In a dispute hinging on a single letter, the Ninth Circuit refused Wednesday to lift an injunction that bars OpenAI from using the “IO” trademark in certain contexts tied to its acquisition of competitor IO Products — a ruling that deepens a high-stakes branding battle in the fast-evolving AI market.
Trademark Clash Over Nearly Identical AI Brands
In a six-page unpublished order, the appellate panel upheld U.S. District Judge Trina L. Thompson’s decision granting IYO Inc. temporary protection under the Lanham Act. IYO argues that OpenAI — and CEO Sam Altman personally — knew of its “IYO” mark before announcing plans to acquire IO in May for $6.5 billion, then moved forward in a way that immediately destabilized IYO’s business.
The plaintiff claims OpenAI intends to launch a product “eerily similar” to its own, warning that the market confusion triggered by the acquisition announcement has already harmed its ability to secure contracts and investment.
Competing Products With the Same Goal: Hands-Free Computing
IYO says its flagship product — the IYO ONE — is an ear-based device enabling users to interact with digital systems without screens or keyboards. IO, according to correspondence cited in court, plans to create a similar interface-free product enabling users to engage with artificial intelligence, smartphones, or the internet through more natural, non-physical inputs.
Judge Thompson concluded that OpenAI’s use of the “IO” mark could “swamp the reputation” of IYO’s brand — a finding the Ninth Circuit agreed was supported by the record.
