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Xiao-I Corporation Provides Further Update on Shanghai Xiao-I's Patent Infringement Lawsuit Against Apple

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Xiao-I Corporation (NASDAQ: AIXI) said on March 31, 2026 that the Supreme People's Court of China rejected Apple's request to invalidate patents owned by Xiao-I's VIE and affirmed those patents' validity in full.

The ruling is final and binding under PRC law with no further appeal on patent validity. The company cautioned there is no assurance of monetary recovery and said remaining proceedings against Apple continue.

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Positive

  • Supreme People's Court rejected Apple's patent invalidation request
  • Judgment is final and binding under PRC law with no further appeal on patent validity

Negative

  • No assurance the company will receive financial compensation
  • Remaining proceedings against Apple continue, outcome uncertain

News Market Reaction – AIXI

+18.23% 115.9x vol
52 alerts
+18.23% Session close to close
+110.0% Peak Tracked
-26.4% Trough Tracked
$1.58M Market Cap
115.9x Rel. Volume

In the Mar 31 session, AIXI gained 18.23%, reflecting a significant positive market reaction. Argus tracked a peak move of +110.0% during that session. Argus tracked a trough of -26.4% from its starting point during tracking. Our momentum scanner triggered 52 alerts that day, indicating high trading interest and price volatility. Trading volume was exceptionally heavy at 115.9x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +18.2% in the session following this news. A strong positive reaction aligns with t...
Analysis

The stock surged +18.2% in the session following this news. A strong positive reaction aligns with the legal significance of the March 27, 2026 ruling, which upheld the VIE’s core AI patents against Apple’s invalidation challenge. Historically, AIXI’s responses to news have been inconsistent, with both positive and negative items sometimes moving counterintuitively. Investors would have needed to weigh prior dilution from convertible notes and governance changes when assessing how durable such a move might have been.

Key Figures

Patent ruling date: March 27, 2026
1 metrics
Patent ruling date March 27, 2026 Supreme People’s Court final second-instance judgments on Apple’s patent invalidation appeal

Historical Context

3 past events · Latest: Dec 23 (Negative)
Pattern 3 events
Date Event Sentiment 24h Move Catalyst
Dec 23 Nasdaq deficiencies Negative +1.5% Nasdaq bid-price and MVPHS deficiency notices with compliance deadlines in mid-2026.
Nov 21 AI contract renewal Positive +28.5% Renewal of cognitive AI services contract with major Sino-European automotive JV.
Oct 31 AI partnership renewal Positive -5.3% Renewed strategic AI partnership with multinational life insurer for iBot Pro platform.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

News reactions show mixed alignment: positive partnerships sometimes sold off, while even negative listing notices saw a mild gain, indicating inconsistent price responses to news.

Recent Company History

Over the past year, AIXI’s news flow has mixed operational and regulatory developments. On October 31, 2025 and November 21, 2025, it renewed key AI partnerships in insurance and automotive, but market reactions diverged, including a -5.31% move on one positive renewal. On December 23, 2025, Nasdaq deficiency notices for bid price and MVPHS drew a modest +1.53% response. Against this backdrop, the March 2026 update on the Apple patent case adds legal clarity on patent validity but leaves financial outcomes uncertain.

