Financial Daily from THE HINDU group of publications
Saturday, Dec 24, 2005
Financial Daily from THE HINDU group of publications Saturday, Dec 24, 2005 |
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Courts/Legal Issues Info-Tech - Corporate Disputes Sasken loses arbitration case against 3G.com Our Bureau
Bangalore , Dec 23 THE Bangalore-based Sasken Communication Technologies has lost the arbitration in its dispute with US-based 3G.com. The company has conveyed to the Mumbai stock exchange that the arbitrator has awarded damages of $1,156,729.80 in favour of 3G.com. The dispute was in regard to a protocol stack, which was to be implemented by Sasken under a licensing and support contract with 3G.com. Sasken entered into a contract for the product in 2001. The contract went into arbitration in 2003. Speaking to Business Line, Mr Swaminathan Krishnan, Chief Marketing Officer of Sasken, said: "3G.com was our single customer. We didn't sell it to any other customer. We changed our roadmap as we felt it was not a market worth pursuing. The product in question is a single mode UMPS stack." He added that the company was yet to see the certified copy of the Arbitrators award and would take appropriate action after that. "We will probably appeal." The company, he said, would write off the amount from the profit and loss statements (P&L). "Revenues for the fourth quarter are not locked in, and books for the third are closed. We will see an effect in the next financial year," Mr Krishnan said. Sasken must now pay damages worth $1,156,729.80. The company is also required to pay 3G.com $173,760 for legal and other costs, and bear the total cost of arbitration amounting to £168,150.57.
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