UK mobile phone maker Sendo and Microsoft have settled a lawsuit alleging the software giant stole Sendo's secrets.

While terms of the settlement where not disclosed, Reuters reports Sendo to be "extremely pleased with the terms".

Sendo was a key partner in Microsoft's attempt to enter the mobile phone market, until the companies split acrimoniously.

Sendo had claimed Microsoft had taken Sendo's "proprietary hardware expertise and trade secrets" and given these to low-cost handset makers.

Microsoft has secured deals with Motorola and Samsung in its attempt to create a position for itself in the mobile handset industry.