San Diego – Global software giant SAP America and its German-based parent company, SAP AG, were ordered by a judge to pay Versata Software and Versata Development Group $345 million in damages for a patent infringement.
In August 2009, Versata, which develops enterprise software applications for automating and streamlining critical business processes, won a judgement in the amount of $138.6 million from SAP in the U.S. District Court for the Eastern District of Texas. The verdict was set aside and the judge ordered a new trial for damages but upheld SAP’s patent infringement. The verdict issued in the new trial which lasted one week awarded Versata $260 million in lost profits and $85 million in reasonable royalties.
The infringement at issue involves a patent held by Versata for pricing technology. In the most recent trial, the jury found that SAP’s products, which were redesigned in May 2010, continue to infringe on Versata’s U.S. Patent No. 6,553,350 B2, issued in 2003. Versata’s patented technology dramatically changed front office enterprise software by permitting complex pricing to be processed faster and more efficiently. Versata COO, Chris Smith, stated, “Our patented technology enables Versata customers to deploy best-in-class solutions that competitors simply cannot match. We cherish and defend the mutually successful, multi-decade relationships resulting from our innovation investment.”
The Versata verdict comes as another setback after a jury in California ruled that SAP was guilty of corporate theft and ordered it to pay Oracle $1.3 billion in damages. The issue in that particular case centered on illegal files downloaded by a former SAP subsidiary, TomorrowNow, which provided lower-cost support for Oracle software. TomorrowNow has since ceased operations.
A spokesperson for SAP AG said that the company will likely appeal the verdict.