A U.S. appeals court granted a temporary restraining order that prevents OpenAI and Jony Ive’s company from using the name “io” for products that could be similar to those by AI audio startup iyO. According to Bloomberg Law, the U.S. Court of Appeals for the Ninth Circuit has affirmed that OpenAI can’t use the “io” branding in defined context, such as marketing and sales of products that are “sufficiently similar” to the other company.
The issue is that consumers might mistake OpenAI’s upcoming io-branded hardware with iyO’s devices. While reports suggest that Jony Ive and Sam Altman might not unveil their first device until 2027, this legal seatback might force them to rebrand hardware initially set to use the “io” branding. This decision comes after OpenAI had to take down its page about its partnership with Jony Ive before returning in July to reveal that the company had merged with OpenAI and would be called io Products, Inc.
OpenAI vs. iyO
After filing a lawsuit against OpenAI over alleged trademark infringements early this year, multiple documents revealed that OpenAI decided on the name “io” in mid-2023. In early 2025, iyO CEO Jason Rugolo pitched a project to Sam Altman regarding the “future of human-computer interface,” which Altman declined, as he was working on “something competitive.”
While Rugolo reportedly went as far as offering to sell iyO to OpenAI for $200 million, Altman turned the offer down. Also revealed in these documents is the fact was more information about the company’s first hardware product, which will not be a pair of in-ear headphones nor a wearable. With that in mind, OpenAI says the two companies could coexist.
However, with the court’s decision, the case will likely continue in the district court for a preliminary injunction hearing, which could keep, narrow, or expand the temporary restraining order. That said, a final decision is likely years away, as the preliminary injunction has been scheduled for April 2026, with a jury trial running through 2027 and 2028.
