Tick Tock Becomes Tit for Tat: The Apple and Xiao-i Issue
August 5, 2020
Okay, let’s get the company names out of the way:
- Shanghai Zhizhen Network Technology Company is known as Zhizhen
- Zhizhen is also known as Xiao-i
- Apple is the outfit with the virtual assistant Siri.
Zhizhen owns a patent for a virtual assistant. In 2013, Apple was sued for violating a Chinese patent. Apple let loose a flock of legal eagles to demonstrate that its patents were in force and that a Chinese voice recognition patent was invalid. The Chinese court denied Apple’s argument.
Tick tock tick tock went the clock. Then the alarm sounded. Xiao-i owns the Chinese patent, and that entity is suing Apple.
“Apple Faces $1.4B Suit from Chinese AI Company” reports:
Shanghai Zhizhen Network Technology Co. said in a statement on Monday it was suing Apple for an estimated 10 billion yuan ($1.43 billion) in damages in a Shanghai court, alleging the iPhone and iPad maker’s products violated a patent the Chinese company owns for a virtual assistant whose technical architecture is similar to Siri. Siri, a voice-activated function in Apple’s smartphones and laptops, allows users to dictate text messages or set alarms on their devices.
But more than the money, the Xiao-i outfit “asked Apple to stop sales, production, and the use of products fluting such a patent.”
Coincidence? Maybe. The US wants to curtail TikTok, and now Xiao-i wants to put a crimp in Apple’s China revenues.
Several observations:
- More trade related issues are likely
- Intellectual property disputes will become more frequent. China will use its patents to inhibit American business. This is a glimpse of a future in which the loss of American knowledge value will add friction to the US activities
- Downstream consequences are likely to ripple through non-Chinese suppliers of components and services to Apple. China is using Apple to make a point about the value of Chinese intellectual property and the influence of today’s China.
Just as China has asserted is cyber capabilities, the Apple patent dispute — regardless of its outcome — is another example of China’s understanding of American tactics, modifying them, and using them to try to gain increased economic, technical, and financial advantage.
Stephen E Arnold, August 3, 2020
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