11-20-2012: 3D Systems sued Formlabs for patent infringement, and Kickstarter for Formlabs promotion

The patent war lasted for two years

On November 20, 2012, 3D Systems filed a lawsuit against Formlabs and the crowdfunding platform Kickstarter, alleging patent infringement related to stereolithography technology. The dispute centered around the Form 1 3D printer, which gained immense popularity on Kickstarter, raising over $2.9 million through its crowdfunding campaign. The legal battle lasted two years, featured numerous twists and turns, and concluded with a settlement on December 1, 2014.

3D Systems, a pioneer in 3D printing technology, had patented all critical aspects of stereolithography over the years. The lawsuit accused Formlabs of violating two key claims under U.S. Patent No. 5,597,520. The company argued that the use of this technology in the Form 1, as well as its promotion on Kickstarter, caused "irreparable financial and reputational damage." Kickstarter was also named in the lawsuit, as 3D Systems claimed that its 5% commission on funds raised made the platform partly liable for the alleged losses.

Formlabs contended that it had designed the Form 1 3D printer in compliance with the law, leveraging expired patents. The company avoided discussing the details of the case publicly, focusing instead on manufacturing and delivering the Form 1 to backers.

Over the following months, the conflict attracted widespread attention in the industry, highlighting tensions between large corporations defending their technologies and startups driving innovation. In November 2013, 3D Systems voluntarily dismissed the case against both Formlabs and Kickstarter, only to file another lawsuit the same day. This time, it accused Formlabs alone of infringing on an additional eight patents.

In December 2014, the dispute ended in a settlement. The details were not disclosed. The only known fact is that 3D Systems granted Formlabs a license for the patents involved in exchange for "8.0% of net sales of Formlabs products during the effective period." The filing did not specify which products were included or how long the agreement would last.

Despite this challenging start to its commercial journey, Formlabs not only survived but became a dominant leader in the industry. Today, it offers two major product lines: the photopolymer-based Form 4 series (available in several configurations) and the SLS-based Fuse series, which reportedly accounts for 50% of the global SLS market. Meanwhile, 3D Systems, still one of the largest companies in the industry by reach and revenue, has struggled with ongoing unprofitability and deepening financial losses.

Source: www.3dsystems.com