Astea (UK) Ltd v Time Group Ltd
| Jurisdiction | England & Wales |
| Judge | H.H. Judge Richard Seymour Q. C. |
| Judgment Date | 09 April 2003 |
| Neutral Citation | [2003] EWHC 725 (TCC) |
| Court | Queen's Bench Division (Technology and Construction Court) |
| Docket Number | Case No: HT-02164 |
| Date | 09 April 2003 |
[2003] EWHC 725 (TCC)
His Honour Judge Richard Seymour Q.c.
Case No: HT-02164
IN THE HIGH COURT OF JUSTICE
QUEENS BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION COURT
St. Dunstan's House,
133137, Fetter Lane,
London, EC4A 1HD
Cyril Kinsky (instructed by K Legal for the Claimant)
Sa'ad Hossain(instructed by Halliwell Landau for the Defendant)
JUDGMENT: APPROVED BY THE COURT FOR HANDING DOWN (SUBJECT TO EDITORIAL CORRECTIONS)
Introduction
Astea (UK) Ltd. ("Astea") carries on business as a provider of software, in particular a software package called "ServiceAlliance" ("the Software"). It is a subsidiary of a Delaware corporation, ASTEA International Inc., but is itself a small company, with only some twenty employees.
As I understand it, the Software is designed for use independently of other systems to enable a user to undertake automated field service operations, that is to say, the provision to customers of the facility of having equipment belonging to the customer serviced at the customer's own location, as well as at the user of the Software's workshop. When used independently the Software is described as "out of the box" software, meaning that all that is required to use it is its installation in appropriate computer hardware. However, a customer has a number of options as to the precise form in which the facilities offered by the Software in its "out of the box" manifestation are enjoyed. These options are selected by use of something called the "AllianceStudio toolkit". The process of selecting and giving effect to options available as standard is called "configuration".
The Software can also be linked with other software systems so as to provide, in conjunction with them, facilities beyond those which are the core elements of the Software itself. To enable this to happen links to the other relevant software have to be created by means of what are called "interfaces". The process of creating such interfaces is sometimes called "integration".
The managing director of Astea is Mr. Pat Noble. At paragraph 7 of his first witness statement, dated 24 January 2003, in a passage which I accept as accurate, Mr. Noble described the three core elements of the Software in this way:-
"(a) Contract capability
ServiceAlliance will record information on the computer screen that tells the customer that a contract exists with a third party for maintenance of a certain product. If you take a simple example of a washing machine, perhaps the owner of this washing machine pays a [sic] £100 a year for one of our customers to maintain and fix the machine whenever necessary. Astea's product allows a customer to take a call from the owner of the washing machine to say that it is broken, the system checks as to whether a contract exists, and also whether it is still in date, and if all is in order the call is logged, and the customers determine whether billing is appropriate or not. This really represents the front end of the system, which allows the customer to get the money in the door.
(b) Call handling and despatch
This element of the product moves the system onto the next stage, and allows a customer to perhaps write onto the system that (in the washing machine example) there is water spilling onto to [sic] the floor. This detail is logged into the system, and so is the fact that an engineer is required to visit the client. The system itself will search for a field engineer at the correct skill level who can be available at the requested time, and that engineer can then be booked through the system. There are lots of clever options in this aspect of the product, and it is possible to send information that is logged to the engineer on his hand held terminal, and the opposite is true such that the engineer can record details of what he did on any particular visit, and return this information to despatch, or he can log it against the costs. This information (such as the types of visits that the engineers have been called out to do, the remedial work that is required, and so on) can all then be analysed so that the customer is able to become more client focused, and also on a very practical level can monitor stock. This would become relevant where the information coming back from the engineer is that he has had to for example replace a rubber seal that was broken. The system then knows that this was the part that was required for the job, which brings me onto the third core element.
(c) Spare parts
Astea's product will allow a customer to track spares, and also has a programme which can automatically reorder certain parts, to maintain a minimum level at all times. This is really the logistics module, which will not only record details of where the spare parts are, but also which engineer may have reasonable access to them and handle the job."
Time Group Ltd. ("Time") carries on business as manufacturer and retailer of personal computers. The vast majority of its sales is, and has been, historically, to individual consumers. However, a relatively small proportion of sales – apparently some 2% or so —is, and has been, made to businesses and to educational establishments. Attached to every sale is a warranty in relation to the quality of the goods sold which is valid for a period. In the case of sales to individual consumers, if a claim is made upon the warranty the relevant goods have to be returned to Time for appropriate remedial action. However, in the case of business and educational customers a Time engineer will attend the customer's site to undertake repairs.
