Oracle has found itself staring down the barrel of a $100 million lawsuit over accusations that its Passlogix subsidiary is using stolen source code for its authentication and credential management software.
The suit, brought against the company by Texas-based 2FA software, was first spotted by ITPro, and alleges that Passlogix has been passing off 2FA-owned code as its own for years - and that now Passlogix is a wholly owned subsidiary of Oracle, it's time for Oracle to pay up.
2FA's claim is slightly complicated by the fact that Passlogix did hold a licence to use the company's software, purchased back in 2006, but 2FA argues that the licence used "very restrictive terms" and that Passlogix's use of the source code goes far beyond the originally agreed terms.
In the filing, 2FA claims: "2FA has been damaged as a result of Passlogix's and Oracle's illegal actions in amounts that will be determined at trial, but believed to be more than US$10,000,000, plus interest."
With interest and punitive damages accounted for, the company is looking for a payout of more than $100 million from Oracle for its actions - which it claims is Oracle's responsibility: "Oracle has been and continues to sell software misappropriated from 2FA, even after being notified by 2FA of its illegal actions."
Oracle has yet to publicly comment on 2FA's claims - but it will almost certainly be defending this one to the hilt.