Rival 3-D print cos. in legal battle

Alleged patent infringement at center of dispute

Two Massachusetts companies on the cutting edge of 3-D printing, backed by a combined hundreds of millions of dollars from big-name investors, are suddenly locked in a high-stakes legal dispute after Burlington’s Desktop Metal sued Watertown-based Markforged, claiming patent infringement.

Desktop Metal also claims the brother of a key Markforged employee — who Desktop Metal did not know was related to an employee of a potential competitor — surreptitiously downloaded proprietary information from Desktop Metal months before Markforged announced a competing product.

“Metal 3-D printing is an exciting, quickly growing and rapidly evolving industry and, as a pioneer in the space, Desktop Metal welcomes healthy and vibrant competition,” said Ric Fulop, chief executive of Desktop Metal. “When that competition infringes on our technology, however, we have a duty to respond. We believe Markforged products clearly utilize technology patented by Desktop Metal.”

Both companies make 3-D printers capable of printing metal objects. According to the lawsuit, Markforged’s printer, announced earlier this year, is based on two patents held by Desktop Metal related to the process of 3-D printing metal objects.

The suit names Matiu Parangi, accusing the former Desktop Metal intern of violating a nondisclosure agreement and stealing trade secrets during his time at the company. Parangi, who Desktop Metal says is the brother of a key Markforged employee, was hired as an intern in 2016.

“Mr. Parangi’s relation to Abraham Parangi caused Desktop Metal to become suspicious that he may have been involved in sharing Desktop Metal’s Proprietary Information with Markforged,” the lawsuit says. “These suspicions were confirmed when, a few weeks later at CES, an annual technology and consumer electronics tradeshow, in January 2017, Markforged announced that it was changing its focus from 3-D printing of composites to enter the field of 3-D printing of metals — just like Desktop Metal.”

Parangi passed on the information to Markforged, the lawsuit says, but Desktop Metal declined to say whether the company believes stolen information was used to build Markforged’s commercial product.

Both companies are backed by a plethora of industrial and corporate giants. Desktop Metal has raised $277 million from investors including Ford Motor Company and GE Ventures. Markforged has raised $57 million from backers including Microsoft Ventures and Porsche. By 3-D printing metal parts, companies can create prototypes and test new designs quicker and cheaper.

Neither Markforged nor Parangi responded to multiple requests for comment.