SAN FRANCISCO (AP) — A budding partnership between OpenAI CEO Sam Altman and legendary iPhone designer Jony Ive to develop a new artificial intelligence hardware product has hit a legal snag after a federal judge ruled they must temporarily stop marketing the new venture.
OpenAI last month announced it was buying io Products, a product and engineering company co-founded by Ive, in a deal valued at nearly $6.5 billion.
But it quickly faced a trademark complaint from a startup with a similarly sounding name, IYO, which is also developing AI hardware that it had pitched to Altman's personal investment firm and Ive's design firm in 2022.
U.S. District Judge Trina Thompson ruled late Friday that IYO has a strong enough trademark infringement case to proceed to a hearing in October. Until then, she ordered Altman, Ive and OpenAI to refrain from “using the IYO mark, and any mark confusingly similar thereto, including the IO mark in connection with the marketing or sale of related products.”
OpenAI responded by scrubbing its website of mentions of the new venture, including a web page of the May 21 announcement.
In its place, the company had a message Monday that said the page “is temporarily down due to a court order” and added: "We don’t agree with the complaint and are reviewing our options.”
IYO CEO Jason Rugolo applauded the ruling Monday in a written statement that said the startup will aggressively protect its brand and tech investments.
"IYO will not roll over and let Sam and Jony trample on our rights, no matter how rich and famous they are,” Rugolo said.
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The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP's text archives.
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