Markforged Holding Corp. (NYSE: MKFG) has agreed to pay Coeur d’Alene-based Continuous Composites Inc. $25 million for patent infringement, according to a settlement and patent license agreement filed with the U.S. Securities and Exchange Commission. 

The settlement agreement is currently pending before the U.S. District Court for the District of Delaware. 

Steve Starner, who became CEO of Continuous Composites earlier this year, says the small 3D manufacturing company founded in 2012 has worked hard to develop, patent, and defend its portfolio of intellectual property.

In April, Continuous Composites received a favorable jury verdict that found Markforged had infringed on one of its patents in a case the Coeur d'Alene company first filed in 2021. Markforged attempted to appeal, but by September, it had decided to settle, Starner says.

Defending a patent successfully can be difficult, he contends.

"To get through all the pretrial work, to get to the actual jury trial, and then to win is far less than a 50/50 shot,” Starner says.

According to the settlement and patent license agreement, Markforged, a Waltham, Massachusetts-based company that produces and sells 3D printer materials, software, and other related services, will issue an initial payment of $18 million to Continuous Composites by year-end; $1 million by Dec. 15, 2025; $2 million by Dec. 15, 2026; and $4 million by Dec. 15, 2027.

Starner says the settlement allows Markforged to continue to use its patent in perpetuity for Markforged’s existing products.

“You could imagine that, if they kept selling machines with our technology, it would actually be worth more than $25 million,” he says. “But obviously, there are a lot of costs in continuing that appeals process.”

He speculates there are other companies that also are infringing on Continuous Composites intellectual property and that were waiting to hear the outcome of the trial to decide how they should move forward.

“It’s not acrimonious,” he says. “We developed it; we patented it  … we are happy for other people to use our technology. Just come get a license.”  

Continuous Composites designs and makes robotic arms to build composite parts for many applications using materials such as carbon fiber, fiberglass, and Kevlar. The technology layers the fibers robotically while simultaneously curing the materials with ultraviolet light. It also can print using optical fiber, copper wire, and nichrome wire, which can accommodate sensors, circuits, and heating elements embedded in composites.

Moving forward, Continuous Composites expects to continue to grow, Starner says. The company hasn't been profitable yet, however, its revenue has grown by 70% in the past year, and Starner expects to achieve profitability in the near future.

Continuous Composites is located at 215 E. Lakeside in downtown Coeur d’Alene and has 25 employees.

The company was represented at trial by Spokane-based intellectual property law firm Lee & Hayes PC, and San Francisco-based law firm Orrick, Herrington & Sutcliffe.