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Northrop Grumman

Using Automated Fingerprint Identification Software Without Permission

Date: 09/10/2007 (Date of Announcement)

Misconduct Type: Intellectual Property

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $60,000,000

Disposition: Settlement

Synopsis: Northrop Grumman settled a lawsuit filed by biometrics technology company Cogent Systems that accused Northrop of using Cogent’s automated fingerprint technology without permission. Cogent claimed it did not give Northrop permission to use its automated fingerprint identification software for a contract with the British Police Information Technology Organization, and its successor, the National Policing Improvement Agency. Under the terms of the agreement, Northrop agreed to pay Cogent $25 million to settle the lawsuit and $15 million for a non-exclusive license to use the software. Northrop and Cogent also agreed to a five-year research and development, service and products agreement, under which Northrop will pay Cogent $20 million for products and services over the term of the agreement.