Gou assured that Hon Hai will almost not suffer any loss as a result of Microsoft’s lawsuit.

Terry Gou, founder and chairman of Foxconn, accused Microsoft of bullying over unreasonable patent fees and taking advantage of the US-China trade war after the US software giant filed a lawsuit against Foxconn’s parent company, Hon Hai Precision Industry.

Microsoft filed a lawsuit in California Friday, claiming that Hon Hai failed to make royalty payments on time and failed to file appropriate paperwork.

Gou refuted the charge on Tuesday morning via his Facebook page, saying that, as a contract manufacturer, Hon Hai has never been required to pay royalties for the software.

Microsoft has forced Taiwanese assemblers to collect royalties from Chinese smartphone makers including Huawei, Gou wrote. While its real intention is to collect royalties form Huawei, “a lawsuit against Huawei amid a US-China trade war may hurt Microsoft as its products will be rejected by young Chinese users … then it turns to attack a Taiwanese company,” he added.

At a Tuesday press briefing on the issue, Gou assured Hon Hai will almost not suffer any loss as a result of Microsoft’s lawsuit.

Microsoft is resting on its laurels and trying to extend its hegemony from the PC era, Gou claimed at the press conference.

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