Austin-based Versata Software continues to hit the ball out of the park every time they’re at bat. Watching this company is like a master’s class in how to be a growing, acquisitive, profitable, and aggressive company. Today’s news is about $345 million in windfall profits from lawsuit proceeds. The pockets of global software company SAP AG are a little lighter after this lawsuit.
Versata, a pioneer in front-office enterprise software, originally won a $138.6 million verdict against SAP in August 2009 in the U.S. District Court for the Eastern District of Texas before the Hon. Charles Everingham IV. That verdict was set aside, with Judge Everingham ordering a new trial on damages and affirming SAP’s infringement.
The jury verdict issued May 13, 2011, followed a one-week trial. The jury found that SAP’s products, which had been redesigned in May 2010, continue to infringe the U.S. Patent No. 6,553,350 B2, issued in 2003. Jurors awarded Versata $260 million in lost profits and $85 million in reasonable royalties.
The patented technology, invented by Versata co-founder Thomas Carter III, revolutionized front office enterprise software by permitting complex pricing to be processed dramatically faster and more efficiently. “Versata has always focused on innovation, resulting in market-leading solutions that drive customer success,” said Randy Jacops, CEO and President of Versata Software, Inc. Versata’s COO, Chris Smith, added, “Our patented technology enables Versata customers to deploy best-in-class solutions that competitors simply cannot match. We cherish and defend the mutually successful, multi-decade relationships resulting from our innovation investment.”
“Versata has always understood that the greatest value in enterprise software is the innovation behind the code,” said Lance Jones, General Counsel to Versata’s parent, Trilogy, Inc. “That is why Versata and the entire Trilogy family of companies maintain a long and consistent practice of filing for patents on new and valuable inventions. The jury’s verdict in this case clearly validates our trust in the patent system as a crucial partner in Versata’s commitment to innovation.”
“We had an incredible team of litigators and technical consultants who worked extremely hard on this case,” Jones continued. “Our team demonstrated remarkable professionalism and execution.” McKool Smith represented Versata, led by Sam Baxter, Scott Cole, Steve Pollinger, Ada Brown and Laurie Gallun Fitzgerald. Neeraj Gupta, Roy Weinstein, and Chris Bakewell provided expert assistance to counsel.
Versata announced it intends to seek a permanent injunction precluding any further infringement by SAP, including the sale or distribution of infringing technology.
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