In a landmark legal victory, US-based design software giant Figma has reached a global settlement with its Singapore-headquartered rival, Motiff, forcing the latter to halt sales of its UI design tool worldwide, except in China.
The settlement, announced on August 12, 2025, resolves intellectual property disputes in both the US and Singapore, marking a significant win for Figma in protecting its proprietary technology.
Figma vs. Motiff: A Legal Battle Over Innovation
The lawsuit, initiated by Figma in September 2024, accused Motiff of copyright infringement and breach of contract, alleging that the startup copied substantial portions of Figma’s source code to develop its competing product.
This legal clash has spotlighted the fiercely competitive landscape of cloud-based design tools, where Figma has emerged as a dominant player since its founding in 2012.
Motiff, a relatively new entrant established just over two years ago, faced potential derailment of its growth trajectory due to the allegations and subsequent legal pressure.
Settlement Terms: A Blow to Motiff’s Operations
Under the terms of the settlement, Motiff must cease sales of its Editor Tool globally, with a one-year grace period in China to redesign its product to comply with the agreement.
Additionally, Motiff is required to reimburse Figma for legal fees, underscoring the financial and operational impact of the settlement on the Singapore-based startup.
Industry Impact and Historical Context
The outcome of this dispute highlights the growing importance of intellectual property protection in the tech industry, especially as AI-driven design tools reshape the creative software market.
Historically, Figma itself faced scrutiny during its failed $20 billion acquisition by Adobe in 2023, which was terminated due to regulatory concerns in Europe and the UK over potential market dominance.
What Lies Ahead for Design Software?
Looking forward, this settlement could set a precedent for how intellectual property disputes are handled in the rapidly evolving SaaS and design tool sectors, potentially deterring smaller players from challenging established giants like Figma.
For Motiff, the challenge will be to pivot and innovate within the constraints of the settlement, particularly in the Chinese market, which remains a temporary safe haven for its operations.
As the design software industry watches closely, this case underscores the delicate balance between innovation, competition, and legal accountability in the digital age.
Alfred Lee
