Oracle Fights Off Clustering Software Patent Suit

Oracle has defended its database clustering software in a patent dispute, winning a summary judgment earlier this week against MangoSoft Inc., the maker of a file-sharing service designed for use by small businesses over the Internet.

MangoSoft had claimed patent infringement by Oracle in a case filed in U.S. District Court in New Hampshire in 2002. The small Westborough, Mass., company was seeking an injunction to halt further sales of Oracle clustering software and $500 million in damages. The company had 40 employees and a reported revenue of $517,000 in 2002, the most recent year for which it had filed reports with the SEC. It was the holder of 11 patents at the time of the filing.

An Oracle spokesman says the court's ruling ends the proceedings against Oracle. "This decision eliminates the threat to continued sales and revenues and demonstrates the company's resolve to vigorously defend against unfounded claims attacking its products," the company said in a statement announcing the judgment.

MangoSoft was founded in 1995 and produced Cachelink, a file-sharing product for PCs linked by a local area network, and Mangomind, a product for sharing files securely over the Internet.

MangoSoft issued frequent press releases on its business from May 1997 through May 2002, after which just one additional release was issued in September 2003 on a company partnership. The company filed SEC reports up through May 13, 2002. Its last report indicated that it had lost $3.8 million in 2001 and was losing $ 2.3 million by May of 2002.