Microsoft Sues Foxconn Parent Company for Not Paying Royalties on Time

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The Windows-maker has also accused Foxconn of failing to provide twice-yearly royalty reports concerning certain unspecified products

Microsoft has reportedly filed a lawsuit against Foxconn’s parent company Hon Hai after the Taiwanese consumer-electronics manufacturer allegedly failed to comply with a patent-licensing agreement from 2013.

The Windows-maker, in the lawsuit filed in the U.S. District Court on Friday, accused Foxconn of failing to provide twice-yearly royalty reports concerning certain unspecified products and for not making royalty payments on time.

In 2017, Foxconn had agreed to be audited by a third party – Deloitte – but the company has still not submitted any documents that were requested, the filing noted.

Microsoft is suing for royalty repayment with interest, a review of Hon Hai’s books and attorney fees, CNBC reported.

However, it remains unclear what products were covered under the agreement.

Companies working to resolve disagreement 

“Microsoft 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,” CNBC quoted a Microsoft spokesperson as saying.

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

 

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