Trademark Spat Forces OpenAI's Jony Ive AI Hardware Project to Rebrand

In a significant development for the artificial intelligence industry, OpenAI has removed all public references to its highly anticipated "io" hardware project following a trademark dispute with IYO Audio, a startup specializing in audio computing devices. The move to scrub the "io" name from OpenAI's website and promotional materials comes after IYO Audio, a company with roots in Google's moonshot factory, filed a trademark infringement lawsuit.[1][2] This clash highlights the increasing complexities and potential legal pitfalls for tech companies as they venture into new hardware categories, particularly in the burgeoning field of AI-powered personal devices. While OpenAI has stated that its partnership with famed designer Jony Ive remains intact, the forced rebranding represents a notable setback for a project that has been the subject of considerable industry buzz.[3][4]

The heart of the dispute lies in the similarity of the names and the products themselves. IYO Audio, founded in 2021, has been developing and marketing the IYO ONE, an ear-worn device described as an "audio computer" designed for voice-based interaction with AI applications.[5][6][7] The company filed for a trademark for "IYO" in September 2021, which was officially registered in 2024, covering goods such as audio headphones and computers.[8] OpenAI and Jony Ive's "io" project, which was formally announced in May 2025, is also reported to be a screenless, voice-controlled AI device.[1][9] The lawsuit filed by IYO alleges that OpenAI and its partners knowingly infringed on their trademark, creating a likelihood of confusion in the marketplace.[6] Complicating matters further, IYO claims it had been in discussions with OpenAI about potential funding and collaboration prior to OpenAI's announcement of the "io" project.[1][8] This has led to allegations that OpenAI may have used these meetings to gain insight into IYO's market strategy before launching a similarly named competitor.[8]

In response to a court order, OpenAI has taken down the webpage and a video that announced the "io" project and its acquisition of Ive's startup.[3][2][10] An OpenAI spokesperson acknowledged the temporary removal of the content due to the trademark complaint but stated that the company disagrees with the complaint and is currently reviewing its legal options.[1][2] Despite the public removal of the "io" branding, both OpenAI and sources close to the project insist that the underlying development of the AI hardware is proceeding as planned.[4][2] The venture, a partnership between OpenAI and Ive's design firm LoveFrom, is backed by prominent investors and aims to introduce a new category of personal technology that moves beyond traditional screen-based interfaces.[4][9] The first device from this collaboration is anticipated to launch in 2026.[3][11]

This trademark dispute underscores the critical importance of brand identity and intellectual property in the competitive and rapidly evolving AI hardware space. For a startup like IYO, its trademark is a crucial asset, protecting its innovation and market position against larger, more powerful players.[8] The legal challenge against a giant like OpenAI, valued in the hundreds of billions, and a design icon like Jony Ive is a bold move that could set a precedent for how branding conflicts are handled in the tech industry.[8][12] The outcome of this case will be closely watched, as it could influence how companies approach the naming of new products and the extent to which they must conduct due diligence to avoid infringing on existing trademarks, especially when the names are homophones and the products occupy a similar niche.

The incident serves as a cautionary tale for the tech industry, demonstrating that even the most well-funded and high-profile ventures are not immune to fundamental legal challenges like trademark disputes. The "io" project, with its ambitious goal of redefining human-computer interaction through a screenless, AI-native device, has captured the imagination of the tech world.[9][13][14] However, this early stumble emphasizes that success in the market depends not only on technological innovation and visionary design but also on careful navigation of the legal landscape. As OpenAI and Jony Ive move forward with a likely rebranding, the episode highlights the significant, and sometimes overlooked, role that trademark law plays in shaping the future of technology.[4] The resolution of the conflict with IYO Audio will not only determine the branding of a major new product but will also send a message to the entire industry about the protections afforded to established trademarks in the face of new and powerful market entrants.