July 3, 2025 Copyright ©️ 2025 by goldkeen International Patent & Trademark Joint Office
In June 2025, global AI leader OpenAI partnered with former Apple design chief Jony Ive to launch a new startup named "io." While the venture initially generated high market anticipation, it was soon forced to remove all promotional content related to "io" due to a trademark dispute with another startup, "iyO." This case not only highlights the hidden legal risks in brand integration but also serves as a wake-up call for companies worldwide to reassess their trademark strategies.
"io" vs "iyO": Key Issues in the Trademark Dispute
According to reports from The Verge and Business Insider, after OpenAI announced its collaboration with "io" and committed a $6.5 billion investment, it was sued for trademark infringement by AI hearing device company "iyO." Originating from Google's Moonshot Factory, iyO's flagship product is the AI-powered earbud "iyO One." The company claims that the name "io" is too similar to its registered trademark and could cause consumer confusion.
If examined under Article 30, Paragraph 1, Subparagraphs 10 and 11 of the Taiwan Trademark Act, the dispute centers on whether there is a likelihood of confusion or misidentification among consumers, or whether the use of "io" may dilute the distinctiveness and goodwill of the existing "iyO" trademark.
Brand Naming and Trademark Search: Essential Preparatory Steps for Companies and Brands
Many companies and brands, when pursuing strategic collaborations or product launches, tend to focus solely on technological integration and revenue projections—often overlooking the legal protection of brand names. According to Taiwan’s Intellectual Property Office, trademark applicants are advised to conduct a "similarity search" and "distinctiveness analysis" before registration to avoid future objections, invalidation, or infringement lawsuits.
In comparison with local legal precedents, such as the "Xu Taishan Hotpot" case, the court clearly ruled that using a name similar to the well-known trademark "Taishan" constituted dilution of distinctiveness and harm to brand reputation. The court ordered the business to change its name and pay damages. This mirrors the OpenAI case, demonstrating that even major corporations are not immune from trademark liabilities.
How Can Taiwanese Companies Avoid Similar Risks?
- Conduct Trademark Due Diligence Before Partnerships:
Before entering a collaboration, verify whether the partner’s brand name, logo, and design elements are protected by trademark rights. If not yet registered, initiate a trademark application and search for potential similarities or conflicts with existing goods or services. - Perform Pre-Registration Searches When Launching a New Brand:
Marketing starts with a trademark! When creating a new brand, it’s critical to handle the naming and promotional efforts carefully. Publicizing the brand before securing trademark rights risks hijacking by others or infringing on existing trademarks. - Leverage Disclaimers to Preserve Distinctive Elements:
If a brand uses generic terms, include appropriate disclaimers of non-exclusivity to avoid future disputes over trademark distinctiveness.
Conclusion: Trademark Protection Applies to All—Legal Strategy Must Precede Brand Strategy
The trademark dispute between OpenAI and iyO serves as a clear reminder that in industries like AI devices—where cross-sector integration is frequent—trademark issues affect not only marketing and brand equity but can also become critical vulnerabilities in mergers and partnerships. Companies are strongly advised to consult professional trademark agents before initiating new collaborations or naming new products, and to establish a thorough trademark risk assessment process.
For assistance with trademark searches, naming risk evaluations, or international trademark protection, feel free to contact Goldkeen International Patent & Trademark Office. We offer professional and compliant trademark integration services.
