BMW AG Secures Complete Victory at Federal Circuit as Onesta IP, LLC Appeal is Dismissed and Costs Awarded to BMW

FOR IMMEDIATE RELEASE
April 20, 2026

WASHINGTON, DC–Finnegan client Bayerische Motoren Werke Aktiengesellschaft (“BMW AG”) announced a complete victory in the United States Court of Appeals for the Federal Circuit. In an Order issued today, the Court granted BMW AG’s motion to dismiss the appeal filed by Onesta IP, LLC (“Onesta”) in full and awarded taxable costs to BMW AG.

The appeal, filed by Onesta, challenged an anti-suit injunction issued by Judge Alan D. Albright of the U.S. District Court for the Western District of Texas, which required Onesta to immediately terminate parallel German patent infringement actions asserting U.S. patents. Yet, after rounds of appeal briefing, Onesta finally terminated the German patent infringement actions asserting U.S. patents, as required by Judge Albright’s anti-suit injunction. 

BMW AG moved to dismiss the appeal at the Federal Circuit. While that motion was pending, Onesta terminated the German actions—earlier than it had previously represented to the Court of Appeals was even possible. BMW AG further explained that, despite the jurisdiction-defeating actions by Onesta, Onesta continued to prolong the appeal through serial extensions by its purported “emergency” stay motions.

Onesta ultimately conceded that the appeal should be dismissed, citing an alleged terms sheet with third-party Qualcomm Inc. that allegedly obligated Onesta to terminate the German proceedings. But, Onesta sought to avoid the loss of a motion to dismiss (and the default allocation of costs to the prevailing party, BMW AG), by pressing for a ruling without prevailing party status (so that each party bear its own expenses). BMW AG strongly opposed Onesta’s position, emphasizing that Onesta had initiated, maintained, and then mooted its own appeal—making BMW’s motion to dismiss ripe, with costs properly against the appellant (and prevailing party status, for BMW AG).

Today, the Federal Circuit agreed with BMW AG in full. The Court dismissed the appeal and expressly awarded costs to BMW AG, making BMW AG the prevailing party in the appeal. In its order, the Court acknowledged BMW AG’s position that Onesta unnecessarily prolonged the proceedings even after disclosing the agreement that allegedly mooted the case, and concluded that costs should be awarded under the default rule.

Importantly, with the Federal Circuit appeal dismissed, Judge Alan Albright’s anti-suit injunction remains fully intact. The anti-suit injunction continues to serve as a basis to bar any assertion or enforcement of the U.S. patents against BMW AG in German courts, reinforcing the protections secured for BMW AG in the U.S. litigation.

“Finnegan is pleased that BMW AG prevailed in the Federal Circuit through the grant of BMW AG’s motion to dismiss Onesta’s appeal of Judge Albright’s anti-suit injunction,” said Lionel Lavenue, lead counsel for BMW AG. “That result, dismissing the appeal by Onesta, preserves Judge Albright’s anti-suit injunction in full force as a strong deterrent against improper attempts to assert U.S. patents in foreign courts. It also confirms that BMW AG prevailed on appeal by successfully obtaining dismissal of the case through court order, rather than through a voluntary stipulation. This outcome reinforces the fundamental principle that U.S. patents must be adjudicated exclusively in U.S. courts under U.S. law—preserving essential protections like broad discovery and the right to a jury trial—and enables BMW AG to continue defending its rights in the appropriate forum.”

This result marks the culmination of a broader series of victories for BMW AG in the underlying dispute before the U.S. District Court for the Western District of Texas, where the Court:

• Granted BMW’s request for a temporary restraining order preventing Onesta from pursuing injunctive relief in Germany;
• Issued a sweeping anti-suit injunction requiring Onesta to immediately terminate its German infringement actions involving U.S. Patent Nos. 8,854,381 and 8,443,209; and
• Denied Onesta’s motion to dismiss the U.S. action, where Onesta did not present sufficient information to obtain dismissal based on an alleged terms sheet with third-party Qualcomm Inc.

The Federal Circuit’s ruling delivers a complete and unambiguous victory for BMW AG—resolving the appeal, preserving the anti-suit injunction in full, and confirming BMW AG’s entitlement to costs as a prevailing party in the Federal Circuit appeal.

Contacts
 
Terra Liddell, Chief Marketing Officer
terra.liddell@finnegan.com

Angela Robinson, Director of Branding and Communications
angela.robinson@finnegan.com

About Finnegan
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