Oracle ordered to pay HP $3 billion in Itanium case

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A California jury ordered Oracle to pay Hewlett-Packard Enterprise $3 billion in damages in a case over HP’s Itanium servers, an Oracle spokeswoman said on Thursday.

Oracle said it would appeal the verdict.

The Itaniuum processor is made by Intel.

Oracle decided to stop developing software for use with HP’s Itanium-based servers in 2011, saying that Intel made it clear that the chip was nearing the end of its life and was shifting its focus to its x86 microprocessor.

But HP said it had an agreement with Oracle that support for Itanium would continue, without which the equipment using the chip would become obsolete.

In the first phase of trial in 2012, Santa Clara Superior Court Judge James Kleinberg ruled that there had been a contract. The jury on Thursday decided damages.

In a statement, Oracle general counsel Dorian Daley said the company had been providing all its latest software for Itanium servers since Kleinberg’s decision.

“Now that both trials have concluded, we intend to appeal both today’s ruling and the prior ruling,” Daley said.

In a statement, John F. Schultz, HP’s executive vice president, general counsel and corporate secretary, said “HP is gratified by the jury’s verdict, which affirms what HP has always known and the evidence overwhelmingly demonstrated —Oracle’s decision to stop future software development on the Itanium server platform in March of 2011 was a clear breach of contract that caused serious damage to HP and our customers “

-CNBC contributed to this article

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