Affirms SAP Did Not Have Access to Materials Downloaded by TomorrowNow
SAP AG (NYSE: SAP), together with SAP America and its subsidiary TomorrowNow, on July 2, 2007 Pacific Daylight Time, filed its answer to a complaint originally filed by Oracle Corporation on March 22, 2007 and subsequently amended on June 1, 2007. The filing in U.S. District Court represents the first formal SAP response to Oracle’s complaint. The full text of SAP’s answer can be accessed at www.tnlawsuit.com.
In the answer, SAP said TomorrowNow was authorized to download materials from Oracle’s Web site on behalf of TomorrowNow customers. At the same time, SAP acknowledged that some inappropriate downloads of fixes and support documents occurred at TomorrowNow. Importantly, SAP affirmed that what was downloaded at TomorrowNow stayed in that subsidiary’s separate systems. SAP did not have access to Oracle intellectual property via TomorrowNow.
The United States Department of Justice has requested that SAP and TomorrowNow provide certain documents. SAP and Tomorrow Now intend to fully cooperate with the request.
“Even a single inappropriate download is unacceptable from my perspective. We regret very much that this occurred,” said Henning Kagermann, CEO, SAP AG. “I want to reassure our investors, customers, partners and employees that SAP takes any departure from the high standards we set for all of our businesses very seriously, regardless of where it occurred or how confined it may be. When I learned what happened, I promptly took action to strengthen operational oversight at TomorrowNow while assuring that we maintain excellent service for TomorrowNow’s customers going forward.”
SAP Did Not Have Access to Oracle Materials through TomorrowNow
SAP stated that it did not have access to Oracle materials downloaded by TomorrowNow. SAP explained that it intentionally created a business structure that maintained a firewall between TomorrowNow and SAP and that it was satisfied that SAP AG or SAP America did not access Oracle intellectual property via TomorrowNow.
Most Materials Downloaded Appropriately by TomorrowNow
TomorrowNow often downloads support materials for and on behalf of its customers, who have chosen to seek third-party support for their legacy Oracle applications. Third-party maintenance providers like TomorrowNow depend on their customers – in this instance, companies who use Oracle-provided software – permitting the service provider access to support materials, through the customer’s password, to provide support and service for those customers’ Oracle applications. SAP acknowledged that some inappropriate downloads occurred at TomorrowNow.
Changes Announced at TomorrowNow
In addition to announcing its filing with the Court, SAP also announced that it has instituted changes in TomorrowNow’s operational management to ensure compliance with appropriate business practices. These steps include:
Appointment of SAP America Chief Operating Officer and former Chief Financial Officer Mark White as TomorrowNow’s Executive Chairman to manage TomorrowNow operations, including compliance programs. Andrew Nelson, TomorrowNow’s CEO, will report to Mark White;
Enforcement of existing procedures and new policies;
Renewed training for TomorrowNow employees to assure understanding of the policies and procedures.
SAP Launches Web Site for TomorrowNow Lawsuit
SAP announced a Web site that provides complete and immediate information regarding this suit. Located at www.tnlawsuit.com., the Web site includes Court filings, a timeline, SAP and TomorrowNow statements and announcements regarding the case, and background information.
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