Microsoft sues Foxconn and says it owes royalty payments plus interest
Microsoft sued Foxconn’s parent company on Friday for failing to honor a patent-licensing agreement from 2013. Foxconn, best known as one of Apple’s suppliers, was supposed to make royalty payments to Microsoft, but Microsoft alleges it didn’t pay on time and still owes the money, plus interest.
The suit targets FIH Mobile, a subsidiary of Foxconn parent Hon Hai, which makes phones for Xiaomi, Huawei, and other companies. It alleges that Hon Hai has “continually failed” to honor obligations such as submitting royalty reports and cooperating with independently conducted audits. The lawsuit demands Hon Hai submit royalty reports, comply with the audit, and hand over late royalty payments.
Foxconn’s chairman Terry Gou responded to the...