Tech superhuman Microsoft is taking legal action against Foxconn parent Hon Hai, after the Taiwanese consumer-electronics manufacturer allegedly waned to comply with a patent-licensing agreement from 2013.
In a Friday court filing, Microsoft accused Foxconn of failing to plan for twice-yearly royalty reports concerning certain unspecified products and has not made royalty payments on time. The suit was send ined in the U.S. District Court for the Northern District of California.
Microsoft is suing for royalty repayment with interest, a review of Hon Hai’s tickets and attorney fees.
Foxconn had agreed to be audited by a third party, Deloitte, in 2017, but has not given the company any documents that were petitioned, the filing noted.
It is currently unclear what products were covered under the agreement, but in 2013 Microsoft give the word delivered it had a patent agreement with Hon Hai for Android and Chrome OS devices. A copy of the agreement was submitted to the court but remains under seal.
“Microsoft studies its own contractual commitments seriously and we expect other companies to do the same,” a Microsoft spokesperson told CNBC. “This constitutional 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 notable and we are working to resolve our disagreement.”