Oracle Ordered To Pay $3 Billion Damages To HP Over Itanium
A Californian jury has ordered networking giant Oracle to pay US$3 billion after finding that CEO Larry Ellison and his company had violated a contract to support software for Hewlett-Packard’s use of Itanium chip from Intel.
Oracle decided to stop developing software for use with HP’s Itanium-based servers in 2011, saying that Intel had made it clear that the chip was nearing the end of its life. But HP said it had an agreement with Oracle that support for Itanium would continue, without which equipment using the chip would become obsolete. In the first phase of the trial in 2012, San Francisco court judge James Kleinberg ruled that there had been a contract. The jury on Thursday decided damages after just five hours of deliberations.
“HP is gratified by the jury’s verdict, which affirms what HP has always known and the evidence overwhelmingly showed,” said John Schultz, Hewlett Packard general counsel
Oracle said it will appeal the verdict, which is the largest in the US this year.
The decision is the second trial defeat for Oracle in about a month after the company lost a $9 billion verdict to Google while trying to stake a claim to the search giant’s Android phone business.