UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q
(Mark One)

[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 for the quarterly period ended January 31, 2008
                 -----------------------------------------------

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 for the transition period from        to

                          Commission file number 1-8696
                                                 ------

                  *
                *****
              **-----**
            **-----       COMPETITIVE
          ****----        TECHNOLOGIES
            **=====       Unlocking the Potential of Innovation (R)
              **=====**
                *****
                  *  (R)  Technology Transfer and Licensing Services


                         COMPETITIVE TECHNOLOGIES, INC.
             (Exact name of registrant as specified in its charter)
                             www.competitivetech.net

Delaware                                                36-2664428
--------                                                ----------
(State or other jurisdiction of                       (I.R.S.Employer
incorporation or organization)                       Identification No.)

777 Commerce Drive, Suite 100
Fairfield, Connecticut                                   06825
----------------------                                   -----
(Address of principal executive offices)              (Zip code)

                                  (203) 368-6044
              (Registrant's telephone number, including area code)

                                       N/A
    (Former name, former address and former fiscal year, if changed since last
                                     report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes [x]     No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act). Large
accelerated filer [  ]  Accelerated filer [  ]  Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
rule 12b-2 of the Exchange Act).  Yes [  ]     No [X]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a courtYes [  ]     No [  ]

The number of shares of the registrant's common stock outstanding as of March
10, 2008 was 8,179,872 shares


<PAGE>
                         COMPETITIVE TECHNOLOGIES, INC.
                         ------------------------------

                     INDEX TO QUARTERLY REPORT ON FORM 10-Q
PART I.  FINANCIAL INFORMATION     PAGE NO.
------------------------------     --------

Item 1.  Condensed Consolidated Financial Statements (Unaudited)

     Condensed Consolidated Balance Sheets at January 31,
          2008 and July 31, 2007...............................................3

     Condensed Consolidated Statements of Operations for the
          three months ended January 31, 2008 and 2007.........................4

     Condensed Consolidated Statements of Operations for the
          six months ended January 31, 2008 and 2007...........................5

     Condensed Consolidated Statement of Comprehensive Income
          (Loss) and Changes in Shareholders' Interest for
          the six months ended January 31, 2008................................6

     Condensed Consolidated Statement of Cash Flows for the
          six months ended January 31, 2008 and 2007...........................7

     Notes to Condensed Consolidated Financial Statements.................8 - 13

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations.............................14 - 20

Item 3.  Quantitative and Qualitative Disclosures About Market Risk...........21

Item 4.  Controls and Procedures..............................................22


PART II.  OTHER INFORMATION
---------------------------

Item 1.  Legal Proceedings....................................................23

Item 1A. Risk factors.........................................................23

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds..........23

Item 4.  Submission of Matters to a Vote of Security Holders..................23

Item 5.  Other................................................................23

Item 6.  Exhibits.............................................................23

Signatures....................................................................24

Exhibit Index.................................................................25

                                        2
<PAGE>
                         PART I.  FINANCIAL INFORMATION
                         ------------------------------

ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                     Condensed Consolidated Balance Sheets


                                             JANUARY 31, 2008   July 31, 2007
                                             -----------------  --------------
ASSETS
Current Assets:
  Cash and cash equivalents                  $      4,522,207   $   6,572,076
  Receivables, net of allowance of $422,604
    at January 31, 2008 and July 31, 2007             679,736         739,797
  Available-for-sale securities                             -       1,630,237
  Inventory                                            34,100          44,781
  Prepaid expenses and other current assets           193,542         377,419
                                             -----------------  --------------
    Total current assets                            5,429,585       9,364,310

Property and equipment, net                           290,338         304,185
Other long term assets                                 41,583          43,861
Intangible assets acquired, net                             -             377
                                             -----------------  --------------
      TOTAL ASSETS                           $      5,761,506   $   9,712,733
                                             =================  ==============

