The Shanghai High People's Court Concludes Trial in Shanghai Xiao-i's Patent Infringement Lawsuit against Apple

Rhea-AI Summary

Xiao-I (NASDAQ: AIXI) has provided an update on its VIE's ongoing patent infringement lawsuit against Apple. The case, filed by Shanghai Xiao-i Robot Technology Co., in the Shanghai High People's Court, alleges that Apple's Siri infringes on Shanghai Xiao-i's intelligent assistant patent (ZL200410053749.9). The trial, which began on August 3, 2020, has officially concluded on July 31, 2024, with a verdict pending.

Key developments include:

• Shanghai Xiao-i filed for an injunction against Apple in September 2021
• Apple filed a countersuit in February 2023
• The Beijing Intellectual Property Court upheld the validity of Shanghai Xiao-i's patent on June 28, 2024

This lawsuit is significant for Xiao-I, as it conducts most of its operations through Shanghai Xiao-i, its variable interest entity in China.

Positive

• Shanghai Xiao-i's patent (ZL200410053749.9) was upheld as valid by the Beijing Intellectual Property Court
• The patent infringement case against Apple, a major tech company, has concluded and is awaiting verdict
• Potential for significant financial compensation if the verdict favors Shanghai Xiao-i

Negative

• Ongoing legal proceedings may result in significant legal expenses for Xiao-I
• Uncertainty of the verdict outcome could impact investor confidence
• Potential for reputational damage if the case is not ruled in Xiao-I's favor

Insights

Legal Expert

The conclusion of the trial in Shanghai Xiao-i's patent infringement lawsuit against Apple marks a significant milestone in this long-running dispute. The case's complexity is evident, involving multiple legal actions and counteractions across different courts. The Beijing Intellectual Property Court's ruling upholding the validity of Shanghai Xiao-i's patent is particularly noteworthy, as it strengthens their position in the main infringement case.

If Shanghai Xiao-i prevails, it could have far-reaching implications for Apple's operations in China, potentially affecting the availability of Siri-enabled devices in the world's largest smartphone market. The court's decision could also set a precedent for future AI-related patent disputes in China, influencing how global tech companies navigate the country's intellectual property landscape.

However, it's important to note that even if Shanghai Xiao-i wins, enforcing any injunction against a tech giant like Apple could be challenging and may lead to further legal battles or negotiations. The outcome of this case could significantly impact both companies' market positions and financial performance in China.

Tech Expert

This patent dispute highlights the increasing value and complexity of AI technologies in the tech industry. The case centers on Siri, Apple's intelligent assistant, which is a core feature of its ecosystem. If Shanghai Xiao-i's claims are upheld, it could force Apple to modify or potentially remove Siri from its products in China, significantly impacting user experience and product differentiation.

The dispute also underscores the challenges global tech companies face in protecting their innovations across different markets. As AI becomes more integral to consumer electronics, we can expect an increase in similar patent disputes. This case may prompt other tech giants to reassess their AI development strategies and intellectual property protections, particularly in emerging markets with evolving IP laws.

Regardless of the outcome, this lawsuit demonstrates the critical importance of robust patent portfolios and the need for companies to navigate complex international IP landscapes carefully as they deploy AI technologies globally.

SHANGHAI, Aug. 27, 2024 /PRNewswire/ -- Xiao-I Corporation ("Xiao-I" or the "Company") (NASDAQ: AIXI), a leading artificial intelligence company, today provided an update on its VIE's ongoing patent infringement lawsuit against Apple (as defined below). The lawsuit centers on the alleged infringement on Chinese invention patent ZL200410053749.9 owned by Shanghai Xiao-i Robot Technology Co., Ltd. ("Shanghai Xiao-i").  As a holding company incorporated in the Cayman Islands with no material operations of its own, Xiao-I conducts a substantial majority of its operations through Shanghai Xiao-i, a variable interest entity (the "VIE"), in China.

On August 3, 2020, Shanghai Xiao-i filed a lawsuit with the Shanghai High People's Court (the "Shanghai High Court") in China, against Apple Computer Trading (Shanghai) Co., Ltd., Apple, Inc., and Apple Computer Trading (Shanghai) Co., Ltd. (together and collectively, "Apple"), demanding that Apple cease its infringement of Shanghai Xiao-i's intelligent assistant patent (ZL200410053749.9 invention patent) by its Siri (intelligent assistant) (the "Patent Infringement Case"). On August 27, 2020, the Shanghai High Court formally accepted the Patent Infringement Case filed by Shanghai Xiao-i against Apple. On September 4, 2021, Shanghai Xiao-i filed a behavior preservation application (injunction) with the Shanghai High Court, demanding Apple to immediately stop the patent infringement involving Siri, including but not limited to stopping the production, selling, offering to sell, importing or using of iPhone products that infringe Shanghai Xiao-i's patent. On February 3, 2023, Apple filed a lawsuit against Shanghai Xiao-i with the Shanghai High Court, requesting (i) confirmation that the iPhone SE, iPhone 12, and iPhone 13 series products equipped with Siri (the "products in question") do not infringe on the patent rights of ZL200410053749.9 invention patent, and (ii) Shanghai Xiao-i to compensate the plaintiff for reasonable expenses. On January 29, 2024, the Shanghai High Court decided to merge the above two cases for trial (the "Patent Infringement Case Trial").

On March 27, 2023, the Beijing Intellectual Property Court notified that Apple Computer Trading (Shanghai) Co., Ltd. had filed a patent administrative lawsuit against the defendant China National Intellectual Property Administration and the third person, Shanghai Xiao-i, regarding the 58271 and 58272 Review Decision of Request for Invalidation. On June 28, 2024, the Beijing Intellectual Property Court ruled against Apple, upholding the validity of Shanghai Xiao-i's patent. This ruling validated Shanghai Xiao-i's intellectual property and paved the way for the subsequent trial.

On July 31, 2024, the Shanghai High Court officially concluded the Patent Infringement Case Trial, and Shanghai Xiao-i is now awaiting the verdict.

About Xiao-I Corporation

Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on April 30, 2024, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:
Ms. Berry Xia
Email: ir@xiaoi.com

View original content:https://www.prnewswire.com/news-releases/the-shanghai-high-peoples-court-concludes-trial-in-shanghai-xiao-is-patent-infringement-lawsuit-against-apple-302231627.html

SOURCE Xiao-I Corporation

FAQ

What is the current status of Xiao-I's patent infringement lawsuit against Apple?

The Patent Infringement Case Trial concluded on July 31, 2024, in the Shanghai High People's Court. Xiao-I (NASDAQ: AIXI) is currently awaiting the verdict.

When did Shanghai Xiao-i file the patent infringement lawsuit against Apple?

Shanghai Xiao-i filed the patent infringement lawsuit against Apple on August 3, 2020, with the Shanghai High People's Court in China.

What was the outcome of the Beijing Intellectual Property Court's ruling on June 28, 2024?

The Beijing Intellectual Property Court ruled against Apple, upholding the validity of Shanghai Xiao-i's patent (ZL200410053749.9) on June 28, 2024.

What products are involved in Xiao-I's patent infringement claim against Apple?

The patent infringement claim involves Apple's Siri intelligent assistant, specifically mentioning iPhone SE, iPhone 12, and iPhone 13 series products equipped with Siri.