The legal battle surrounding the future of AI interfaces is escalating, with an AI device startup, iyO Inc., embroiled in multiple lawsuits. The company, which previously sued OpenAI and Jony Ive for trademark infringement, has now filed a second lawsuit against a former employee, Dan Sargent, for allegedly misappropriating trade secrets.
The lawsuit, filed in San Francisco Superior Court, accuses Sargent of breach of contract and misappropriation of trade secrets. IyO claims that Sargent, who now works at Apple, leaked a confidential drawing of iyO's unreleased product after meeting with Tang Yew Tan, an io co-founder and ally of Jony Ive.
This legal action follows iyO's initial lawsuit against OpenAI and Jony Ive, alleging trademark infringement related to the name "io". The conflict stems from competing efforts to develop a novel interface for AI assistants, moving beyond traditional screens and voice-activated devices. IyO CEO Jason Rugolo claims he pitched his ideas to OpenAI and Ive's firms in 2022, but they were rejected. He later expressed frustration when Altman and Ive began collaborating on their own AI hardware initiative, also named "io".
In May 2025, OpenAI acquired io Products, a product and engineering company co-founded by Jony Ive, for approximately $6.5 billion. Soon after, iyO filed suit against OpenAI and Ive for trademark infringement due to the similarity in names and the firms' prior interactions.
A U.S. District Judge has already ruled that iyO's trademark case against OpenAI and Ive is strong enough to proceed to a hearing, and ordered a temporary halt to the use of the "io" brand. This ruling forced Altman, Ive, and OpenAI to remove the webpage and all mentions of the venture.
According to iyO, Sargent's alleged actions constitute a breach of contract and misappropriation of trade secrets because he shared confidential information after meeting with Tang Yew Tan. Sargent had left iyO in December and subsequently joined Apple. Neither Sargent nor Apple have responded to requests for comment.
IyO CEO Jason Rugolo stated that the lawsuit against Sargent was not taken lightly. He emphasized that the primary goal is to hold accountable those who have violated the company's trust and potentially jeopardized its intellectual property.
This legal battle highlights the intense competition to create new methods of interacting with AI. At stake is the future of AI interfaces, with companies vying to develop technology that moves beyond current limitations. The outcome of these lawsuits could significantly impact the development and ownership of these technologies.
