In its complaint, Sendo lists 13 counts of fraud, negligent
misrepresentation, breach of contract and civil conspiracy. The
company, which is based in Birmingham and manufactures mobile
handsets for network operators, is a former Microsoft partner.
Since 1999, the two companies worked jointly to develop the
Z-100 Smartphone, a compact handset running Microsoft software and
offering internet access, e-mail and multimedia functions.
In November 2002, however, Sendo ended the partnership
unexpectedly, just weeks before the scheduled launch of the
product. The company claimed that Microsoft did not provide access
to source code and therefore Sendo was unable to tailor the
necessary software.
Sendo now alleges in its lawsuit that Microsoft gained its trust
and confidence through "false promises" of partnerships. Sendo
specifically claims that Microsoft misrepresented its software as
nearly complete despite serious flaws that made it incompatible
with Sendo's hardware.
Sendo also claims that Microsoft used the partnership agreements
between the two companies that gave it access to Sendo's
confidential technical and customer information to steal trade
secrets and disclose it to low-cost manufacturers based in Asia,
enabling them to launch competitive products.
Microsoft has declined to comment on the complaint.
After ending the partnership with Microsoft, Sendo signed a
contract with Nokia to develop an alternative smartphone. Two weeks
before Sendo decided to cut ties with Microsoft, French mobile
operator Orange launched its Orange SPV, a smartphone using
Microsoft software.
Also, Microsoft is expected to announce today the launch of
smartphones compatible with the Code Division Multiple Access
(CDMA) technology, the mobile phone standard used widely in North
America. Microsoft's previous mobile phone operating system was
only compatible with the Global System for Mobile Communications
(GSM), mainly used in Europe.
