Perplexity Sued for Allegedly Violating Trademark Rights

A federal court lawsuit has been filed against Perplexity, a venture-backed startup building AI-powered search products, for allegedly violating the trademark rights of another company, Perplexity Solved Solutions.

Background on the Trademark Dispute

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 primarily sells HR and workplace collaboration software, including a unified dashboard for HR analytics and a videoconferencing tool called Perplexity Meet. Perplexity Solved Solutions secured a trademark registration by November 2022 and started promoting products on its site, perplexityonline.com, a domain that the company had registered in 2021.

Perplexity’s Response to the Trademark Dispute

Perplexity, an AI startup based in San Francisco, began promoting its AI-powered search engine in or around August 2022, allegedly infringing on Perplexity Solved Solutions’ trademark. The month prior, Perplexity had registered the domain perplexity.ai, which the complaint also alleges is infringement. Perplexity’s website currently 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’s Use of the Trademark

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. Perplexity did not comply with a cease and desist letter from Perplexity Solved Solutions’ counsel, and it hasn’t withdrawn its pending trademark application — despite efforts to oppose the application before the USPTO’s trial and appeal board.

Consequences of Perplexity’s Actions

Attorneys for Perplexity Solved Solutions say that Perplexity’s use of its trademark is likely to sow confusion. "In fact, upon information and belief, consumers already have been confused," the complaint reads. "For example, on numerous occasions, social media users have ‘tagged’ Perplexity in their posts about defendant’s infringing goods and services." 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’s Recent Courtroom Headaches

This lawsuit is the latest courtroom 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.