AI Startup Perplexity Demanded Alleged Trademark Infringement

Perplexity, the venture-backed start-up building AI-powered search products, has been taken legal action against in federal court for apparently breaking another business’s trademark.

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

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

Perplexity Solved Solutions primarily offers HR and office partnership software application, consisting of a combined control panel for HR analytics and a videoconferencing tool called Perplexity Meet. The business protected a hallmark registration by November 2022 and started promoting items on its site, 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 upgrade the short article if either celebration remarks.

The Texas business alleges that AI startup Perplexity began infringing on its trademark “in or around” August 2022 to promote its AI-powered search engine. The month prior – July 2022 – Perplexity had registered the domain perplexity.ai, which the problem likewise alleges is infringement.

“The [Perplexity] website presently located at the infringing domain name plainly includes the Perplexity [hallmark],” the grievance reads,” [and] the infringing items and services are extremely similar to those provided by Perplexity [Solved Solutions] and interest a comparable customer base. For example, Perplexity [Solved Solutions’] ‘Perplexity Meet’ and defendant’s ‘Perplexity Spaces’ both are software application platforms that assist in communication and collaboration among coworkers in companies and other organizations.”

Perplexity Spaces, which the San Francisco-based AI startup introduced for business consumers in October, are hubs with an adjustable AI assistant and ports to third-party platforms, apps, and file systems.

The problem declares that Perplexity has “saturated the market” with its infringing branding, consisting of marketing across its different social networks accounts. The AI startup declined to buy the Perplexity hallmark in September 2023 when used, per the grievance, and instead opted to submit for its own hallmark with the USPTO, which is still pending.

According to the complaint, Perplexity didn’t abide by 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 state that Perplexity’s usage of its trademark is most likely to sow confusion.

“In truth, upon information and belief, consumers currently have been puzzled,” the complaint checks out. “For instance, on numerous celebrations, social media users have actually ‘tagged’ Perplexity in their posts about defendant’s infringing goods and services.”

The problem declares that Perplexity’s conduct violates laws, the Lanham Act – the U.S. federal law that controls trademarks and unreasonable competitors. Among other types of legal relief, Perplexity Solved Solutions is seeking to bar Perplexity from using its hallmark, along with the hallmark “Perplexity AI,” pay damages, and transfer ownership of any domains that include Perplexity branding.

It’s the newest courtroom headache for Perplexity, which is currently battling a suit submitted by News Corp’s Dow Jones and the NY Post over what the plaintiffs refer to as a “content kleptocracy.” Many other news websites have revealed concerns that Perplexity closely reproduces their content – simply last October, The New York Times sent the startup a cease and desist letter.

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