On 10 September 2012, news sources reported that Oracle had terminated CedarCrestone's Oracle PartnerNetwork agreement and had filed suit in the U.S. District Court for the Northern District of California against CedarCrestone.
Former Oracle partner CedarCrestone is the third provider of application maintenance and support services that Oracle has filed a complaint against. Gartner has reviewed the complaint, which alleges copyright infringement, breach of contract and unfair competition. In previous complaints, the litigants were the independent third-party providers Rimini Street and TomorrowNow, a former subsidiary of SAP (see Recommended Reading ). They and CedarCrestone differ in two ways from other providers of services for proprietary software:
The issue behind these legal actions is how service providers manage and use IP on behalf of the customer that is entitled to the IP. Since the inception of packaged software products, third parties have provided implementation, development and support services for these products and the hardware they run on. CedarCrestone states this applies to less than 1% of its business.
While some providers claim their procedures are compliant with IP protection requirements, Gartner believes others:
In our experience, some software vendors do not take issue with these practices if the partner or independent third party fills a service gap that the vendor does not choose to fill.
The legal action between Oracle and CedarCrestone could take a long time to work through the courts, and lead to any of several scenarios. In the meantime, customers have many options regarding application maintenance and support services, and can choose from a number of partner or independent third-party service providers. In addition, software companies like Oracle remain a source of software product maintenance and support.
Current CedarCrestone customers:
Prospective CedarCrestone and other third-party customers:
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