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Dominion's claim against SAP Mexico for the sale of software licences has been admitted for processing

30 April, 2019
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The Mexican Judiciary has admitted the claim lodged by Dominion against the Mexican subsidiary of the German multinational SAP for the sale of software licences, for a sum exceeding 10 million dollars. In addition to this measure, Civil Court number 31 of Mexico City has ordered an embargo on the assets of SAP's Mexican subsidiary for an overall sum exceeding 20 million dollars as surety to cover any payments arising from a possible sentence.


The lawsuit originated in 2013, when SAP Mexico defended before Dominion the profitability of a management platform for small- and medium-sized banks that would operate with software licences provided by SAP Germany. Nevertheless, and in response to the case presented by Dominion, SAP Mexico presented studies based on a "non-existent market" that contained "false" figures and premises to defend the potential of the business.

Understanding that the market indicated by SAP was a real one, Dominion purchased licences from SAP for more than 10 million dollars and assumed various expenses arising from the contracting of personnel and, in general, the dimensioning of the company to the new business that would be generated by the sale of these licences.

To recoup the damage caused, the Spanish services and solutions company initially explored criminal law options but ended up bringing a civil action. The claim was admitted last December, with dossier number 1205/2018, after both the German parent company SAP and its subsidiary in Mexico disregarded court injunctions.

The aim of the claimed lodged by Dominion is to recoup the considerable financial damage caused to the company by SAP Mexico, both for the purchase of the licences and for the investments made for the new business. The Spanish multinational is also requesting the judge to oblige SAP to pay an undetermined sum to cover “punitive damage”. According to the claim, the Mexican subsidiary has incurred in “repeated illicit conduct” to “defraud companies that wish to contract with SAP in good faith”, and to do this it has not hesitated to “repeatedly [offer] software licences for a non-existent market, and under false figures and premises”. It therefore requests that SAP Mexico should be ordered to pay a sum established at the court's discretion.

 

 


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