AI Startup Perplexity Demanded Alleged Trademark Infringement

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

In a complaint filed Thursday in the U.S. District Court for the Northern District of California, attorneys representing a business called Perplexity Solved Solutions accuse Perplexity of infringing on its hallmark rights by utilizing the brand name “Perplexity.”

Perplexity Solved Solutions, a Plano, Texas-based company established in 2017, used to register the Perplexity trademark with the U.S. Patent and Trademark Office (USPTO) in October 2021, according to the grievance.

Perplexity Solved Solutions mainly sells HR and workplace cooperation software, consisting of a combined control panel for HR analytics and a videoconferencing tool called Perplexity Meet. The business protected a trademark registration by November 2022 and began promoting items on its site, perplexityonline.com, a domain that Perplexity Solved Solutions had actually in 2021.

Perplexity and counsel for Perplexity Solved Solutions did not respond as of press time. TechCrunch will upgrade the post if either celebration remarks.

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

“The [Perplexity] website currently situated at the infringing domain prominently includes the Perplexity [trademark],” the complaint checks out,” [and] the infringing items and services are highly similar to those provided by Perplexity [Solved Solutions] and interest a similar client base. For example, Perplexity [Solved Solutions’] ‘Perplexity Meet’ and offender’s ‘Perplexity Spaces’ both are software platforms that help with communication and collaboration amongst colleagues in companies and other organizations.”

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

The grievance declares that Perplexity has “filled the marketplace” with its infringing branding, consisting of marketing across its numerous social networks accounts. The AI start-up declined to purchase the Perplexity trademark in September 2023 when provided, per the grievance, and instead opted to apply for its own trademark with the USPTO, which is still pending.

According to the problem, Perplexity didn’t comply with a stop and desist letter from Perplexity Solved Solutions’ counsel, and it hasn’t withdrawn its pending hallmark application – in spite of 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 hallmark is likely to plant confusion.

“In truth, upon info and belief, consumers already have been confused,” the grievance checks out. “For instance, on various occasions, social networks users have actually ‘tagged’ Perplexity in their posts about offender’s infringing items and services.”

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

It’s the most current 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 sites have actually expressed concerns that Perplexity carefully duplicates their content – simply last October, The New york city Times sent out the startup a cease and desist letter.

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