OpenAI Forced to Pause “io” Branding After Trademark Dispute with Startup iyO

OpenAI and Jony Ive were working together on a new AI hardware device called “io,” planned as a major innovation.

A small startup named iyO said the name was too similar to theirs and decided to sue for trademark infringement. The company also claimed that OpenAI had seen their private product ideas in past meetings and then used a similar name.

A U.S. judge agreed there might be confusion and ordered OpenAI to pause all use of the “io” name for now.

OpenAI quickly took down all mentions of “io,” saying it doesn’t agree with the lawsuit but will follow the legal order. A full court hearing is planned for October 2025, where both sides will present their case.

The Ambitious OpenAI–Jony Ive Hardware Project

OpenAI, the creator of ChatGPT, has been collaborating with legendary designer Jony Ive (the man behind Apple’s iconic hardware designs) to launch a groundbreaking AI-powered hardware device. This project moved forward in May 2025 when OpenAI agreed to acquire Ive’s design startup, io Products, in a massive $6.5 billion deal. The new hardware, though still shrouded in secrecy, is widely speculated to be a next-generation AI “assistant” or device that could rival the iPhone in ambition and design.

Who is Jony Ive and What is io Products?

Jony Ive is world-famous for his work at Apple, where he led design for devices like the iPhone, iPad, and MacBook. After leaving Apple in 2019, he founded his own design company—LoveFrom—and more recently spun up a separate hardware startup called io Products to focus on AI-driven device innovation.io Products quickly became a hot topic in tech circles for its secretive mission and heavy emphasis on user-centered, tactile AI experiences. When OpenAI stepped in, it wasn’t just about the device but about leveraging Ive’s design genius for the next wave of AI hardware.

The Trademark Dispute: Who is IYO/iyO?

Meanwhile, a much smaller but fast-growing startup named IYO/iyO (often stylized as "iyO") has been operating in a completely different space—reportedly specializing in wearable devices and health-focused technology. IYO/iyO holds a registered trademark for the “iyO” name and alleges that OpenAI and Jony Ive’s io branding infringes on its rights and could create confusion in the market.

This company, while not a household name, has established enough brand presence and legal standing to challenge a tech giant like OpenAI in federal court. Their concern is that the similarity between “io” and “iyO” (phonetically and visually) could undermine their brand identity.

Who is Behind IYO/iyO? And what does this company make?

IYO was founded by Jason Rugolo, a former Google engineer who previously worked on cutting-edge technologies at X, the Moonshot Factory (Google’s experimental division). Rugolo launched IYO as an independent venture between 2021 and 2024, focusing on “screenless, voice-first” wearable computing.

The startup’s flagship product is the iyO ONE, a minimalist, ear-worn audio computer designed for constant, hands-free use. The device includes bone-conduction audio, spatial microphones, and ARM-based processors, and aims to create a future where users interact with AI using only their voice—no screens or keyboards required.

IYO markets this product directly to consumers as a radically new way to experience technology, emphasizing privacy, seamless integration, and accessibility. The name “iyO” is at the heart of its identity, and Rugolo has stated publicly that they will not allow “Sam and Jony” to “trample” their brand.

According to IYO’s legal filing, executives from OpenAI and Jony Ive’s team had previously met with IYO, reviewed confidential pitch materials, and later announced a product under a suspiciously similar name—io. This, they claim, goes beyond accidental overlap and into potential misappropriation.

iyO is best known for making a unique wearable device called the iyO ONE. This is not a normal pair of earbuds or headphones. Instead, it sits gently on your ear and uses special technology called bone-conduction speakers to send sound through the bones near your ear, so you can hear audio clearly without blocking your ears. The device also has several smart microphones that can pick up your voice while ignoring background noise. This means you can talk to an AI assistant easily, even in busy places.

What makes iyO ONE stand out is that it’s designed for people who want to use voice commands all day long, without screens or buttons. It’s also good for people who need extra help hearing or those who want a device that doesn’t share their private voice data online. iyO has even made special software that keeps most of your voice information private, processing it right on the device instead of sending it to the cloud.

Lately, iyO has been working with healthcare groups to see how their device could help people in therapy or those who have trouble hearing. This shows that the company isn’t just making gadgets for everyday use, but also trying to help people in the medical world.

On the business side, iyO is a small company, but it has received about $21 million in funding from investors, including Google’s parent company (Alphabet), Lockheed Martin Ventures, and a few others. With this money, iyO has been able to build a small but skilled team and work on new ideas, patents, and partnerships to protect their business and technology.

The Legal Showdown and Emergency Injunction

Recognizing the potential for irreparable brand damage, IYO/iyO filed a lawsuit against OpenAI, Sam Altman, and Jony Ive, seeking a temporary restraining order (TRO) to halt all marketing and public-facing use of the “io” name until the case could be fully heard.A federal judge (identified in later reports as U.S. District Judge Trina Thompson) sided with IYO/iyO, issuing a temporary injunction late on June 23, 2025 at 18:53 UTC.

This order does not block the hardware project or the $6.5 billion acquisition. Instead, it specifically prohibits OpenAI and its partners from using the “io” or "io Products" branding in marketing, advertising, or any public-facing materials. This includes promotional videos, webpages, social media, and press releases.

OpenAI’s Response and Immediate Actions

OpenAI responded almost instantly. Within minutes, all web pages, blog posts, and social media references to “io” or “io Products” were taken down or replaced with a legal notice referencing the judge’s ruling.A statement from OpenAI emphasized that they “disagree with the complaint” and are currently reviewing their legal options. However, they are complying with the court order for now.

Notably, some existing video content and references may still linger online, but OpenAI has officially halted all new public-facing use of the “io” name. Behind the scenes, work on the device and partnership with Jony Ive appears to be continuing—just without the contested branding.

What Happens Next: The October Hearing

The temporary injunction is not permanent—it holds only until a scheduled court hearing in October 2025. At that time, both sides will present their arguments, and the court will decide whether to extend the marketing freeze, force a permanent name change, or potentially dismiss the claim if OpenAI can prove no real market confusion exists.

The Stakes for OpenAI, Jony Ive, and IYO/iyO

For OpenAI: The ruling is an unexpected bump in its hardware rollout and public relations narrative. OpenAI must rebrand or pause its marketing push just as excitement was building, risking lost momentum and confusion among potential customers and investors.

For Jony Ive: This adds a layer of legal drama to his return to hardware innovation and complicates the public debut of his most ambitious post-Apple product.

For IYO/iyO: This is both a risk and a massive visibility boost. Successfully defending its trademark could cement its brand, but going toe-to-toe with OpenAI is a huge undertaking for a smaller company.

For the broader tech world: This signals how trademark issues can disrupt even the biggest players, and it underscores how crucial branding and intellectual property have become in the crowded AI and hardware space.

The Broader Context

Trademark disputes like this are common in tech but rarely so high-profile or expensive. It highlights the importance of exhaustive brand checks, especially as global AI companies race to launch new products.

For investors and industry watchers: The ability of a relatively small company to pause a $6.5 billion deal’s rollout—even temporarily—demonstrates the power of trademark law.

For users and the public: We may not see or hear much about the “io” device for the next few months, and the final product could emerge with an entirely new name.

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