Enterprise software firm SAP has accepted responsibility for copyright infringement and has a agreed to discontinue the infringing service and pay damages to Oracle.
According to The Wall Street Journal, apart from accepting the charges, SAP has also said that it will provide evidence to prove that Oracle experienced less damages than it has claimed compensation for.
Oracle has asked around $1 billion in compensation but SAP has said that the damages will only amount to "tens of millions" of dollars.
In a statement, SAP's chief financial officer Werner Brandt said: "SAP is committed to compensating Oracle for the harm the limited operations of TomorrowNow actually caused."
In 2007, Oracle had filed a lawsuit against the SAP-owned TomorrowNow, a company which offers support and updates for Oracle products. Oracle had claimed that the company has been routinely downloading its support files without its permission.
TomorrowNow was founded after Oracle acquired PeopleSoft in order to provide an alternative support for PeopleSoft customers who did not want support from Oracle.
Oracle claimed in its lawsuit that SAP was aware that TomorrowNow was stealing Oracle's intellectual property when it acquired it.