SETTLEMENT TALKS between Oracle and arch rival SAP have reportedly collapsed.

The Redwood giant sued SAP in 2008 over claims that Tomorrow Now employees unlawfully downloaded Oracle patches and other material in order to poach unsuspecting customers.

Oracle has apparently expanded its complaint and now alleges that SAP executives were aware of Tomorrow Now's "illegal business model" when they purchased the company.

The beleaguered SAP admits that that Tomorrow Now staff made "inappropriate downloads" from Oracle's Web site, but denies an extensive pattern of illegal activity. Meanwhile, SAP is slated to close its Tomorrow Now unit after failing to find a prospective buyer.

The two companies are scheduled to hold an October 20th conference call with the San Francisco court hearing the case. A trial date is currently set for February 2010. µ

L'Inq
PC World