Earlier this week, news broke that the lawsuit between 3D Systems and Formlabs had been settled, but the details of the settlement had not yet been released. Now, it seems that details are trickling in. According to a Form 8-K filed by 3D Systems, as part of the settlement to drop the lawsuit against Formlabs, the company will collect an 8% royalty on Formlabs product sales. The language is as follows:
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.
In an interview with Xconomy, Formlabs CEO Max Lobovsky says that the company is selling “between 1,000 and 10,000″ of their roughly $3,300 printers per year. That seems like a big spread to me, but either way, 8% of $3,300,000 to $33,000,000 seems like a nice chunk of change. And that doesn’t include the $150 bottles of Formlabs resin included in the settlement.
In related news, I, too, would like some royalty money, please.
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