Flutterby™! : Microsoft screwed Sendo

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Microsoft screwed Sendo

2003-01-06 18:29:47+00 by Dan Lyke 5 comments

Andrew Orlowski profiles Microsoft's takedown of Sendo. Short version: Sendo[Wiki] bases product on Microsoft[Wiki] promised ship date, and makes partnership announcement with $12M cash infusion from Microsoft[Wiki]. Microsoft[Wiki] gets Sendo[Wiki] technical details from this deal, slips ship date, without promised ship Sendo[Wiki] has no product:

"Under the SDMA, in the event of a Sendo bankruptcy, Microsoft would obtain an irrevocable, royalty free license to use Sendo's Z100 intellectual property, including rights to make, use, or copy the Sendo Smartphone to create other to create other Smartphones and to, most importantly for Microsoft, sublicense those rights to third parties."

Microsoft[Wiki] gets Sendo[Wiki] technology at firesale prices.

[ related topics: Microsoft Law ]

comments in ascending chronological order (reverse):

#Comment made: 2003-01-06 18:57:34+00 by: meuon

Business as usual for Micro$oft.

#Comment made: 2003-01-06 19:53:51+00 by: meuon

In a side comment of weird proportions.. Orange was the owner of the E-Commerce company that put some of the final nails in Qdebit's coffin. In the US they own TV stations, a few small banks and some techno firms.

#Comment made: 2003-01-06 20:03:58+00 by: Jerry Kindall

Wow, I can't believe Sendo was dumb enough to sign that deal. A contract that relies on Microsoft to deliver a component critical to my business plan, then gives them all my assets if I go out of business? Doesn't take a genius to see the downside of that. Given Microsoft's historical problems in meeting delivery dates, Microsoft wouldn't even need to set out to intentionally screw you over, it could just sorta happen.

That said, if Microsoft acted in bad faith, the contract may be null and void, as contract law requires that both parties act in good faith. But bad faith is going to be difficult to prove.

#Comment made: 2003-01-07 13:14:00+00 by: ghasty

Ahhhh, reminds me of the Simpson's episode when Homer got "bought out" by M$...companies could learn a lot from Groening

#Comment made: 2003-02-20 02:37:25+00 by: Dan Lyke

Interesting follow-up looking at the grounds of Microsoft's counter suit and the employment status of Microsoft's person on the Sendo board.