SAP has admitted its subsidiary TomorrowNow carried out inappropriate downloads of documents from rival Oracle.

But the software giant says the documents remained in the subsidiary’s separate systems and SAP did not have access to Oracle’s intellectual property.

Oracle is suing SAP, accusing it of hacking into its computer network and stealing vital product information, including proprietary software and support materials. Oracle says it identified 10,000 unauthorised downloads relating to hundreds of programs.

In a written legal response to the claims, SAP acknowledges that TomorrowNow was authorised to download materials from Oracle’s web site on behalf of its customers.

But it says TomorrowNow inappropriately downloaded fixes and support documents that it was not entitled to access. The information stayed in its systems and SAP did not access the intellectual property, says SAP.

‘Even a single inappropriate download is unacceptable from my perspective and we regret very much that this occurred,’ said SAP chief executive Henning Kagermann.

‘When I learned what happened, I promptly took action to strengthen operational oversight at TomorrowNow while assuring that we maintain excellent service for TomorrowNow’s customers going forward.’

The changes include the appointment of a new executive chairman, enforcement of existing procedures and new policies and renewed training for TomorrowNow staff to ensure understanding of procedures.

SAP says it will provide certain documents relating to the case to the US Department of Justice.

Oracle claims SAP is guilty of ‘corporate theft on a grand scale’.

David Mitchell, software practice leader at analyst Ovum, says the case is likely to continue through the legal processes and may still have many months to run.

'There has long been rivalry between SAP and Oracle, only amplified by the multibillion-dollar Oracle acquisition spree that has taken Oracle more firmly into the business applications market,' he said.

'However, when Oracle accused SAP of corporate theft the rivalry took a new and exciting turn, with the prospect of the two companies resolving the dispute outside of court being quite remote.

'Fighting for market share with marketing siege weapons and hand-to-hand combat in the sales trenches is expected, but the intervention of corporate lawyers in this way was not anticipated by anyone.'