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SAP Shutters Division Amid Oracle Lawsuit

Software maker SAP (NYSE: SAP) will phase out the operations of its TomorrowNow unit, the focus of an intellectual property lawsuit lodged by its archrival Oracle (NASDAQ: ORCL).

SAP said it would conclude the process before Oct. 31 and is working directly with more than 225 TomorrowNow customers in the transition.

"Our goal is to assist our customers in transitioning to a new support provider, including Oracle, without a disruption to their support," TomorrowNow Executive Chairman Mark White said Monday in a statement.

Oracle is suing TomorrowNow for corporate theft, accusing the SAP subsidiary of illegally downloading masses of Oracle customer service materials and passing the documents to SAP. Oracle said last month the damages it seeks could top $1 billion.

TomorrowNow specializes in support for customers using PeopleSoft and JD Edwards software. SAP bought the company in 2005 after Oracle bought PeopleSoft, which in turn had acquired JD Edwards, aiming to profit from uncertainty among PeopleSoft and JD Edwards customers.

SAP has admitted that TomorrowNow employees inappropriately downloaded some Oracle materials.