Perplexity, the venture-backed startup structure AI-powered search items, has been sued in federal court for apparently breaching another company's hallmark.

In a complaint submitted Thursday in the U.S. District Court for the Northern District of California, lawyers representing a business called Perplexity Solved Solutions accuse Perplexity of infringing on its trademark rights by utilizing the brand "Perplexity."

Perplexity Solved Solutions, a Plano, Texas-based company established in 2017, used to register the Perplexity hallmark with the U.S. Patent and Trademark Office (USPTO) in October 2021, according to the problem.

Perplexity Solved Solutions mainly sells HR and office partnership software, consisting of a combined control panel for HR analytics and a videoconferencing tool called Perplexity Meet. The business protected a hallmark registration by November 2022 and started promoting products 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 update the post if either party comments.

The Texas business declares that AI start-up 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 also alleges is violation.

"The [Perplexity] site currently located at the infringing domain plainly includes the Perplexity [hallmark]," the complaint reads," [and] the infringing items and services are extremely similar to those used by Perplexity [Solved Solutions] and interest a similar customer base. For instance, Perplexity [Solved Solutions'] 'Perplexity Meet' and offender's 'Perplexity Spaces' both are software platforms that facilitate communication and collaboration among associates in companies and other organizations."

Perplexity Spaces, which the San Francisco-based AI startup released for enterprise clients in October, are hubs with a personalized AI assistant and adapters to third-party platforms, apps, and file systems.

The complaint declares that Perplexity has actually "saturated the market" with its infringing branding, consisting of marketing throughout its different social networks accounts. The AI start-up declined to acquire the Perplexity hallmark in September 2023 when used, per the complaint, and instead chose to submit for its own hallmark with the USPTO, which is still pending.

According to the grievance, Perplexity didn't abide by a cease 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 say that Perplexity's usage of its hallmark is most likely to plant confusion.

"In fact, upon info and belief, customers already have been puzzled," the complaint checks out. "For instance, on various events, social media users have 'tagged' Perplexity in their posts about offender's infringing products and services."

The grievance alleges that Perplexity's conduct violates laws, consisting of the Lanham Act - the U.S. federal law that controls hallmarks and unfair competition. Among other kinds of legal relief, Perplexity Solved Solutions is seeking to bar Perplexity from using its hallmark, along with the trademark "Perplexity AI," pay damages, and transfer ownership of any domains that include Perplexity branding.

It's the most recent courtroom headache for Perplexity, which is presently fighting a suit filed by News Corp's Dow Jones and the NY Post over what the plaintiffs refer to as a "content kleptocracy." Many other news sites have actually revealed concerns that Perplexity carefully duplicates their content - just last October, The New York Times sent the start-up a cease and desist letter.

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