IYO Sues OpenAI Over IO

IYO filed a trademark infringement lawsuit [PDF] against OpenAI and Jony Ive's company earlier this month, alleging the defendants deliberately adopted a confusingly similar name for competing products. The lawsuit surfaced after the Microsoft-backed startup quietly pulled promotional materials about its $6.5 acquisition billion deal with Ive's firm.

The Northern District of California complaint targets OpenAI's $6.5 billion acquisition of 'IO Products, Inc.,' announced May 21, 2025. IYO, which spun out from Google X in 2021, produces the 'IYO ONE,' an ear-worn device that allows users to interact with computers and AI through voice commands without screens or keyboards.

IYO has invested over $62 million developing its audio computing technology, it says in the filing. According to the complaint, OpenAI CEO Sam Altman and Ive's design studio LoveFrom met with IYO representatives multiple times between 2022 and 2025, learning details about IYO's technology and business plans. In March 2025, Altman allegedly told IYO he was 'working on something competitive' called 'io.' IO Products, formed in September 2023, develops hardware for screenless computer interaction similar to IYO's products. The lawsuit seeks injunctive relief and damages for trademark infringement and unfair competition.

Read more of this story at Slashdot.