HP-EDS has been ordered to pay BSkyB £200 million in an interim payment following its legal battle with the broadcaster over a failed CRM implementation.

The Technology and Construction Court ordered payment to be made by 4pm on 17 February, at a hearing today (3 February).

The court heard that HP-EDS had offered satellite TV group BSkyB £200 million to settle its legal battle over a failed CRM implementation. However, the two sides are still to negotiate precisely what HP’s offer covers, with legal fees, interest and tax liabilities likely to be points of contention.

Both parties have racked up between them what is thought to be legal costs of over £40 million.

In a statement, BSkyB said: "EDS have agreed to make interim payment of £200m to Sky within the next 14 days. The full amount of damages will be finalised in due course."

Last week EDS was found liable for fraudulent misrepresentation, after the former head of its customer relationship management division lied about realistic timescales for delivering the £48 million system, as he made a sales pitch for the deal.

BSkyB, owned by Rupert Murdoch's News Corporation, immediately announced it was expecting damages of £200m and HP-EDS said it would appeal the judgement.

Commenting on last week’s ruling, HP said: "While we accept that the contract was problematic, HP strongly maintains EDS did nothing to deceive BSkyB."


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