Suit follows iyO winning a TRO in trademark case against io, OpenAI, Sam Altman, and Jony Ive; seeks truth about competitor's role in trade secret misappropriation.
SAN FRANCISCO, July 14, 2025 /PRNewswire/ -- iyO, Inc., a pioneer in natural language computing, today filed a lawsuit against former employee Dan Sargent for breach of contract and trade secret misappropriation, an action triggered by iyO competitor io Products, Inc's admission in a sworn court declaration in a related trademark case. Tang Yew Tan, a co-founder of io Products, Inc., admitted under penalty of perjury that he received confidential iyO information from an engineer later identified as iyO's former design and manufacturing lead (Sargent) who was seeking a job from io Products at the time, according to the Complaint.
The revelation surfaced in iyO's separate and ongoing federal lawsuit for willful trademark infringement, in which iyO recently secured a temporary restraining order (TRO) against defendants io Products, OpenAI, Sam Altman, and Jonathan Paul Ive. iyO, Inc. V. Io Products, et al., case number 3:25-cv-04861-TLT (the "Trademark Action").
According to the new Complaint, following Tan's admission that he received confidential information regarding iyO's product development, business strategy, and more, iyO conducted an investigation and learned that during his meeting with Tan and one other person from Jony Ive's Lovefrom, Sargent displayed confidential CAD drawings of iyO's product, according to the declaration. Before filing suit, iyO offered to forgo legal action against Sargent in exchange for a full and truthful account from him about the interactions, however the draft declaration he provided was evasive, omitted key facts, and contradicted information from Tan's own declaration, according to the filing.
"This is not an action we take lightly," said Jason Rugolo, the CEO of iyO, Inc. "Our primary goal here is not to target a former employee, whom we considered a friend, but to hold accountable those whom we believe preyed on him from a position of power."
"We have a duty to our team and our investors to aggressively defend the years of work and innovation that define our company," Rugolo said, in explaining why iyO decided to file suit.
The lawsuit seeks damages to prevent any further use or disclosure of iyO's trade secrets.
About iyO, Inc. iyO began its mission at Google X in March 2018 to make natural language computing as commonplace as cellular phones are today. After spinning out as a venture-funded startup in August 2021, the company has attracted $37.2 million in investment to develop its next-generation technology. Its flagship product, the iyO One, is a revolutionary ear-worn computer that allows users to interact with AI and the internet through voice alone, without the need for a screen.
SOURCE iyO Inc.
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