14 DAY TRIAL // Microsoft has decided to sue Foxconn’s parent company, Hon Hai, because it failed to comply with a patent-licensing agreement, according to reports.
CNBC notes that Microsoft and the Taiwanese company signed a patent agreement back in 2013, and according to the lawsuit, the latter failed to provide twice-yearly royalty reports.
Furthermore, the software giant claims its partner failed to pay its royalties on time, though for the time being, there are no specifics on the patents included in the deal and the products that might be covered by these technologies.
However, Microsoft and Hon Hai previously signed a deal covering Android and Chrome OS devices. Microsoft is the owner of several Android-related patents that generate billions of dollars in revenue every year, and the firm signed licensing deals with a series of companies, including Samsung, HTC, and Acer.
Microsoft making billions with its patents every year
In 2012, for example, no less than 70 percent of the Android devices that were sold worldwide were using technologies covered by Microsoft patents.
“Microsoft takes its own contractual commitments seriously and we expect other companies to do the same,” a Microsoft spokesperson was quoted as saying by the cited source. “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.”
Microsoft is reportedly seeking royalty repayments with interest, attorney fees, plus a review of Hon Hai’s books, according to CNBC.
Foxconn, a company owned by Hon Hai, is the world’s largest consumer electronics manufacturer, as its factories are responsible for producing the majority of mobile devices these days, including iPhones and a series of other smartphones. Furthermore, Foxconn is the maker of several Microsoft products, including the Xbox One gaming console.