GoPro Inc. (GPRO) shares tumbled 6.67% in pre-market trading on Friday, following news of an $8.2 million damages award in a patent infringement case. The verdict, announced late Thursday, marks a partial setback for the action camera maker in its long-running legal battle with Contour IP Holding.
According to a securities filing, a jury found that while GoPro's products launched from 2020 to 2024 do not infringe on the patents in question, the company must pay $8.2 million in past damages for certain legacy cameras previously found to infringe. The jury also invalidated the only asserted claim of one of the two patents at issue in the trial.
While the verdict provides some relief for GoPro's current product lineup, including its HERO9 Black to HERO13 Black models, the financial impact and potential implications for future product development appear to be weighing on investor sentiment. The company noted that the verdict is subject to post-trial briefing and appeal, with no judgment yet entered in the case.
As GoPro navigates this legal challenge, the market will be closely watching for any updates on the company's strategy to protect its intellectual property and maintain its competitive edge in the action camera market. The company is set to release its third quarter 2025 financial results on November 6, which may provide further insights into the impact of this legal outcome on its business outlook.