Supreme People's Court Upholds Xiao-I’s AI Patents, Rejects Apple Appeal
On March 27, 2026, the Supreme People's Court rejected Apple’s bid to invalidate core AI patents owned by Shanghai Xiao-I’s VIE and affirmed their full legality in a final, binding ruling. Xiao-I warns investors that financial compensation remains uncertain despite the legal victory.
1. Supreme Court Delivers Final Ruling
On March 27, 2026, the Supreme People’s Court issued its second-instance judgment, formally rejecting Apple’s request to invalidate Shanghai Xiao-I’s VIE core AI patents. This decision is final and binding under Chinese law, with no further appeals permitted on patent validity.
2. Long-Running Legal Background
The lawsuit stems from a July 31, 2024 trial on alleged infringement of proprietary natural language processing and machine learning patents. Apple filed its appeal on September 3, 2024, seeking to nullify the VIE’s patents before the Supreme People’s Court following hearings in November 2024.
3. Implications for Xiao-I and Investors
Despite the definitive validation of its patents, Xiao-I cautions that award of financial compensation is not guaranteed and remaining proceedings could extend. Investors should consider potential valuation upside if damages are granted, while noting ongoing legal uncertainties.