- Associated Press - Friday, December 19, 2014

PORTLAND, Ore. (AP) - A federal judge said Friday that the state of Oregon may be immune from a copyright lawsuit filed by Oracle Inc., over the state’s failed health insurance website, but she’s giving Oracle a chance to improve its argument.

The state and Oracle have filed dueling lawsuits in separate courts. Oracle alleges copyright infringement and breach of contract in federal court. Oregon accuses Oracle of fraud and corruption in a state court case.

Oregon is trying to get Oracle’s copyright case dismissed, noting that states are generally immune from lawsuits under the 11th Amendment to the U.S. Constitution. Oracle argues that Oregon waived its immunity in its contracts with the technology giant.

U.S. District Judge Anna Brown said the company didn’t provide enough information for her to make a determination.

It was the second procedural dispute in which Brown ruled against Oracle but gave the company another opportunity to prove its case, but she said the immunity issue must be thoroughly debated before the case proceeds.

“I am astounded at the number of efforts that Oracle has made to get this right,” Brown said.

The immunity issue is not expected to be resolved until at least April.

Separately, Oracle is trying to move the state’s corruption case from Marion County Circuit Court in Salem to federal court. Brown rejected Oracle’s first attempt last month on procedural grounds. She’s scheduled a February hearing to decide on the second attempt.

Legal experts say a jury in Salem, the state capital, may be friendlier to the state’s arguments.

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