Rimini Street Statement on Oracle v. Rimini Street – update October 12

LAS VEGAS, October 12, 2016 – Rimini Street, Inc., the leading global provider of independent enterprise software support services for SAP SE's (NYSE:SAP) Business Suite, BusinessObjects and HANA Database software and Oracle Corporation's (NYSE:ORCL) Siebel, PeopleSoft, JD Edwards, E-Business Suite, Oracle Database, Oracle Middleware, Hyperion, Oracle Retail,  Oracle Agile PLM and Oracle ATG Web Commerce software, today issued the following statement on the Oracle v. Rimini Street litigation:

Litigation Summary and Appeal

In January 2010, Oracle sued Rimini Street alleging, among other things, that Rimini had infringed Oracle's copyrights while engaging in software support for Oracle's PeopleSoft, JD Edwards, and Siebel products. Rimini Street changed its processes no later than July 2014 in response to Court rulings in the litigation. The trial started in September 2015, and the Jury rendered its verdict in October 2015 and awarded Oracle $50 million for "innocent" copyright infringement and violation of certain computer access laws. (Oracle had sought more than $250 million in damages.) The Court has now ruled on all post-trial motions and awarded Oracle approximately $74 million in fees, costs, and interest, and ordered Rimini Street to refrain from conduct previously adjudicated as unlawful.

Rimini Street will take responsibility for its past practices and pay a one-time fair market license fee of $35.6 million awarded to Oracle for innocently infringing certain of its software copyrights. Rimini Street plans to pursue an appeal of the other aspects of the judgment, including the $88 million balance of the total $124 million awarded to Oracle, as well as the injunction. Rimini Street believes it has strong bases for its appeal, which is likely to continue for several more years before a final outcome.

Third Party Support Lawful for Oracle Licensees to Purchase and Use

Oracle software licensees have free market choice to shop a variety of different support vendors, services offerings and pricing models. Detailed testimony and admissions provided by Oracle executives and witnesses in the 2015 trial confirmed that third-party support is lawful for Oracle licensees to purchase and use. The evidence presented at trial supported several important principles underlying Rimini Street's operations and current service offerings: (a) Oracle licensees can choose not to renew their Oracle annual support; (b) Oracle licensees can select, switch to, and use a third-party support provider or self-support instead of renewing and paying Oracle for annual support services; (c) third parties like Rimini Street can legally offer third-party support options to Oracle licensees; and (d) support services can be provided to clients on their sites directly or utilizing a remote access connection.

Jury Found "Innocent" (Not "Willful") Infringement

The Jury found that Rimini Street did not "willfully" infringe Oracle's software copyrights, and further, found all infringement to be "innocent." The Court instructed the Jury that the definition of "innocent infringement" means Rimini Street "was not aware that its acts constituted infringement" and "had no reason to believe that its acts constituted infringement." The Jury also found Rimini Street violated computer access laws arising from Rimini Street's use of automated download processes for a brief period contrary to Oracle's website terms of use in effect at the time. The jury rejected Oracle's claims of improper business conduct, including inducing breach of contract and interference with Oracle's customer relationships. The jury also rejected Oracle's claims for lost profits and punitive damages.

Rimini Changes Processes

Rimini Street completed the transition to non-infringing alternative processes no later than July 2014, and developed a revised PeopleSoft software development process and tools to ensure compliance with the Court's decisions. In addition, by early 2009, Rimini Street had stopped using automated tools to download software from Oracle servers in compliance with Oracle's then-current website terms of use.

Payment of Final Judgment

Rimini Street intends to pay all required amounts, pending appeal, with a combination of financing, insurance proceeds, and its own cash.

Injunction Order

The Court has issued a permanent injunction related to Rimini Street's provision of support for Oracle's PeopleSoft, JD Edwards, Siebel, and Database product lines. The injunction does not prohibit Rimini Street's ongoing or future provision of support for these product lines, but rather constrains the manner in which Rimini Street may continue to provide support services for these product lines. Rimini Street has already filed an appeal of the injunction order, and will seek to have it overturned on the grounds that it is legally flawed, vague, and overbroad.

43 Consecutive Quarters of Growth, Global Success and Disruptive Innovation

Rimini Street has successfully provided independent maintenance services to over 1,600 signed clients around the world since 2005, including more than 135 Fortune 500 and Global 100 companies. The Company has reported, including its just-completed fiscal 2016 Q3 preliminary results, 43 consecutive quarters of revenue growth, a revenue run-rate of more than $163 million and a compound annual growth rate of 38% since 2012. Rimini Street is planning an IPO in 2017, subject to market conditions and Board approval.

"Rimini Street has spent more than a decade re-inventing enterprise software support, and will continue disrupting the outdated, high-cost, poor service, vendor support model that no longer meets client needs," said Seth A Ravin, CEO, Rimini Street. "Enterprises need a support service that enables innovation agility and maximizes return on investment, cost savings and value in their IT spend. By switching to Rimini Street's award-winning support, clients can achieve all of these objectives and also enjoy premium services such as full support for all customizations and add-ons at no extra cost."

 

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner. The Company offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. Nearly 2,100 Fortune 500, Fortune Global 100, midmarket, public sector and other organizations from a broad range of industries rely on Rimini Street as their trusted application enterprise software products and services provider. To learn more, please visit https://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn.

Forward-Looking Statements

Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “seem,” “seek,” “continue,” “future,” “will,” “expect,” “outlook” or other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to: the unknown duration and economic, operational and financial impacts on our business of the COVID-19 pandemic and the actions taken by governmental authorities, clients or others in response to the COVID-19 pandemic; catastrophic events that disrupt our business or that of our current and prospective clients; changes in the business environment in which Rimini Street operates, including inflation and interest rates, and general financial, economic, regulatory and political conditions affecting the industry in which Rimini Street operates; adverse developments in pending litigation or in the government inquiry or any new litigation; our need and ability to raise additional equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the terms and impact of our outstanding 13.00% Series A Preferred Stock; changes in taxes, laws and regulations; competitive product and pricing activity; difficulties of managing growth profitably; the customer adoption of our recently introduced products and services, including our Application Management Services (AMS), Rimini Street Advanced Database Security, and services for Salesforce Sales Cloud and Service Cloud products, in addition to other products and services we expect to introduce in the near future; the loss of one or more members of Rimini Street’s management team; uncertainty as to the long-term value of Rimini Street’s equity securities; and those discussed under the heading “Risk Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on May 7, 2020, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication.

© 2020 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.

איש קשר ליחסי משקיעים:

Dean Pohl

Rimini Street, Inc.

+1 925 523-7636 dpohl@riministreet.com
איש קשר ליחסי תקשורת:

Melanie Ferdandes

Melanie Ferdandes

melanie@antaogreer.com