AI Startup Perplexity Demanded Alleged Trademark Infringement

Perplexity, the venture-backed start-up structure AI-powered search items, has actually been taken legal action against in federal court for supposedly breaking another business’s hallmark.

In a grievance submitted 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 trademark rights by utilizing the brand name “Perplexity.”

Perplexity Solved Solutions, a Plano, Texas-based company established in 2017, applied 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 mainly offers HR and workplace cooperation software application, consisting of a merged dashboard for HR analytics and a videoconferencing tool called Perplexity Meet. The company protected a hallmark registration by November 2022 and started promoting items on its website, perplexityonline.com, a domain that Perplexity Solved Solutions had actually registered in 2021.

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

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

“The [Perplexity] website currently situated at the infringing domain name plainly includes the Perplexity [hallmark],” the complaint checks out,” [and] the infringing goods and services are extremely similar to those offered by Perplexity [Solved Solutions] and attract a comparable consumer base. For example, Perplexity [Solved Solutions’] ‘Perplexity Meet’ and accused’s ‘Perplexity Spaces’ both are software application platforms that help with communication and partnership amongst associates in businesses and other organizations.”

Perplexity Spaces, which the San Francisco-based AI start-up launched for enterprise clients in October, are centers with a customizable AI assistant and adapters to third-party platforms, apps, and file systems.

The problem declares that Perplexity has actually “filled the marketplace” with its infringing branding, including marketing throughout its numerous social media accounts. The AI startup declined to acquire the in September 2023 when offered, per the complaint, and rather opted to apply for its own trademark with the USPTO, which is still pending.

According to the problem, Perplexity didn’t abide by a cease 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 use of its hallmark is most likely to sow confusion.

“In reality, upon info and belief, customers already have actually been puzzled,” the complaint checks out. “For example, on numerous celebrations, social media users have ‘tagged’ Perplexity in their posts about offender’s infringing goods and services.”

The grievance declares that Perplexity’s conduct violates laws, including the Lanham Act – the U.S. federal law that controls hallmarks and unfair competition. Among other forms of legal relief, Perplexity Solved Solutions is looking for to bar Perplexity from using its trademark, as well as the hallmark “Perplexity AI,” pay damages, and transfer ownership of any domains that include Perplexity branding.

It’s the latest courtroom headache for Perplexity, which is currently fighting a lawsuit filed by News Corp’s Dow Jones and the NY Post over what the plaintiffs refer to as a “content kleptocracy.” Many other news sites have actually revealed concerns 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! Sign up here to get it in your inbox every Wednesday.