Foxconn rejects Microsoft patent lawsuit

March 13, 2019 09:37
Foxconn Group is expected to fight back vigorously against a patent infringement lawsuit from Microsoft. Photo: Reuters

Taiwan’s Foxconn responded to a patent infringement lawsuit filed against it by Microsoft, saying as a contract manufacturer, it has never needed to pay royalties for the US company’s software, Reuters reports.

Foxconn founder and CEO Terry Gou told an impromptu news conference in Taipei on Tuesday that “patent infringement” is not an issue for his company, which “will suffer almost no any loss” as a result of the lawsuit.

Foxconn “has never paid any patent fees to Microsoft,” Gou said.

The comments came after Microsoft filed a complaint against Foxconn subsidiary FIH Mobile in a California court on Friday, claiming unpaid royalties for patents used in devices for clients including a top Chinese smartphone vendor.

Microsoft said the legal action was related to the royalty reporting and audit terms of a contract it signed with Foxconn parent Hon Hai in 2013.

“Microsoft takes its own contractual commitments seriously, and we expect other companies to do the same,” the company said in a statement.

“Our working relationship with Hon Hai is important, and we are working to resolve our disagreement.”

Foxconn, formally known as Hon Hai Precision Industry Co, received notice of the lawsuit on Tuesday, according to a Reuters source.

Gou is “furious” and will fight back, the person was quoted as saying.

In a Facebook post earlier on Tuesday, Gou questioned why a software company would not earn patent royalties from vendors that made use of software.

“They should not pick on manufacturers,” Gou said at the news conference.

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