SAP UK Ltd v Diageo Great Britain Ltd

SAP UK Ltd v Diageo Great Britain Ltd

Only Named Users are authorised to use or access mySAP ERP software, whether directly or indirectly (including via SAP PI); usage by Diageo's Gen2 and Connect users constitutes unauthorised use under the Agreement, entitling SAP to additional licence and maintenance fees, with the quantum to be determined; there is no applicable Named User category for such users, so fees are to be assessed by reference to SAP's price list; Diageo is not entitled to the declarations of non-infringement sought as SAP has not advanced any infringement claim.

Parties
Claimant: SAP UK LIMITED; Defendant: DIAGEO GREAT BRITAIN LIMITED
Jurisdiction
England and Wales
Judgment Date
16 February 2017
Procedural Posture
Civil (commercial/contract) / Judgment on Liability (quantum Reserved)
Outcome
Judgment for Claimant on liability; quantum reserved; declaratory relief denied to Defendant.
Legal Topics
Software Licensing, Breach of Contract, Interpretation of Contracts, Intellectual Property Infringement, Declaratory Relief
Contract Law Intellectual Property Law Commercial Law Software Licensing Breach of Contract Interpretation of Contracts Intellectual Property Infringement Declaratory Relief

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Parties

SAP UK LIMITED

Claimant

DIAGEO GREAT BRITAIN LIMITED

Defendant

Procedural Posture

Civil (commercial/contract) / Judgment on Liability (quantum Reserved)

Legal Issues

  1. 1 Whether only Named Users are authorised to use or access mySAP ERP software under the Agreement
  2. 2 Whether usage by Diageo's Gen2 and Connect systems constitutes unauthorised use or access to mySAP ERP software
  3. 3 Proper categorisation of users under the Named User categories in the Agreement

Ratio Decidendi

Only Named Users are authorised to use or access mySAP ERP software, whether directly or indirectly (including via SAP PI); usage by Diageo's Gen2 and Connect users constitutes unauthorised use under the Agreement, entitling SAP to additional licence and maintenance fees, with the quantum to be determined; there is no applicable Named User category for such users, so fees are to be assessed by reference to SAP's price list; Diageo is not entitled to the declarations of non-infringement sought as SAP has not advanced any infringement claim.

Court Disposition

Judgment for Claimant on liability; quantum reserved; declaratory relief denied to Defendant.

Orders

  • SAP is entitled to additional licence and maintenance fees for unauthorised usage by Gen2 and Connect users, quantum to be determined.
  • SAP is entitled to an account of additional licence and maintenance fees and an order for payment of sums found due.