Markforged to Pay $17.34M in Patent Lawsuit Over 3D Printing Tech

On April 15, 2024, Xpiens reported that a Delaware district court jury has reached a decision in the patent lawsuit between Markforged Holding, a leader in continuous fiber composite 3D printing, and 3D printing materials manufacturer Continuous Composites. The jury ruled that Markforged (a wholly-owned subsidiary of Markforged Holding) must pay $17.34 million (approximately 125 million RMB) in damages.

In July 2021, Idaho-based Continuous Composites initiated a patent infringement lawsuit against Markforged. As reported last April, the jury found one of the two patent claims brought by Continuous Composites against Markforged to be invalid and not infringed. However, the jury found that Markforged had infringed on another patent and awarded damages accordingly.

Markforged Global Headquarters

 While Markforged cannot predict the actions Continuous Composites might take, they may seek additional relief through post-trial motions, potentially including licensing fees on future revenues, which could significantly impact Markforged's operations and business.

Markforged is exploring all available options, including appealing the verdict and any resulting judgments, to overturn the decision.

Over the past few years, Markforged has emerged as a leader in the continuous fiber composite 3D printing hardware market and a significant player in the metal additive manufacturing market (having faced a patent infringement case against Desktop Metal) with annual revenues exceeding $100 million.

Recently, Markforged released its financial results for the fourth quarter and full year of 2023. The report showed that the company's revenue for the fourth quarter was $24.2 million, up 20.4% from the third quarter of 2023 but down from $29.7 million in the fourth quarter of 2022. The gross margin for Q4 2023 was 48.4%, compared to 46.9% in Q4 2022. Non-GAAP gross margin was 49.5%, compared to 47.5% in Q4 2022. Operating expenses were $31.1 million, including a $0.9 million increase in estimated fair value adjustments. As of December 31, 2023, cash, cash equivalents, and short-term investments totaled $116.9 million, down from $167.9 million on December 31, 2022.

Markforged Global laboratory

The Growing Intellectual Property Competition in 3D Printing Technology

In recent years, the 3D printing technology has attracted widespread attention and development due to its cost and time efficiency and the ability to create complex and customized products.

The industrial 3D printing market is expected to see significant growth in the coming years. According to Market Research Future, the market is projected to reach $11.59 billion (approximately 83.8 billion RMB) in 2023, with a compound annual growth rate of 23.4%. Industries such as aerospace, automotive, healthcare, and consumer goods are increasingly adopting additive manufacturing technologies, driving market growth.

However, the industry also faces challenges, one key being the high cost of industrial 3D printing equipment and materials. Despite technological advancements, the initial investment required to establish a 3D printing facility can be substantial, limiting adoption among small and medium-sized enterprises.

Moreover, intellectual property disputes, like the lawsuit faced by Markforged, can have a significant impact on companies in the industry. The judgment against Markforged could lead to financial losses and potential operational restrictions. Thus, intellectual property is crucial in the 3D printing industry as companies heavily rely on patents to protect their innovations and maintain competitiveness.

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