A U.S. appeals court has upheld a temporary restraining order that prevents OpenAI and Jony Ive's new hardware venture from using the name "io" for products similar to those planned by AI audio startup iyO, Bloomberg Law reports.
iyO sued OpenAI earlier this year after the latter announced its partnership with Ive's new firm, arguing that OpenAI's planned "io" branding was too close to its own name and related to similar AI-driven hardware. Court filings later showed that Ive and Sam Altman chose the name io in mid-2023, and that iyO CEO Jason Rugolo had approached Altman in early 2025 seeking funding for a project about "the future of human-computer interface." Altman declined, saying he was already working on "something competitive."
OpenAI countered that io's first product would not be a wearable device, and that Rugolo had voluntarily disclosed details about iyO while suggesting OpenAI acquire his company for $200 million. Despite this, a district court issued a temporary restraining order blocking OpenAI, Altman, Ive, and IO Products, Inc. from using the io mark in connection with products deemed sufficiently similar to iyO's planned AI-audio computer. OpenAI removed its io branding shortly after.
The Ninth Circuit affirmed the order earlier this week. The court agreed there was a likelihood of confusion between "IO" and "iyO," that reverse confusion was a significant risk given OpenAI's size, and that iyO could face irreparable harm to its brand and fundraising. However, the ruling does not bar all uses of the io name, only marketing and selling hardware similar to iyO's.
The case now returns to the district court for a preliminary injunction hearing in April 2026, with the broader litigation expected to extend into 2027 and 2028. OpenAI's first hardware device is expected to launch next year.
