HP Wins Legal Fight With Colossal: Damages Overturned

Computergram International, March 16, 1999

Hewlett-Packard Co has won its appeal to overturn the $6.4m in damages won by Palo Alto-based Colossal Graphics at the end of last year (CI No 3,562). Following the entry of the judgment in January, HP filed a motion asking that it be set aside, arguing that the decision was not supported by the evidence and resulted from jury misunderstanding and legal error.

Judge Joseph Biafore of Santa Clara County agreed, saying "The plaintiff failed to present sufficient evidence to support the damages awarded." He allowed a breach-of-contract damage claim of $300,000 to remain. HP said it considered the ruling to be a vindication of its position. Colossal was founded by former HP employee Ron Jones in 1996, and gained a license from HP to modify HP print cartridges for bulk ink systems. But, Jones argued, HP entered the market itself with a competing product within months of the agreement. Jones is now the firm's only employee. HP said it was sorry that Colossal had not worked out the way Jones had hoped, but said "we are pleased that the court has found that Colossal's troubles were not attributable to HP."