Broadcasting giant BSkyB today began court
proceedings against IT services provider EDS for allegedly failing to deliver a
cutting-edge CRM system, under a lawsuit originally filed by BSkyB in 2004.

The broadcaster is claiming damages for breach of contract, negligent misrepresentation and
deceit, to the tune of £709 million. EDS made a “deliberate, cynical and dishonest” pitch for the £48
million contract, signed in 2000, Mark Howard, BSkyB’s QC said today in court.

The broadcaster terminated its agreement with EDS
in 2002, and claims to have since spent £170 million on a replacement CRM
system.

EDS vigorously refutes the allegations and will
launch its defence next week.

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