OpenAI has removed all public references to its recently announced $6.5 billion acquisition of Jony Ive’s hardware startup, io, after a California federal judge granted a temporary restraining order blocking use of the “io” name. The order stems from a trademark infringement lawsuit filed by iyO Inc., a Google-backed company developing custom-moulded AI earpieces, which argues the two-letter brands are confusingly similar. Court filings reveal that OpenAI and Ive were served with the order late last week. IyO alleges OpenAI had been aware of its product since 2022 and even met with its executives this year before unveiling the io deal. OpenAI denies wilful infringement and said in a filing that io’s first consumer product is at least a year away from commercial launch, is “not an in-ear device, nor a wearable,” and therefore poses no marketplace conflict with iyO’s headset. Judge Trina L. Thompson issued the temporary block while the trademark dispute proceeds. Spokespeople for both OpenAI and Ive said the underlying partnership remains “on track,” and that they will fight the lawsuit while choosing a new brand if necessary. The episode underscores the rising intensity of intellectual-property battles as large language-model developers race to build dedicated AI hardware for the mass market.
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