Key Terms

variable interest entity (VIE), patent infringement, intellectual property rights
3 terms
variable interest entity (VIE) regulatory
"provides an additional material update on its variable interest entity (VIE)'s ongoing"
A variable interest entity (VIE) is a company or legal entity that an investor controls and reports in its financial statements not by owning a majority of shares but through contracts or other arrangements that give it economic rights and decision-making power. Investors care because a VIE can expose them to assets, debts and legal risks without traditional ownership—think of it like running someone else’s branch through a power-of-attorney rather than holding the keys, which can affect transparency and value.
patent infringement regulatory
"VIE)'s ongoing patent infringement lawsuit against Apple Computer Trading (Shanghai) Co."
Patent infringement occurs when someone makes, uses, sells or imports a product or process that is covered by another party’s patent without permission — like copying a chef’s secret recipe and selling the dish without consent. For investors it matters because alleged infringement can trigger costly lawsuits, damage awards, sales bans or forced licensing, any of which can reduce revenue, increase expenses and hurt a company’s stock value.
intellectual property rights regulatory
"allegations that Apple infringed on the VIE's intellectual property rights related to core"
Legal protections that give a company exclusive control over creations like inventions, brand names, designs, formulas, software and creative works, similar to owning the lock and key to a recipe or product design. For investors, these rights matter because they can create durable revenue streams, reduce competition and justify higher company value, while weak or contested rights increase the risk of lost sales and costly legal disputes.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SHANGHAI, March 31, 2026 /PRNewswire/ -- Xiao-I Corporation (NASDAQ: AIXI), a leading developer of AI solutions, today provides an additional material update on its variable interest entity (VIE)'s ongoing patent infringement lawsuit against Apple Computer Trading (Shanghai) Co., Ltd., Apple Inc., and Apple Computer Trading (Shanghai) Co., Ltd. (collectively, "Apple") (the "Lawsuit"). The Lawsuit centers on allegations that Apple infringed on the VIE's intellectual property rights related to core artificial intelligence technology, with the legal proceedings having advanced through key appellate stages since the Company's last update.

As previously disclosed on November 1, 2024, the Shanghai High People's Court convened the second session of hearings in the case on that date, following the conclusion of the trial phase on July 31, 2024. Subsequent to this hearing, on September 3, 2024, Apple filed appeals with the Supreme People's Court of the People's Republic of China (the "Supreme People's Court"), in which Apple sought a ruling to invalidate the core AI patents of Xiao-I's VIE that form the basis of the infringement claims in the Lawsuit.

On March 27, 2026, the Supreme People's Court rendered its final second-instance judgments on Apple's appeal. In the ruling, the Supreme People's Court formally rejected Apple's application to have Xiao-I's VIE's relevant patents declared invalid and affirmed the legality and validity of such patents in full. This judgment constitutes a final and binding ruling under the laws of the People's Republic of China, with no further right of appeal available to either party in respect of the patent validity determination.

While Xiao-I Corporation remains confident in the merits of its case, there can be no assurance as to the ultimate outcome of the remaining proceedings against Apple, there is no guarantee that the Company will be awarded any financial compensation. Investors are strongly encouraged to conduct their own due diligence and review all relevant information before making investment decisions.

Xiao-I will keep shareholders and the public informed of any material further developments, if any, in a timely manner.

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 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, its future business development, financial condition, 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.

 

Cision View original content:https://www.prnewswire.com/news-releases/xiao-i-corporation-provides-further-update-on-shanghai-xiao-is-patent-infringement-lawsuit-against-apple-302729741.html

SOURCE Xiao-I Corporation

FAQ

What did Xiao-I (AIXI) announce about the Supreme People's Court ruling on March 27, 2026?

The Supreme People's Court formally rejected Apple's request to invalidate Xiao-I VIE patents and affirmed their validity in full. According to the company, this March 27, 2026 judgment is final and binding under PRC law with no further appeal on patent validity.

Does the March 27, 2026 ruling guarantee Xiao-I (AIXI) will receive monetary damages from Apple?

No, the ruling does not guarantee monetary recovery for Xiao-I. According to the company, while patent validity was affirmed, there is no assurance the remaining proceedings will result in financial compensation.

How does the March 27, 2026 decision affect the ongoing lawsuit between Xiao-I (AIXI) and Apple?

The decision resolves patent validity in Xiao-I's favor but does not end the lawsuit. According to the company, remaining proceedings against Apple continue and the ultimate outcome, including remedies, remains uncertain.

When did the appellate stages of Xiao-I's (AIXI) patent case against Apple occur before the March 27, 2026 ruling?

Key appellate activity included a second hearing on November 1, 2024 and Apple filing appeals on September 3, 2024. According to the company, the Supreme People's Court issued its final judgments on March 27, 2026.