Kockums' Design Rights To Collins Class Submarines For Australia Confirmed
(Source : Kockums AB ; issued April 12, 2001)

"Kockums' owns the design rights to the Collins Class submarines for Australia." This is the essence of a ruling just presented by a Federal Court in Sydney. It is an extremely important ruling for Kockums.

However, His Honour Justice Wilcox has not felt able to grant an injunction preventing the transportation of a propeller to the USA, already despatched from Australia. He partly motivates this decision by the fact that two propellers had already been despatched earlier, and that Australia's despatch of a third propeller to the USA would therefore not be to the further detriment of Kockums interests.

Kockums sought a court ruling to determine the Company's proprietary right to the design and know-how involved in the implementation of the Collins submarine programme. Kockums has developed the design for six Collins Class ocean-going submarines, which have been built by the Australian Submarine Corporation in Adelaide, in which Kockums until very recently held a 49-percent stake.

Five submarines of the series have already been completed and have either been delivered or are under delivery. The sixth vessel is due for completion soon. Completion of this sixth vessel will signal the termination of the original programme.

"It is pleasing that the Federal Court has confirmed Kockums' proprietary right to the design for the Collins programme. Both parties have been keen to receive a ruling on this issue. Based on this ruling, we can now discuss ways in which we can assist with service and upgrades for the Collins programme, about which the customer has now proposed negotiations with Kockums. "We are keen to maintain good relations with our customer, the Commonwealth of Australia, states Gunnar Öhlund, who heads the Submarine Division at Kockums.

The court proceedings, which lasted five days, involved a period of intense activity and a great many questions, during which the legal representatives of both parties were extremely busy.



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