Security Software Firm Sues Oracle Over Source Code Theft

Bob Styran, IT audit expert
January 12, 2011 /

Oracle subsidiary Passlogix has allegedly stolen the source code of security software firm 2FA for its authentication and credential software, said a 31-page lawsuit filed by 2FA.

2FA has directed its ire to Oracle after claiming in the same legal document that Passlogix used its source code for its v-GO UAM products. The Texan security software alleged that Passlogix has been illegally using its authentication and credential software source code even before Oracle took over the company in a US$42 million acquisition.

According to the lawsuit, 2FA has signed an agreement with Passlogix in 2006 binding the two firms in an understanding of how to share license of the software “under very restrictive terms,” but now Oracle engages in a business in which it uses a pilfered source code from 2FA.

2FA has also claimed that a product manager of Passlogix shared the pilfered source code in an email to members of its staff that have no permission to gain access to this information even as the security software did send earlier than that a warning to 2FA that what it was doing was illegal and could lead to court actions.

2FA sought US$100 million in punitive damages from Oracle, though there was an expectation that Oracle’s and Passlogix’s illicit usage of the source code could amount to US$10 million in damages and interest.

In November last year, Oracle has won a case against SAP for an alleged software piracy that had been going on for more than three years. SAP and its executives admitted the illegal actions and agreed to pay Oracle $1.3 billion in financial penalties.


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