LIABILITIES AND SHAREHOLDERS' INTEREST
Current Liabilities:
  Accounts payable                           $      1,290,193   $     727,808
  Accrued expenses and other liabilities              799,808       1,323,485
                                             -----------------  --------------
    Total current liabilities                       2,090,001       2,051,293
Deferred Rent                                          71,166          62,624
Shareholders' interest:
  5% preferred stock, $25 par value,
    35,920 shares authorized, 2,427 shares
    issued and outstanding                             60,675          60,675
  Common stock, $.01 par value, 20,000,000
    shares authorized, 8,179,872 and
    8,107,380 shares issued and outstanding            81,798          81,073
  Capital in excess of par value                   35,632,174      35,263,453
  Accumulated deficit                             (32,174,308)    (28,315,344)
  Accumulated other comprehensive income                    -         508,959
                                             -----------------  --------------

    Total shareholders' interest                    3,600,339       7,598,816
                                             -----------------  --------------
    TOTAL LIABILITIES AND SHAREHOLDERS'
        INTEREST                             $      5,761,506   $   9,712,733
                                             =================  ==============

                             See accompanying notes

                                        3
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)
                   ------------------------------------------

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                Condensed Consolidated Statements of Operations

                                         Three months ended January 31,
                                                  2008            2007
                                         --------------  --------------
REVENUES
Retained royalties                       $     429,240   $     744,209
Investment income                               50,765         159,783
Product sales                                   50,488               -
                                         --------------  --------------
                                               530,493         903,992
                                         --------------  --------------
EXPENSES
Cost of product sales                           47,981               -
Personnel and other direct expenses
  relating to revenues                         907,412       1,417,825
General and administrative expenses            915,874       2,869,289
Patent enforcement expenses, net of
  reimbursements                              (122,855)        179,709
Loss on sale of available-for-sale
  securities                                    81,401               -
                                         --------------  --------------

                                             1,829,813       4,466,823
                                         --------------  --------------
(Loss) before income taxes                  (1,299,320)     (3,562,831)
Provision (benefit) for income taxes                 -               -
                                         --------------  --------------

NET (LOSS)                               $  (1,299,320)  $  (3,562,831)
                                         ==============  ==============

Basic and diluted (loss) per share       $       (0.16)  $       (0.44)
                                         ==============  ==============


Basic and diluted weighted average
  number of common shares outstanding:       8,158,760       8,017,260


                             See accompanying notes

                                        4
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)
                   ------------------------------------------

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                Condensed Consolidated Statements of Operations

                                         Six months ended January 31,
                                                  2008            2007
                                         --------------  --------------
REVENUES
Retained royalties                       $     553,039   $   1,474,413
Investment income                              120,187         324,755
Product sales                                   57,284               -
                                         --------------  --------------
                                               730,510       1,799,168
                                         --------------  --------------
EXPENSES
Cost of product sales                           51,381               -
Personnel and other direct expenses
  relating to revenues                       2,014,936       2,474,833
General and administrative expenses          2,192,834       3,613,223
Patent enforcement expenses, net of
  Reimbursements                                31,918         396,105
Impairment of available-for-sale
  securities                                   227,596               -
Loss on sale of available-for-sale
  securities, net of gains                      70,809               -
                                         --------------  --------------

                                             4,589,474       6,484,161
                                         --------------  --------------
(Loss) before income taxes                  (3,858,964)     (4,684,993)
Provision (benefit) for income taxes                 -               -
                                         --------------  --------------

NET (LOSS)                               $  (3,858,964)  $  (4,684,993)
                                         ==============  ==============

Basic and diluted (loss) per share       $       (0.47)  $       (0.59)
                                         ==============  ==============


Basic and diluted weighted average
  Number of common shares outstanding:       8,133,070         8,002,981

                             See accompanying notes

                                        5
<PAGE>

                   PART I.  FINANCIAL INFORMATION (CONTINUED)

