GoKawiilUpdate, 7:51 p.m. ET: The joint notice of settlement is now publicly available and has been added below the original post.
Judge Trina L. Thompson has granted a seven-day pause in iyO’s trademark lawsuit against OpenAI and Jony Ive at the parties’ request, as they work to finalize a settlement. Here are the details.
OpenAI and iyO near settlement
According to new court filings, iyO and OpenAI have told Judge Trina L. Thompson that they have reached an agreement in principle and requested a seven-day pause to finalize the settlement details in their ongoing lawsuit.
As a refresher, shortly after OpenAI announced it was acquiring Jony Ive’s io Products startup to build a new generation of AI devices, iyO filed a lawsuit accusing the companies of infringing its trademarks.
iyO later amended the complaint to add trade secret claims, alleging that io Products’ co-founder Tang Tan had obtained confidential information about its technology and product designs through a former iyO executive.
Based on the lawsuit’s schedule, a hearing had been set for today to discuss OpenAI’s motion to strike or dismiss iyO’s amended complaint.
However, the parties filed a joint notice yesterday informing the court that they had reached a settlement in principle. In their filing, they also requested that the proceedings be paused for seven days while they finalize the agreement.
While the content of the joint notice has yet to be made publicly available (Update: the content is now available), Judge Thompson’s order provides more details on the seven-day pause and what happens next:
ORDER 195 : The Court has received a notice of settlement in principle. The parties have requested a 7 day stay to finalize the agreement. The stay is granted. Upon finalization and no later than 8/6/26, the parties shall either file a request for dismissal or a joint status report. The stay will be lifted on 8/6/26. The hearing 128 set for 7/28/2026 is hereby VACATED and RESET to 9/8/2026 alongside the hearing of the motion to alter judgment 163 . Both motions will become moot and the case will be terminated upon the filing of a Request for Dismissal. If the matter does not resolve the Parties shall file a response to the questions for the hearing 193 by 9/7/2026 and respond to an order to show cause. Signed by Judge Trina L. Thompson on July 27, 2026. (This is a text-only entry generated by the court. There is no document associated with this entry.) (Thompson, Trina) (Filed on 7/27/2026) Modified on 7/27/2026 (Thompson, Trina). (Entered: 07/27/2026)
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