Perplexity, a San Francisco-based AI startup, has been sued in federal court for allegedly violating another company's trademark. In a complaint filed Thursday in the U.S. District Court for the Northern District of California, attorneys representing Perplexity Solved Solutions accuse Perplexity of infringing on its trademark rights by using the brand "Perplexity."

Perplexity Solved Solutions, a Plano, Texas-based firm founded in 2017, applied to register the Perplexity trademark with the U.S. Patent and Trademark Office (USPTO) in October 2021. The company secured a trademark registration by November 2022 and started promoting products on its site, perplexityonline.com, a domain that Perplexity Solved Solutions had registered in 2021. The Texas company primarily sells HR and workplace collaboration software, including a unified dashboard for HR analytics and a videoconferencing tool called Perplexity Meet.

The lawsuit alleges that Perplexity began infringing on its trademark "in or around" August 2022 to promote its AI-powered search engine. The month prior, Perplexity had registered the domain perplexity.ai, which the complaint also alleges is an infringement. The complaint claims that Perplexity's website, located at the infringing domain name, prominently features the Perplexity trademark, and the infringing goods and services are highly similar to those offered by Perplexity Solved Solutions and appeal to a similar customer base.

Perplexity Spaces, launched by the AI startup in October, are hubs with a customizable AI assistant and connectors to third-party platforms, apps, and file systems. The complaint alleges that Perplexity has "saturated the market" with its infringing branding, including marketing across its various social media accounts. The AI startup declined to purchase the Perplexity trademark in September 2023 when offered, per the complaint, and instead opted to file for its own trademark with the USPTO, which is still pending.

According to the complaint, Perplexity didn't comply with a cease and desist letter from Perplexity Solved Solutions' counsel, and it hasn't withdrawn its pending trademark application — despite efforts to oppose the application before the USPTO's trial and appeal board. Attorneys for Perplexity Solved Solutions say that Perplexity's use of its trademark is likely to sow confusion. The complaint reads, "In fact, upon information and belief, consumers already have been confused. For example, on numerous occasions, social media users have 'tagged' Perplexity in their posts about defendant's infringing goods and services."

The lawsuit is the latest legal headache for Perplexity, which is currently battling a lawsuit filed by News Corp's Dow Jones and the NY Post over what the plaintiffs describe as a "content kleptocracy." Many other news sites have expressed concerns that Perplexity closely replicates their content — just last October, The New York Times sent the startup a cease and desist letter. The complaint alleges that Perplexity's conduct violates laws, including the Lanham Act — the U.S. federal law that regulates trademarks and unfair competition.

Among other forms of legal relief, Perplexity Solved Solutions is seeking to bar Perplexity from using its trademark, as well as the trademark "Perplexity AI," pay damages, and transfer ownership of any domains that include Perplexity branding. Perplexity and counsel for Perplexity Solved Solutions did not respond to requests for comment as of press time. This article will be updated if either party provides a statement.

The lawsuit highlights the importance of trademark protection in the tech industry, where branding and intellectual property can be crucial to a company's success. It also raises questions about the potential consequences of trademark infringement, including damage to reputation and customer confusion. As the case unfolds, it will be interesting to see how the court rules on the matter and what implications it may have for Perplexity and the broader tech industry.