SAP AG (SAP), the world’s largest maker of
business-applications software, was told by a jury to pay $345
million for infringing a Versata Software Inc. patent.
The federal jury in Marshall, Texas, said today that
closely held Versata was owed compensation for sales of certain
SAP enterprise and customer relationship-management software
sold prior to May 2010. The jury awarded $260 million for lost
profits and $85 million as a reasonable royalty.
The damages are more than the $138.6 million Walldorf,
Germany-based SAP was ordered to pay Versata in a 2009 verdict
that was thrown out. U.S. Magistrate Judge Charles Everingham
had ordered a new trial because of rulings by an appeals court
specializing in patent law that set new rules on how financial
penalties should be calculated.
Versata will seek an injunction to stop the infringement,
Scott Cole, a lawyer with McKool Smith who represented the
Austin, Texas-based company, said following the verdict.
“This has been four hard fought years, and the evidence
clearly shows that SAP’s use of our intellectual property caused
harm,” Cole said. “It was a valuable invention.”
SAP May Appeal
SAP said it’s disappointed with the judgment and is
considering whether to appeal.
“We have said all along this is a very complex case,”
Andy Kendzie, a company spokesman, said in a telephone
interview. “Our attorneys are reviewing today’s filing and we
will consider all legal options.”
The patent covers software that can help sales staff
determine the most recent price for products and services. SAP
told jurors that customers weren’t buying its software for that
feature, so any patent royalties should be low.
Versata shouldn’t have been able to claim that it lost
profit because the company hadn’t sold any of the software,
called Pricer, SAP argued in court papers before the trial.
Versata claimed it was undercut by SAP and pushed out of the
The original $138.6 million award was based on the entire
market value of SAP products, which the company said was unfair.
In an Oct. 6, 2009, filing, SAP argued that the largest amount
supported by the evidence is $2.03 million.
The case is Versata Software Inc. v. SAP America Inc.,
07cv153, U.S. District Court, Eastern District of Texas
To contact the reporter on this story:
Bill McQuillen in Washington at
To contact the editor responsible for this story:
Allan Holmes at