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


In a complaint submitted Thursday in the U.S. District Court for the Northern District of California, lawyers representing a company 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 sign up the Perplexity trademark with the U.S. Patent and Trademark Office (USPTO) in October 2021, according to the complaint.


Perplexity Solved Solutions mostly sells HR and office partnership software, consisting of an unified dashboard for HR analytics and a videoconferencing tool called Perplexity Meet. The company secured a trademark registration by November 2022 and started 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 respond as of press time. TechCrunch will upgrade the short 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 registered the domain perplexity.ai, which the complaint likewise alleges is violation.


"The [Perplexity] site currently situated at the infringing domain name plainly features the Perplexity [trademark]," the grievance reads," [and] the infringing goods and services are extremely similar to those offered by Perplexity [Solved Solutions] and attract a comparable consumer base. For example, Perplexity [Solved Solutions'] 'Perplexity Meet' and accused's 'Perplexity Spaces' both are software application platforms that help with communication and collaboration amongst colleagues in businesses and other companies."


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


The complaint declares that Perplexity has "filled the marketplace" with its infringing branding, consisting of marketing throughout its different social media accounts. The AI startup decreased to buy the Perplexity hallmark in September 2023 when provided, per the grievance, and instead chose to apply for its own hallmark with the USPTO, which is still pending.


According to the grievance, Perplexity didn't abide by a stop and desist letter from Perplexity Solved Solutions' counsel, and it hasn't withdrawn its pending trademark 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 sow confusion.


"In reality, upon information and belief, consumers already have actually been confused," the problem checks out. "For instance, on many events, social networks users have 'tagged' Perplexity in their posts about accused's infringing items and services."


The grievance alleges that Perplexity's conduct breaches laws, including the Lanham Act - the U.S. federal law that manages trademarks and unfair competition. To name a few types of legal relief, Perplexity Solved Solutions is looking for to bar Perplexity from using its trademark, in addition to 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 currently fighting a lawsuit filed 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 issues that Perplexity carefully duplicates their content - simply last October, The New york city Times sent the startup a cease and desist letter.


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