Court bars OpenAI and Jony Ive from using ‘io’ name after startup wins key trademark fight

OpenAI

OpenAI and legendary Apple designer Jony Ive have been forced to abandon the “io” name for their upcoming AI hardware project after a federal appeals court ruled that the branding could infringe on an existing trademark. The decision is a major setback for the duo’s high-profile hardware venture, valued at around $6.5 billion.

The Ninth Circuit Court of Appeals upheld a temporary restraining order preventing OpenAI from marketing any product under the io name if it overlaps with the AI-driven hardware planned by iyO, a smaller Google-backed startup. Judges concluded that “IO” and “iyO” are phonetically indistinguishable, increasing the likelihood of consumer confusion, particularly since both companies are building natural language–based hardware products.

The dispute dates back to June, after OpenAI announced its acquisition of Ive’s hardware team. iyO had already trademarked its name in 2021, well before Ive and Sam Altman reportedly settled on the io branding in mid-2023. Court filings revealed an unexpected twist: iyO CEO Jason Rugolo had approached Altman in early 2025 seeking investment for a next-generation human–computer interface. Altman declined, noting he was working on something similar, and later turned down Rugolo’s offer to sell iyO to OpenAI for $200 million.

Although OpenAI argued its first device would not resemble iyO’s AI-powered earbuds, the court remained concerned about what it called “reverse confusion,” where a dominant company overwhelms a smaller brand and effectively makes it look like the imitator. The injunction prevents OpenAI from using the io name until further legal review.

A preliminary hearing is set for April 2026, with a full trial likely stretching through 2027 and possibly 2028. In response to the ruling, OpenAI has already removed io branding from its website and pulled earlier promotional footage that featured Jony Ive and Sam Altman discussing their collaboration.

Despite the branding roadblock, OpenAI still plans to release its first hardware device around late 2026 or 2027. The project will continue, but under a name that can survive the courtroom.