German software company SAP (SAP) has agreed to pay competitor Oracle (ORCL) a partial settlement of $120 million over allegations of intellectual-property theft, Reuters reported Wednesday.

According to the Reuters story, which cites unidentified sources, the payment would cover part of Oracle's legal fees and ensure that Oracle wouldn't seek punitive damages against SAP. But the agreement won't be final unless it gets court approval.

Oracle and SAP will also still need to work out an agreement over compensatory damages, or the actual losses caused when a now-defunct SAP subsidiary illegally downloaded millions of Oracle customer service files, according to Reuters. Oracle is seeking about $2 billion in damages, while SAP, which has admitted to wrongdoing, has said it may owe tens of millions of dollars.

Oracle CEO Larry Ellison last week accused former SAP CEO Leo Apotheker of orchestrating the plan to steal ideas from Oracle while running SAP and called for Apotheker to testify. (Apotheker, who was recently named CEO of Hewlett-Packard (HPQ), couldn't be subpoenaed because he lives outside of the U.S.)

SAP declined to comment, citing orders from the judge. Oracle didn't immediately respond to a request for comment from DailyFinance.

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