IP Law Daily, TRADEMARK NEWS: Texas software company Perplexity Solved Solutions sues Perplexity AI for trademark infringement, unfair competition, (Feb 3, 2025)

By Robert Margolis, J.D.

Complaint alleges that the AI startup with “a billions-of-dollars valuation” is attempting “to trample the rights of a proverbial ‘little guy’” by using its protected mark in connection with similar goods and services.

Perplexity Solved Solutions Inc. (“PSS”), a Texas-based software company, has filed a six-count federal court complaint against the “rapidly-growing, well-funded” artificial intelligence (“AI”) startup Perplexity, alleging that the startup is knowingly infringing PSS’s registered PERPLEXITY trademark “in connection with highly similar software-related goods and services” and intentionally sowing consumer confusion. The complaint, filed in the Northern District of California, seeks injunctive relief and damages for violation of the Lanham Act, PSS’s common law trademark rights, and California’s Unfair Business Practices statute, as well as a judicial declaration that the startup’s pending trademark applications for marks incorporating PSS’s PERPLEXITY mark be refused. The case has been assigned to Judge Lisa J. Cisneros (Perplexity Solved Solutions Inc. v. Perplexity AI, Inc., No. 3:25-cv-00989 (N.D. Cal. Jan. 30, 2025)).

PSS. PSS alleges that it since 2017 it has operated as “a small, military spouse- and woman-owned business that offers innovative software solutions to individuals, small businesses, government entities, and veteran-owned organizations.” It has used the PERPLEXITY mark continuously in connection with its software solutions, and has done so exclusively (until the startup Perplexity began its allegedly-infringing conduct). Among PSS’s several offerings is “Perplexity Meet,” which it describes as a “comprehensive software platform featuring video conferencing, integrated messaging, data analytics, and other AI-powered tools” allowing businesses and others to “enhance collaboration.”

PSS operates websites incorporating its mark, https://perplexityonline.com and https://perplexitymeet.com, through which it offers its PERPLEXITY-branded goods and services. It registered the former domain name in approximately May 2021, and launched the website with that domain name in August 2021. It also promotes its goods and services through PERPLEXITY-branded social media sites, including on Facebook, LinkedIn, and X. The complaint asserts that PSS has “developed considerable goodwill” through its continuous and exclusive use of what it asserts is a “highly distinctive,” “arbitrary,” and “conceptually strong” mark. It obtained a registration for the PERPLEXITY mark on November 22, 2022, in Class 42, for “software as a service (SAAS) services featuring software for data analytics and UI testing.”

Perplexity. PSS alleges that Perplexity started using PSS’s PERPLEXITY mark, and confusingly similar variants “Perplexity,” “Perplexity AI,” and a stylized mark incorporating “Perplexity” in August 2022, despite having knowledge of PSS’s prior use of the mark. PSS alleges that Perplexity uses its infringing mark in connection with such services as (1) “Perplexity,” a “free AI search engine”; (2) “Perplexity Enterprise Pro,” a business-to-business offering directed to a business employees; and (3) “Perplexity Spaces,” an “AI-powered collaboration hub.” PSS alleges that these goods and services are “highly similar” to those PSS offers, highlighting the similarity between PSS’s “Perplexity Meet” and Perplexity’s “Perplexity Spaces” as software platforms facilitating communication and collaboration among business and other colleagues.

PSS also alleges that in July 2022, Perplexity registered a domain name incorporating the PERPLEXITY mark in its entirety (https://www.perplexity.ai), and has launched social media accounts incorporating the PERPLEXITY mark on Facebook, LinkedIn, X, and Instagram. PSS contends that Perplexity has “saturated the market” with its infringing goods and services, such that Perplexity now dominates the results of a Google search for “PERPLEXITY,” its website now appears at the top of search results for terms specific to Perplexity (such as “Perplexity Online” and “Perplexity Meet,” the domain name of one of PSS’s domain names and one of its products, respectively).

In support of the assertion that Perplexity’s conduct is likely to cause confusion, PSS alleges that “on numerous occasions,” social media users have “tagged” PSS in posts about Perplexity’s allegedly infringing goods and services.

Perplexity in February and March 2024 filed three trademark applications for PERPLEXITY AI and PERPLEXITY, in Classes 9 (for “downloadable computer application software”) and 41 (technology-related podcasts). PSS has requested extensions to the deadlines for filing opposition to those applications, which requests were granted. The applications remain pending.

PSS asserts that Perplexity has known about PSS’s use of the PERPLEXITY mark, as Perplexity’s counsel contacted PSS in September 2023 offering to purchase the PERPLEXITY mark, which offer was refused. In addition, PSS’s counsel sent a cease and desist letter in October 2024.

Claims, remedies sought. PSS asserts six causes of action based on the foregoing allegations: (1) Trademark Infringement in violation of Section 32(1) of the Lanham Act; (2) Unfair Competition and False Designation of Origin in violation 43(a) of the Lanham Act; (3) Cybersquatting in violation of Section 43(d) of the Lanham Act; (4) Unfair Business Practices in violation of Cal. Bus. & Prof. Code § 17200 et seq.; (5) Common Law Trademark Infringement and Unfair Competition; and (6) Declaratory Judgment as to Perplexity’s pending applications with the USPTO.

PSS seeks an injunction against Perplexity’s use of the PERPLEXITY mark or any confusingly similar marks, including “Perplexity,” “Perplexity AI,” and any stylized marks using the term “Perplexity” in connection with the allegedly infringing goods and services. It also seeks damages in its Lanham Act claims, including actual damages and profits, or in the alternative statutory damages, and damages for the California common law and statutory claims, plus pre-judgment interest, exemplary and punitive damages due to the allegedly willful infringement, and its costs including reasonable attorney fees. PSS also requests an order requiring Perplexity to transfer the domain name https://www.perplexity.ai/ to PSS, as well as a declaration that Perplexity’s pending USPTO applications should be refused.

The Case is No. 3:25-cv-00989.

Judge: Cisneros, L.

Attorneys: Eleanor M. Lackman (Mitchell Silberberg & Knupp LLP) for Perplexity Solved Solutions, Inc.

Companies: Perplexity Solved Solutions, Inc.; Perplexity AI, Inc.

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