Foxconn on Tuesday responded to a patent infringement lawsuit filed against it by Microsoft, saying as a contract manufacturer, it has never needed to pay royalties for the U.S. giant’s software.

Microsoft filed the complaint against Foxconn subsidiary FIH Mobile Ltd. 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 a 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.

Foxconn “has never paid any patent fees to Microsoft,” Gou said.

In a Facebook post on Tuesday, Guo questioned why a software firm would not earn patent royalties from vendors that made use of software.

“They should not pick on manufacturers,” Guo said at the news conference.