Xiao-I Corporation Provides Update on 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 lawsuit, which alleges that Apple infringed on VIE's artificial intelligence technology intellectual property, has reached a new phase in legal proceedings. On September 24, 2024, the Shanghai High People's Court held a hearing on the case, with both VIE's and Apple's legal teams in attendance.

The trial phase of the lawsuit concluded on July 31, 2024, and the parties are currently awaiting the Court's final ruling. Xiao-I has committed to keeping shareholders and the public informed about important developments in this legal dispute.

Positive

• Xiao-I's VIE is actively pursuing legal action to protect its intellectual property
• The lawsuit has progressed to a new phase with a court hearing

Negative

• Ongoing legal proceedings may result in additional expenses for Xiao-I
• Uncertainty of the lawsuit's outcome could impact investor confidence

Insights

Legal Expert

The ongoing patent infringement lawsuit between Shanghai Xiao-I and Apple has reached a critical juncture with the recent hearing at the Shanghai High People's Court. This case is significant for several reasons:

• It involves a high-profile dispute over AI technology, a rapidly growing and competitive field.
• The outcome could have substantial financial implications for both companies.
• It may set a precedent for future AI-related patent cases in China and potentially influence global IP strategies.

The conclusion of the trial phase in July and the recent hearing suggest that a ruling may be imminent. For Xiao-I , a favorable outcome could potentially lead to substantial damages or licensing agreements, boosting its financial position and market standing. Conversely, an unfavorable ruling could impact its competitive edge in the AI market.

Investors should closely monitor this case as its resolution could significantly affect Xiao-I's stock price and future growth prospects. The company's commitment to keeping shareholders informed is a positive sign of transparency, but the uncertainty surrounding the outcome adds an element of risk to the stock.

Market Research Analyst

This patent infringement lawsuit against Apple represents a double-edged sword for Xiao-I and its investors. On one hand, it demonstrates the company's confidence in its AI technology and willingness to defend its intellectual property against industry giants. This could potentially enhance Xiao-I's reputation as an innovator and attract more attention to its AI solutions.

However, the lawsuit also carries significant risks:

• Legal costs can be substantial, potentially impacting Xiao-I's financial resources.
• The uncertainty of the outcome may create volatility in the stock price.
• A prolonged legal battle could divert management's attention from core business operations.

Given Xiao-I's relatively small market cap of $48,651,186, the outcome of this lawsuit could have an outsized impact on the company's valuation. Investors should consider this legal action as both a potential catalyst for growth and a risk factor when evaluating AIXI stock. The upcoming court ruling will be a important moment for the company and its shareholders.

SHANGHAI, Sept. 30, 2024 /PRNewswire/ -- Xiao-I Corporation (NASDAQ: AIXI), a leading developer of AI solutions, today provided an update on its VIE's ongoing patent infringement lawsuit with Apple Computer Trading (Shanghai) Co., Ltd., Apple, Inc., and Apple Computer Trading (Shanghai) Co., Ltd. (together and collectively, "Apple") (the "Lawsuit"). The Lawsuit, which involves claims that Apple infringed on VIE's intellectual property related to artificial intelligence technology, reached a new phase in the legal proceedings.

On September 24, 2024, the Shanghai High People's Court (the "Court") held a hearing on the case, both VIE's and Apple's legal teams were in attendance for the hearing, which marks the latest step in this dispute.

As previously disclosed, the trial phase of the Lawsuit was concluded on July 31, 2024, and the parties to the Lawsuit are currently awaiting the Court's final ruling.

Xiao-I will continue to keep shareholders and the public updated on important development of this Lawsuit.

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/xiao-i-corporation-provides-update-on-shanghai-xiao-is-patent-infringement-lawsuit-against-apple-302262526.html

SOURCE Xiao-I Corporation

FAQ

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

The lawsuit has reached a new phase with a hearing held on September 24, 2024, at the Shanghai High People's Court. The trial phase concluded on July 31, 2024, and the parties are awaiting the Court's final ruling.

What is the nature of the patent infringement claim by Xiao-I (AIXI) against Apple?

Xiao-I's VIE claims that Apple infringed on its intellectual property related to artificial intelligence technology.

When did the trial phase of Xiao-I's (AIXI) lawsuit against Apple conclude?

The trial phase of the lawsuit concluded on July 31, 2024.

Which court is handling the patent infringement case between Xiao-I (AIXI) and Apple?

The Shanghai High People's Court is handling the patent infringement case between Xiao-I's VIE and Apple.