Microsoft is now suing Hon Hai, the parent company of Foxconn, one of the leading ODMs in the world. Hon Hai is getting sued because of non-payment of patent royalties on time. Microsoft is supposed to receive twice-yearly royalty payments as part of the patent licensing agreement with Hon Hai. Microsoft has filed the suit in the U.S. District Court for the Northern District of California and is seeking royalty repayment with interest, a review of Hon Hai’s accounts and attorney fees.
“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. Our working relationship with Hon Hai is important and we are working to resolve our disagreement,” according to Microsoft spokesperson.