Cerence sues Microsoft and Nuance over AI tech rights

Published 06/05/2025, 21:38
Cerence sues Microsoft and Nuance over AI tech rights

BURLINGTON, Mass. - Cerence Inc. (NASDAQ: CRNC), known for its conversational AI technology, has initiated legal action against tech giants Microsoft and Nuance Communications for alleged copyright infringement and breach of contract. The lawsuit, filed in the United States District Court for the District of Delaware, targets the use of Cerence’s text-to-speech technology. The company’s stock has shown remarkable momentum, with InvestingPro data showing a 216% return over the past six months.

The company, which has a significant footprint in the automotive industry and maintains a market capitalization of $429 million, claims that protecting its intellectual property is crucial as it ventures into new markets. Cerence asserts a long-standing commitment to innovation, which has culminated in a robust portfolio of intellectual properties. According to InvestingPro analysis, the company maintains a Fair financial health rating, with analysts anticipating a return to profitability this year.

Jennifer Salinas, Chief Administrative Officer & General Counsel of Cerence, stated, "At Cerence AI, we are deeply committed to having our intellectual property rights respected and enforced, especially as we continue to expand to new markets beyond automotive. We believe in the strength of our intellectual property portfolio and plan to vigorously defend our intellectual property rights against infringers."

Cerence’s technology is present in over 500 million cars, and the company collaborates with various automakers, transportation OEMs, and technology firms to enhance user experiences through AI. While headquartered in Massachusetts, Cerence maintains a global presence.

The outcome of the lawsuit remains uncertain, as it involves complex legal and intellectual property issues. The company has expressed no assurance regarding the developments related to the litigation, its results, or potential remedies.

This news article is based on a press release statement from Cerence Inc. and does not include any speculative content or endorsement of claims.

In other recent news, Cerence Inc. has reported several notable developments. The company announced a partnership with MediaTek and an expanded collaboration with NVIDIA to enhance its CaLLM™ Edge technology, aimed at improving AI-driven user experiences in vehicles. This collaboration is expected to deliver a new generation of embedded small language models, offering increased intelligence and contextual awareness for drivers and passengers. Additionally, Cerence appointed Marion Harris, a former Ford executive, to its board of directors, bringing over 25 years of experience in automotive and financial services to the company.

Cerence’s 2025 Annual Meeting of Shareholders resulted in the election of seven board members and approval of executive compensation, reflecting shareholder satisfaction with the company’s governance. However, a proposal to amend the company’s certificate of incorporation to limit officer liability was not approved. Raymond James maintained a Market Perform rating on Cerence, noting positive financial performance and strategic debt management, including the repurchase of $27 million of convertible debt. Despite this, concerns about Cerence’s market share in China remain, as the company’s volume growth lags behind the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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