Iyo vs Io: Altman reveals how the trademark dispute unfolded
What's the story
Sam Altman, the CEO of OpenAI, has publicly shared private conversations leading up to a lawsuit against his company. The legal action was initiated by Iyo, a hearing device start-up founded by Jason Rugolo. In an effort to defend his company and its new product "Io," Altman took to X (formerly Twitter) to post screenshots of email exchanges between him and Rugolo.
Business proposal
Rugolo pitched his AI-audio hardware start-up, Iyo, to Altman
In a March 4 email, Rugolo pitched his AI-audio hardware start-up, Iyo, to Altman. He asked the OpenAI CEO if he would be interested in investing $10 million. "We are launching the best possible hardware interface to interact with AI-agents, after having obsessively focused on this problem since 2018," Rugolo wrote. However, Altman declined the offer as he was already working on something similar.
Collaboration inquiry
Rugolo then asked if OpenAI would collaborate with Iyo
After declining the investment offer, Rugolo asked if OpenAI would be interested in collaborating with Iyo. Altman said he would have to consult Jony Ive, a former Apple designer who is leading the launch of Io. Last month, OpenAI acquired Ive's AI hardware company for nearly $6.5 billion. The next email exchange took place in May when Rugolo pointed out some fixes made by Iyo after a demo shown to the OpenAI team.
Trademark concerns
'I'm getting blown up on the names situation'
On May 23, days after OpenAI announced its acquisition of "Io," Rugolo expressed his concerns about the name. "I'm getting blown up on the names situation," he wrote. He also asked Altman if OpenAI was serious about potentially bringing Iyo in. However, Peter Welinder, OpenAI's VP of product, said he doesn't think there's a fit as their devices are very different and don't work yet.
Legal action
OpenAI removes 'Io' branding from its website
On June 22, OpenAI quietly removed the "Io" branding from its website. The company later said it had to do so due to a temporary restraining order issued in response to Iyo's trademark lawsuit filed on June 9. OpenAI's hardware team testified that their device isn't an "in-ear device, nor a wearable." In the lawsuit, Iyo alleges that OpenAI was aware of its technology before launching Io.
Legal response
Here's what Altman has to say
Responding to the lawsuit, Altman said, "Jason Rugolo had been hoping we would invest in or acquire his company Iyo and was quite persistent in his efforts." "We passed and were clear along the way. Now he is suing OpenAI over the name. This is silly, disappointing and wrong." Despite not being able to showcase the "Io" branding for now, OpenAI has confirmed that its deal with Ive is still on track.