As I understand it, a substantial part, at least, of the retail sales operation is conducted on the telephone rather than in shops, although Time also has a significant network of retail outlets. The telephone sales operation is conducted, as is now common, through a Call Centre, which in the terminology of Time is called the "Customer Care Centre", but to which I shall refer in this judgment simply as "the Call Centre". The Call Centre is, and was at all times relevant to this action, also charged with responsibility for dealing, in the first instance, with claims by individual consumers under warranties in relation to equipment sold to them. In the event of a claim being accepted a repair order, called by Time a "Return Material Authorisation", or "RMA", is issued and the relevant goods are sent to Time's service centre ("the Service Centre") for repair. The Service Centre is also the base from which the field service network is operated which deals with claims by business or educational customers under warranties. It seems that a means, perhaps the principal means, by which business and educational customers of Time notify claims for repair under warranty of goods supplied is also by telephone to the Call Centre.
In order to operate the Call Centre effectively Time needed appropriate computer-based support. Until about the middle of 1999 that computer-based support was provided by a management information system called "Swan" installed on appropriate computer hardware. From about the beginning of 1999 Time was considering replacing Swan and was interested in utilising three different software packages to do so. The principal package was an office accounting package which provided a means by which customer orders could be taken and processed, stock could be managed, product manufacture could be scheduled and internal accountancy and financial functions fulfilled. In this judgment I shall call that package "the Accounting Package". A further package which it was envisaged would be required was one to facilitate the performance of the sales functions of the Call Centre by handling calls from existing customers, providing technical assistance and passing requests for repair of equipment to the Service Centre. In this judgment I shall call that package "the Call Centre Package". The third of the packages which was contemplated was one to manage all aspects of service and repair, whether undertaken on goods returned to the Service Centre or by attendance of a Time engineer at the premises of a business or educational customer. In this judgment I shall call that package "the Service Package". It was obviously envisaged that the Accounting Package, the Call Centre Package and the Service Package would be integrated the one with the others by appropriate interfaces.
As matters turned out Time decided that a software product called "Tetra CS/3", to which I shall refer in this judgment as "CS/3", created by a company called Tetra International Ltd., but which traded under the name Sage Tetra, should be utilised as the Accounting Package. CS/3, as I understand it, is an "out of the box" software package, but it possesses the ability to be integrated with other software packages via appropriate interfaces. Time entered into an agreement in writing dated 3 March 2000 with Apex Computers Ltd., which traded under the style or title "Apex Systems", for the supply of CS/3. Shortly after the agreement was made Apex Computers Ltd. changed its name to Lynx Commercial Systems Ltd., and its trading style to "Lynx Commercial Systems". It is convenient to refer to that company for the purposes of this judgment by the name "Lynx".
Time decided to produce a bespoke software package to serve as the Call Centre Package. This package was in the event produced by Time itself using the services of contracted software developers, or programmers. The Call Centre Package came to be called, and will be referred to in this judgment as, "Pulse".
By about the beginning of April 2000 there were two main products in the running for selection as the Service Package. One of these, and that which was eventually chosen, was the Software. It will be necessary to a limited extent to consider what led up...
To continue reading
Request your trial
-
Aero-Gate Pte Ltd v Engen Marine Engineering Pte Ltd
......At the time that the plaintiff did so, the defendant was still working on two ... Ltd v Mc Trans Cargo (S) Pte Ltd [2012] 4 SLR 250 (distd) Astea (UK) Ltd v Time Group Ltd [2007] Lloyd's Rep PN 21 (distd) ......
- Sime Hok Sdn Bhd v Soh Poh Sheng
-
Dalkia Utilities Services Plc v Celtech International Ltd
...perform: see Lord Simon of Glaisdale in United Scientific Holdings Ltd v Burnley Borough Council [1978] A.C. 904, 946E – 947A; Astea (UK) Ltd v Time Group Ltd [2003] EWHC 725, TCC, paras 147 - 132 The only letter which qualifies under (c) is the letter of 11 th August. It is true that in it......
-
Spar Shipping as v Grand China Logistics Holding (Group) Company, Ltd
...to perform: see Lord Simon of Glaisdale in United Scientific Holdings Ltd v Burnley Borough Council [1978] AC 904, 946E—947A; Astea (UK) Ltd v Time Group Ltd [2003] EWHC 725 (TCC) para 147." 185 What then is the position on owners' argument once hire has fallen due but before a notice has......
-
Table of cases
...III.21.06 Asta Developments (Aust) Pty Ltd v Amasya Enterprises Pty Ltd [2016] VSCA 186 III.26.305 Astea (UK) Ltd v Time Group Ltd [2003] EWHC 725 (TCC) II.11.15 Astel-Peiniger Joint Venture v Argos Engineering & Heavy Industries Co Ltd [1995] 1 HKLR 300 III.20.19, III.25.50 Astley v Austru......
-
Time
...v Goode (1926) 37 CLr 529 at 538, per Isaacs J; Fong Chun Wing v Yee Yip Enterprises Ltd [1988] hKCFI 87 at [67]–[71], per Liu J. 47 [2003] EWhC 725 (TCC). 48 [2003] EWhC 725 (TCC) at [144]; cited with approval by the Court of appeal in Peregrine Systems Ltd v Steria Ltd [2005] EWCa Civ 239......