied licence, granting Oracle summary judgment.

“There is no evidence that Oracle consented to or encouraged Rimini to use the shipped installation media to make copies of the software on Rimini’s systems,” he said.

In a statement sent to WIPR, Seth Ravin, Rimini’s chief executive, said the decision was a “victory” for the company on some “key issues”.

“However, Oracle also prevailed on some issues,” he added. “Looking forward, much of the case remains yet unresolved and will be decided by a jury.

“Rimini Street looks forward to our ... day in court, and we will continue to vigorously defend the lawsuit,” he said.

Oracle did not respond to a request for comment.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Adrian Tapping at atapping@newtonmedia.co.uk