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Comprehensive Income (Loss) and Changes in
                             Shareholders' Interest
                   For the six months ended January 31, 2008
<TABLE>
<CAPTION>
<S>                              <C>     <C>      <C>          <C>      <C>            <C>             <C>             <C>

                                 PREFERRED STOCK  COMMON STOCK                                         ACCUMULATED
                                 ---------------- ---------------------                                OTHER           TOTAL
                                 SHARES                                  CAPITAL                       COMPRE-         SHARE-
                                 OUTST-           SHARES                 IN EXCESS      ACCUMULATED    HENSIVE         HOLDERS'
                                 ANDING  AMOUNT   OUTSTANDING   AMOUNT   OF PAR VALUE   DEFICIT        INCOME/(LOSS)   INTEREST
                                 ------  -------  ------------  -------  -------------  -------------  --------------  ------------

Balance - July 31, 2007           2,427  $60,675    8,107,380   $81,073  $  35,263,453  $(28,315,344)  $     508,959   $ 7,598,816
Comprehensive loss:
  Net (loss)                                                                              (3,858,964)                   (3,858,964)
  Unrealized decrease in
    market value of securities                                                                              (626,144)     (626,144)
  Foreign currency translation
    adjustments on securities                                                                                 60,923        60,923
  Reclassification to net loss                                                                                56,262        56,262
                                                                                                                       ------------

  Total comprehensive (loss)                                                                                            (4,367,923)

  Compensation expense
    from stock option grants                                                   221,238                                     221,238
  Stock issued under
    401(k) Plan                                        62,492       625        132,483                                     133,108
  Stock issued to Directors                            10,000       100         15,000                                      15,100
                                 ------  -------  ------------  -------  -------------  -------------  --------------  ------------

Balance - January 31, 2008        2,427  $60,675    8,179,872   $81,798  $  35,632,174  $(32,174,308)  $           -   $ 3,600,339
                                 ======  =======  ============  =======  =============  =============  ==============  ============
</TABLE>

                             See accompanying notes

                                        6
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statement of Cash Flows

                                                   Six months ended January 31,
                                                            2008          2007
                                                   --------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss)                                       $  (3,858,964)  $(4,684,993)
  Non-cash and other expenses (income)
    included in net loss:
  Interest earned on restricted cash                           -        (1,755)
  Depreciation and amortization                           35,957        44,565
  Deferred rent                                            8,542             -
  Share-based compensation - stock options               221,238       182,938
  Accrued stock contribution                              71,350        54,562
  Loss on available-for-sale securities                   70,809             -
  Loss on permanent impairment of
    available-for-sale securities                        227,596             -
  Changes in assets and liabilities:
    Receivables                                           60,061     2,420,207
    Inventory                                             10,681             -
    Prepaid expenses and other
      long-term assets                                   186,154       153,835
    Accounts payable and accrued
      expenses and other liabilities                     115,566     1,496,332
                                                   --------------  ------------
Net cash used in operating activities                 (2,851,010)     (334,309)
                                                   --------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                    (21,732)     (214,722)
  Restricted cash                                              -    (2,500,000)
  Proceeds from sales of available-for-sale
    securities                                           822,873             -
                                                   --------------  ------------
Net cash provided by (used in)
  investing activities                                   801,141    (2,714,722)
                                                   --------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercises of stock options                     -        19,500
                                                   --------------  ------------
Net cash provided by financing activities                      -        19,500
                                                   --------------  ------------

Net (decrease) in cash and cash equivalents           (2,049,869)   (3,029,531)
Cash and cash equivalents at beginning of period       6,572,076    12,909,311
                                                   --------------  ------------

Cash and cash equivalents at end of period         $   4,522,207   $ 9,879,780
                                                   ==============  ============

SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS:

     On November 21, 2007, the Company contributed 62,492 shares of common stock
valued at $133,108 to the 401(k) Plan.  On January 2, 2008, the Company issued
10,000 shares valued at $15,100 as compensation to four non-employee directors
under the 1996 Directors' Stock Participation Plan.

