Injunction/TRO Sought Against Defendants; OpenAI Acquisition of IO at Issue
SAN FRANCISCO, June 11, 2025 -- IYO (pronounced "Eye-Oh"), a venture-funded startup spun out from Google X, has filed suit in San Francisco Federal Court against Defendants IO Products, Inc., OpenAI, Inc., OpenAI, LLC, Sam Altman, and Sir Jonathan Paul Ive ("LoveFrom") for the "willful infringement" of IYO's registered IYO trademark. IYO's latest product, the IYO ONE, is a natural language audio computer, worn on a user's ear, which is voice-activated. It can read and respond to emails, do internet searches, and answer a wide variety of your natural language requests, responding in kind without use of a keyboard or screen.
IYO owns U.S. federal trademark Registration No. 7,409,119, issued by the USPTO, for the mark IYO. The lawsuit was filed as a result of OpenAI's decision to use the brand name "IO" to promote and sell competing products. IYO is seeking an immediate temporary restraining order and preliminary injunction preventing Defendants from using IO.
According to the Complaint, Defendants' actions are no mere coincidence.
IYO has invested millions of dollars and years of effort developing its revolutionary new product, branded "IYO ONE." IYO's purpose is to develop hardware and software allowing users to do everything they currently do on a computer, phone, or tablet without using a physical interface.
Defendants knew about the existence of the IYO brand and IYO's technology since at least 2022, as noted in the filing. The Complaint states that the parties had a series of meetings with representatives of OpenAI's principal Sam Altman and designers from Sir Jony Ive's design studio regarding the possibility of IYO and OpenAI working together. OpenAI kept tabs on IYO's technology, according to the filing. In the Spring of 2025, those two entities and IYO had additional meetings regarding the possibility of Defendants participating in IYO's fundraising round, as noted in the Complaint. During those meetings, Defendants stated to IYO that they thought IYO ONE had promise, and outright asked IYO to share intellectual property embodied in the IYO ONE, as plaintiffs noted in their filing.
Just weeks later, OpenAI announced their acquisition of IO. This launch of a competing product is blatantly and knowingly usurping IYO's goodwill, along with the consumer recognition that IYO has built in its IYO Mark, causing confusion in the marketplace and damage to IYO, according to the Complaint.
"It is amazing to me that Sam Altman, of all people, is part of a Goliath company trying to trample on the rights of our small startup, since he was always in favor of the little guy," said Jason Rugolo, cofounder of IYO. "And while they have provided no legal justification for their actions, it is noteworthy that OpenAI filed a lawsuit in a similar matter OpenAI vs. Open Artificial Intelligence, where OpenAI sought and obtained an injunction preventing another party from using the mark 'Open AI.' Here the shoe is on the other foot."
Defendants are requesting injunctive relief, damages, and attorneys' fees under an exceptional case designation.
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