The first-ever Capture case has been delayed at the Court of Appeal as the Post Office asks for an extension to respond, Sky News has learned.

Pat Owen, a former sub postmistress who has since passed away, was convicted of stealing in 1998 based on evidence from computer software.

The system, known as Capture, was used in up to 2,500 branches in the 1990s, before the infamous Horizon system was introduced.

Hundreds of sub-postmasters were wrongfully convicted between 1999 and 2015 as part of the Horizon scandal.

Earlier this year, Sky News unearthed a 1998 report showing the Capture software was also faulty.

That report, commissioned by the solicitors acting for Mrs Owen in 1998, was served on the Post Office and may never have been seen by the jury in her case.

Ms Owen was given a suspended prison sentence and fought to clear her name subsequently – but died in 2003.

Her case was referred by the Criminal Cases Review Commission (CCRC) to the Court of Appeal in October.

The Post Office had until 5 December to respond to papers put forward by Mrs Owen’s defence team but they have now asked for an extension until 30 January.

Ms Owen’s daughter, Juliet Shardlow, described the family’s suffering at the lengthening wait.

“I need to emphasise the profound impact the ongoing delay is having on our family,” she said.

“The continuous uncertainty only compounds our heartache, stress, and anxiety.

“It has become the last thing I think about before I go to sleep and the first thing when I wake up.

“We have waited 27 years for justice, and this additional wait feels never-ending.”

Ms Owen’s case is the first time a conviction based on Capture has reached the Court of Appeal since the scandal was exposed.

Read more from Sky News:
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Lawyers have said that if Ms Owen is exonerated posthumously, it may “speed up” the handling of others.

CCRC chair Dame Vera Baird also told Sky News in the summer it could be a “touchstone case” for other victims.

The CCRC is also continuing to investigate around 30 other “pre-Horizon” convictions.

A Post Office spokesperson said: “We have sought an extension of time to fully consider and respond to the CCRC’s Statement of Reasons in Ms Owen’s case.

“We deeply regret the impact our request for further time will have on Ms Owen’s family.

“We have a duty to carefully consider the evidence presented in the Statement of Reasons submitted by the CCRC and do everything we can to fully assist the Court when it considers this conviction.”

Meanwhile, the first-ever redress scheme for victims of the Post Office Capture IT scandal was launched this autumn.

The Capture Redress Scheme will provide payments of up to £300,000, and more in “exceptional” cases, to former postmasters who suffered financial losses.

The owner of the Daily Mail is lining up one of Britain’s biggest high street lenders to help bankroll its £500m deal to buy The Daily Telegraph.

Sky News has learnt that DMGT has turned to its long-standing bank, NatWest Group, to lend a substantial chunk of the Telegraph purchase price.

City sources said on Thursday that discussions between the two were still in progress.

It was unclear how much of the consideration NatWest might finance, or how much equity DMGT intended to put up as part of the deal.

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Last month’s announcement that DMGT was in exclusive talks to buy Telegraph Media Group achieved a long-standing ambition of the Mail proprietor, Lord Rothermere, to own the rival right-leaning newspaper.

However, the transaction still needs to be formally submitted to the culture secretary, Lisa Nandy, who has effectively asked for details of the proposed deal by early next week.

Lengthy inquiries by the Competition and Markets Authority and Ofcom are also expected to follow.

DMGT’s exclusivity period came within days of a consortium led by RedBird Capital Partners abandoning its own deal amid opposition from within the Telegraph newsroom.

NatWest’s position as a principal lender would, in theory, be advantageous to Lord Rothermere, who will not want to be reliant on overseas financing for the deal.

The DMGT owner had originally intended to acquire a minority stake of just under 10% in the Telegraph titles as part of the RedBird-led transaction.

A previous deal proposed by a consortium including RedBird and the Abu Dhabi state-owned investment firm IMI collapsed after the government changed the law regarding foreign state ownership of national newspapers.

“I have long admired the Daily Telegraph,” Lord Rothermere said last month.

“My family and I have an enduring love of newspapers and for the journalists who make them.

“The Daily Telegraph is Britain’s largest and best quality broadsheet newspaper, and I have grown up respecting it.

“It has a remarkable history and has played a vital role in shaping Britain’s national debate over many decades.”

If the deal is completed, it would bring the Telegraph newspapers under the same stable of ownership as titles including Metro, The i Paper and New Scientist.

DMGT said in November that it planned “to invest substantially in TMG with the aim of accelerating its international expansion”.

“It will focus particularly on the USA, where the Daily Mail is already successful, with established editorial and commercial operations.”

NatWest declined to comment.

OpenAI has signed its first major licensing deal to bring well-known characters to life on its Sora video generation tool.

The company said the agreement with Walt Disney was part of a push to ensure the rights of creators in the generative artificial intelligence (AI) space amid growing concerns over copyright, fakes and misinformation.

It forms part of a $1bn Disney investment in OpenAI, that will see the entertainment firm roll out ChatGPT to its staff and grow its AI capabilities.

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The initial three-year licensing deal will allow Sora users to generate and share videos based on more than 200 Disney, Marvel, Pixar and Star Wars characters.

These include Mickey Mouse, Cinderella and Luke Skywalker.

Sora allows people to quickly create realistic clips based merely on text prompts.

Disney and OpenAI said they were committed to responsible use of AI amid the backlash from critics who have pointed to widespread misuse of generative AI in the social media space – a practice known as AI slop.

Some have depicted fake messages from celebrities and even used the dead.

OpenAI CEO Sam Altman said: “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.

His counterpart at Disney, Bob Iger, added that the partnership would “extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works”.

As part of the deal, some user-generated Sora videos will be made available on the Disney+ streaming service.

Dan Coatsworth, head of markets at AJ Bell, said of the tie-up: “It’s a win-win situation for Disney and OpenAI. Disney gets to deploy its beloved brands in the world of AI while keeping control of the intellectual property.

“Fans can use Disney characters to make videos and take social media content to another level. That could drive significant traffic to OpenAI’s Sora social media platform, turning a relatively unknown entity into a household name in a flash.

“As part owner of the business, Disney will be able to use the equity stake in OpenAI to ensure its characters are used in a controlled environment.

“It’s a significant step forward for the concept of fan fiction”, he concluded.