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Quick Take: The Rimini Street Ruling Has Serious Implications For Oracle Customers

Partial Summary Judgment Means That Outsourced Hosting And Customization May Breach Many Software License Agreements

February 26, 2014

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Why Read This Brief

This report explains why the Nevada District Court's recent decision on some of the issues in the four-year-old Oracle versus Rimini Street case has significant implications for sourcing professionals — and, indeed, the entire technology services industry — beyond its impact on the growing third-party support (3SP) market. The court's ruling represents a partial victory for Oracle on some of the disputed issues, but the main case is still a long way from coming to trial, so there is as yet little impact on companies using 3SPs. The reason that the judge's ruling is so momentous is that it casts doubt on the legality of a wide range of third-party services, including customization, integration, and external hosting. This report explains how the court's literal interpretation of old contract language should concern all services providers and send sourcing professionals hurrying to check their old software agreements.

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