IYO Sues OpenAI, Altman, Ive: "IO" Name Sparks AI Trademark Battle

IYO Sues OpenAI, Sam Altman, and Jony Ive over "IO" Trademark Infringement, Alleging Similar Screenless AI Device, Prior Knowledge, and Market Confusion.

IYO, Inc. has filed a lawsuit against OpenAI, its new company IO, Sam Altman, and Jony Ive, alleging trademark infringement and unfair competition. The complaint asserts that the defendants' new venture, "IO," and its planned screenless AI interaction device are confusingly similar to IYO's existing "IYO" brand and product, the IYO ONE. This alleged infringement, despite prior knowledge of IYO's technology, is causing significant market confusion and financial harm to IYO.

Lawsuit Parties and Claims

• Plaintiff: IYO, Inc.
• Defendants: IO Products, Inc., OpenAI, Inc., OpenAI, LLC, Sam Altman (OpenAI CEO), and Sir Jonathan Paul Ive (Jony Ive).
• Core Allegations: Trademark infringement (IYO Mark), false designation of origin, unfair competition under the Lanham Act and California law, contributory infringement, and inducement of infringement.

IYO's Innovative Screenless AI Device

• Origin & Investment: IYO spun out of Google X in August 2021, having invested over $60 million since March 2018.
• Product: The IYO ONE is an ear-worn device enabling natural language interaction with smartphones, computers, AI, and the internet without screens, keyboards, or mice.
• Key Features: Utilizes 16 beamforming microphones for an "audio display" and includes apps like BABL (real-time translation), OWL (telescopic hearing), SHERLOCK (voice search), and DEEJ (AI disc jockey).
• Market Status: Manufacturing an initial batch of 20,000 units, available for pre-sale at $999-$1,199, with shipping expected in September/October 2025.

Defendants' Prior Knowledge and Homophonous Launch

• Knowledge of IYO: Defendants had multiple meetings with IYO representatives (including Sam Altman and Jony Ive's LoveFrom) in 2022 and 2025, discussing potential collaboration and sharing IYO's technology and vision.
• Product Acquisition/Pre-orders: Key IO co-founder Tang Yew Tan and other IO engineers purchased and pre-ordered IYO's products (VAD PRO, IYO ONE).
• Competitive Launch: On May 21, 2025, OpenAI announced its $6.5 billion acquisition of "IO" (a homophone of IYO), a new company co-founded by Jony Ive, aiming to develop strikingly similar screenless AI hardware.

Market Confusion and IYO's Financial Harm

• Immediate Impact: OpenAI's announcement caused an "avalanche of communications" and widespread confusion among IYO's investors and professional network.
• Funding Disruption: IYO's capital raise, crucial for manufacturing and marketing, has been severely hindered, with investors expressing concerns about the market confusion.
• Refusal to Cease: Defendants refused IYO's requests to stop using the "IO" name; Sam Altman allegedly threatened to sue IYO to force them to stop using their own name.
• Irreparable Harm: IYO claims irreparable harm, including loss of corporate identity, goodwill, and market share, due to the perceived association with a much larger entity.