                             See accompanying notes

                                        7
<PAGE>
                   PART I.  FINANCIAL INFORMATION (CONTINUED)

                COMPETITIVE TECHNOLOGIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                  (Unaudited)

1.   BASIS OF  PRESENTATION

     The  interim  condensed consolidated financial information presented in the
accompanying  condensed  consolidated  financial  statements and notes hereto is
unaudited.

     Competitive  Technologies,  Inc. ("CTT"), and its wholly owned and majority
owned  subsidiaries  (collectively, "we" or "us"), provide patent and technology
licensing  and commercialization services throughout the world with respect to a
broad  range  of  life,  electronic,  physical,  and  nano  science technologies
originally  invented  by  various universities, corporations and individuals. We
are compensated for our services primarily by sharing in the license and royalty
fees  generated  from  the successful licensing of our clients' technologies. In
fiscal  2008,  we  began  test marketing in the US an electronic device used for
stress  reduction and memory improvement purposes, selling 33 units in the first
six  months  2008.  The Company is seeking US distributors for this product. The
condensed  consolidated financial statements include the accounts of CTT and its
subsidiaries.  Inter-company  accounts  and transactions have been eliminated in
consolidation.  Certain  prior year amounts have been reclassified to conform to
the  current  year's  presentation.

     We  believe  we  made  all adjustments necessary, consisting only of normal
recurring adjustments, to present the unaudited condensed consolidated financial
statements  in  conformity  with accounting principles generally accepted in the
United  States  of  America.  The  results  for  the  three and six months ended
January  31,  2008  are  not  necessarily  indicative of the results that can be
expected  for  the  full  fiscal  year  ending  July  31,  2008.

     The interim unaudited condensed consolidated financial statements and notes
thereto,  as  well  as  the accompanying Management's Discussion and Analysis of
Financial  Condition  and  Results  of Operations, should be read in conjunction
with  our  Annual Report on Form 10-K for the year ended July 31, 2007, filed on
October  29,  2007.

     The  Company  incurred an operating loss for the first six months of fiscal
2008,  as  well  as operating losses in fiscal 2007 and 2006. At current reduced
spending levels, the Company may not have sufficient cash flow to fund operating
expenses  beyond  the  next  12  months. This condition raises substantial doubt
about  the  Company's  ability  to  continue  as  a going concern. The financial
statements  do  not include adjustments to reflect the possible future effect of
the  recoverability  and classification of assets or amounts and classifications
of  liabilities  that  may  result  from  the  outcome  of  this  uncertainty.

     The  Company's  continuation  as  a  going  concern  is  dependent upon its
developing  other recurring revenue streams sufficient to cover operating costs.
If  necessary,  we  will meet anticipated operating cash requirements by further
reducing  costs,  and/or pursuing sales of certain assets and technologies while
we  pursue  licensing opportunities for our remaining portfolio of technologies.
There  can  be no assurance that the Company will be successful in such efforts.
Failure  to  develop  a  recurring  revenue stream sufficient to cover operating
expenses  would  negatively  affect  the  Company's  financial  position.

2.   NET LOSS  PER  COMMON  SHARE

     For  the  six months ended January 31, 2008 and 2007, respectively, 831,080
and  1,097,973 shares of outstanding common stock options were excluded from the
computation  of  diluted  net  loss  per  share because they were anti-dilutive.

                                        8
<PAGE>
3.   COMPREHENSIVE  LOSS  AND  ACCUMULATED  OTHER  COMPREHENSIVE  INCOME  (LOSS)

     Comprehensive  loss  consists  of  the  following:
     -------------------------------------------------

                          Three months ended          Six months ended
                          January 31,                 January 31,
                          2008          2007          2008          2007
                          ------------  ------------  ------------  ------------

