Figma Stock Moves Higher (NYSE:FIG) – Resolves IP Dispute with Motiff

Figma Inc. (NYSE: FIG) has seen its shares climb following the announcement of a global settlement with Motiff, resolving ongoing intellectual property disputes in the U.S. and Singapore. The agreement, effective July 23, 2025, puts an end to legal battles initiated by Figma in September 2024 alleging copyright infringement and breach of contract.

Shares in Figma are trading 1.21% higher in pre-market trading, following a strong showing in yesterday's regular session, with FIG adding 5.89%. Figma's stock has been very volatile since the IPO, trading 24.36% lower than where they began just two weeks ago.

The core of the dispute centered on Figma's claims that Motiff had unlawfully copied substantial portions of its source code to develop its own AI-powered design tool. Figma filed lawsuits in both the U.S. and Singapore, seeking to protect its intellectual property and prevent Motiff from competing unfairly. Motiff, a Singapore-based startup, denied the allegations, claiming independent development of its code.

Under the terms of the settlement, Motiff will cease selling its current Motiff Editor Tool globally, with a one-year exception for mainland China, during which time it will re-engineer and redesign the product. This agreement also includes Motiff reimbursing Figma for legal expenses incurred during the litigation, further highlighting the resolution's favorability for Figma.

“The settlement reinforces Figma's commitment to protecting its intellectual property, which is crucial for maintaining its competitive edge in the design software market,” stated one analyst covering the stock. A Figma spokesperson echoed this sentiment, emphasizing the company's dedication to innovation and fair competition.

In case you missed it, Figma's stock performance since its IPO has been characterized by high volatility. After debuting at $33 and tripling on its first day, the stock soared as high as $142.92 before pulling back.

The company currently holds a market capitalization of approximately $42.58billion, with trailing twelve-month revenue of $821 million. However, it is not yet profitable, reporting a net loss of $701 million over the same period.