Sendo launched the suit last month alleging that Orange's SPV mobile phone infringed a Sendo patent. The suit followed a public rift between Microsoft and Sendo, both companies having worked together to develop the Z-100 Smartphone, a compact handset running Microsoft software and offering internet access, e-mail and multimedia functions.
In November 2002 Sendo ended the partnership unexpectedly, just weeks before the scheduled launch of the product. Sendo then sued Microsoft alleging, among other things, that Microsoft used the partnership agreements between the two companies to steal trade secrets and disclose them to low-cost manufacturers based in Asia, enabling them to launch competing products. Among these manufacturers was High Tech Computer (HTC) of Taiwan.
Two weeks before Sendo cut ties with Microsoft, Orange launched its Orange SPV, a smartphone also using Microsoft's software. The SPV is manufactured by HTC.
The action against Orange relates to a UK circuit board patent held by Sendo. But on Tuesday, Sendo withdrew its High Court action against Orange. Commentators have pointed out that this withdrawal coincides with an announcement by Sendo that it has entered into a patent licensing agreement with US-based Texas Instruments "related to smartphone technology".
According to news site TheRegister.co.uk the patent that formed the basis of the claim against Orange has been included in the licensing agreement with Texas Instruments.
The action against Microsoft is still ongoing.