Net (loss)                $(1,299,320)  $(3,562,831)  $(3,858,964)  $(4,684,993)
Unrealized increase
  (decrease) in market
  price of securities         (40,692)      635,730      (626,144)      871,447
Foreign currency
  translation adjustments
  on securities                (1,567)        2,992        60,923         4,098
Reclassification to
  net income                   41,708             -        56,262             -
                          ------------  ------------  ------------  ------------
Comprehensive (loss)      $(1,299,871)  $(2,924,109)  $(4,367,923)  $(3,809,448)
                          ============  ============  ============  ============

     Accumulated  other  comprehensive  loss  consists  of  the  following:
     ---------------------------------------------------------------------

                                        JANUARY 31,   July 31,
                                        2008          2007
                                        ------------  ---------

Accumulated net unrealized holding
 income on equity securities            $          -  $  80,951
Accumulated unrealized foreign
 Currency translation gains                        -    195,884
Accumulated unrealized gain from
 reversal of sale restriction discount             -    232,124
                                        ------------  ---------
Accumulated other comprehensive
 income                                 $          -  $ 508,959
                                        ============  =========

4.   RECEIVABLES

     Receivables  consist  of  the  following:
     -----------------------------------------

                                         JANUARY 31,   July 31,
                                         2008          2007
                                         ------------  ---------

Royalties, net of allowance of $422,604
 at January 31, 2008 and July 31, 2007   $     51,083  $ 513,085
Receivable from insurance carrier             603,298    177,304
Other                                          25,355     49,408
                                         ------------  ---------
Total receivables                        $    679,736  $ 739,797
                                         ============  =========

     Receivable  from  insurance carrier relates to SEC litigation regarding Mr.
McPike  as  noted  in  Part  I,  Note  9.

5.   INVENTORY

     Inventory  consists of the stress reduction and memory improvement devices.

     Inventories,  consisting of finished goods, are stated at the lower of cost
(first-in,  first-out)  or  market.

                                        9
<PAGE>
6.   EQUITY  SECURITIES

     The  fair  value  of  the  equity  securities  we  held were categorized as
available-for-sale  securities, which were carried at fair value, and classified
as  current  assets,  consisted  of  the  following:

                           JANUARY 31,   July 31,    Number
                           2008          2007        of shares  Type
                           ------------  ----------  ---------  ------------

Palatin (original
  basis $295,596)                     -  $  311,100    170,000  Common Stock
Clinuvel (original
  basis $825,682)                     -   1,319,137  1,913,032  Common Stock
MelanoTan                             -           -    378,000  Common Stock
NTRU Cryptosystems, Inc.              -           -  3,129,509  Common Stock
                           ------------  ----------
                           $        -0-  $1,630,237
                           ============  ==========

     At  October  31,  2007, the Company determined that the decline in value of
the  Palatin  shares was other than temporary.  As a result, the Company reduced
the  amount  recorded  as available-for-sale securities to equal the fair market
value  of  such  shares  at  October  31,  2007  and recognized an impairment of
available-for-sale  securities  of  $227,596  during the first quarter of fiscal
2008.

     During  the  first  six  months  of  fiscal  2008 we sold 170,000 shares of
Palatin  stock with a cost basis of $68,000 for $40,716. The loss on the sale of
$27,284,  including gross gains of $-0- and gross losses of $27,284, is included
in  loss  on  sale  of  available-for-sale  securities.

     In addition, during the first six months of fiscal 2008 we sold 1.9 million
shares  of  Clinuvel stock for $782,157 with a cost basis of $825,682.  The loss
on  sale  of  $43,525,  including  gross  gains  of  $24,325 and gross losses of
$67,850,  is  included  in  loss  on  sale  of  available-for-sale  securities.

