Shares of American 3D printer manufacturer Markforged Holding Corporation (NYSE: MKFG) rose by over 30 per cent Monday after the company revealed that an intellectual property litigation had been resolved.
This litigation was brought forth against Markforged by the competing 3D printer maker Continuous Composites (CC). The latter company alleged in 2021 that Markforged had infringed upon a series of printing technology patents held by CC.
Now, the parties have entered into a settlement agreement that resolves all aspects of the litigation. Markforged will be required to pay an aggregate sum of US$25 million to CC for certain patent infringements, but the companies have agreed to cross-license their technology to each other through a new partnership.
Resolution of legal disputes like this can potentially boost investor confidence. This is a key factor contributing factor to Markforged’s rally today. The agreement still needs to be reviewed by Delaware’s District Court.
Markforged struggles financially
Despite reconciling with CC, the US$25 million that Markforged will be required to pay is not going to help its already unfortunate financial situation.
Markforged reported a net loss of US$115.9 million at the end of last year and its share price has steadily declined by over 80 per cent within the past 365 days.
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Markforged showcases high-tech printer in Illinois
Last week, the 3D printing company had the opportunity to educate people about its FX10 printer at the International Manufacturing Technology Show in Chicago.
This advanced machine can print stainless steel and composite materials like fibreglass, kevlar and carbon fibre.
Markforged describes it as being the world’s first industrial metal and composite printer.
“The heated print chamber and automated spool changeover let you print large, high-quality parts,” Markforged described, “while its laser micrometer and onboard vision module capture detailed composite part images for precise calibration, inspection, and verification.”
rowan@mugglehead.com
