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AI Startup Perplexity Sued For Alleged Trademark Infringement

Perplexity, the venture-backed start-up structure AI-powered search products, has been sued in federal court for apparently violating another company’s trademark.

In a grievance submitted Thursday in the U.S. District Court for the Northern District of California, lawyers representing a company called Perplexity Solved Solutions accuse Perplexity of infringing on its hallmark rights by utilizing the brand “Perplexity.”

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

Perplexity Solved Solutions primarily sells HR and workplace cooperation software application, consisting of a merged control panel for and a videoconferencing tool called Perplexity Meet. The company secured a trademark registration by November 2022 and began promoting items on its website, perplexityonline.com, a domain that Perplexity Solved Solutions had registered in 2021.

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

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

“The [Perplexity] site currently situated at the infringing domain prominently includes the Perplexity [trademark],” the grievance reads,” [and] the infringing goods and services are highly similar to those used by Perplexity [Solved Solutions] and appeal to a comparable client base. For instance, Perplexity [Solved Solutions’] ‘Perplexity Meet’ and accused’s ‘Perplexity Spaces’ both are software application platforms that facilitate communication and partnership amongst coworkers in services and other organizations.”

Perplexity Spaces, which the San Francisco-based AI start-up launched for business consumers in October, are centers with a personalized AI assistant and ports to third-party platforms, apps, and file systems.

The problem declares that Perplexity has “filled the marketplace” with its infringing branding, consisting of marketing throughout its numerous social media accounts. The AI startup declined to buy the Perplexity trademark in September 2023 when provided, per the complaint, and rather decided to submit for its own hallmark 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 use of its trademark is likely to sow confusion.

“In truth, upon information and belief, consumers already have been confused,” the grievance reads. “For instance, on many events, social media users have actually ‘tagged’ Perplexity in their posts about accused’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 trademarks and unreasonable competitors. Among other kinds of legal relief, Perplexity Solved Solutions is looking for to bar Perplexity from using its hallmark, along with the trademark “Perplexity AI,” pay damages, and transfer ownership of any domains that consist of Perplexity branding.

It’s the current courtroom headache for Perplexity, which is currently fighting a suit submitted by News Corp’s Dow Jones and the NY Post over what the complainants refer to as a “content kleptocracy.” Many other news websites have revealed concerns that Perplexity closely replicates their material – just last October, The New York Times sent out the startup a stop and desist letter.

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