On April 22 more than 300 war protesters targeted Lockheed Martin in Sunnyvale, showing their opposition to the company's military ties and involvement in the Iraq war. Public safety officers arrested 52 people for misdemeanors such as obstructing traffic and failing to disperse.

While the protesters may face small fines and mandated community service for the misdemeanor charges, Lockheed Martin has also been working with Santa Clara County prosecutors to seek reimbursement for costs incurred during the protest. These costs amount to more than $15,000 and include a claim by Lockheed for the cost of additional security hired for the day of the protest.

In July, all parties had agreed to consider an option where the protesters would pay the $15,000 if Lockheed would give the money to a charity such as the Iraqi Children's Fund.

But the proposed compromise is no longer part of the deal. At the latest pre-trial hearing to determine the protesters' liability, lawyers for the defendants unanimously rejected any payment restitution to Lockheed Martin.

Henry Nor, one of the 52 who was arrested in April, said the protesters looked into the details of restitution money going to charity and the solution was not ideal. "We would have to pay the money to Lockheed and then they would channel it to some approved charities that are on their list. And then Lockheed, a weapons manufacturer, would get the PR benefit of donating to charity," said Nor.

But the main concern for the protesters and local civil rights groups is that this case could set a legal precedent that would limit public protest by charging citizens for corporations' security fees.

"If this goes through, in the future only people with a lot of money would be able to protest," said Nor.

Julia Harumi Mass, staff attorney with the American Civil Liberties Union, said, "Imposing crippling and unjustified penalties, the size of which can be largely controlled by the very entities to whom protest is directed, threatens to punish all who express dissenting views and to distort political participation in a dangerous way."

Santa Clara County Deputy District Attorney Sumerle Pfeffer said negotiations are proceeding forward. "Things are going smoothly but it's premature to say what's going to happen. We may have some defendants who settle and some who go to trial," Pfeffer said.

The collaboration with Lockheed Martin is common procedure, said Pfeffer. "In any criminal case where a victim has suffered a loss, the law provides that the victim is entitled to restitution. It's very common in any kind of criminal case," she said. She said, in the past protestors have paid for damages that they have caused to businesses, but she says she's unaware of a case where protestors have had to pay security costs.

The parties will meet again to discuss settlement options at the Sunnyvale courthouse in October.