Apple Sued by Cerence Over "Hey Siri" and Virtual Keyboard Patents

Apple is being sued by Cerence, a subsidiary of Nuance Communications, for allegedly infringing on multiple patents related to virtual keyboards and the "Hey Siri" feature. Cerence claims that it offered Apple a license to its patents but no agreement was reached. The patents in question include those related to recognizing word patterns based on a virtual keyboard layout, continuous stroke word-based text input, and improving text input in a shorthand-on-keyboard interface.

Apple Inc. is currently embroiled in a legal battle with Cerence Inc., a subsidiary of Nuance Communications, over alleged patent infringements related to virtual keyboards and the "Hey Siri" feature. Cerence has accused Apple of infringing on several patents, including those related to recognizing word patterns based on a virtual keyboard layout, continuous stroke word-based text input, and improving text input in a shorthand-on-keyboard interface. Cerence claims that it offered Apple a license to its patents but no agreement was reached.

The lawsuit, filed under Section 337 of the Tariff Act of 1930, seeks to block the importation of Apple products that allegedly infringe on Cerence's patents. Additionally, Cerence has filed district court actions in the Eastern District of Texas seeking damages for patent infringement. Cerence emphasizes its commitment to protecting its intellectual property rights and preventing unauthorized use of its technology.

This legal action comes amidst a period of strong financial performance for Cerence. The company reported strong Q3 FY2025 results, exceeding guidance with revenue of $62.2 million and Adjusted EBITDA of $9.0 million. Cerence expects revenue between $53-58 million for Q4 FY2025, maintaining a strong market position with its AI technology serving 52% of worldwide auto production [2].

The lawsuit highlights the growing importance of intellectual property in the tech industry, particularly in the realm of AI and conversational interfaces. As companies continue to innovate and develop new technologies, the protection and enforcement of patents will remain a critical aspect of business strategy.

References:
[1] https://news.bloomberglaw.com/litigation/apples-95-million-deal-over-siri-recordings-gets-final-nod
[2] https://www.stocktitan.net/news/CRNC/