Oracle Hit With $100 Million Source Code Theft Suit

Wednesday, January 12, 2011



Software firm 2FA has filed a $100 million dollar lawsuit against Oracle subsidiary Passlogix alleging the outfit stole source code related to authentication and user credential software.

The suit is specific to Passlogix's v-Go product, which was developed prior to Oracle's acquisition of the company.

2FA had granted Passlogix limited use of the software in 2006, but says that current uses of the code violate the strict usage agreements.

"Oracle has been and continues to sell software misappropriated from 2FA, even after being notified by 2FA of its illegal actions," 2FA asserts in court filings.

2FA claims monetary damages of $10 million, and $90 million in punitive damages for the infringement.

Oracle find itself on the other side of the intellectual property infringement situation, having won a $1.3 billion dollar lawsuit against competitor SAP late in 2010.

Oracle has not commented on 2FA's lawsuit, which claims that Oracle should have known that some of the the intellectual property acquired from Passlogix was illegally obtained.


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