OpenAI Wins Trademark Injunction - Lexology
A California federal court has ruled that a Silicon Valley entrepreneur may not use the trademark “OpenAI” because of a likelihood of confusion with Microsoft’s OpenAI. OpenAI, the founder of the generative artificial intelligence (AI) tool ChatGPT, among other things, brought a trademark infringement suit against defendant Guy Ravine and his company Open Artificial Intelligence.
Trademark Dispute Details
The plaintiff uses the trademark OpenAI (no space), and the defendants use Open AI (with a space). The parties disagree about who the senior user of the mark is. The plaintiff sought a preliminary injunction to prohibit the defendants from using the mark.
Plaintiff’s trademark is associated with renowned artificial intelligence tools currently in use and quickly became ubiquitous. Defendants’ trademark, by contrast, is associated with a website that, until shortly before this litigation commenced, was inoperable. Only plaintiff has shown that it has a protectable interest in its trademark.
Background of the Case
Plaintiff OpenAI announced its foundation in December 2015 and has introduced several popular AI products. It uses the OpenAI mark in association with its goods and services, including its website, social media, and marketing. In the month before it filed its complaint, the plaintiff’s site had 185 million US visitors.
Defendant Ravine developed Wikineering.org in 2012, a website offering articles related to engineering topics, including AI. He claims to have branded a portion of the site with the Open AI mark in 2015. However, no substantial evidence exists to support this claim.
Trademark Application Rejection
In March 2016, the USPTO rejected Ravine’s trademark application, finding it "merely descriptive" and ineligible for the Principal Register. Shortly before the lawsuit was filed, Ravine redesigned his website to resemble the plaintiff’s.
The court found that the balance of equities and public interest favored a preliminary injunction against the defendant’s use of the mark.
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