A behind-the-scenes battle to redefine how we interact with AI assistants has turned into a public legal drama. OpenAI and famed designer Jony Ive are at the center of a trademark dispute involving a stealth hardware project, now forced into the spotlight as tech startup iyO Inc. ramps up its legal action.
The issue first emerged when iyO sued OpenAI and Ive for allegedly infringing on its trademark, citing similarities between its own name and the “io” branding used by the Altman-Ive initiative. “OpenAI fights a trademark dispute over its stealth hardware collaboration with legendary iPhone designer Jony Ive.” A federal judge recently ruled that iyO’s claim is strong enough to move forward, temporarily barring OpenAI from using the “io” brand and forcing the company to remove related web content.
Now, iyO has filed a second lawsuit—this time against former executive Dan Sargent, accusing him of leaking confidential design materials. Filed in San Francisco Superior Court, the suit alleges breach of contract and misappropriation of trade secrets after Sargent, now at Apple, allegedly met with io co-founder Tang Yew Tan. “This is not an action we take lightly,” said iyO CEO Jason Rugolo. “Our primary goal here is not to target a former employee… but to hold accountable those whom we believe preyed on him from a position of power.”
At the core of the conflict is a race to develop a more intuitive AI interface—one that doesn’t rely on screens or traditional devices. “We shouldn’t need to stare at computer or phone screens or talk to a box like Amazon’s Alexa to interact with our future AI assistants in a natural way.” OpenAI’s collaboration with Ive began quietly in 2023 and became public this May when they acquired io Products for $6.5 billion.
Rugolo claims he had pitched a similar AI audio interface to Altman and Ive in 2022, only to learn later that they had launched a competing effort. “I’m happy to compete on product, but calling it the same name, that part is just amazing to me. And it was shocking,” he said.
Altman dismissed the claims as “silly, disappointing and wrong” and said the name “io” refers to basic computing principles of “input/output.” He and Ive purchased the io.com domain in 2023 and insist their device is distinct from iyO’s. Court documents also clarified, “It is not an in-ear device, nor a wearable device.”
While full details of OpenAI and Ive’s project remain under wraps, Altman described a prototype as “the coolest piece of technology that the world will have ever seen.”
