Taiwan’s Foxconn on Tuesday, while responding to lawsuit of patent infringement filed by Microsoft against it, said that being a contract manufacturer of the Microsoft there is no need of paying royalties for its software.
Earlier on Friday, Microsoft filed a complaint in the Northern District of California against FIH Mobile Ltd which is a subsidiary of Foxconn and claimed that royalties for Microsoft’s patents used in devices of FIH Mobile’s clients, including a major Chinese smartphone vendor, has not been paid by the company.
Terry Gou, founder and Chief Executive of Foxconn, told in a news conference in Taipei that patent infringement is not a Foxconn’s issue as it has to suffer almost no losses because of the lawsuit.
Foxconn never had to pay Microsoft any fees for patent, Gou said.
Microsoft, in its statement, said that it had signed a contract with the Foxconn’s parent company Hon Hai in 2013 and the lawsuit is relevant to the audit and royalty reporting terms of that contract.
As Microsoft take serious approach towards fulfillment of its contractual obligations, so it also expects other companies to be following their contractual commitments seriously too; and Microsoft is working to resolve the disagreement with Hon Hai because of the importance of relationship with the company, Microsoft said in a statement.
Foxconn was previously operating as Hon Hai Precision Industry Co Ltd, and got the global attention after starting assembling iPhones for Apple.
The notice of lawsuit was received by Foxconn on Tuesday, which made the Gou angry but he will defend, said a person with direct knowledge of the matter with a request of anonymity.
At the news conference Gou said that Software companies not to bully the manufacturers, and questioned in a Facebook post earlier on Tuesday, why they would not claim from software using vendors to pay for patent royalties.