Oracle objects to Refco software transfer

Oracle objects to Refco software transfer

The Wall Street Journal is reporting that Oracle is objecting to the transfer of a software contract to Man Financial under the firm's recent acquisition of Refco.

Oracle's objection doesn't relate to the balance outstanding under the current contract with Refco, which amounts to just over $42,000, reports the paper. Rather, the vendor is seeking to protect its intellectual property and possibly renegotiate future fee payments on more favourable terms, according to filings made in the US Bankruptcy Court for the Southern District of New York.

The wrangle relates to a deal signed between Refco and PeopleSoft in 1997. The contract was renegotiated in February, following Oracle's acquisition of PeopleSoft.

In its court filings, Oracle argues partly on procedural grounds, saying it wasn’t properly notified of the sale and Man’s assumption of vendor contracts from Refco.

But Oracle also points out that its software licenses are based on the number of users of the technology, says the WSJ — a setup that would seem to work against the company’s interests if those deals were negotiated using an outdated employee count.

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