Monday, April 30, 2007
Investor's Business Daily: SAP Response To Oracle's Lawsuit Is Considered Muted
Investor's Business Daily: SAP Response To Oracle's Lawsuit Is Considered Muted: "The matter isn't Silicon Valley's standard intellectual-property dispute. No one interviewed for this story could recall a precedent for such an unusual lawsuit in the tech industry's history. Several tech analysts and lawyers wouldn't discuss it at all, saying they wanted to stay out of the feud.
The dramatic nature of the charges — and SAP's sedate public defense — gives Oracle the upper hand, says Dezenhall, the crisis-management expert.
'The power of allegation is one of the most powerful tools,' he said. 'This suit allows Oracle to make allegations that put the adversary on the defensive.'
Oracle might be using the suit as part of a communications warfare campaign, making charges even if they don't stick, Dezenhall says. He likens it to 'throwing a refrigerator onto the train tracks.'
On a recent earnings call with financial analysts, Kagermann said the lawsuit shows that Oracle is 'trying to limit customer choices by trying to discredit their competition.'
Just how this case will be resolved is anyone's guess, says Jonathan Paul of the Tech Law Center. If Oracle does win the dispute, the punishment for SAP 'could easily run into millions of dollars in damages,' Paul said.
Whatever the outcome, Oracle's charges are already having an effect on SAP, says Brendan Barnicle of Pacific Crest Securities.
'I think Oracle is trying to rattle SAP and distract them from other things, and they're probably having some success with that,' he said."
The dramatic nature of the charges — and SAP's sedate public defense — gives Oracle the upper hand, says Dezenhall, the crisis-management expert.
'The power of allegation is one of the most powerful tools,' he said. 'This suit allows Oracle to make allegations that put the adversary on the defensive.'
Oracle might be using the suit as part of a communications warfare campaign, making charges even if they don't stick, Dezenhall says. He likens it to 'throwing a refrigerator onto the train tracks.'
On a recent earnings call with financial analysts, Kagermann said the lawsuit shows that Oracle is 'trying to limit customer choices by trying to discredit their competition.'
Just how this case will be resolved is anyone's guess, says Jonathan Paul of the Tech Law Center. If Oracle does win the dispute, the punishment for SAP 'could easily run into millions of dollars in damages,' Paul said.
Whatever the outcome, Oracle's charges are already having an effect on SAP, says Brendan Barnicle of Pacific Crest Securities.
'I think Oracle is trying to rattle SAP and distract them from other things, and they're probably having some success with that,' he said."
