Oracle is facing a $100m (£63.9m ) lawsuit after security software firm 2FA accused Oracle's subsidiary Passlogix of stealing source code for authentication and credential management.
2FA claims the stolen code was used for Passlogix's v-Go software, which is being used by Oracle, although the alleged theft took place before Oracle took over Passlogix.
"Oracle has been and continues to sell software misappropriated from 2FA, even after being notified by 2FA of its illegal actions," the security firm said in court documents.
2FA said agreement with Passlogix in 2006 provided licence to 2FA software "under very restrictive terms," according to Australian reports.
The security firm has also alleged that a Passlogix product manager sent an e-mail containing 2FA source code to other members of staff who "had no requirement to access" such information.
2FA claims the damage caused by Passlogix's and Oracle's illegal actions is to be worth more than $10m, but the company is seeking over $100m, including punitive damages.
2FA claims Oracle knew, or should have known, that some of the intellectual property it was acquiring in the Passlogix deal was illicitly taken.
Oracle, which won a similar case against SAP in November 2010, has refused to comment while the matter is still before the courts.
Oracle won $1.3bn in damages from SAP for copyright infringement by its TomorrowNow subsidiary.
Oracle filed that suit in 2007, claiming TomorrowNow illegally copied software code from Oracle systems needed to support customers, without buying licences to access it.