In a ruling released on Thursday, US District Judge Phyllis Hamilton known as the $1. 3 billion copyright infringement verdict against SAP "grossly excessive. inch
Oracle had proven actual damages of only $272 million, wrote Hamilton, who required a new trial unless Oracle agreed to accept that amount.
Oracle gives fell 0. 8% to close at $27. 85 on Nasdaq.
The legal battle between two from the software industry's largest players captivated Silicon Valley last year. A three-week test included testimony from such top executives as billionaire Oracle CEO Larry Ellison as well as Oracle President Safra Catz.
The jury awarded Oracle $1. 3 billion over accusations that SAP subsidiary TomorrowNow wrongfully downloaded an incredible number of Oracle files.
Oracle spokeswoman Deborah Hellinger on Thursday said there was "voluminous evidence" about the "tremendous value" of Oracle's stolen intellectual property.
"We believe the jury first got it right and we intend to pursue the full measure of damages that people believe are owed to Oracle, " Hellinger said.
SAP spokesman Jim Dever said the organization is "very gratified" by the decision as it believed the verdict had been wrong.
"We hope the court's action will help drive this matter to some final resolution, " Dever said.
In analysing its options, Oracle can possibly accept the $272 million figure, ask for a new trial, or attractiveness Hamilton's ruling, said Chris Scott Graham, a Northern California intellectual property lawyer who is not active in the case.
"There's going to be some interesting internal discussions at Oracle, inch Graham said, adding that SAP could also appeal the $272 million determine.
Hamilton found Oracle's $1. 3 billion damages award "contrary to the weight from the evidence. "
Oracle "elicited self-serving testimony from its executives regarding the price they claim they'd have demanded in an admittedly fictional negotiation, " Hamilton wrote.
The assess found that Oracle "proffered the speculative opinion of its damages expert, that was based on little more than guesses about the parties' expectations. "
Throughout the trial, SAP's lawyers accused Ellison of plucking damages numbers "out of the environment. "
Eric Goldman, a professor at Santa Clara University School of Regulation, said a $272 million damages award is still very rare in copyright laws litigation.
"Oracle still got a huge dollar amount in a copyright situation, it still knocked TomorrowNow out of the marketplace, and it still got all of the glory of having shined a negative spotlight on SAP, " Goldman stated.
At trial in Hamilton's Oakland, California courtroom, SAP co-CEO Bill McDermott took the stand and apologised to Oracle for that events surrounding TomorrowNow.
Oracle also linked former SAP chief and current Hewlett-Packard CEO Leo Apotheker towards the operations of TomorrowNow during the trial. But it did not appear to create evidence to prove Apotheker knew of any theft.