In the fiercely competitive artificial intelligence sector, trademark disputes have once again taken center stage. The latest case involves AI hardware startup "io," co-founded by OpenAI CEO Sam Altman and former Apple chief designer Jony Ive, facing legal action from technology firm "iyo" over alleged trademark infringement and anti-competitive imitation.
The Legal Complaint
On June 9, 2025, iyo filed a 27-page lawsuit in the U.S. District Court for the Northern District of California, accusing OpenAI, Altman, and Ive's company "io" of willful trademark violation and employing unfair competitive practices designed to undermine iyo's market position.
Founded in 2021 by former members of Google's X research division, iyo has secured $62 million in funding. Its flagship product, "iyo ONE," is a screenless wearable AI device that uses voice commands and bone conduction technology for natural human-computer interaction. The company holds a registered trademark for "iyo" (Registration No. 7,409,119) and is currently preparing mass production of its first 20,000 units.
Allegations of Copying
The complaint asserts that "io" has adopted nearly identical product positioning and naming conventions to iyo, creating substantial risk of marketplace confusion. This follows OpenAI's May 22, 2025 announcement of a $6.5 billion acquisition of Ive's startup "io," with explicit plans to develop screenless AI interaction devices.
More troublingly, iyo claims OpenAI had prior knowledge of its operations through multiple meetings about potential collaboration starting in 2022. The lawsuit details how "io" engineers allegedly purchased iyo prototypes under false pretenses in early 2025 while making detailed inquiries about product specifications. During a phone conversation, Altman reportedly informed iyo about working on a "competitive" project named "io."
Escalating Tensions
According to court documents, OpenAI and io representatives held additional meetings with iyo in April and May 2025, testing the iyo ONE device before abruptly announcing their competing product alongside aggressive marketing campaigns. iyo characterizes this sequence as deliberate imitation and market suppression.
When iyo attempted to resolve the dispute through negotiation, the company says it encountered unexpected resistance. The complaint describes how Altman allegedly refused to cease using the "io" name during a phone call and instead threatened countersuit to pressure iyo into abandoning its own branding.
Legal Remedies Sought
iyo's filing includes six causes of action: trademark infringement, false designation of origin and unfair competition, unfair competition under California law, common law unfair competition, contributory infringement, and inducement of infringement. The plaintiff seeks permanent injunction against OpenAI's use of "io," along with compensatory damages for operational losses, profits, punitive damages, and legal fees.
OpenAI has temporarily removed "io"-related webpages per court requirements while maintaining its disagreement with the trademark claims. The company states it is evaluating further response options as the case develops.