A legal showdown has begun as startup Iyo, Inc. files a lawsuit against OpenAI and Jony Ive’s newly acquired “io” brand, accusing them of willful trademark infringement over the name “IO” for their forthcoming AI device .
🔍 What’s the Dispute?
- Iyo, a hardware startup specializing in AI-integrated hearing devices (e.g., IYO ONE), registered the trademark “IYO” in the U.S.
- In May 2025, OpenAI unveiled its hardware venture dubbed “io”, developed with famed designer Jony Ive and pitched around a $6.5 billion acquisition
- Iyo claims that the naming is confusingly similar and unfairly usurps its brand, arguing that OpenAI had prior knowledge of Iyo’s technology during prior talks—including acquisition discussions and prototype demos in 2022
📌 Key Claims & Court Action
- Iyo alleges “willful” infringement and seeks a temporary restraining order to stop OpenAI’s use of the “IO” mark
- A federal judge has already granted a TRO, forcing OpenAI to remove references to the “io” brand and Jony Ive collaboration pending a hearing set for October 2025
🗣️ Voices from Both Sides
Sam Altman (OpenAI CEO) labeled the lawsuit “silly, disappointing and wrong,” claiming Iyo had sought investment/acquisition before being turned down, and asserting that OpenAI is within its rights to use the name .
Jason Rugolo (Iyo CEO) responded sharply, describing Altman’s email response as “the worst email I’ve ever received in my professional life,” and emphasizing that “there are 675 other two‑letter names they can choose” .
⚖️ What’s at Stake
- Brand confusion: Iyo argues that overlapping use of “io/IYO” in AI hardware can harm its products and investor perception.
- Precedent for startups: The case could shape how emerging companies defend IP rights against tech giants.
- OpenAI strategy: The legal dispute complicates planned rollout of its flagship hardware designed by Jony Ive.
🔮 Next Steps
- A preliminary injunction hearing is scheduled for October 2025, with the full trial set for January 2028
- OpenAI must rebrand or relabel temporarily, while Iyo pushes on to protect its trademark and market space.
