SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, DC 20549

                              ----------------

                                  FORM 8-K


                               CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF
                    THE SECURITIES EXCHANGE ACT OF 1934

                              ----------------

      Date of Report (date of earliest event reported): July 12, 2002


                              NIKU CORPORATION

           (Exact Name of Registrant as Specified in its Charter)


        Delaware                       000-28797              77-0473454
(State or Other Jurisdiction of   (Commission File Number)  (I.R.S. Employer
Incorporation or Organization)                              Identification No.)


                             350 Convention Way
                       Redwood City, California 94063
            (Address of Principal Executive Offices) (Zip Code)


     Registrant's telephone number including area code: (650) 298-4600


                               Not Applicable
       (Former name or former address, if changed since last report)





ITEM 5.  OTHER EVENTS.

In a continuing effort to reduce the Company's overhead and expenses, the
Company has determined that is in the best interests of the Company to seek
terminations of the leases for facilities that it has vacated or expects to
vacate. The most significant lease is for its current headquarters at 350
Convention Way, Redwood City, California (the "HQ Lease"). A copy of the HQ
Lease is attached as Exhibit 10.01 to the Company's Form 10-Q for the
quarter ended April 29, 2000. In addition, the material terms of the HQ
Lease are described in "Item 2 - Management's Discussion and Analysis of
Financial Condition and results of Operations - Liquidity and Capital
Resources" in the Company's Form 10-Q for the quarter ended April 30, 2002.

The Company is in the process of negotiating with its landlord to terminate
the HQ Lease. As a result of these negotiations, among other reasons, the
Company did not make a July payment of approximately $530,000 to the
landlord. The Company does not presently intend to make additional payments
until the Company and its landlord are able to reach a mutually
satisfactory termination of this unfavorable lease. On July 9, 2002, the
Company received from the landlord written notice of the Company's failure
to make the July payment. An event of default occurs three days following
receipt by the Company of a valid default notice under the terms of the HQ
Lease, which provides for a number of remedies in the event it is
established that the Company is in default under the HQ Lease. Negotiations
with the landlord have occurred over the last several days and are
continuing.

The Company expects to take similar actions with respect to leases in a
number of other locations, including Danville, California, Lincolnshire,
Illinois, Atlanta, Georgia and New York, New York.


FORWARD-LOOKING STATEMENTS - THE PRIVATE SECURITIES LITIGATION REFORM ACT.
This 8K contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
about the negotiations regarding certain lease terminations. A variety of
factors could cause the results of such negotiations to differ materially
from those expressed or implied by the forward-looking statements. No
assurances can be given that such negotiations will prove successful or
that the Company will not be deemed to be in default under one or more of
such leases.

(c)      Exhibits.

         None

                [Remainder of page left blank intentionally]



                                 SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                       NIKU CORPORATION


                                       By: /s/ Joshua Pickus
                                          -----------------------------------
                                          Name:  Joshua Pickus
                                          Title: Chief Financial Officer


Date:  July 12, 2002
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{"company-data": {"conformed-name": "NIKU CORP", "cik": "0001076641", "assigned-sic": "7372", "irs-number": "770473454", "state-of-incorporation": "DE", "fiscal-year-end": "0131"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28797", "film-number": "02702311"}, "business-address": {"street1": "305 MAIN ST", "city": "REDWOOD CITY", "state": "CA", "zip": "94063", "phone": "6502984600"}, "mail-address": {"street1": "305 MAIN STREET", "city": "REDWOOD CITY", "state": "CA", "zip": "94063"}}
SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, DC 20549

                              ----------------

                                  FORM 8-K

                               CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF
                    THE SECURITIES EXCHANGE ACT OF 1934

                              ----------------

      Date of Report (date of earliest event reported): July 12, 2002

                              NIKU CORPORATION

           (Exact Name of Registrant as Specified in its Charter)

        Delaware                       000-28797              77-0473454
(State or Other Jurisdiction of   (Commission File Number)  (I.R.S. Employer
Incorporation or Organization)                              Identification No.)

                             350 Convention Way
                       Redwood City, California 94063
            (Address of Principal Executive Offices) (Zip Code)

     Registrant's telephone number including area code: (650) 298-4600

                               Not Applicable
       (Former name or former address, if changed since last report)

ITEM 5.  OTHER EVENTS.

In a continuing effort to reduce the Company's overhead and expenses, the
Company has determined that is in the best interests of the Company to seek
terminations of the leases for facilities that it has vacated or expects to
vacate. The most significant lease is for its current headquarters at 350
Convention Way, Redwood City, California (the "HQ Lease"). A copy of the HQ
Lease is attached as Exhibit 10.01 to the Company's Form 10-Q for the
quarter ended April 29, 2000. In addition, the material terms of the HQ
Lease are described in "Item 2 - Management's Discussion and Analysis of
Financial Condition and results of Operations - Liquidity and Capital
Resources" in the Company's Form 10-Q for the quarter ended April 30, 2002.

The Company is in the process of negotiating with its landlord to terminate
the HQ Lease. As a result of these negotiations, among other reasons, the
Company did not make a July payment of approximately $530,000 to the
landlord. The Company does not presently intend to make additional payments
until the Company and its landlord are able to reach a mutually
satisfactory termination of this unfavorable lease. On July 9, 2002, the
Company received from the landlord written notice of the Company's failure
to make the July payment. An event of default occurs three days following
receipt by the Company of a valid default notice under the terms of the HQ
Lease, which provides for a number of remedies in the event it is
established that the Company is in default under the HQ Lease. Negotiations
with the landlord have occurred over the last several days and are
continuing.

The Company expects to take similar actions with respect to leases in a
number of other locations, including Danville, California, Lincolnshire,
Illinois, Atlanta, Georgia and New York, New York.

FORWARD-LOOKING STATEMENTS - THE PRIVATE SECURITIES LITIGATION REFORM ACT.
This 8K contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements
about the negotiations regarding certain lease terminations. A variety of
factors could cause the results of such negotiations to differ materially
from those expressed or implied by the forward-looking statements. No
assurances can be given that such negotiations will prove successful or
that the Company will not be deemed to be in default under one or more of
such leases.

(c)      Exhibits.

         None

                [Remainder of page left blank intentionally]

                                 SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                       NIKU CORPORATION

                                       By: /s/ Joshua Pickus
                                          -----------------------------------
                                          Name:  Joshua Pickus
                                          Title: Chief Financial Officer

Date:  July 12, 2002