Trademark Trouble: AI Startup Perplexity Faces Legal Battle

AI startup Perplexity is embroiled in a legal dispute after being sued for alleged trademark infringement by a Texas-based company, Perplexity Solved Solutions. The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that Perplexity's use of the name "Perplexity" violates the trademark rights of the plaintiff, which has been in operation since 2017.

Key Takeaways

• Perplexity Solved Solutions accuses Perplexity of trademark infringement.
• The lawsuit highlights the growing tensions in the AI industry regarding branding and intellectual property.
• Perplexity is also facing other legal challenges related to content replication.

Background of the Case

Perplexity Solved Solutions, founded in 2017 and based in Plano, Texas, specializes in HR and workplace collaboration software. The company applied for a trademark for the name "Perplexity" in October 2021 and secured registration by November 2022. Their offerings include a unified dashboard for HR analytics and a videoconferencing tool named Perplexity Meet.

In contrast, Perplexity, the AI startup, began using the name in August 2022 to promote its AI-powered search engine. The startup registered the domain perplexity.ai in July 2022, which is also cited in the lawsuit as an infringement.

Allegations of Infringement

The complaint states that Perplexity's website prominently features the Perplexity trademark, and the services offered are similar to those of Perplexity Solved Solutions. Both companies target similar customer bases, with Perplexity's "Perplexity Spaces" and Perplexity Solved Solutions' "Perplexity Meet" serving as platforms for communication and collaboration.

The lawsuit claims that Perplexity has saturated the market with its branding, leading to consumer confusion. Social media users have reportedly tagged Perplexity in posts about the plaintiff's products, indicating that the public may be misled about the source of the services.

Legal Implications

Perplexity Solved Solutions is seeking various forms of legal relief, including:

1. An injunction to prevent Perplexity from using the trademark.
2. Damages for the alleged infringement.
3. Transfer of ownership of any domains that include the Perplexity branding.

The lawsuit also references the Lanham Act, which governs trademarks and unfair competition in the U.S. The legal battle underscores the importance of trademark protection in the rapidly evolving tech landscape.

Broader Context

This lawsuit is not the only legal challenge facing Perplexity. The startup is currently involved in a separate lawsuit with News Corp’s Dow Jones and the NY Post, which accuses it of content replication. The New York Times has also sent a cease and desist letter to Perplexity, raising concerns about the startup's practices in relation to content sourcing.

As the AI industry continues to grow, the legal landscape surrounding intellectual property rights is becoming increasingly complex. This case serves as a reminder for startups to navigate trademark issues carefully to avoid costly legal disputes.

Sources

• AI startup Perplexity sued for alleged trademark infringement | TechCrunch, TechCrunch.