Continuous Composites wins $25 million patent infringement settlement
In this 2023 photo, Continuous Composites employees work at the downtown Coeur d'Alene site.
BILL BULEY/Press file
COEUR d’ALENE — 3D manufacturing company Continuous Composites will receive a $25 million settlement from another manufacturer for patent infringement, according to a settlement and patent license agreement filed with the U.S. Securities and Exchange Commission.
Continuous Composites, which was founded in Coeur d’Alene in 2012, sued 3D manufacturing company Markforged for patent infringement in 2021. The suit alleged that Markforged made and sold continuous fiber composite 3D printers that infringed Continuous Composites’ patented inventions, without permission and without compensation. Markforged asserted that it had invented the technology first.
A federal jury in the District of Delaware found in April that Markforged had infringed a patent and awarded $17.3 million in monetary damages to Continuous Composites. The damages accounted for sales of the infringing machines between Nov. 16, 2021, and Dec. 31, 2023.
Jurors found that a second patent claim brought at trial was invalid and that Markforged had not infringed.
“We are thankful for the jury’s diligence in recognizing Markforged’s infringement and our prior rights to Continuous Composites’ foundational patents,” Steve Starner, CEO of Continuous Composites, said in a statement issued after the verdict. “It confirms the value of our technology that the team has been working hard on since 2012 and we are committed to protecting our patents from those who wrongfully use them.”
In post-trial proceedings, Continuous Composites asked the court to set a rate for additional royalty payments for sales of certain products manufactured and/or sold by Markforged in the U.S. after Dec. 31, 2023.
Though Markforged indicated it would appeal the verdict, the parties subsequently agreed to a settlement in which Markforged paid $18 million to Continuous Composites. That payment will be followed by three additional installments: $1 million in 2025, $2 million in 2026 and $4 million in 2027.
The court will consider an order stipulating that the parties have “mutually agreed” to a settlement and dismissing the case.
Continuous Composites is no longer located on Lakeside Avenue in downtown Coeur d’Alene.