Microsoft is suing Foxconn's Taiwanese parent company Hon Hai for the alleged failure of the consumer-electronics manufacturer to comply with a patent-licensing agreement, the media reported.
The Windows-maker, in the lawsuit filed on Friday, accused Foxconn of failing to provide twice-yearly royalty reports concerning certain unspecified products and for not making royalty payments on time.
"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," CNBC quoted a Microsoft spokesperson as saying on Saturday.
In 2017, Foxconn had agreed to be audited by a third party - Deloitte - but the company has still not submitted any documents that were requested, the filing noted.
Hence, Microsoft is suing for royalty repayment with interest, a review of Hon Hai's books and attorney fees, the report added.
"Our working relationship with Hon Hai is important and we are working to resolve our disagreement," the spokesperson said.
It remains unclear what products were covered under the agreement.