Microsoft loses ground in Sendo suit

Microsoft was dealt a blow yesterday as a Texas court threw out its attempt to crush a multi-million dollar lawsuit brought by Birmingham-based mobile phone manufacturer Sendo.

The judge in Texarkana denied Microsoft's appeal to have the case thrown out or at least moved to a court in its home state of Washington. The computer firm's failure means the case is likely to be heard towards the end of next year, much quicker than Microsoft's legion of lawyers had hoped, and in a court renowned for its quick processing of claims.

Sendo is already calling for a large number of documents to back up its claim that Microsoft acted fraudulently while the two sides were supposed to be collaborating on a new handset that would use Microsoft's operating system.

A year ago the partnership collapsed days before the release of the first phone amid allegations that the US software group had passed secrets to Taiwan's High Technology Computer, which developed a rival handset. Microsoft denies the claims.

Sendo is asking for punitive damages against Microsoft which could run into hundreds of millions of pounds.

A spokeswoman for Sendo said yesterday that the company was delighted that the case will be heard in Texas.