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WinInfo Daily UPDATE, September 13, 2004

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In the News

- Microsoft and Sendo Reach Settlement

==== In the News ====

by Paul Thurrott, [email protected]

Microsoft and Sendo Reach Settlement

Microsoft and UK phone-maker Sendo announced today that they have reached a settlement in their intellectual property rights theft lawsuit and that Sendo has dropped all charges against the software giant. Although the companies haven't revealed details of the settlement terms, a Sendo representative said that the company is "extremely pleased with the terms" of the deal.
Sendo sued Microsoft in late 2002 after discovering that Microsoft had given Sendo's design for a Windows Mobile-Powered Smartphone to competitors in Southeast Asia. Sendo created the first working Smartphone device and originally was going to be the first company to produce such a device for customers. However, after the company found out that Microsoft was shopping around to its competitors Sendo's design and other intellectual property, Sendo abandoned its Smartphone plans and severed all ties with Microsoft. Not coincidentally, the first companies to sell Windows Mobile-Powered Smartphones were tiny, unknown Southeast Asian firms. "Microsoft provided Sendo's proprietary hardware expertise and trade secrets to low-cost \[OEMs\] who would not otherwise have had the expertise to manufacture handsets that would use \[Windows Mobile software\] and used Sendo's carrier-customer relationships to establish its own contractual relationships," a Sendo legal filing from late 2002 stated.
Currently, only a few details of the settlement are known. First, Microsoft will return its 4 percent Sendo shareholding to the phone maker. Second, both parties deny any and all liability. Presumably, Microsoft gave Sendo a large cash payout; if so, the two companies will reveal details of that payout at a later date. "We're pleased with this resolution and look forward to continuing to collaborate with phone manufacturers to bring innovative products to mobile customers," Microsoft Corporate Vice President and Deputy General Counsel Tom Burt said.

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