Hewlett-Packard has been involved in what many say is a contentious relationship with software developer, Oracle for some time. In 2010, a former HP CEO went to work for Oracle, causing many to doubt whether an amicable relationship between the two companies would be possible. In a courtroom outside California, a jury found for HP regarding the contract disputes, to the tune of $3 billion.
HP representatives claim that Oracle was contractually bound to continue to develop software for the company’s servers based on chips manufactured by Intel. However, Oracle asserted that it had no formal obligation to continue developing software for HP after Intel announced that the chips would become obsolete in 2011. Some time the following year, a judge ruled that there was indeed a standing contract between Hewlett-Packard and Oracle.
Oracle spokesmen said the company plans to appeal the recent jury verdict. An appeal will also be filed regarding the judge’s past ruling. An HP vice president recently stated that the jury’s decision has merely emphasized that which HP has claimed all along, that a clear breach of contract existed on Oracle’s part.
Contract disputes often impede productivity and profitability in California companies. Many business owners follow through with court action, such as that taken by Hewlett-Packard against Oracle in the recent case. Anyone considering such action is advised to act alongside experienced and aggressive representation from a business and commercial law attorney as such guidance is often crucial toward achieving a successful outcome. An attorney can act on behalf of a client to protect bottom line interests and make certain that a valid contract is upheld in court.
Source: theverge.com, “Oracle owes HP $3 billion in damages for breach of contract, jury says“, Rich Mccormick, July 1, 2016
