CTS with patent infringement litigation against TK Holdings

CTS originally put Takata on notice of patent infringement in late 2005. From then to present, Takata has sold products estimated to exceed $100 million, which are covered by one or more of CTS’ patents that are the subject of the litigation. An estimate of the typical royalties for intellectual property use/infringement, for products such as these, range from about 3% - 5%. A first phase of the litigation was recently concluded with the adoption by the U.S. District Court in Detroit of CTS’ interpretation of certain of its patent claims. The next phase is set to begin on December 14, 2010, when the Court will issue discovery and trial scheduling orders. CTS places a high value on its intellectual property and will take whatever steps necessary to protect and defend its position.