7.   ACCRUED  EXPENSES  AND  OTHER  LIABILITIES

     Accrued  expenses  and  other  liabilities  consist  of  the  following:
     -----------------------------------------------------------------------

                                        JANUARY 31,   July 31,
`                                       2008          2007
                                        ------------  ----------

Royalties payable                       $    102,077  $  594,331
Accrued compensation                         306,856     236,218
Accrued professional fees                    176,223     388,779
Other                                        214,652     104,157
                                        ------------  ----------
Accrued expenses and other liabilities  $    799,808  $1,323,485
                                        ============  ==========

8.   SHAREHOLDERS'  EQUITY  AND  STOCK-BASED  COMPENSATION  PLANS

     The Company accounts for its stock-based employee compensation arrangements
under  SFAS  No.  123  (revised  2004), "Share Based Payment" ("SFAS No. 123R"),
which  requires companies to recognize the cost of employee services received in
exchange for awards of equity instruments, based on the grant date fair value of
those  awards,  in  the  financial  statements.

     During  the  first  quarter  of  fiscal  2008,  the  Company granted to its
non-employee  directors as their initial directors award, options to purchase an
aggregate  of  50,000  shares  of common stock under the Directors' Stock Option
Plan  at  a  weighted  average  exercise  price  of  $2.52  per  share that vest
immediately.  During  the  second quarter of fiscal 2008, the Company granted to
its  non-employee  directors  as  their  annual  award,  options  to purchase an
aggregate  of  50,000  shares  of common stock under the Directors' Stock Option
Plan  at  a  weighted  average  exercise  price  of  $1.51  per  share that vest
immediately.  The  fair  value of the options granted for the three months ended

                                       10
<PAGE>
October  31,  2007  was  $81,440,  and $46,250 for options granted for the three
months  ended  January  31,  2008.  These  amounts  were  recorded  as  non-cash
compensation  expense  during  the  respective  periods.

During  the  first  quarter of fiscal 2008, the Company granted to its employees
options  to  purchase  an  aggregate of 190,000 shares of common stock under the
1997  Employees' Stock Option Plan at an exercise price of $2.25 which vest over
four  years.  The  fair  value  of  these  options  was  $272,080, which will be
recognized  as  non-cash  compensation  expense over the vesting period. For the
three  months  and  six  months  ended  January 31, 2008, the Company recognized
$47,892 and $93,548, respectively, of non-cash compensation expense for the fair
value  of  options  granted  to  employees.

     The  fair  value  of the Black-Scholes options-pricing model was calculated
with  the  following  weighted average assumptions used for the grant: risk-free
interest  rates  from  3.28%  to  4.62%;  expected  life  five  years;  expected
volatility  from  71.909%  to 75.746%, and expected dividends of zero.  The fair
value  generated  by the Black-Scholes model may not be indicative of the future
benefit,  if  any,  to  the  option  holder.

9.   CONTINGENCIES

     Carolina  Liquid  Chemistries  Corporation, et al. - On August 29, 2005, we
filed  a  complaint  against  Carolina Liquid Chemistries Corporation ("Carolina
Liquid")  in  the  United  States  District  Court for the District of Colorado,
alleging  infringement  of  our patent covering homocysteine assays, and seeking
monetary  damages,  punitive  damages,  attorneys'  fees,  court costs and other
remuneration  at  the  option  of  the  court.  Carolina  Liquid  was  served on
September  1,  2005.  We  became  aware  of  other  infringers  and  amended our
complaint  to  add  as  defendants  Catch,  Inc.  ("Catch")  and  the  Diazyme
Laboratories  Division  of  General  Atomics ("Diazyme").  On September 6, 2006,
Diazyme  filed  for  declaratory judgment in the Southern District of California
for  a change in venue and a declaration of non-infringement and invalidity.  On
September  12, 2006, the District Court of Colorado ruled that Catch and Diazyme
be  added  as  defendants  to  the  Carolina  Liquid case.  On October 23, 2006,
Diazyme  requested  the  United States Patent and Trademark Office (the "USPTO")
re-evaluate the validity of our patent. This request was granted by the USPTO on
December 14, 2006 and re-examination proceedings are underway.  We do not expect
an  adverse  finding  by  the  USPTO,  however,  the re-examination process will
further  delay  the  resolution  of  the  case.  Further  action in this case is
pending.

