In response to recent speculation in the stereolithography (“SL”) industry, DSM Desotech Inc. (“Desotech”) confirms that on March 14, 2008, it filed a lawsuit against 3D Systems (“3DS”) in federal court in Chicago. The lawsuit is in response to what Desotech believes is repeated anticompetitive conduct by 3DS in the market for large-frame SL machines – particularly, 3DS’s Viper™ Pro SLA® System (“Viper Pro”) – and the resin used in those machines, as well as 3DS’s infringement of Desotech’s intellectual property.

In the lawsuit, Desotech alleges that 3DS’s conduct has violated federal and state antitrust laws, state deceptive trade practice law, tortiously interfered with Desotech’s prospective business relations, and infringed several of Desotech’s patents. Broadly speaking, Desotech alleges, among other things, that 3DS is improperly conditioning the sale and maintenance of its large-frame SL machines on the purchase of 3DS’s own resin for use in those machines, despite the fact that customers would prefer to purchase Desotech’s SOMOS® resins for use in their large-frame SL machines. Desotech also believes that 3DS has infringed two patents owned by Desotech through 3DS’s sale of the Viper Pro, SLA® 7000, and SLA® 5000 Systems. The Complaint containing the specific charges is publicly available and was filed on March 14, 2008, in the United States District Court for the Northern District of Illinois, No. 08 C 1531.

Desotech’s two primary goals by bringing this lawsuit are to preserve fair and robust competition in the market for resin used in large-frame SL machines and to protect its intellectual property rights. Desotech wants to ensure that customers continue to have a choice as to resin suppliers for their large-frame SL machines and that innovation is rewarded in the SL industry through the protection of intellectual property rights.