Microsoft Reaches Settlement In Cell Phone Dispute

by Glen Shapiro, LawAndTax-News.com, New York

15 September 2004

It emerged this week that Microsoft and UK-based mobile phone manufacturer Sendo have settled a dispute in which the latter firm accused the software giant of stealing its technology.

The two firms were in partnership until late 2002, and planned to offer phones compatible with Microsoft software.

Following the unexpected dissolution of the joint venture just prior to the launch of the first such phones, Sendo accused Microsoft of passing on proprietary information to low-cost phone manufacturers in Asia.

"Microsoft provided Sendo's proprietary hardware expertise and trade secrets to low-cost original equipment manufacturers who would not otherwise have had the expertise to manufacture handsets that would use (the software provided by Microsoft) and used Sendo's carrier-customer relationships to establish its own contractual relationships," Sendo revealed in court filings.

As part of the settlement, both parties have denied all liability in the matter.

Although the exact terms of the agreement were not revealed, Sendo is reported to be "extremely pleased". Microsoft has also welcomed the settlement.

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