Oracle 2008 Annual Report Download - page 124

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2009
created in connection with a book regarding our Chief Executive Officer. The court then denied defendants’
motion for summary judgment and plaintiffs’ motion for summary judgment against our Chief Executive
Officer and directed the parties to revise and re-file these motions to clearly specify the precise contours of
the adverse inferences that should be drawn, and to take these inferences into account with regard to the
propriety of summary judgment. The court also directed the parties to address certain legal issues in the
briefing.
On October 13, 2008, the parties participated in a court-ordered mediation, which did not result in a
settlement. On October 20, 2008, defendants filed a motion for summary judgment, and plaintiffs filed a
motion for summary judgment against our Chief Executive Officer. The parties also filed several motions
challenging the admissibility of the testimony of various expert witnesses. Opposition briefs were filed on
November 17, 2008, and reply briefs were filed on December 12, 2008. A hearing on all these motions was
held on February 13, 2009.
On June 16, 2009, the court issued an order granting defendants’ motion for summary judgment and denying
plaintiffs’ motion for summary judgment against our Chief Executive Officer, and it entered a judgment
dismissing the entire case with prejudice. We expect plaintiffs will appeal. Plaintiffs seek unspecified
damages plus interest, attorneys’ fees and costs, and equitable and injunctive relief.
EpicRealm/Parallel Networks Intellectual Property Litigation
On June 30, 2006, we filed a declaratory judgment action against EpicRealm Licensing, LP (“EpicRealm”) in
the United States District Court, District of Delaware, seeking a judicial declaration of noninfringement and
invalidity of U.S. Patent Nos. 5,894,554 (the ‘554 Patent) and 6,415,335B1 (the ‘335 Patent). We filed the
lawsuit following the resolution of an indemnification claim by one of our customers related to EpicRealm’s
assertion of the ‘554 Patent and ‘335 Patent against the customer in a patent infringement case in the United
States District Court for the Eastern District of Texas.
On April 13, 2007, EpicRealm filed an Answer and Counterclaim in which it: (1) denies our noninfringement
and invalidity allegations; (2) alleges that we have willfully infringed, and are willfully infringing, the ‘554
Patent and ‘335 Patent; and (3) requests a permanent injunction, an award of unspecified money damages,
interest, attorneys’ fees, and costs. On May 7, 2007, we filed an Answer to EpicRealm’s infringement
counterclaim, denying EpicRealm’s infringement allegations and asserting affirmative defenses. In August
2007, the patents-in-suit were sold to Parallel Networks, LLC, which thereafter substituted in as the defendant
in place of EpicRealm.
The parties have completed discovery and filed briefing on claim construction and summary judgment
motions. A Markman hearing and oral argument on summary judgment motions were held October 3, 2008.
A court-ordered mediation was held on October 8, 2008, which did not result in a settlement. On December 4,
2008, the court issued an order granting summary judgment that our Web Cache, Internet Application Server,
and RAC Database do not infringe the patents. The court also denied our motion for summary judgment that
the patents are invalid, and denied in part and granted in part Parallel Networks’s motion for summary
judgment that certain prior art references do not invalidate the patents through anticipation. Trial was
scheduled to begin on January 12, 2009, on issues of invalidity and inequitable conduct. On December 23,
2008, the parties reached an agreement allowing Parallel Networks to immediately appeal the court’s
summary judgment order and preserving Oracle’s invalidity and inequitable conduct claims in the event that
the matter is remanded for trial at a later time. On January 23, 2009, Parallel Networks filed a notice of
appeal, and filed its opening brief on April 10, 2009. Under the current schedule, briefing on this appeal is
scheduled to be completed by October 9, 2009. A court-ordered mediation was held on June 1, 2009, which
did not result in a settlement. Further mediation is scheduled for August 2009. We will continue to pursue this
action vigorously.
SAP Intellectual Property Litigation
On March 22, 2007, Oracle Corporation, Oracle USA, Inc. and Oracle International Corporation (collectively,
Oracle) filed a complaint in the United States District Court for the Northern District of California against
SAP AG,
116
Source: ORACLE CORP, 10-K, June 29, 2009 Powered by Morningstar® Document Research℠