The lawsuit was filed by Figma in September 2024, alleging breach and contract and copyright violation by Motiff and its affiliates.
Figma, Inc. (FIG), a cloud-based design tool company that recently made a stellar market debut, revealed late Tuesday that it reached a settlement agreement with Motiff in July to resolve their intellectual property disputes in the U.S. and Singapore.
Figma stock showed a muted reaction to the announcement and traded up merely 0.35% in the overnight session.
The lawsuit was filed by Figma in September 2024, alleging breach and contract and copyright violation by Motiff and its affiliates. Illinois-based Motiff, located in Chicago, is a provider of artificial intelligence (AI)-powered user interface design tools.
The settlement agreement requires Motiff to cease selling the current version of its Motiff Editor Tool and any future products derived from it, globally, except in mainland China. In China, Motiff would sell its current Editor Tool for a year before reengineering and redesigning the product. Motiff has also agreed to reimburse Figma’s legal expenses.
A Figma spokesperson said, “We welcome fair competition and strongly believe that no one should be allowed to copy our or others’ IP to gain an advantage.”
On Stocktwits, retail traders largely welcomed the move. A bullish watcher called the settlement a “solid win against Motiff,” adding that “Figma successfully beat a competitor in the courtroom and got its legal expenses paid.”
Another user said Figma now has a “total and complete monopoly” following the settlement.
Figma stock, which was listed on July 31, following the company’s initial public offering, has shed nearly 25% since its debut.
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