Oracle Corporation (NYSE:ORCL) cracks whip on third-party companies

Posted by Kristi Scott July 26, 2013 0 Comment 1754 views

Oracle Corporation (NYSE:ORCL) is not a company that takes things lying down. It has filed a lawsuit against 3rd party providers. This battle is an age-old one and 3rd party providers providing product support in an illegal manner, is not a new occurrence. Just last week, ORCL sued its IT service providers, Maintech and Terix.

The company norm

The company said that both these providers deliberately engaged in a scheme to misappropriate as well as distribute copyrighted Oracle software code, while they provide support to customers who use its Solaris OS. According to the complaint, the company said that its customers are always required to buy an annual support agreement to get that support.

Customers who purchase support services get an ID number. This number permits them to create a new login for the Oracle support site. They are then eligible to download updates for all the systems that are covered under the agreement.

Illegal methods

As per the complaint, Maintech and Terix induced numerous customers such as Comcast, Sony and the bank of New York Mellon, to obtain various unauthorized Solaris Updates in an improper manner. In some cases, they also used login credentials to the company’s supports sites that were password-protected, after Oracle support on those particular servers had expired.

Maintech and Terix convinced many customers to have their support agreements with Oracle cancelled. They falsely represented that they would be able to provide support and service at a lower cost, in a legal manner.

Stringent action requested

Oracle has asked for a preliminary as well as a permanent injunction against these companies. Apart from this, the company has also asked for an order that dictates that all its intellectual property be returned and restitution and punitive damages paid. These allegations are very similar to the ones that the company has made against service providers like ServiceKey and RimniStreet and the battle seems to be a never-ending one.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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