Sam Altman this week brushed off a lawsuit going after “io,” OpenAI’s team-up with famed former Apple designer Jony Ive, but a judge’s recent decision could make the issue a bigger headache than previously imagined for the AI giant.
iyO claimed it was harmed by OpenAI’s announcement of io, a startup cofounded by Ive that OpenAI purchased for about $6.5 billion. The lawsuit claimed OpenAI refused to stop using the io name even after iyO requested it do so, and as a result, investors got spooked about the name confusion and funding interest in the startup dried up.
Trademark and intellectual property attorney Josh Gerben said the temporary restraining order the judge granted to iyO is not easily obtained, and is typically reserved for extreme circumstances where harm is likely. Rather than fight the court’s decision at the hearing in October, and then at trial, it may be easier for OpenAI to rebrand, said Gerben.
“Legally, IYO’s case appears to be strong, especially given the phonetic similarity between ‘IYO’ and ‘IO’ and the reported instances of actual confusion,” he told Fortune. “If the case were to go to trial and IYO could provide that its fundraising efforts went completely dry, along with other evidence showing that consumers were being confused by OpenAI’s use of ‘IO,’ it would likely win the case.”
“i wish jason and his team the best building great products. the world certainly needs more of that and less lawsuits,” Altman wrote in a follow-up post.
A spokesperson for OpenAI did not immediately respond to Fortune’s request for comment.
Still, iyO’s general counsel said in a statement to Fortune that iyO felt confident following the judge’s decision to issue the temporary restraining order last week.
“We’re not surprised by Mr. Altman’s dismissive tone—but federal judges don’t issue restraining orders based on ‘silly’ claims. The court found that iyO is likely to succeed in showing infringement, and that’s what matters. We’ll continue to protect the company’s brand and rights—no matter how big the opponent.”
