Attorneys for Hewlett-Packard Co and Oracle Corp locked horns in a California state court on Monday, June 4, with their opening statements in the high-stakes lawsuit over Oracle’s decision to stop creating software for HP’s Itanium-based servers. HP seeks up to $4 billion in damages, and the trial comes shortly after Oracle got trumped in federal court, losing a separate trial against Google over smartphone technology.
Top figures from both companies, including Oracle CEO Larry Ellison, President Mark Hurd and HP board member Ann Livermore, could take the stand to testify in the trial. Intel CEO Paul Otellini might also be called to testify, although Intel Corp is not a party in the lawsuit, Reuters reported.
Context
It all started back in March 2011, when Oracle said it would no longer create software for HP's Itanium-based servers, arguing that Intel made it clear that it planned to stop producing the chip, and that Intel was turning its focus towards its x86 microprocessor. Oracle also said it was not leveling with HP over their shared customer base. Meanwhile, HP argued that it has an agreement with Oracle that support for Itanium would continue. Without Oracle support, the HP equipment using the Itanium processor would become obsolete.
According to HP, that commitment was rekindled when it settled an earlier lawsuit with Oracle over the poaching of former HP chief executive Mark Hurd. HP filed a lawsuit against Oracle in state court last year, claiming Oracle's recruitment of Hurd was "anti-customer."
Countersuit
In the current dispute, Oracle said HP's claims "cannot support" its whopping damages estimate. In turn, Oracle filed its own suit against HP accusing the company of false advertising and claiming that HP has failed to disclose the term of its contract with Intel. The HP - Oracle case will not go in front of a jury. Instead, Santa Clara Superior Court Judge James Kleinberg will decide the first phase of the trial, which consists of determining whether there is a contract between HP and Oracle, and on what terms, said HP spokesman Michael Thacker. If the Judge sides with HP, it will be up to a jury to decide whether Oracle violated the contract, added Thacker.
The case between the two tech giants is Hewlett-Packard Company v. Oracle Corporation, No. 11-CV-203163, Superior Court of the State of California, County of Santa Clara.
