Perplexity AI Sued for Trademark Infringement

Perplexity Faces Trademark Lawsuit

Perplexity, a startup backed by venture capital and focused on AI-driven search technologies, is currently involved in a legal dispute concerning alleged trademark infringement.

Trademark Dispute Details

A complaint was lodged on Thursday in the U.S. District Court for the Northern District of California. The lawsuit, brought forth by legal representatives of Perplexity Solved Solutions, claims that Perplexity is violating their trademark rights through the utilization of the “Perplexity” brand name.

Founded in 2017 and based in Plano, Texas, Perplexity Solved Solutions initiated the process of registering the “Perplexity” trademark with the U.S. Patent and Trademark Office (USPTO) in October 2021.

Perplexity Solved Solutions' Business

The company specializes in HR and workplace collaboration software solutions. These include a comprehensive dashboard for HR analytics and a videoconferencing platform known as Perplexity Meet.

By November 2022, Perplexity Solved Solutions had successfully secured trademark registration. They subsequently began promoting their products through their website, perplexityonline.com, a domain registered in 2021.

Allegations Against the AI Startup

The lawsuit alleges that the AI-focused Perplexity began infringing on the trademark “around” August 2022, coinciding with the promotion of its AI-powered search engine.

Prior to this, in July 2022, Perplexity had registered the domain perplexity.ai, which is also cited as an instance of infringement within the complaint.

The complaint states that the website at the contested domain name prominently displays the Perplexity trademark. It further asserts that the goods and services offered are remarkably similar to those of Perplexity Solved Solutions, targeting a comparable customer demographic.

Similarities in Services

For instance, Perplexity Solved Solutions’ “Perplexity Meet” and Perplexity’s “Perplexity Spaces” are both software platforms designed to facilitate communication and collaboration within businesses and organizations.

Perplexity Spaces, launched in October by the San Francisco-based AI company, functions as a hub featuring a customizable AI assistant and integrations with various third-party platforms, applications, and file systems.

Market Saturation and Trademark Application

The complaint contends that Perplexity has “saturated the market” with its allegedly infringing branding, including extensive marketing efforts across its social media channels.

In September 2023, Perplexity reportedly declined an offer to purchase the Perplexity trademark. Instead, they proceeded to file their own trademark application with the USPTO, which remains pending.

Lack of Compliance

According to the complaint, Perplexity did not adhere to a cease and desist letter issued by legal counsel for Perplexity Solved Solutions. Furthermore, they have not withdrawn their pending trademark application, despite opposition efforts before the USPTO’s trial and appeal board.

Potential for Consumer Confusion

The attorneys representing Perplexity Solved Solutions argue that Perplexity’s use of the trademark is likely to cause confusion among consumers.

The complaint suggests that instances of consumer confusion have already occurred, citing instances where social media users have mistakenly tagged Perplexity in posts related to the AI startup’s products and services.

Legal Relief Sought

The lawsuit alleges violations of laws, including the Lanham Act, which governs trademarks and unfair competition in the U.S.

Perplexity Solved Solutions is seeking a court order to prevent Perplexity from using its trademark, including “Perplexity AI,” as well as monetary damages and the transfer of ownership of any domains incorporating the Perplexity branding.

Additional Legal Challenges

This lawsuit represents another legal challenge for Perplexity, which is currently defending against a claim filed by Dow Jones and the NY Post, alleging a “content kleptocracy.”

Numerous other news organizations have voiced concerns regarding Perplexity’s practice of closely replicating their content. The New York Times, for example, issued a cease and desist letter to the startup last October.

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