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L-3 Communications

Misappropriation of Proprietary P-3 Aircraft Data

Date: 05/21/2009 (Date of Verdict)

Misconduct Type: Intellectual Property

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: Unknown

Disposition: Settlement

Synopsis: Lockheed Martin Corp. claimed L-3 Communications and its subsidiary, L-3 Communications Integrated Systems, Inc. (collectively referred to as “L-3 Comm” in the lawsuit), deliberately misappropriated its proprietary specifications and designs associated with its P-3 series of marine patrol, anti-submarine aircraft. Lockheed accused L-3 Comm of improperly using the data to secure a contract with the government of South Korea to refurbish eight of the Lockheed planes. In May 2009, a jury found in favor of Lockheed and awarded it over $37 million in damages. In March 2010, the court threw out the veridct and ordered a new trial, finding that Lockheed withheld certain pertinent documents during discovery. In October 2010, the parties settled the lawsuit, entering into a licensing agreement under which each party licensed to the other the right to use intellectual property related to P-3 aircraft.