Microsoft sues Foxconn for unpaid royalties – Axios



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Microsoft is suing a unit of Taiwanese manufacturer Foxconn for unpaid patent royalties on consumer devices manufactured by others.

Why it's important: Microsoft holds a patent license from Foxconn asking it to make payments for smartphones, tablets and other devices and to provide an annual audit to Microsoft. The software maker says that the company has not done that either in recent years.

Details:

  • Microsoft's lawsuit, filed Friday in federal court in San Jose, California, is to force Foxconn to file the required royalties, pay royalties, and open his books in court.
  • Microsoft has always received significant royalties on Android-based phones and tablets from most major manufacturers.
  • In the lawsuit, Microsoft claims that Foxconn submitted an inaccurate report for 2014, has not published any reports and has not paid any fees for 2015-2018.
  • What is not clear, that is why exactly Foxconn has stopped making payments and if it was at the request of Google or the device manufacturers.

What they say: In a statement to Axios, Microsoft said that it valued its relationship with Foxconn, also known as Hon Hai Precision Industrial Co., and was working to resolve the dispute.

"Microsoft takes its own contractual commitments seriously and we expect other companies to do the same. This legal action is simply to apply the conditions of report and audit of a contract we signed in 2013 with Hon Hai. Our working relationship with Hon Hai is important and we are working to resolve our disagreement. "

A Foxconn representative was not immediately available to comment.

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