Monday, September 10, 2007, 9/10/2007 12:06:00 PM

Cogent Systems and Northrop Grumman Settle Fingerprint Identification Software Trade Secrets Case

By Todd
CNN Money.com is reporting that Cogent Systems and Northrop Grumman Corporation today announced that they have reached an agreement to settle Cogent's lawsuit against Northrop Grumman regarding Cogent's automated fingerprint identification technology. The agreement is subject to negotiation and execution of definitive documents.

Under the terms of the agreement, Northrop Grumman has agreed to pay Cogent $25 million to settle the litigation. Northrop Grumman also has agreed to pay Cogent $15 million for a non-exclusive license to use specified Cogent state-of-the-art automated fingerprint identification software in certain existing programs, including IDENT1. Northrop Grumman and Cogent also have agreed to enter into a five-year research and development, service and products agreement, under which Northrop Grumman will pay Cogent $20 million for products and services over the term of the agreement. Northrop Grumman does not expect the terms of the settlement to have an impact on its guidance for 2007.

This settlement will end the litigation and allow the companies to work together as strategic alliance partners to provide future customers with state-of-the-art fingerprint identification technology and other biometric solutions.

Cogent filed suit in 2005 alleging that Northrop Grumman had misappropriated its proprietary technology and trade secrets for automated fingerprint identification software for use on the IDENT 1 contract with the British Police Information Technology Organisation, and its successor the National Policing Improvement Agency.

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