IYO Sues OpenAI Over Trademark Infringement in ‘IO’ Name Dispute
IYO has filed a trademark infringement lawsuit against OpenAI and Jony Ive’s company, alleging that the defendants intentionally adopted a name for competing products that is confusingly similar to IYO’s own brand. The legal action emerged after the Microsoft-backed startup quietly pulled promotional materials about its $6.5 billion acquisition deal with Ive’s firm. The lawsuit is directed at OpenAI’s $6.5 billion acquisition of ‘IO Products, Inc.’ which was announced on May 21, 2025. IYO, which was spun out from Google X in 2021, develops the ‘IYO ONE,’ an ear-worn device that enables users to interact with computers and AI through voice commands without screens or keyboards.
According to the complaint, IYO has invested over $62 million in developing its audio computing technology. The company claims that OpenAI CEO Sam Altman and Jony Ive’s design studio LoveFrom met with IYO representatives multiple times between 2022 and 2025, gaining detailed insights into IYO’s technology and business strategies. In March 2025, Altman reportedly told IYO that he was working on a competitive project called ‘io.’ IO Products, which was formed in September 2023, focuses on developing hardware for screenless computer interactions, similar to IYO’s products. The lawsuit seeks injunctive relief and damages for trademark infringement and unfair competition.
The dispute highlights the intense competition in the audio computing and AI interaction space, with major players like Microsoft and Google vying for dominance through acquisitions and innovation. As the legal battle unfolds, the outcome could have significant implications for both companies’ market strategies and intellectual property rights.