Microsoft sues Foxconn over unpaid royalties

In the suit, which was filed on March 8. 2019 in US District Court for the Northern District of California, Microsoft wants Foxconn to produce the required royalty reports, pay the royalties it owes and open its books to the court, the report continues. The American software company claims that the last royalty report it received – which it the company says was inaccurate – was made in 2014. Microsoft said in a statement to Axios that it; “takes its own contractual commitments seriously and we expect other companies to do the same. This legal action is simply to exercise the reporting and audit terms of a contract we signed in 2013 with Hon Hai.” The company also added that its relationship with Hon Hai is important, and that the it is working to resolve the disagreement. Hon Hai however, with founder and chief executive, Terry Gou, at the helm told an impromptu news conference in Taipei that “patent infringement” is not an issue for his group, Reuters reports. He also added that Foxconn “has never paid any patent fees to Microsoft.” In a Facebook post, Terry Gou, responded to the allegations where he questions the validity of Microsoft’s claims and that Microsoft “only charges Chinese manufacturers.”