OpenAI and Jony Ive’s hardware startup just hit a serious legal roadblock after a federal judge ruled in favor of iyO, preventing the company from using the “io” branding while its trademark lawsuit moves forward. The decision strengthens iyO’s position in one of the most closely watched branding disputes in the AI hardware space and raises new questions about OpenAI’s product strategy.
Court says iyO’s trademark case is likely to succeed
The United States District Court for the Northern District of California granted iyO’s request for a preliminary injunction, with Judge Trina Thompson finding that iyO showed a strong likelihood of success on its trademark infringement claim. The ruling means OpenAI and Jony Ive’s venture cannot use the io name during the ongoing legal battle.
Judge Thompson directly challenged OpenAI’s argument that dropping the branding voluntarily should end the case.
“If the defendants sincerely intend not to infringe, the injunction harms them little; if they do, it gives Plaintiff substantial protection of its trademark.”
— Judge Trina L. Thompson
That statement became central to the court’s reasoning, especially as OpenAI failed to prove with certainty that it would never return to the io branding.
The court also accepted iyO’s argument that continued uncertainty around the io brand risked “irreparable harm,” including investor hesitation, funding pressure, and damage to brand equity. Consumer confusion evidence also played a major role, with survey data showing strong similarity between “io” and “iyO.”
For OpenAI, this decision creates immediate branding limitations for its Jony Ive partnership. For iyO, it protects its identity as it develops AI-focused consumer hardware.
This case now extends beyond naming rights and has become an early warning for AI companies rushing into hardware without thoroughly clearing branding risks.
