Illinois Tool Works, Inc. & Subsidiaries - Page 4

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          Lemelson was likely to succeed on his patent infringement claim.            
          The parties to the Court of Claims lawsuit ultimately reached a             
          settlement that required the Federal Government to pay $5,000 to            
          Lemelson.  The Federal Government sought indemnification from               
               On May 13, 1985, Lemelson filed a separate lawsuit against             
          Champion directly, as owner of DeVilbiss, in the U.S. District              
          Court for the District of Delaware (the Lemelson lawsuit).  In              
          his petition, Lemelson alleged that the manufacture and sale of             
          the Trallfa robot infringed several of his patents, including the           
          ‘431 patent.  The Lemelson lawsuit sought damages for Trallfa               
          robots that were sold prior to 1986.  On August 16, 1989,                   
          Lemelson made an offer to settle the lawsuit for $500,000, which            
          DeVilbiss rejected.                                                         
               DeVilbiss retained Mark Curran Schaffer (Schaffer), an                 
          intellectual property attorney, to represent DeVilbiss in the               
          Lemelson lawsuit.  Schaffer reviewed the patents, studied the               
          patent file histories, performed prior art searches, and compared           
          Lemelson’s patents with the Trallfa robot.  Schaffer concluded              
          that Lemelson’s patents were not infringed by the Trallfa robot             
          and that it was unlikely that Lemelson would succeed in proving             
          infringement.  Schaffer communicated his opinion to                         
          representatives of DeVilbiss.                                               

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