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Microsoft and Sendo Settle Lawsuits

Microsoft and Sendo reached a settlement in the lawsuit and countersuit that arose after the companies' mobile phone partnership fell apart in late 2002.

Microsoft, which purchased a $12 million stake in Sendo in the summer of 2001, is surrendering its Sendo shares. The parties didn't disclose other terms of the deal.

The partnership with the British telephone maker was a way for Microsoft to extend its software into the telephone handset market. But the companies dissolved the partnership in November 2002, when Sendo announced it would be working with Nokia instead.

A month later, Sendo filed suit in Texas, where it has a manufacturing facility. Sendo alleged that Microsoft exchanged Sendo's intellectual property with Microsoft's Asian handset partners. The lawsuit could have resulted in hundreds of millions of dollars in damages.

In a statement, Sendo general counsel Robert Pocknell said the settlement reinforces his company's commitment to protecting its intellectual property. "With this action behind us, the company can now focus on its future development and growth," he said.

Tom Burt, Microsoft corporate vice president and general counsel, said, "We're pleased with this resolution and look forward to continuing to collaborate with phone manufacturers to bring innovative products to mobile customers."

The Sendo lawsuit is one of more than a dozen cases Microsoft has settled out of court in the last two years.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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