A U.S. appeals court issues a temporary restraining order halting OpenAI and Jony Ive’s io Products from using the “io” name for hardware resembling AI audio startup iyO’s offerings. The Ninth Circuit Court of Appeals rules that such branding risks consumer confusion between the competing devices. This legal hurdle disrupts OpenAI’s high-profile partnership with former Apple design chief Jony Ive, potentially delaying their AI hardware ambitions.
Trademark Clash Origins
iyO, an AI audio specialist, sued OpenAI earlier this year over trademark infringement after discovering the “io” branding plans dating back to mid-2023. Court documents reveal iyO CEO Jason Rugolo pitched a human-computer interface project to OpenAI’s Sam Altman in early 2025, which Altman rejected citing competitive development. Rugolo even offered to sell iyO for $200 million, but OpenAI declined, asserting the companies could coexist despite naming similarities.
Consumer Confusion Concerns
The court’s decision hinges on marketing and sales of “sufficiently similar” products, protecting iyO from marketplace dilution. OpenAI briefly removed its Jony Ive partnership page before relaunching in July as io Products, Inc., following the merger. Reports indicated initial hardware unveilings targeted for 2027, but this injunction forces immediate rebranding considerations for affected product lines.
OpenAI-Jony Ive Partnership Details
The collaboration merges OpenAI’s AI expertise with Ive’s design legacy, aiming beyond conventional wearables or in-ear headphones. Leaked documents confirm the debut device explores novel human-computer interfaces, leveraging cutting-edge silicon and software integration. OpenAI maintains the ventures operate in distinct spaces, though the court disagrees on branding overlap risks.
Legal Timeline Ahead
The temporary order persists pending district court review for a preliminary injunction hearing scheduled for April 2026. Potential outcomes include maintaining, narrowing, or expanding restrictions, with full jury trials spanning 2027-2028. This protracted battle echoes tech industry naming disputes, where early resolution remains elusive amid complex discovery processes.
Implications for AI Hardware Race
This setback challenges OpenAI’s hardware entry against giants like Apple, Google, and Meta, where distinctive branding proves crucial for market differentiation. Jony Ive’s involvement signaled premium design aspirations, but forced rebranding could dilute launch momentum and confuse early adopters. The ruling underscores trademark diligence in crowded AI device sectors.
Broader Industry Precedents
Similar conflicts plague emerging categories—smart glasses, earbuds, and spatial computing—where short, techy names like “io” proliferate. Courts increasingly scrutinize phonetic similarities and product adjacency, prioritizing established players. OpenAI must now pivot creatively, potentially adopting entirely new nomenclature while accelerating prototype secrecy.
Strategic Responses Expected
OpenAI faces choices between aggressive appeals, settlement negotiations, or full rebrand execution. Jony Ive’s design team likely prepared contingency identities, minimizing delays. Meanwhile, iyO gains validation, deterring copycats and bolstering its niche positioning in AI audio innovation.
