8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities and Exchange Act of 1934

Date of Report (Date of earliest event reported):  December 29, 2006

TECHNOLOGY RESEARCH CORPORATION

(Exact name of registrant as specified in its charter)

Florida	0-13763	59-2095002
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)	Identification No.)

5250-140th Avenue North, Clearwater, Florida	33760
(Address of principal executive officers)	(Zip Code)

Registrant's telephone number, including area code: (727) 535-0572

Item 1.02 Termination of a Material Definitive Agreement.

 On December 29, 2006, Technology Research Corporation (“TRC”) entered into a Settlement Agreement with Tower Manufacturing Corporation (“Tower”).  Under the Settlement Agreement, the civil actions filed by both TRC and Tower are to be dismissed.  TRC will receive $3.2 million, with $1.5 million payable within 30 days of the dismissal of the Florida lawsuit, and the remainder payable in two annual installments of $850 thousand of principal plus accrued interest, compounded quarterly at the prime interest rate.  The annual installments to be paid by Tower are personally guaranteed by Tower’s President.

 TRC and Tower have entered into a cross licensing agreement of the patents that were the subject of the lawsuits for the period they remain valid and enforceable.  Royalty payments commence beginning after June 30, 2007 based on the number of units sold by TRC and Tower, respectively.

Item 9.01  Financial Statements and Exhibits.

(c) The following exhibit is filed as part of this report:

Exhibit No. 99.1   Description Press release dated January 3, 2007.  

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TECHNOLOGY RESEARCH CORPORATION
Date:  January 3, 2007	By: /s/ Barry H. Black
	Name:  Barry H. Black
	Title:  VP of Finance,  CFO

EX-99.1

Exhibit 99.1

TECHNOLOGY RESEARCH CORPORATION and

TOWER MANUFACTURING CORPORATION SETTLE INFRINGEMENT LAW SUITS

CLEARWATER, FLORIDA, January 3, 2007 - Robert S. Wiggins, Chairman, President and Chief Executive Officer of Technology Research Corporation (TRC), (NASDAQ-TRCI), today announced that Technology Research Corporation and Tower Manufacturing Corporation have settled, on mutually agreeable terms, their civil actions filed in the United States District Court for the Middle District of Florida and the United States District Court for the District of Rhode Island, respectively. Under the terms of the settlement, both cases are to be dismissed and royalty-bearing cross licensing arrangements have been entered into under Tower’s 5,943,199 patent and TRC’s 6,292,337 patent, with the net effect for each party’s past sales resulting in TRC receiving $3.2 million paid over a two year period.

Technology Research Corporation designs, manufactures and markets electrical safety products that save lives, protect people from serious injury from electrical shock and prevent electrical fires in the home and workplace. These products have worldwide application. The Company also supplies power monitoring and control equipment to the United States Military and its prime contractors.

“Safe Harbor” Statement: Certain statements made in this press release are forward looking in nature and, accordingly, are subject to risks and uncertainties. The actual results may differ materially from those described or contemplated.

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