Microsoft and UK handset developer Sendo have settled their legal battle over mobile phone technology.
The pair had been working together to develop the Sendo Z100 smartphone running Microsoft's Windows operating system for smartphones.
But in December 2003, just weeks before the phone was due to be released, Sendo launched a lawsuit claiming that Microsoft had stolen its intellectual property and destabilised the company by passing on information.
In February this year Microsoft launched a countersuit, claiming that Sendo had failed to meet contractual obligations for designing and developing the phone.
Sendo then quickly switched its focus to developing the Symbian operating system and began licensing the Series 6 user interface from Nokia.
Although the exact details of the settlement were not disclosed, Microsoft said it will surrender its stake in Sendo. The terms of the settlement state that both Microsoft and Sendo deny any and all liability.
Robert Pocknell, Sendo's group general counsel, said in a statement that the settlement reinforces Sendo's commitment to the protection of its intellectual property.
"With this action behind us, the company can now focus on its future development and growth," he said.
Tom Burt, Microsoft's corporate vice president and deputy general counsel, said in a statement: "We are pleased with this resolution and look forward to continuing to collaborate with phone manufacturers to bring innovative products to mobile customers."
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