Tech startup IyO Inc. is in the midst of a challenging legal conflict. The company has initiated lawsuits against both OpenAI and renowned designer Jony Ive, alleging trademark infringements and the mishandling of trade secrets. With ambitions to transform AI interactions beyond traditional screens and voice commands, IyO’s innovative approach has provoked fierce legal scrutiny.
In one twist, OpenAI—fresh off a $6.5 billion acquisition of io Products—has been ordered by a court to cease using the ‘io’ brand, a ruling spurred by IyO’s claims. Additionally, a recent filing in San Francisco accuses former executive Dan Sargent of breaching confidentiality. Now working with Apple, Sargent is said to have passed sensitive information to Tang Yew Tan, another co-founder at io.
CEO Jason Rugolo emphasises that the intent is not to single out an ex-employee but to ensure that those in positions of power are held accountable. The dispute originally flared when Rugolo presented his prototype in 2022 to influential figures like Sam Altman and Jony Ive—only to find that they were already venturing down a similar path.
While Altman dismissed the legal actions as ‘silly’ and ‘disappointing’, court documents pointed to performance issues during product demonstrations. In response, both Altman and Ive clarified that their device is not an in-ear or wearable gadget, distancing it from IyO’s offering.
Although facing setbacks, Rugolo remains resolute. He openly admitted feeling ‘kind of stupid’ after repeatedly pitching his concept, only to be met with rejection. If you’ve ever struggled to have your innovative ideas recognised, this legal battle provides a clear window into the high-stakes world where pushing the boundaries of AI can invite intense competition and scrutiny.
