SAP's TomorrowNow was alleged of illegally downloading copyrighted Oracle software.
The US appeals court has dismissed Oracle's request to revive a $1.3bn jury verdict in its long term copyright infringement case against German software firm SAP, while offering options to seek a lesser amount or pursue a new trial.
In its latest ruling, the 9th US Circuit Court of Appeals in San Francisco noted that the panel of judges implemented 'an undue amount of speculation' in giving $1.3bn in damages in 2010.
Oracle general counsel Dorian Daley said in a statement: "This sends a strong message to those who would prefer to cheat than compete fairly and legally."
Furthermore, the court found that the US District judge William Fletcher was wrong in deciding that Oracle ought to have only $272m of damages.
The judges also agreed to a motion for a new trial if Oracle dismisses the lesser award and support a lower court's decision to ban Oracle from presenting hypothetical-license damages at the new trial and enabling SAP's professional to give evidence.
A SAP spokesman, Andy Kendzie, said: "We consider it very favourable, and think it shows the strength of our position."
The case involves SAP's TomorrowNow, which was alleged in 2007 of illegally downloading copyrighted software by Oracle subsidiary PeopleSoft.