OpenAI and Jony Ive pause legal battle as settlement nears

The trademark dispute between iyO, OpenAI, and Jony Ive has been temporarily paused as the parties work toward a settlement, according to 9to5Mac.

A federal judge granted the companies a seven-day stay after they jointly requested additional time to finalize an agreement. According to the filing, the parties have reached an agreement in principle and are now working on the final legal documents.

The dispute began after OpenAI acquired Jony Ive's startup io Products. Shortly afterward, iyO sued OpenAI and Ive, alleging that the "io" branding infringed on its existing trademark.

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Durov˙s CodeVlad Voitenko

iyO later expanded the lawsuit, accusing the companies of misappropriating trade secrets. The complaint alleges that io Products co-founder Tang Tan obtained confidential information about iyO's technology through a former iyO executive.

The court has given the parties until August 6, 2026 to either file a formal dismissal or submit a joint status update if negotiations remain ongoing.

A previously scheduled hearing has been postponed until September 8. Earlier in the case, the court also issued a preliminary injunction preventing OpenAI from using the io brand for its hardware products while the dispute remains unresolved.