Xiao-I Corporation (NASDAQ: AIXI) saw an after-hours boost on Tuesday of 7.22% to $5.20, following a 3.19% gain during the regular session that ended at $4.85. An update on a lawsuit alleging patent infringement involving the company’s variable interest entity (VIE) was the main factor for this notable increase.
Background of the Lawsuit
The parties named in the complaint are Apple Inc., Apple Computer Trading (Shanghai) Co., Ltd., and Apple Computer Trading (Shanghai) Co., Ltd. (collectively, “Apple”). The Chinese innovation patent ZL200410053749.9, which is held by VIE Shanghai Xiao-i Robot Technology Co., Ltd., is the subject of the dispute.
Legal Proceedings and Developments
Shanghai Xiao-i requested on August 3, 2020, that Apple cease using its patent for an intelligent assistant—which is allegedly utilized in Apple’s Siri—in a patent infringement lawsuit filed with the Shanghai High People’s Court. The court accepted the case on August 27, 2020.
Following that, in September 2021, Shanghai Xiao-i filed a behavior preservation application, requesting an immediate end to the purported patent infringement. This included a halt to the manufacture, distribution, and importation of iPhone devices that were made utilizing the contested technology.
In a counter move on February 3, 2023, Apple filed a lawsuit requesting confirmation that certain iPhone models (SE, 12, and 13 series) do not infringe on Shanghai Xiao-i’s patent rights and sought compensation for related expenses. The Shanghai High Court decided on January 29, 2024, to merge the two cases for trial.
Outcome and Future Steps
The trial on the combined charges was concluded by the Shanghai High Court on July 31, 2024, and Shanghai Xiao-i is currently awaiting the final ruling. The company’s intellectual property rights have been reinforced by the recent favorable verdicts, which has helped to explain the good market reaction seen in the share price of Xiao-I Corporation.
Xiao-I Launch New Product In The US
Furthermore, this month marks the successful U.S. debut of Xiao-I’s ground-breaking Hearview Smart Glasses, a key growth step. With its release, the technology meant to help persons with hearing loss has advanced significantly.
