Oracle eyes injunction vs. Rimini Street as second lawsuit awaits

Oracle is pursuing a second lawsuit against Rimini Street for copyright infringement and a judge is expected to rule in the weeks ahead on an injunction that would prevent the third-party support provider from operating.

Oracle on Wednesday said that is seeking an injunction on Rimini Street to prevent it from operating. Oracle will also "aggressively pursue" a second lawsuit against Rimini for infringement that covers the dates beyond what was covered in the most recent trial.

A jury awarded $50 million in damages to Oracle on Tuesday with $14 million of that tab to be covered by Rimini CEO Seth Ravin. The judge in the recently completed lawsuit will rule in the weeks ahead whether to grant Oracle an injunction preventing Rimini from operating.

That ruling will be a big deal to Rimini's customer base. Rimini Street said it delivered $30.8 million in third quarter revenue, up 38 percent from a year ago, with 1,164 signed clients. Deferred revenue in the quarter topped $89 million.

Previously: Oracle awarded $50M damages against Rimini Street | Oracle vs. Rimini Street: Third party maintenance blueprint far from set

Oracle spokeswoman Deborah Hellinger said in a statement:

Before the trial began, a federal judge determined that Rimini Street and Seth Ravin infringed Oracle's intellectual property rights in the PeopleSoft and Oracle database product lines. After two weeks of trial, a federal jury found that Rimini also infringed Oracle intellectual property rights in the JD Edwards and Seibel product lines. That same jury awarded Oracle more than $50 million in damages for that infringement and violations of laws protecting computer systems. Oracle further intends to seek an injunction barring Rimini from continuing to operate its business based on massive infringement. This case certainly was not about an honest dispute over licensing terms, as Rimini pretends. It was about IP theft, pure and simple. Rimini and Seth Ravin got caught, and now they have to pay. Oracle will aggressively pursue its claims in the second lawsuit pending against Rimini for the infringement and other misconduct that occurred after the dates at issue in the first trial.

The second lawsuit, which was filed as the first one was ongoing, is worth watching. Rimini claims that it has changed its business practices to remotely access support materials. The copyright infringement came when Rimini hosted Oracle's intellectual property.

Oracle's second lawsuit revolves around Rimini's business practices since the dates covered in the first one. Oracle also doesn't buy that Rimini has changed its business practices. Rimini's approach today looks like this, according to the company.

UPDATE: A Rimini spokesperson called Oracle's take somewhat misleading. According to Rimini:

Rimini Street, not Oracle, filed the second case, suing Oracle and asking the court to legally confirm that Rimini Street's new processes for PeopleSoft update development do not infringe Oracle's copyrights.

With regard to any 'injunction' sought by Oracle, the jury found legally 'innocent infringement,' and not 'willful infringement,' and awarded Oracle a license fee as compensation. Once Rimini Street had the benefit of a judicial interpretation of disputed Oracle software license terms, we stopped all processes challenged by Oracle in this case and completed our transition to an all-remote support model in 2014. Therefore, Oracle's request for injunction for processes no longer in use at Rimini Street is meaningless, as Rimini Street will explain in its forthcoming court filings.

Bottom line: The playbook for third party support remains in flux. And should Oracle win an injunction against Rimini Street the best-known third party support provider will be in peril.

Ed note: Clarified the details around the second lawsuit. That one has been filed. Docket number: 2:14-cv-01699 LRH PAL.

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