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3D printer manufacturer Markforged has settled a patent infringement lawsuit filed by Continuous Composites, resolving a legal battle that began in 2021.
This lawsuit centered around allegations that Markforged had infringed on several patents held by Continuous Composites. In April 2024, a jury ruled in favor of Continuous Composites on one patent claim and awarded $17.34 million in damages.
As part of the Settlement and Patent License Agreement, Markforged will pay $18 million upfront, followed by additional payments of $1 million in 2025, $2 million in 2026, and $4 million in 2027. The agreement is still subject to approval by the U.S. District Court for the District of Delaware.
“We are pleased to announce this Settlement Agreement which, if approved by the District Court, will bring this litigation to a successful conclusion that will eliminate this distraction to Markforged and the uncertainty over the outcome of this litigation for all of our stakeholders,” said Shai Terem, President and Chief Executive Officer of Markforged.
Details and timeline of the settlement
As part of the settlement, both companies will cross-license their respective patent portfolios, and all claims and counterclaims will be dismissed with prejudice. This mutual agreement also includes a release from liabilities and a covenant not to sue, ensuring that neither party admitted wrongdoing in the settlement.
Additionally, the agreement incorporates a Security Agreement granting Continuous Composites a security interest in Markforged’s patent intellectual property.
Filed in 2021, Continuous Composites accused Markforged of infringing on four patents involving nineteen claims. In 2022, Markforged responded to a patent infringement lawsuit by Continuous Composites, seeking its dismissal and filing counterclaims.
It argued that its machines did not use the technologies covered by the patents in question and challenged their validity. Markforged requested a jury trial to prove non-infringement and have the patents declared invalid.
By April 2023, the U.S. District Court for Delaware ruled in favor of Markforged, dismissing four patents initially asserted by Continuous Composites in the lawsuit. The court agreed with Markforged’s interpretation after a “Claim Construction” hearing, leaving only one patent with two claims still contested. Markforged planned to continue defending against the remaining claims while supporting its global customers.
Consequently, Continuous Composites sought additional royalty payments for products sold in the U.S. after December 31, 2023, which were addressed in post-trial motions.
Markforged’s settlement brings an end to the lengthy legal battle, allowing both companies to focus on future technological advancements without the looming threat of continued litigation.
In other news, Markforged has announced the launch of what it claims is the “world’s first” industrial 3D printer compatible with both metals and composites, named FX10, at the International Manufacturing Technology Show (IMTS). Additionally, the company has initiated a $25 million cost reduction effort to fuel growth and product development.
Patent infringement lawsuits
The 3D printing sector is no stranger to lawsuits, especially the ones about patent infringement.
An ongoing case is 3D printer OEM Stratasys versus Bambu Labs, alleging that several of its 3D printers, including the X1C, X1E, P1S, P1P, A1, and A1 mini, infringe on ten patents related to features including purge towers, heated build platforms, tool head force detection, and networking capabilities.
As a part of this lawsuit, Stratasys seeks a jury trial, damages, and an injunction to prevent further infringements. Claiming it hasn’t received official documents yet, Bambu Lab plans to defend its intellectual property rights through legal procedures.
These lawsuits come as Bambu Lab rapidly grows in the 3D printing market, attracting attention from open-source advocates and patent litigators who are analyzing the potential impact on the broader AM industry.
Elsewhere, Canadian plasma system and material developer Tekna won a patent litigation case against Advanced Powders & Coatings Inc. (AP&C), a subsidiary of Colibrium Additive, over titanium powder production patents in Canada. This case involved AP&C’s Canadian Patents ’502 and ’236, which cover “metal powder atomization manufacturing processes.”
AP&C alleged that Tekna’s powder production processes infringed on these patents. However, the Federal Court of Canada ruled that the ’502 Patent was invalid and void, while most claims of the ’236 Patent were also invalid, with none being infringed by Tekna.
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Featured image shows Markforged HQ. Photo via Businesswire.
