Software Company Oracle asked to pay $3 billion to HP over chip dispute


The order has been given by California jury on Friday to business software company Oracle to pay 3 billion dollars so that it can support data servers powered by Itanium chips.

The company Oracle has taken action properly to the situation and had planned to appeal to a higher court.

“Two trials have now demonstrated clearly that the Itanium chip was nearing end of life, HP knew it, and was actively hiding that fact from its customers,” Oracle general counsel Dorian Daley said.

He added, “Five years ago, Oracle made a software development announcement which accurately reflected the future of the Itanium microprocessor.”

A contract was signed by Oracle in 2011to stop offering products running on HP servers powered by Itanium chips made by Intel.

Oracle contended it never believed it had a contract to indefinitely make its software work on Itanium servers, noting that HP and Intel stopped developing the systems years ago.

A state court ended initial trial four years ago with judge ruling that there had been a contract. The jury had taken decision on Thursday in a California state court in Silicon Valley to focus on the damages in the case.

Oracle has been making its software available on Itanium servers since that judge’s ruling, Daley said.

It was a “clear breach of contract” for Oracle to stop future software development for Itanium servers and that serious damage was done to HP and its customers, HPE general counsel John Schultz said.

HPE have not  reacted  to an AFP request for comment.