(GeekWire Photo / Nat Levy)
Microsoft filed suit against the parent company of global manufacturing giant Foxconn, alleging it failed to live up to its end of a licensing agreement to manufacture a series of unnamed devices.
Microsoft and Hon Hai Precision Industry Co., the parent of Foxconn, agreed on a technology license deal in 2013. However, Microsoft alleges in the lawsuit that Hon Hai “continually failed to honor its obligations under that contract,” including not submitting royalty reports or payments and resisting an audit of its books.
According to the suit, filed in federal court in Northern California over the weekend, “Microsoft granted a worldwide patent portfolio license that permitted Hon Hai to (among other things) make, have made, use, sell or otherwise dispose of certain “Covered Products” for a defined period.”
The agreement required “Foxconn to submit Royalty Reports to Microsoft that provided specific information about Hon Hai’s sales of Covered Products on a per-unit basis, to make certain per-device royalty payments to Microsoft for the license term, and to submit to an audit by an independent public accounting firm, if requested by Microsoft, to resolve any contract disputes.”
The lawsuit references the licensing agreement, however it is being filed under seal, so …read more