The $30-billion global defense contractor Northrop Grumman Corporation says it has reached an agreement to settle Cogent System''s lawsuit against it regarding its automated fingerprint identification technology.

The agreement is subject to negotiation and execution of definitive documents.

The $1.3-billion Cogent, a global biometric identification solutions filed the suit in 2005 alleging that the US military contractor had misappropriated its proprietary technology and trade secrets for automated fingerprint identification software for use on the IDENT1 contract with the British Police Information Technology Organisation, and its successor the National Policing Improvement Agency.

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 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 deal removes any impediment to the companies bidding together for large contracts in the UK and the US for border security and next-generation identification programs.

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.