     Palatin  Technologies  -  CTT  initiated  litigation on September 14, 2005,
against  Palatin  as  a  result  of  Palatin's  breach of a Settlement Agreement
between  CTT  and  Palatin dated June 17, 2005.  The settlement resolved a prior
dispute  regarding  CTT's  rightful  portion  of certain sublicense fees Palatin
received  from  King  Pharmaceuticals.  The  parties  filed  their  complaints,
counterclaims, and responses. CTT commenced an arbitration proceeding on June 5,
2006,  as  a  result  of Palatin's breach of a License Agreement between CTT and
Palatin  dated  March  31,  1998.

     On  October  2,  2007,  we  presented  Palatin with a notice that it was in
default of the PT-14 technology license agreement stating that Palatin committed
a  material  breach  of  the  March  31,  1998  agreement.

     On January 22, 2008, we announced an agreement with Palatin terminating the
License  Agreement  of March 31, 1998. As part of this agreement, Palatin agreed
to  pay CTT $800,000. These funds were received in January 2008. In addition, it
was  agreed  that  all  disputes  and liabilities related to the Agreement being
discussed in both the litigation and arbitration proceedings would be dismissed.
CTT  recorded  revenue  of  $320,000  and reduced patent enforcement expenses by
$480,000  in  accordance  with  the  agreement  with  our  client.

     CTT  retains  all  rights to the technology commonly known as PT-14, and is
pursuing  discussions  with  parties  to  develop  this  technology.

     Ben  Marcovitch  and  other  co-defendants - On August 8, 2007 we announced
that  former  CTT  Director  Ben  Marcovitch had been removed for cause from our
Board of Directors by unanimous vote of CTT's five Directors for violating CTT's
Code  of  Conduct.  At  that  time,  CTT also withdrew from its involvement with
Agrofrut,  E.U.,  a  nutraceutical  firm  brought  to  CTT by Mr. Marcovitch. As
announced  on  April  10,  2007,  CTT  had  paid  $750,000  to Agrofrut for a 5%
ownership,  and  certain  marketing  and  investment  options  in  Agrofrut.

                                       11
<PAGE>

On  August  15,  2007,  we retained Greenberg Traurig, LLP, an international law
firm,  to  recover  the  funds  from  Agrofrut,  and Juan Carlos Esguerra of the
Bogota,  Colombia-based  law  firm,  Esguerra, Barrera, Arriaga, to handle CTT's
affairs  in  Colombia. CTT's advisors assembled the following information, which
we  included  in  our  subsequent  Federal  complaint  described  below. Breen &
Associates,  an  independent  investigative firm, developed evidence that showed
that  Mr.  Marcovitch  and Agrofrut provided CTT's Board of Directors with false
and  misleading information. Included in those findings was the fact that papers
submitted  by  Mr. Marcovitch and Agrofrut prior to the March 28, 2007 CTT Board
meeting  listed  Dr.  Raul Aragon Davalos as an executive and Chief Scientist of
Agrofrut,  and  the  inventor  of  Agrofrut's  new  technology to remove complex
compounds  such  as  bromelain  and  xylitol,  at  better  than 99% purity, from
pineapples  and  other  organic waste. Dr. Raul Aragon Davalos had actually been
killed  in  a drive-by shooting in Cali, Colombia on February 28, 2007. Dr. Raul
Aragon  Davalos's  assassination  was  known  to  Mr.  Marcovitch and Betty Rios
Valencia,  President and CEO of Agrofrut and former spouse of Mr. Marcovitch, as
well  as to other executives of Agrofrut, but was never revealed to CTT by them.
Mr.  Marcovitch had admitted to a CTT outside counsel, and to a CTT shareholder,
that  he  had  attended  Dr.  Raul  Aragon  Davalos's  funeral.  Further,  the
investigations  have  shown  that  Dr.  Raul Aragon Davalos was a convicted drug
trafficker  and  that Ms. Rios Valencia also has a drug conviction record. Among
other  things,  the  involvement  of  Mr. Marcovitch, Ms. Rios Valencia and John
Derek  Elwin,  III,  a  former  CTT  employee,  with  convicted drug traffickers
resulted  in  CTT's  decisive  actions  against  these  individuals.

