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Mowom Sues Microsoft for Financial Losses

Beijing Business Today, 8/25/10

The head of Shenzhen-based quality certification system provider Mowom Certification Limited (China), Matt Zhou, reportedly appeared on the steps of Microsoft China's headquarters in Wangjing District, Beijing yesterday, threatening to take legal action in a contract dispute.

Mowom claims that it purchased approximately RMB 50 mln in Microsoft software and hardware as well as paid over RMB 3.6 mln in technical support fees in order to support a 2D barcode project for a customer, but Microsoft never delivered after receiving payment, leading to the project's cancellation. Last week, the China International Economic and Trade Arbitration Commission (CIETAC) ruled that Microsoft China failed to adequately deliver technical services and should refund RMB 3.65 mln in technical support fees to Mowom as well as pay RMB 500,000 in legal fees. Regarding Mowom's request that the court order Microsoft to pay RMB 56.92 mln in financial damages, CIETAC ruled the two parties should resolve the dispute through other legal channels.

Zhou told reporters yesterday that Mowom will file separate cases next week with CIETAC and the Beijing Intermediate People's Court for RMB 100 mln and RMB 60 mln in damages, respectively.

Mowom is a Sino-foreign joint venture established in Shenzhen in 2004 providing product barcoding, logistics and quality inspection services.

Editor's Note: For more information on this topic, please see "Microsoft China Faces RMB 70 Mln Contract Dispute," MD 6/11/09 issue.

Keywords: wireless Matt Zhou hardware software 2D barcode China International Economic and Trade Arbitration Commission legal Mowom law litigation

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