Material litigation

In 2010, Rolls-Royce commenced an action in the United States against United Technologies Corporation (UTC), the parent company of Pratt & Whitney, alleging that the GP7200 turbofan engine, UTC’s geared turbofan engine, and other UTC turbofan engines infringe Rolls-Royce swept fan blade patent. A trial is expected be held in June this year. UTC subsequently commenced proceedings against Rolls-Royce in the United States and in England alleging that Trent 900, Trent 1000 and Trent XWB engines infringe its patent. Judgements in UTC’s cases are expected to be handed down between 2012 and 2015.

It is not possible to comment at this stage on the amount of any damages which might be awarded in favour of, or against, Rolls-Royce although an award of damages or the financial effect of other remedies could be material. Rolls-Royce is advised that it has a strong claim against UTC and strong defences in the proceedings brought by UTC.