GoDaddy (GDDY) Hit with $170M Legal Hammer—Patent Battle Ends in Brutal Jury Verdict
Domain giant GoDaddy just got served a $170 million reality check—the largest patent infringement penalty in web hosting history.
The Backstory:
A federal jury ruled GDDY blatantly copied patented search tech, slapping them with maximum damages. The verdict sent shockwaves through Silicon Valley’s legal circles.
Market Fallout:
Investors dumped shares post-ruling, wiping out $500M in market cap overnight. ‘Turns out “moving fast and breaking things” includes patent law,’ quipped one short seller.
What’s Next:
Analysts predict either a costly appeal or a quiet settlement—because nothing says ‘innovation’ like writing checks to avoid admitting guilt.
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It’s worth noting that Express Mobile owns patents created by its founder, former IBM engineer Steven Rempell. In addition, the company sued GoDaddy in 2019, claiming that the domain registrar’s website-building tools copied technology it had already patented. GoDaddy denied the claims and argued that the patents were invalid. It also pointed out that it had previously won a separate trial in 2023 over related allegations brought by Express Mobile.
This case is part of a pattern of patent disputes involving Express Mobile. In 2022, the company won a $40 million verdict against Shopify (SHOP) in a similar lawsuit, though that ruling was later overturned by a Delaware judge. Despite those setbacks, Express Mobile’s lawyer, Jay Nuttall, called the latest decision “an outstanding result” that highlights the importance and value of the company’s patented technology.
Is GDDY Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GDDY stock based on 11 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average GDDY price target of $172.71 per share implies 31% upside potential.
