Oracle Working to Settle Software Sharing Claims

OAKLAND, Calif. (CN) - Settlement plans require a hold on claims against companies that allegedly impermissibly shared Oracle software patches and updates, a federal judge ruled.

In a February 2012 complaint, Oracle said DLT Federal Business, Service Key and Angela Vines violated a rule in which clients can download software patches directly from Oracle's site but cannot share access credentials with others.

The original complaint said the defendants took "vast quantities of software patches and updates for Oracle's Sun Solaris Operating System and other technical support files used on Oracle's Sun computers." Then they allegedly lied to the U.S. Navy, the Federal Drug Administration and other parties about having the ability to provide Oracle products.

U.S. District Judge Saundra Armstrong ordered a stay on the suit last week because the parties have decided to settle.

"Oracle and DLT-FBS have entered into a Settlement Agreement to resolve Oracle's claims against DLT-FBS, and those parties have agreed on the terms of this stipulated judgment," she wrote. "This settlement does not resolve, affect, or modify Oracle's claims against defendants Service Key LLC and Angela Vines, which were resolved in the Settlement Agreement and Proposed Stipulated Judgment agreed to by those parties."

In the settlement reached a week earlier, DLT will pay $395,000 to Oracle and will destroy any traces of the software patches in all of their computers and computer storage facilities. Oracle will also audit DLT annually for the next five years.

DLT employees are also not allowed to log in to any password-protection portions of Oracle's website and cannot sell, give or receive any access credentials to anyone. The proposed judgment also forbids employees from lying to third parties about having permission to share access of any Oracle products.

Oracle is barred under the settlement from claiming anything against DLT-FBS for unjust enrichment or for violations of the Computer Fraud and Abuse Act and Lanham Act because such claims "have been resolved by the parties pursuant to a confidential settlement agreement." Oracle's claim for interference with prospective economic advantage and unfair competition can only apply to breach of contract only and not on the basis of fraud.

DLT-FBS cannot recover anything for their counter-claims of violations of the Sherman Act, Lanham Act, false advertising, defamation and trade libel, interference with contractual relations and unfair competition.

Neither company can recover attorneys' fees and must pay their own costs. The stay will be active until Sept. 30 pending submission of the judgment and approval of the court.

Oracle is represented by Geoffrey Howard of Bingham McCutchen in San Francisco. Valerie Margo Wagner of GCA Law Partners in Mountain View represented Service Key LLC. DLT is represented by Turner Boyd and Cloudigy Law.

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