HP Pay BSkyB $318 Million To Settle Lawsuit

Hewlett-Packard has agreed to pay $318 million to BSkyB to settle a lawsuit.

The lawsuit had been filed by the broadcasting company because of a faulty EDS customer relationship management (CRM) system provided to BSkyB by HP.

BSkyB told its investors that the two companies had settled their differences once and for all, with HP paying $50 million more than the high court had ordered it to pay in interim payments.

The broadcasting company had sued HP for $700 million after it found that the EDS CRM deployed by the company had been misrepresented by HP, having failed to carry out operations guaranteed by HP.

The high court had earlier ordered HP to pay $270 million after having determined that the EDS was liable only in certain areas.

Analyst firm Gartner has previously predicted that the maturing software market forces would increasingly favour users over provider claims.

French Caldwel, vice president of Gartner research, said: “These rulings are an important sign that the tide is turning for liability in the software industry. Customers can win damages for business failures caused by software that is not fit for purpose and is represented.”