Cloud Security,
Litigation,
Security Operations
Patent Board Ruling Invalidates Three Orca Patents, Resulting in Dismissal of Legal Disputes
In a significant development within the cloud security sector, Orca Security and Wiz have mutually agreed to dismiss their competing patent infringement lawsuits, with an explicit commitment not to pursue such claims in the future. Both companies will cover their own legal expenses as part of this agreement.
This resolution comes in the wake of a ruling from the U.S. Patent Trial and Appeal Board, which concluded that three of the six patents Orca accused Wiz of infringing were unpatentable. Orca’s accusations targeted its rival for infringing on six separate patents, while Wiz countered with its own claims against Orca regarding five patents and alleged that Orca replicated its key features.
The joint stipulation of dismissal outlines that “all claims and defenses asserted by Orca against Wiz and all claims and defenses asserted by Wiz against Orca are hereby dismissed with prejudice.” This legal terminology signifies that neither party can revive these claims in the future, underscoring the finality of the agreement.
The patent dispute began in July 2023 when Orca accused Wiz of infringing on patents related to securing cloud environments against cyber threats. However, by June 2024, Wiz had firmly asserted its non-infringement and accused Orca of violating its patents, which include advancements in AI-driven cybersecurity solutions.
Impact of the Patent Board’s Decision
The Patent Trial and Appeal Board’s ruling on December 8, 2025, which invalidated all challenged claims in Orca’s patents, weakened Orca’s position significantly. The Board found that the claims failed to demonstrate innovation, lacking the necessary novelty. As the parties noted, additional reviews of Orca’s remaining patents were still pending, with anticipated rulings in early 2026.
Wiz’s challenge to the validity of Orca’s patents through the inter partes review process was initiated, and the Board granted reviews for three patents by December 2024. Concurrently, Orca pursued multiple petitions against Wiz’s patents, particularly those concerning Wiz’s advanced threat detection methodologies.
Throughout these proceedings, each company blamed the other for missteps leading to the litigation. Orca accused Wiz of using confidential information learned during past interactions to develop a competing product. Wiz, on the other hand, claimed that Orca’s patents were inherently invalid and criticized its rival for aggressive litigation strategies aimed at protecting its market position.
Interestingly, the dismissal follows almost ten months after Wiz accepted an acquisition offer from Google valued at $32 billion, a transaction that is expected to conclude within the year. It’s worth noting that acquisitions often lead to settlements as companies seek to reduce legal entanglements before finalizing major deals.
Current estimates place Orca’s value substantially below that of Wiz, revealing a disparity in market perception and business growth potential. Following the reported layoffs at Orca, in contrast to Wiz’s significant staffing increases, this legal development highlights the competitive tensions and evolving dynamics within the cloud security industry.
