Dmarcian, Inc. v. DMARC Advisor BV

Court of Appeals for the Fourth Circuit·Decided July 10, 2026·No. 25-1084·Published

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 23-1790

DMARCIAN, INC., Plaintiff – Appellee,

v. DMARC ADVISOR BV, f/k/a dmarcian Europe BV, Defendant – Appellant.

No. 25-1084

DMARCIAN, INC., Plaintiff – Appellee,

v. DMARC ADVISOR BV, f/k/a dmarcian Europe BV, Defendant – Appellant.

Appeals from the United States District Court for the Western District of North Carolina at Asheville. Martin K. Reidinger, District Judge. (1:21−cv−00067−MR)

Argued: May 7, 2026 Decided: July 10, 2026

Before WILKINSON and WYNN, Circuit Judges, and KEENAN, Senior Circuit Judge.

Affirmed in part and dismissed in part by published opinion. Judge Wilkinson wrote the opinion, in which Judge Wynn and Senior Judge Keenan joined.

ARGUED: Matthew Aaron Hughes, FOX ROTHSCHILD LLP, Greenville, South Carolina, for Appellant. Pamela Suzanne Duffy, ELLIS & WINTERS, LLP, Greensboro, North Carolina, for Appellee. ON BRIEF: Gregory G. Holland, Greensboro, North Carolina, Matthew Nis Leerberg, FOX ROTHSCHILD LLP, Raleigh, North Carolina; Samuel B. Hartzell, WOMBLE BOND DICKINSON (US) LLP, Raleigh, North Carolina, for Appellant. Tyler C. Jameson, ELLIS & WINTERS, LLP, Greensboro, North Carolina; David A. Dorey, BLANK ROME LLP, Wilmington, Delaware, for Appellee.

WILKINSON, Circuit Judge:

This appeal involves a cross-border intellectual property dispute between two software companies. dmarcian, Inc. (dInc), an American company with headquarters in North Carolina, alleges that DMARC Advisor BV (dBV), a Dutch company, stole its brand name, software code, and customers. The case was last before us in 2023. See dmarcian, Inc. v. dmarcian Eur. BV, 60 F.4th 119 (4th Cir. 2023).

dBV argued last time that it was not subject to United States law. As it saw things, the alleged theft took place in the Netherlands, not the United States. We rejected that argument. Wherever the alleged theft took place, we held that it had effects in the United States that brought it within the reach of United States law.

dBV now makes the argument again, contending that the Supreme Court’s intervening decision in Abitron Austria GmbH v. Hetronic International, Inc., 600 U.S. 412 (2023) should change our answer. We reject dBV’s argument again. Abitron shifts our focus from effects to conduct, but dBV’s alleged theft involved significant conduct in the United States too. The new rules in Abitron do not allow dBV to escape liability.

In the modern world, intellectual property theft often cannot be confined to a single sovereign. An actor in the Netherlands may traffic in American trademarks and trade secrets as if there were no national borders or ocean between them. Whether the effects of its conduct are under scrutiny, as before Abitron, or the conduct itself is under scrutiny, as now, the fundamental question remains whether the actor has sufficient interrelationships with the United States to make it an appropriate subject of our law.

The district court’s second amended preliminary injunction, which is justified by dBV’s conduct in the United States, comports with Abitron. We affirm the injunction and dismiss the remainder of dBV’s appeal.

I.

The underlying facts of this case were set out in our 2023 opinion. It remains now, as it was then, a case about “a broken business relationship” between dInc and dBV. dmarcian, 60 F.4th at 128. This appeal, however, involves two new sets of issues.

A.

When dInc filed suit in North Carolina, it brought a litany of claims. dBV, it said, had breached the parties’ contract and committed more than a dozen business torts and intellectual property violations. The district court found that dInc was likely to prevail on its copyright infringement, trademark infringement, trade secret misappropriation, and tortious interference claims. It thus issued a preliminary injunction against dBV.

On appeal, dBV argued that the preliminary injunction impermissibly sought to apply United States and North Carolina law to its activities abroad. We disagreed, explaining that the injunction was justified largely by the domestic effects of dBV’s conduct. dBV had created a website that featured dInc’s name and logo, the likenesses of dInc employees, and the identities of dInc customers. It had used this website to sell the same software product as dInc. The website had not merely reached American customers by accident. To the contrary, dBV placed a button on the website directed to customers in “the Americas,” it sent messages to American customers, and it convinced at least one American company, Clarizen, to switch from dInc’s software product to dBV’s. We

affirmed the preliminary injunction because these effects in the United States were sufficient under then-binding precedent to bring dBV within the reach of United States law. See dmarcian, 60 F.4th at 138–43.

Only a few months later, in Abitron, the Supreme Court announced a new set of rules governing the territorial reach of intellectual property law. See 600 U.S. at 417–23. For unrelated reasons, the district court dismissed dInc’s copyright claim. In response to both developments, the district court modified its preliminary injunction. The new injunction, labeled the second amended preliminary injunction, was intended to conform with Abitron and reflect that dInc no longer had a likelihood of success (or any chance of success) on its copyright claim. See dmarcian, Inc. v. DMARC Advisor BV, No. 1:21-cv- 67, 2024 WL 5188766, at *3–6 (W.D.N.C. Dec. 20, 2024).

Under the terms of the second amended preliminary injunction, which remains in effect, dBV was prohibited from doing the following:

(1) providing services to any customers located outside of Europe, Africa, or Russia . . .;

(2) providing access to any of its websites to IP addresses from countries outside of Europe, Africa, or Russia. . . .;

(3) making changes to the trade secret source code . . .;

(4) using [dInc’s] trademark in any manner in the United States or on any websites which are accessible to IP addresses from the United States, unless such use is accompanied by a [disclaimer]. . . .;

(5) displaying any website with the “dmarcian” name which is accessible to IP addresses from the United States, unless that website includes a [disclaimer]. . . .;

(6) redirecting, encouraging, or allowing any customer to change its payment recipient from [dInc] to [dBV]. . . .;

(7) making any public statement about [dInc] except as expressly allowed or directed herein.

J.A. 2069–72.

dBV now appeals the second amended preliminary injunction.

B.

dInc is not the only party to this troubled relationship that believes it has been wronged. In the Netherlands, a reciprocal lawsuit brought by dBV charges dInc with misconduct.

After dBV filed its Dutch lawsuit, dInc asked the Dutch court to impose a stay pending the outcome of the American lawsuit. dInc pointed to a provision of Dutch law intended to prevent dueling suits over the same subject matter across national borders. In response, dBV told the Dutch court that no stay was warranted because the two suits addressed sufficiently distinct subject matter. dBV also said that, even if the subject matter of the two suits overlapped, the Dutch suit should take priority because it was filed first. The Dutch court agreed and declined to enter a stay.

Back in North Carolina, the district court took issue with what had transpired in the Netherlands. It concluded that dBV’s arguments to the Dutch court had misrepresented the subject matter and start date of the American litigation. As a remedial measure, it ordered dBV to file a document with the Dutch court providing a corrected account (“the correction order”). See dmarcian, Inc. v. DMARC Advisor BV, No. 1:21-cv-67, 2023 WL 4223536, at *9–10 (W.D.N.C. June 27, 2023).

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