Perplexity, the venture-backed startup building AI-powered search products, has actually been sued in federal court for apparently breaking another company's trademark.


In a complaint filed 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, applied to register the Perplexity trademark with the U.S. Patent and Trademark Office (USPTO) in October 2021, according to the complaint.


Perplexity Solved Solutions mainly sells HR and workplace partnership software application, consisting of a combined dashboard for HR analytics and a videoconferencing tool called Perplexity Meet. The business secured a trademark registration by November 2022 and started promoting items on its site, perplexityonline.com, a domain that Perplexity Solved Solutions had actually registered in 2021.


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


The Texas business declares that AI start-up Perplexity started infringing on its hallmark "in or around" August 2022 to promote its AI-powered search engine. The month prior - July 2022 - Perplexity had actually signed up the domain perplexity.ai, which the grievance also declares is infringement.


"The [Perplexity] website presently situated at the infringing domain name prominently features the Perplexity [trademark]," the complaint checks out," [and] the infringing products and services are extremely similar to those provided by Perplexity [Solved Solutions] and attract a similar consumer base. For example, Perplexity [Solved Solutions'] 'Perplexity Meet' and defendant's 'Perplexity Spaces' both are software platforms that help with communication and partnership among colleagues in businesses and other companies."


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


The problem alleges that Perplexity has actually "filled the marketplace" with its infringing branding, consisting of marketing throughout its numerous social networks accounts. The AI startup decreased to buy the Perplexity hallmark in September 2023 when offered, per the complaint, and rather opted to apply for its own trademark with the USPTO, which is still pending.


According to the grievance, Perplexity didn't comply with a stop and desist letter from Perplexity Solved Solutions' counsel, and it hasn't withdrawn its pending hallmark application - regardless of 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 hallmark is most likely to plant confusion.


"In truth, upon details and belief, customers already have actually been confused," the problem reads. "For example, on numerous events, social networks users have actually 'tagged' Perplexity in their posts about accused's infringing goods and services."


The problem declares that Perplexity's conduct violates laws, consisting of the Lanham Act - the U.S. federal law that regulates trademarks and unfair competitors. To name a few types of legal relief, Perplexity Solved Solutions is looking for to bar Perplexity from using its hallmark, as well as the hallmark "Perplexity AI," pay damages, and transfer ownership of any domains that include Perplexity branding.


It's the current courtroom headache for Perplexity, which is presently battling a lawsuit filed by News Corp's Dow Jones and the NY Post over what the complainants refer to as a "content kleptocracy." Many other news sites have revealed issues that Perplexity carefully replicates their content - just last October, The New York Times sent the startup a cease and desist letter.


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