OpenAI forced to scrub all Jony Ive 'io' branding after trademark lawsuit from rival startup
Jun 23, 2025
Key Points
- A federal judge blocked OpenAI from using 'io' to brand its $6.5 billion Jony Ive hardware venture, forcing the company to scrub all promotional materials after a trademark lawsuit from rival startup IYO.
- IYO alleges Sam Altman attended pitch meetings and product demos between 2022 and 2025, then declined investment and built a competing device under the same name, stalling the startup's fundraising.
- OpenAI chose not to fight the restraining order, suggesting the 'io' name is expendable and the real competition will hinge on software quality, hardware design, and execution rather than branding rights.
Summary
A federal judge issued a restraining order blocking OpenAI from using the name 'io' to brand its upcoming AI hardware device. OpenAI has scrubbed all promotional materials, including YouTube videos, blog posts, and web pages, related to the $6.5 billion venture with Jony Ive's LoveFrom studio.
The lawsuit comes from IYO, a hardware startup that has spent six years developing the IO1, an earworn AI voice device with 16 beamforming microphones for natural language interaction. IYO alleges that between 2022 and 2025, Sam Altman's team and Ive's studio participated in extensive pitch meetings, factory tours, and hands-on testing of the product. On March 5, 2025, Altman declined to invest and disclosed he was working on something competitive, eventually named 'io.' When OpenAI revealed the venture in May 2025, IYO's fundraising stalled as Altman allegedly influenced investors to stop backing the smaller company.
OpenAI faced a trademark confusion claim. IYO has operated publicly since at least 2018 and holds strong grounds for a trademark claim given the phonetic similarity between 'io' and 'IYO.' Rather than fight the restraining order, OpenAI pulled all branding materials.
The dispute fits a broader pattern where large sums trigger litigation from parties seeking settlements. IYO raised over $20 million and counts Lockheed Martin and Alphabet as backers, giving it resources to pursue the case. A $40 million settlement would function as a Series B and allow the startup to continue operating.
'io' is not a strong enough brand to lock OpenAI into it. The company could rebrand the device as the ChatGPT phone or OpenAI phone without material damage, though trademark concerns around existing names may limit those options.
Neither company owns voice-first computing in an earworn device. Competition will turn on software quality, hardware design, go-to-market strategy, and execution rather than form factor claims. AirPods already demonstrate the viability of voice interaction in ear-worn devices. The real question for both OpenAI and IYO is whether either can build something materially better.