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December 30, 2002 12:00 AM

Details Emerge in Sendo/Microsoft Dispute

Windows IT Pro
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As I previously reported in WinInfo Daily UPDATE, British cell phone maker Sendo has launched a lawsuit against Microsoft, accusing the software giant of stealing its intellectual property. Now that Sendo has filed the lawsuit, details of the company's complaint are available, and they don't paint a pretty picture of the supposedly reformed software monopolist.

According to the lawsuit, in 1999, the two companies formed a partnership to develop smart cell phones that accessed users' email accounts and offered other Internet-related services. The system, code-named Stinger, eventually developed into what Microsoft now calls Smartphone 2002, which is based on Pocket PC technologies. Sendo and Microsoft dissolved their relationship in October 2002 when another Microsoft partner, High Tech Computers, released a Stinger-based Smartphone device in the United Kingdom.

Sendo's suit alleges that Microsoft "plundered" Sendo's intellectual property, proprietary hardware expertise, and trade secrets by providing this information to High Tech Computers and other companies that were working on Stinger phones. Sendo also accuses Microsoft of using Sendo's relationships with Orange and other mobile phone carriers to gain access to these carriers, then bypassing Sendo. The company says it's looking into the "legal implications" of Microsoft's relationships with former Sendo partners. Sendo has since made repeated requests to Microsoft to return its intellectual property and says that Microsoft has "failed and refused" to do so. According to the lawsuit, Microsoft has used "its secret plan to pillage Sendo of its technology, convert that technology to its own use, steal Sendo's customers, and leave Sendo cash-starved and on the brink of receivership."

Sendo claims it's at "the brink of bankruptcy" because of Microsoft's actions, which also included continually late software-update deliveries and cash payments. Microsoft also refused to provide the $14 million in financing it promised Sendo, the suit says. Even more damning, Microsoft and Sendo had agreed that if Sendo declared bankruptcy, the company would grant Microsoft a royalty-free license to use its intellectual property. In October, Marc Brown, director of Microsoft's corporate development and strategy group and a Sendo board member, suggested to Sendo that the company file for bankruptcy. Later that month, Brown resigned from Sendo's board of directors, and the next day Sendo terminated its relationship with Microsoft.

Sendo filed the suit in the Federal Court for the Eastern District of Texas because its US division is based in Irving, Texas. The company is seeking unspecified damages. Microsoft, characteristically, declined to comment about the Sendo lawsuit.

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Comments
  • J Scozzaro
    9 years ago
    Jan 06, 2003

    I had this site bookmarked from Google...

    http://groups.google.com/groups?selm=62o9a4%24i5c%241%40sparky.wolfe.net

    and also...

    http://www.aaxnet.com/topics/msinc.html#law

    and...

    http://www.vcnet.com/bms/departments/dirtytricks.shtml

    and finally...

    http://www.nyx.net/~lmulcahy/microsoft-bad-faith.html

    Quite revealing and shows a definite trend.

  • Frank Baird
    9 years ago
    Jan 02, 2003

    This just adds another to the long list of small companies that Microsoft has squashed using the exact same technique. MS has been doing this since their early history. What is surprising is not the MS has done it once more, but that small companies are still lured into the spider's web. What were they thinking when they agreed to a royalty-free license in the event they went bankrupt? What did they really think MS would do with that? How do these people manage to get dressed in the morning?

    BTW, Paul, is there a history-of-MS site somewhere that lists all the companies MS has done this to? I know I have seen such a list before, and it rather long.


    Editor's note: Not that I'm aware of, but I will looking around. --Paul

  • Sam Jones
    9 years ago
    Jan 02, 2003

    Paul,

    Please inform us on what you know. This is the wininfo web site right?

    I will wait until the courts take a look at this case before passing judgement(unless of course you can give me more info).

    MS has been accuse many times of intellectual property violations but I have never seen them proven in court. I still believe in innocent until proven guilty.

    When you are the leader everyone goes after you. Lets wait and see...

  • J Scozzaro
    9 years ago
    Jan 02, 2003

    Microsoft screws another so-called partner? Who'd a thunk it! What a surprise! It only makes Judge KK's recent anti-trust ruling (ie, going soft on MS) seem more of a joke.

    As someone else so apply posted on another site...

    Microsoft "partner/victim": You screwed us!
    Microsoft in reply: You trusted us.

    History has a way of repeating itself. Will these companies never learn?

  • Sam Jones
    9 years ago
    Jan 02, 2003

    A very bias, one sided article.
    "supposedly reformed software monopolist"

    "characteristically"


    Editor's note: Oh Sam. If you only knew what I knew you'd be a bit more jaded as well. --Paul

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