Foxconn rejects Microsoft patent lawsuit

Taiwan’s Foxconn on Tuesday has 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 giant’s software, according to a Reuters report.

Foxconn founder and chief executive, Terry Gou, told an in impromptu news conference in Taipei that “patent infringement” is not an issue for his company.

Patent infringement lawsuit

According to Reuters, Gou said the company does not expect to suffer any loss as of the lawsuit filed by Microsoft.

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

His comments came after Microsoft filed a lawsuit against Foxconn subsidiary FIH Mobile in a California court last Friday, claiming unpaid royalties for patents used in gadgets for various clients, including a top Chinese smartphone company.

The lawsuit was filed in the Northern District of California and accused Foxconn, also known as Hon Hai Industry Co. Ltd, for failing to comply with a patent-licensing contract from 2013.

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

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

The Taiwanese manufacturer received notice of the lawsuit on Tuesday (March.12th), according to an unnamed Reuters source.

Unpaid royalties

Gou was “furious” and will fight back, the spokesperson said.

In a Facebook post earlier on Tuesday, Guo questioned why a software company would not earn patent royalties from vendors that used its software.

“They should not pick on manufacturers,” Guo told the news conference.

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