The much-talked-about collaboration between OpenAI and iconic designer Jony Ive has hit a major roadblock. A US court has decided that the group cannot use the brand name “io” for its upcoming hardware venture, at least for now. The ruling extends a temporary restraining order that has been in place for months, effectively leaving the high-profile project without an official name.
The dispute began nearly six months ago when iyO, an audio and AI startup that originated from Google’s Moonshot Factory, sued OpenAI’s venture for trademark infringement. The startup argued that the names “iyO” and “io” sound too similar and that both companies operate in overlapping product categories. This, they said, could easily confuse consumers.
Appeals Court Backs Injunction
In documents filed on December 4 and reported by the Daily Journal, the US Court of Appeals for the Ninth Circuit sided with iyO and upheld the lower court’s injunction. The judges agreed that the similarities between the names, combined with the nature of the products, posed a real risk of confusion.
iyO’s argument leaned heavily on a trademark principle known as reverse confusion. This happens when a much larger company uses a similar name so widely that the public starts to believe the smaller, older brand is the imitator. The court ruled that OpenAI’s promotional efforts—including a launch video shared in May 2025—amounted to enough advertising activity to support this claim, even though no physical products had been released yet.
Court Rejects OpenAI’s Defense
OpenAI attempted to argue that the lawsuit was premature because the hardware had not launched and marketing hadn’t fully kicked off. But the court dismissed this reasoning. Under US trademark law, the judges noted, even publicity and early promotion qualify as trademark use. Actual product sales aren’t required for infringement to occur.
What This Means for the Project
With the injunction still in place, OpenAI and Jony Ive’s team are now prohibited from using the “io” name for anything related to the upcoming AI-powered voice interface device. They are also required to halt any branding, marketing, or promotional activity tied to that name.
As part of complying with the order, the venture has already removed launch videos and promotional materials from its websites and social channels. The court’s order applies specifically to the market segment iyO operates in: AI-driven voice computing devices.
For now, the collaboration remains nameless—and unless the legal situation changes, the team will have to come up with an entirely new brand identity before moving forward.
