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AI Startup Perplexity Sued For Alleged Trademark Infringement
Perplexity, the venture-backed start-up building AI-powered search products, has been sued in federal court for apparently breaking another business’s hallmark.
In a problem filed Thursday in the U.S. District Court for the Northern District of California, attorneys representing a business called Perplexity Solved Solutions implicate Perplexity of infringing on its hallmark rights by utilizing the brand “Perplexity.”
Perplexity Solved Solutions, a Plano, Texas-based firm founded in 2017, used to register the Perplexity hallmark with the U.S. Patent and Trademark Office (USPTO) in October 2021, according to the grievance.
Perplexity Solved Solutions mainly sells HR and work environment cooperation software, including a merged dashboard for HR analytics and a videoconferencing tool called Perplexity Meet. The business secured a hallmark registration by November 2022 and started promoting items on its website, perplexityonline.com, a domain that Perplexity Solved Solutions had actually 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 that AI startup 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 actually registered the domain perplexity.ai, which the problem also alleges is violation.
“The [Perplexity] site presently located at the infringing domain prominently includes the Perplexity [trademark],” the problem checks out,” [and] the infringing products and services are extremely similar to those used by Perplexity [Solved Solutions] and appeal to a comparable client base. For instance, Perplexity [Solved Solutions’] ‘Perplexity Meet’ and offender’s ‘Perplexity Spaces’ both are software platforms that facilitate interaction and cooperation among coworkers in businesses and other organizations.”
Perplexity Spaces, which the San Francisco-based AI startup introduced for business customers in October, are centers with a customizable AI assistant and connectors to third-party platforms, apps, and file systems.
The problem alleges that Perplexity has “saturated the market” with its infringing branding, consisting of marketing across its various social media accounts. The AI start-up decreased to buy the Perplexity hallmark in September 2023 when offered, per the problem, and rather chose to submit for its own trademark with the USPTO, which is still pending.
According to the problem, Perplexity didn’t comply with a cease and desist letter from Perplexity Solved Solutions’ counsel, and it hasn’t withdrawn its pending hallmark 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 most likely to sow confusion.
“In reality, upon details and belief, customers currently have been puzzled,” the complaint reads. “For example, on many events, social media users have actually ‘tagged’ Perplexity in their posts about defendant’s infringing products and services.”
The grievance declares that Perplexity’s conduct breaches laws, including the Lanham Act – the U.S. federal law that manages hallmarks and unfair competition. To name a few types of legal relief, Perplexity Solved Solutions is seeking to bar Perplexity from utilizing its trademark, along with the trademark “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 currently fighting a lawsuit submitted by News Corp’s Dow Jones and the NY Post over what the plaintiffs describe as a “content kleptocracy.” Many other news sites have expressed issues that Perplexity carefully reproduces their material – just last October, The New York Times sent out the start-up a cease and desist letter.
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