Ninth Circuit Denies Zync’s Emergency Motion to Stay; BMW’s Preliminary Injunction Remains in Full Effect as Zync Moves to Stay ITC Proceedings

FOR IMMEDIATE RELEASE
July 24, 2026

WASHINGTON, DC—BMW announced another major victory in its ongoing dispute with Zync, Inc. On July 22, 2026, the United States Court of Appeals for the Ninth Circuit denied Zync’s emergency motion to stay the Preliminary Injunction entered by the United States District Court for the Northern District of California pending appeal.

The Ninth Circuit’s decision leaves BMW’s Preliminary Injunction — which enforces the parties’ mandatory Munich forum-selection clause and requires Zync to seek a stay of its parallel International Trade Commission (ITC) investigation — fully intact. On July 24, 2026, Zync filed a motion to stay the ITC proceedings pending resolution of the forum-selection issues on appeal in the California state court.

This makes it highly likely that the stay of Zync’s ITC case will continue for the foreseeable future and represents another significant step toward ensuring the dispute is litigated exclusively in Munich, Germany, as the parties contractually agreed.

The injunction, entered by the Honorable Charles R. Breyer, prevents Zync from circumventing the agreed-upon Munich forum by pursuing substantially the same claims at the U.S. International Trade Commission.

Current Status of Proceedings

Northern District of California (NDCA)

On June 23, 2026, Judge Breyer granted BMW’s motion for a Preliminary Injunction enforcing the parties’ mandatory Munich forum-selection clause. On July 8, the Court entered a limited 14-day stay of the Preliminary Injunction solely to provide the Ninth Circuit an opportunity to consider Zync’s motion for a stay pending appeal. That temporary stay expired on July 22. With the Ninth Circuit’s denial of Zync’s emergency motion, the Preliminary Injunction is now fully effective — delivering BMW the critical relief of keeping Zync’s ITC investigation stayed while the appeal proceeds.

Separately, on July 20, the district court stayed further proceedings on BMW’s declaratory judgment action and Zync’s counterclaims pending appeal. That administrative stay does not affect the Preliminary Injunction, which remains fully enforceable.

Ninth Circuit Court of Appeals

The Ninth Circuit denied Zync’s request for emergency relief, leaving the district court’s injunction in place while the appeal proceeds on the merits.

U.S. International Trade Commission

Administrative Law Judge Moore has extended the stay of the ITC investigation through August 5, 2026, prior to the Ninth Circuit’s denial of Zync’s emergency motion. Following that ruling, on July 24, Zync filed a motion to stay the ITC proceedings pending the state court appeal. The Ninth Circuit’s decision further reinforces BMW’s position that the ITC investigation should remain stayed while the courts resolve the parties’ contractual forum-selection dispute.

Regional Court of Munich I

On May 29, 2026, BMW filed an action for declaratory judgment in the Regional Court of Munich I. This step allows the merits of Zync’s trade secret misappropriation claims to be decided in the contractually agreed forum. BMW awaits the scheduling of subsequent deadlines following service. BMW expects that the German proceeding will fully clear BMW of Zync’s allegations.

Significance of the Decision

The Ninth Circuit’s ruling is another important victory for BMW. It preserves the substantial relief obtained from the district court and declines to disturb Judge Breyer’s order enforcing the parties’ agreement to litigate exclusively in Munich.

The practical effect is significant: BMW’s Preliminary Injunction remains fully in force, preventing Zync from advancing its ITC action and effectively keeping that parallel proceeding on hold. The July 24 motion Zync filed, once granted, will continue to freeze the ITC case and significantly advances BMW’s objective of achieving a full and final resolution of the ITC action consistent with the parties’ contractual forum agreement.

This latest ruling continues a series of favorable decisions for BMW and underscores that sophisticated commercial parties will be held to the forum-selection agreements they freely negotiated.

“We are very pleased with the Ninth Circuit’s decision denying Zync’s emergency motion,” said BMW counsel Lionel Lavenue. “The Court’s ruling preserves the district court’s injunction and reinforces the parties’ contractual agreement regarding the proper forum for resolving this dispute. Zync has now moved to stay the ITC proceedings. This is another significant victory for BMW, and we remain confident in the merits of our position.”

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

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

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