Foxconn rejects Microsoft patent lawsuit, says never had to pay royalties

Taiwan’s Foxconn (2317.TW) on Tuesday responded to a patent infringement lawsuit filed against it by Microsoft Corp (MSFT.O), saying as a contract manufacturer, it has never needed to pay royalties for the US giant’s software.

Microsoft filed the complaint against Foxconn subsidiary FIH Mobile Ltd (2038.HK) in the Northern District of California on Friday. It is claiming unpaid royalties for patents used in devices for clients including a top Chinese smartphone vendor.

Foxconn founder and Chief Executive Terry Gou told an impromptu news conference in Taipei that “patent infringement” is not an issue for his group, which “will suffer almost no any loss” as a result of the lawsuit.