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Microsoft "theft" suit: Redmond denies charge by Sendo

It looks certain that Sendo will call upon Orange executives, to testify in its suit against Microsoft - a suit which has been postponed till later this week.

There were two new developments in Sendo's theft of trade secrets suit against Microsoft.

First, Jon Murchinson, a Microsoft representative, has denied the allegations that UK cell phone start-up Sendo made in the suit reported here, that Redmond had a secret plan to steal intellectual property from Sendo by driving it into bankruptcy.

"We look forward to refuting Sendo's baseless claims," Murchison said last week. Microsoft was given an extension to the Texas court's deadline for filing a formal, detailed denial. It now has until January 23.

The second development was a revelation by Sendo that it will call executives of UK cell phone service provider Orange, which is now selling a Microsoft-based cell phone based on technology Sendo claims was stolen, to testify on its behalf. A Sendo spokeswoman was quoted in the Daily Telegraph as saying: "I can confirm it is very likely Orange will be called to testify." She added that it was too early to say whether other cell phone service providers might also be asked to give evidence.

In its suit, Sendo claims Microsoft passed Sendo IP to Taiwanese OEM High Technology Computer (HTC), which used it to develop the rival Orange phone called SPV.

Sendo claims Microsoft had a "secret plan" to use Sendo "know-how" to enter the cell phone market even if it meant bankrupting Sendo. A Microsoft employee, Marc Brown, was on Sendo's board and had intimate knowledge of Sendo's declining financial fortunes as the Sendo product launch kept getting postponed because of Microsoft's alleged inability to deliver working software. Sendo also claims Microsoft hijacked Orange, which was to be a Sendo customer.

No doubt Sendo's lawyers will want to question Orange about how the HTC deal originated. Sendo alleges that "Microsoft had little or no experience in the technology of mobile telephones or their operating systems, nor did it have any relationships with the primary customers for the units, such as Orange, Cingular and AT&T ... .The speed-to-market was not achieved by Microsoft's legitimate skill and expertise, but rather by 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 bankruptcy."

In October 2002, HTC unexpectedly unveiled a phone based on Microsoft's software and Orange announced it would market it. In November, Sendo said it was ending its development of its Microsoft-based phone and would use Nokia's Symbian operating system instead even though that would delay launching a phone by a year. In December, Sendo filed suit against Microsoft.

HTC and Orange, which are not defendants in the suit, have not commented on the case.

Charles Hall is Editor of Online Reporter.