AI Startup Perplexity Sued For Alleged Trademark Infringement

Perplexity, the venture-backed start-up building AI-powered search products, has actually been sued in federal court for allegedly breaching another business’s trademark.

In a problem submitted Thursday in the U.S. District Court for the Northern District of California, lawyers representing a business called Perplexity Solved Perplexity of infringing on its trademark rights by utilizing the brand name “Perplexity.”

Perplexity Solved Solutions, a Plano, Texas-based firm established in 2017, used to sign up the Perplexity hallmark with the U.S. Patent and Trademark Office (USPTO) in October 2021, according to the problem.

Perplexity Solved Solutions primarily sells HR and work environment collaboration software application, including a combined control panel for HR analytics and a videoconferencing tool called Perplexity Meet. The business secured a trademark registration by November 2022 and started promoting products on its site, perplexityonline.com, a domain that Perplexity Solved Solutions had signed up in 2021.

Perplexity and counsel for Perplexity Solved Solutions did not react since press time. TechCrunch will update the short article if either celebration comments.

The Texas company alleges that AI start-up Perplexity began infringing on its hallmark “in or around” August 2022 to promote its AI-powered online search engine. The month prior – July 2022 – Perplexity had signed up the domain perplexity.ai, which the problem also declares is infringement.

“The [Perplexity] website presently located at the infringing domain prominently features the Perplexity [trademark],” the grievance checks out,” [and] the infringing goods and services are highly similar to those offered by Perplexity [Solved Solutions] and appeal to a comparable consumer base. For example, Perplexity [Solved Solutions’] ‘Perplexity Meet’ and defendant’s ‘Perplexity Spaces’ both are software application platforms that assist in interaction and collaboration amongst coworkers in businesses and other companies.”

Perplexity Spaces, which the San Francisco-based AI startup launched for enterprise consumers in October, are centers with an adjustable AI assistant and connectors to third-party platforms, apps, and file systems.

The grievance declares that Perplexity has actually “filled the marketplace” with its infringing branding, consisting of marketing throughout its various social media accounts. The AI startup declined to purchase the Perplexity hallmark in September 2023 when offered, per the grievance, and rather chose to declare its own hallmark with the USPTO, which is still pending.

According to the problem, Perplexity didn’t adhere to a stop and desist letter from Perplexity Solved Solutions’ counsel, and it hasn’t withdrawn its pending trademark application – despite efforts to oppose the application before the USPTO’s trial and appeal board.

Attorneys for Perplexity Solved Solutions say that Perplexity’s usage of its trademark is likely to plant confusion.

“In reality, upon info and belief, customers currently have been puzzled,” the problem checks out. “For example, on various occasions, social media users have ‘tagged’ Perplexity in their posts about defendant’s infringing products and services.”

The complaint declares that Perplexity’s conduct breaches laws, including the Lanham Act – the U.S. federal law that manages trademarks and unreasonable competition. To name a few forms of legal relief, Perplexity Solved Solutions is looking for to bar Perplexity from using its hallmark, in addition to the hallmark “Perplexity AI,” pay damages, and transfer ownership of any domains that consist of Perplexity branding.

It’s the most recent courtroom headache for Perplexity, which is presently battling a claim filed by News Corp’s Dow Jones and the NY Post over what the complainants refer to as a “content kleptocracy.” Many other news websites have expressed issues that Perplexity carefully reproduces their material – simply last October, The New York Times sent the startup a cease and desist letter.

TechCrunch has an AI-focused newsletter! Register here to get it in your inbox every Wednesday.