In an SEC filing this morning , (but no press release), it appears in the settlement of their patent case, 3D Systems will receive “8.0% of net sales of Formlabs products” from Formlabs through the effective period.
On December 1, 2014 the registrant’s subsidiary 3D Systems, Inc. (“3D Systems”) and Formlabs, Inc. (“Formlabs”) agreed to the entry of an Order dismissing all claims and counterclaims with prejudice in an action 3D Systems filed against Formlabs for infringement of United States Patent Nos. 5,554,336, 5,569,431, 5,609,812, 5,609,813, 5,762,856, 5,779,967, 5,785,918, and 5,814,265 (together, the “Subject Patents”), captioned as 3D Systems, Inc. v. Formlabs, Inc., 1:13-cv-07973-RWS, in the United States District Court for the Southern District of New York.
The Order was entered into pursuant to the terms of a Settlement and License Agreement (the “Agreement”) dated November 25, 2014 between 3D Systems and Formlabs under which 3D Systems granted to Formlabs a worldwide, non-exclusive, royalty bearing, license, without the right to sublicense, to make and sell Formlabs products under the Subject Patents. In consideration of the license and releases granted by 3D Systems, Formlabs agreed to pay 3D Systems a royalty of 8.0% of net sales of Formlabs products through the effective period.
This is materially significant and positive for 3D Systems as the future royalty payments from Formlabs will go directly to the bottom line at 3D Systems.