UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 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): January 28, 2005

                                NIKU CORPORATION
             (Exact name of registrant as specified in its charter)


            DELAWARE               000-28797                    77-0473454
-------------------------------------------------------------------------------
(State or other jurisdiction       (Commission                (IRS Employer
     of incorporation)              File Number)            Identification No.)


 305 MAIN STREET, REDWOOD CITY, CALIFORNIA                       94063
-------------------------------------------------------------------------------
  (Address of principal executive offices)                    (Zip Code)


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


-------------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

ITEM 1.01     ENTRY INTO MATERIAL DEFINITIVE AGREEMENT

         On January 28, 2005, Niku Corporation (the "Company") entered into a
Separation, Release and Non-Competition Agreement (the "Agreement") with Mark
Moore, Executive Vice President, Products and Services of the Company. Under
this Agreement, Mr. Moore agreed to certain non-interference, non-solicitation
and non-competition covenants following his departure and to a waiver and
release in favor of the Company. In consideration of these agreements, the
Company has agreed to pay Mr. Moore (i) $30,000 and (ii) such additional
amounts as Mr. Moore would otherwise be eligible for under the Company's
Performance Compensation Program were he an employee on the date payments
otherwise were to be made under the program. In addition, the Company agreed to
accelerate the vesting of 44,204 unvested options currently held by Mr. Moore
and to extend the period under which Mr. Moore may exercise his vested options
until May 31, 2005.

         The description of the Agreement set forth above is qualified in its
entirety by reference to the actual terms of the Agreement attached as Exhibit
99.1 hereto.

ITEM 9.01     FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits.

        99.1      Form of Separation, Release and Non-Competition Agreement
                  between the Company and Mark Moore, dated January 28, 2005.


<PAGE>

                                   SIGNATURES

         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, thereto duly authorized.


                                                 NIKU CORPORATION



                                                 By: /s/ Michael Shahbazian
                                                    --------------------------
                                                 Name:  Michael Shahbazian
                                                 Title: Chief Financial Officer
Date:  February 1, 2005

<PAGE>




                                 EXHIBIT INDEX

         EXHIBIT NO.                        DESCRIPTION
         -----------                        -----------

            99.1               Form of Separation, Release and Non-Competition
                               Agreement between the Company and Mark Moore,
                               dated January 28, 2005.
[{"type": "8-K", "sequence": "1", "filename": "pa166614.txt", "secsgml_size_bytes": 4359}]
{"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": "05567314"}, "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"}}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 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): January 28, 2005

                                NIKU CORPORATION
             (Exact name of registrant as specified in its charter)

            DELAWARE               000-28797                    77-0473454
-------------------------------------------------------------------------------
(State or other jurisdiction       (Commission                (IRS Employer
     of incorporation)              File Number)            Identification No.)

 305 MAIN STREET, REDWOOD CITY, CALIFORNIA                       94063
-------------------------------------------------------------------------------
  (Address of principal executive offices)                    (Zip Code)

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

-------------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01     ENTRY INTO MATERIAL DEFINITIVE AGREEMENT

         On January 28, 2005, Niku Corporation (the "Company") entered into a
Separation, Release and Non-Competition Agreement (the "Agreement") with Mark
Moore, Executive Vice President, Products and Services of the Company. Under
this Agreement, Mr. Moore agreed to certain non-interference, non-solicitation
and non-competition covenants following his departure and to a waiver and
release in favor of the Company. In consideration of these agreements, the
Company has agreed to pay Mr. Moore (i) $30,000 and (ii) such additional
amounts as Mr. Moore would otherwise be eligible for under the Company's
Performance Compensation Program were he an employee on the date payments
otherwise were to be made under the program. In addition, the Company agreed to
accelerate the vesting of 44,204 unvested options currently held by Mr. Moore
and to extend the period under which Mr. Moore may exercise his vested options
until May 31, 2005.

         The description of the Agreement set forth above is qualified in its
entirety by reference to the actual terms of the Agreement attached as Exhibit
99.1 hereto.

ITEM 9.01     FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits.

        99.1      Form of Separation, Release and Non-Competition Agreement
                  between the Company and Mark Moore, dated January 28, 2005.
SIGNATURES

         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, thereto duly authorized.

                                                 NIKU CORPORATION

                                                 By: /s/ Michael Shahbazian
                                                    --------------------------
                                                 Name:  Michael Shahbazian
                                                 Title: Chief Financial Officer
Date:  February 1, 2005
EXHIBIT INDEX

         EXHIBIT NO.                        DESCRIPTION
         -----------                        -----------

            99.1               Form of Separation, Release and Non-Competition
                               Agreement between the Company and Mark Moore,
                               dated January 28, 2005.