Sap Told By Jury to Pay $139 Million to Versata Over Patents


Software

The jury in Marshall, Texas, awarded more than Versata had sought, following arguments yesterday. Versatas lawyers said in opening statements last week that the company deserved slightly more than $100 million. A Versata lawyer said he would seek an order barring SAPs infringement.

Versata, a unit of closely held Trilogy Inc., sued in 2007, claiming violation of five patents related to the way items are priced and systems configured for products with multiple levels. SAPs business suite software used Versata technology, lawyers claimed.

“The verdict underscores what a good patent portfolio they have,” Theodore Stevenson, Versatas lawyer, said yesterday. “They have always had good patents, and this is a public validation of that.”

During the trial, SAPs lawyers argued that there was no infringement and that the patents should be ruled invalid for being obvious.

“SAP is reviewing its legal options and we expect to appeal” the decision, Andy Kendzie, a spokesman for Walldorf, Germany-based SAP, said yesterday in an e-mail.

Fourth-Largest Verdict

The award is the fourth-largest patent jury verdict in the U.S. this year, according to data compiled by Bloomberg. Its the 11th-largest award overall during the year.

SAPs software helps businesses handle tasks such as payroll. The company faces increased competition from Oracle Corp., which has used more than $42 billion in acquisitions to expand into new product lines.

SAP and Oracle have waged their own legal battle. Redwood City, California-based Oracle sued SAP in 2007, alleging it stole copyrighted software codes and support documents. SAP was trying to take Oracle customers and convert them to SAP products, said Oracle, which may seek as much as $1 billion in damages.

SAPs sales fell 10 percent in the second quarter to 2.58 billion euros ($3.7 billion) because of the global recession. Revenue from software and related services fell 5 percent to 1.95 billion euros from 2.06 billion euros.

The case is Versata Software Inc. v. SAP America Inc., 07cv153, U.S. District Court, Eastern District of Texas (Marshall).

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