Free Joint Status Report - District Court of Federal Claims - federal

Case 1:04-cv-01661-EJD

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS KOLLMORGEN CORPORATION, Plaintiff, v. THE UNITED STATES OF AMERICA, Defendant, and GR DYNAMICS, LLC, Intervenor-Defendant. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

No. 04-1661C Chief Judge Edward J. Damich

JOINT STATUS REPORT Pursuant to this Court's April 19, 2006 Order, plaintiff Kollmorgen Corporation ("Kollmorgen"), defendant the United States of America (the "Government"), and intervenordefendant GR Dynamics, LLC ("GRD") hereby submit this Joint Status Report. This report summarizes the events that transpired while this litigation has been stayed. First Stay. At the request of the parties, the Court withdrew its July 6, 2005 Scheduling Order and granted a first stay of all proceedings to permit the parties to pursue settlement discussions. The first stay began December 14, 2005 and expired February 13, 2006. During this period, representatives of plaintiff Kollmorgen and third-parties RAFAEL Armament Development Authority, Ltd. ("RAFAEL Israel") and its subsidiary RAFAEL USA, Inc., a parent company of GRD, met on three occasions to discuss settlement of this litigation.

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RAFAEL Israel is an Israeli company that developed the Mini-Typhoon weapon system that GRD is selling to the Government and which is the subject of Kollmorgen's claims of patent infringement in this case. As a result of these meetings, Kollmorgen, RAFAEL Israel and GRD (the "settlement parties") believed they reached agreement on certain principal terms to resolve all issues in this case, as well as any future disputes between the parties, in the United States and abroad, involving the patented technology which is the subject of this lawsuit. The settlement parties, however, required additional time to finalize a formal settlement agreement. Second Stay. On February 27, 2006, the parties jointly moved for and the Court granted a second stay so that the settlement parties could continue their discussions. That stay expired on March 29, 2006. During this second stay, the settlement parties conferred directly several times to reach an understanding as to the terms of a settlement in this case. In addition, counsel for the settlement parties conferred regularly and exchanged working drafts of a settlement agreement in working towards a final resolution of this dispute. While many of the outstanding issues were resolved, a few still remained. Third Stay. During a telephonic Status Conference on April 19, 2006 the parties reported on the status of their discussions and the progress made as to the settlement of this case. At the Conference the parties jointly requested and the Court granted a third stay up to and including May 19, 2006, so that the settlement parties and their attorneys could resolve the final terms of the settlement agreement. The settlement parties are pleased to report that the final terms of the settlement agreement have been agreed to by the settlement parties and that they are in the process of finalizing the necessary papers which will be distributed for execution. The

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settlement parties are hopeful that a Stipulated Order of Dismissal will be filed with the Court before the Status Conference scheduled for May 31, 2006 or in any event shortly thereafter.

Respectfully submitted,

May 23, 2006

_s/Andrew M Riddles by s/Matthew A. Traupman_ JOSEPH A. DEGIROLAMO ANDREW M. RIDDLES ANDREA L. WAYDA MORGAN & FINNEGAN, LLP 3 World Financial Center New York, New York 10281 Telephone: (212) 415-8700 Facsimile: (212) 415-8701 Attorneys for Plaintiff Kollmorgen Corporation

PETER D. KEISLER Assistant Attorney General JOHN FARGO Director _s/Walter W. Brown by s/Matthew A. Traupman WALTER W. BROWN Attorney Commercial Litigation Branch Civil Division Department of Justice Washington, D.C. 20530 Telephone: (202) 307-0341 Facsimile: (202) 307-0345 Attorneys for the United States

May 23, 2006

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May 23, 2006

_s/James E. Hopenfeld by s/Matthew A. Traupman JAMES E. HOPENFELD ROPES & GRAY, LLP One Metro Center 7001 12th Street, N.W., Suite 900 Washington, D.C. 20005-3948 Telephone: (202) 508-4600 Facsimile: (202) 508-4650 LAURENCE S. ROGERS STEVEN PEPE MATTHEW TRAUPMAN ROPES & GRAY, LLP 1251 Avenue of the Americas New York, New York 10020 Telephone: (212) 596-9000 Facsimile: (212) 596-9090 Attorneys for Intervenor-Defendant GRD, LLC

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