22 Aug

Oracle versus Rimini Street: A Look at the Legal Struggle

WRITTEN BY Aaron Hemsworth

The latest development

According to the verdict given by the U.S. District Court in Nevada on August 14, Oracle (ORCL) is entitled to receive nearly $30.0 million in legal fees from Rimini Street (RMNI). Oracle alleged that Rimini Street violated the licenses of Oracle products PeopleSoft and Siebel Systems software without the database giant’s consent.

The Federal court ruled in favor of Oracle after an eight-year-long legal battle. The court asked Rimini Street to stop using or distributing Oracle’s database software to any third party. Moreover, Rimini Street will not be allowed to access the source code for testing and development purposes. There is always a possibility that Rimini Street may appeal the court’s verdict.

Oracle versus Rimini Street: A Look at the Legal Struggle

History

The case began in 2010 when Oracle held Rimini Street responsible for downloading and offering Oracle database support materials to its clients without obtaining permission. In 2015, the federal court held Rimini Street responsible for violating Oracle’s 93 product licenses and fined the company ~$126.0 million.

In January, the jury reduced Rimini Street’s fine by ~$50.0 million after the company appealed to the court to counter its verdict on unauthorized access of Oracle software.

Making a strong statement

The win over Rimini Street may allow Oracle to assert its dominance on database management over its rivals. The huge investments made by the database giant to enhance its Fusion ERP (Enterprise Resource Planning) and HCM (Human Capital Management) may drive the company’s top line going forward.

From the graph above, we can see Oracle’s total revenue growth in the last five quarters. During this period, it reported a CAGR (compound annual growth rate) of 0.8%.

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