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OpenAI and io involved in legal dispute over AI device development

Kyiv • UNN

 • 2961 views

OpenAI and Jony Ive's startup io are facing a trademark infringement lawsuit from iyO, a company specializing in custom headphones. OpenAI withdrew marketing materials related to the $6.005 billion acquisition of io after the lawsuit was filed.

OpenAI and io involved in legal dispute over AI device development

OpenAI, along with Jony Ive's startup io, have become defendants in a lawsuit over trademark infringement allegations from iyO, a company specializing in custom in-ear headphones. This is reported by UNN with reference to TechCrunch.

Details

The lawsuit was filed by iyO, a hardware startup backed by Google. The company accuses OpenAI and io of infringing its trademark rights. In response to the court ruling, OpenAI withdrew marketing materials related to the acquisition of io for $6.005 billion.

According to documents filed with the court on June 12, lawyers for OpenAI and io stated that over the past year, the companies have explored modern market solutions, including purchasing at least 30 sets of in-ear headphones. OpenAI and io executives also met with iyO representatives to learn about their technology.

However, the subject of the lawsuit, as it turned out, is not a product similar to iyO's technology.

This prototype is not an in-ear headset and is not a wearable device

– stated io co-founder Tang Tan, a former Apple executive, in a declaration.

He clarified the development status

Its design is not yet finalized, and it will not be advertised or offered for sale for at least a year

– added Tang Tan.

Our goal in this collaboration was and is to create products that go beyond traditional products and interfaces

– outlined the company's vision OpenAI CEO Sam Altman in his court statement.

OpenAI's lawyers, in their position, emphasized the breadth of areas explored.

We have explored desktop and mobile, wireless and wired, portable and wearable devices

– noted OpenAI representatives.

Ive, for his part, stated in promotional materials that io's first prototype "completely captured" his imagination. Altman, in a closed meeting with OpenAI employees, previously noted that the future device "fits in a pocket or sits on a desk" and will become the "third device" alongside the phone and laptop.

Case details

The documents mention a meeting that took place on May 1. At that time, OpenAI Vice President Peter Welinder and Tang Tan met with iyO CEO Jason Rugolo at io's headquarters in San Francisco. They familiarized themselves with iyO's custom earbud, but the testing was unsuccessful. Subsequent correspondence indicates that the product failed several times.

In letters attached to the case, io engineer Marwan Rammah discusses the possibility of acquiring a database of 3D ear scans from The Ear Project.

This could give us a useful starting point for ergonomics

– wrote Marwan Rammah.

iyO CEO Jason Rugolo tried to expand the collaboration between iyO, io, and OpenAI. He proposed launching his device as a "developer kit," attracting investments, or selling the company for $200 million. But these proposals were rejected.

io co-founder Evans Hankey, a former Apple executive, also testified in the case.

io is not working on a custom earbud product

– stated Evans Hankey.

Reference

OpenAI – developer of the ChatGPT system.

io – a hardware startup founded by Jony Ive, former chief designer at Apple.

iyO – a startup in personalized headphones, backed by Google.

Recall

Since 2023, OpenAI and Jony Ive have been working on a joint hardware project in the field of artificial intelligence. The lawsuit with iyO sheds light on certain aspects of this development, but the companies' key product remains confidential.

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