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Thu 7 Aug 2008 12:30 PM

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SAP to terminate TomorrowNow subsidiary

Company decides to wind up operations of TomorrowNow in face of legal action by Oracle.

SAP has announced that, by October 31 of this year, it will wind up operations of TomorrowNow, a subsidiary it purchased in 2005 to provide third-party support for Oracle and other applications.

The decision brings the heated dispute over intellectual property between software leaders Oracle and SAP to a close.

In March of this year, Oracle filed a lawsuit against SAP alleging that TomorrowNow had illegally downloaded documentation from an Oracle site. The lawsuit was later amended to include copy infringement and breach-of-contract claims that also included allegations of illegal hacking.

SAP responded by admitting that staff at TomorrowNow had inappropriately downloaded material from Oracle's site. A trial date had been set for February 2009 to settle the dispute, giving both companies enough time to gather evidence. More information on the lawsuit can be found here.

"SAP is working directly with TomorrowNow's more than 225 current customers to help them return to support from Oracle for those customers on PeopleSoft, JD Edwards or Siebel applications or to smoothly transition to new support options," said SAP in a statement.

"Our goal is to assist our customers in transitioning to a new support provider, including Oracle, without a disruption to their support during the wind-down process," said Mark White, executive chairman, TomorrowNow.

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