     On August 31, 2007, we filed a Federal complaint in the U.S. District Court
for  the  District  of  Connecticut against Mr. Marcovitch, Betty Rios Valencia,
President  and  CEO  of Agrofrut and former spouse of Mr. Marcovitch, John Derek
Elwin,  III,  a  former CTT employee, and other defendants. The complaint claims
that  false  and misleading information had been provided to CTT in a conspiracy
to  fraudulently  obtain  funds from CTT using the Agrofrut transaction. We have
requested,  among  other relief, punitive damages and attorneys' fees. It is our
opinion  and  that  of  our  Board of Directors that this lawsuit is required to
recover  our  $750,000  and  to  settle  outstanding  issues regarding the named
parties.

     On  October  22,  2007  at  a show cause hearing, the Court stated that all
defendants  named  in  the  case,  and  their associates, were enjoined from any
further  use  of any remaining part of the $750,000 received from CTT. The Court
ordered  a full disclosure of all accounts where remaining funds are held, and a
complete  description  of the disposition of any portion of the CTT payment must
be made to CTT's counsel. At a December 7, 2007 hearing, the Court requested CTT
to  specify  an  appropriate  Prejudgment  Remedy  for the Court to consider. We
intend  to aggressively pursue this matter. We have also filed a claim under our
fraud  insurance  policy.

     Securities  and  Exchange  Commission-- On August 11, 2004, the SEC filed a
civil  suit in the United States District Court for the District of Connecticut,
naming Frank R. McPike, Jr., former President and CEO of CTT, and six individual
brokers, alleging that from at least July 1998 to June 2001, the defendants were
involved  in a scheme to manipulate the price of our stock.  The case relates to
our  1998  stock  repurchase  program.

     We  filed  suit  against  our directors' and officers' insurance carrier to
obtain  reimbursement  of our costs to defend us and our directors and officers.
As  part  of an October 2004 settlement, our insurance carrier acknowledged that
the  deductible  under  our  insurance policy had been satisfied relating to the
SEC's  civil  suit.  As  a result, defense costs incurred in 2005 and thereafter
have  been  covered  by  our  insurance  carrier.

     On  October  10,  2007  we  agreed to a settlement of this case without the
Company  admitting or denying the allegation of the complaint, and consenting to
be permanently restrained and enjoined from violating Sections 9(a) and 10(b) of
the  Securities  Exchange  Act  of 1934, and rule 10b-5 thereunder.  No fines or
penalties  were  imposed  on  the  Company  by  the  SEC in connection with this
settlement.  The  settlement  agreement  has  been  approved  by  the SEC and on
October  26,  2007 was accepted by the Connecticut Federal District Court.  This
will  close  the  SEC's  investigation  and proceedings against the Company.  No
members  of  CTT's  current  Board or management held positions with the Company
during  the  period  of  1998-2001.

     Frank  R.  McPike,  who was charged separately from the Company but covered
under  the  Company's insurance, personally agreed on a settlement with the SEC,
which  was  accepted  by  the  court  on  October  31,  2007.  The

                                       12
<PAGE>
Company  incurred  no  costs  in  connection  with Mr. McPike's settlement.  The
penalty phase for Mr. McPike is now under review by Mr. McPike, the SEC, and the
Court.

     ICR, LLC - On August 3, 2007, ICR, LLC filed a complaint in Superior Court,
Judicial  District  of  Fairfield,  at Bridgeport, Connecticut against CTT in an
attempt  to  collect  funds  allegedly  owed  them  from  a previously cancelled
contract.  Previous  management  had  employed ICR for public relations activity
during  their  proxy  contest in their attempt to be re-elected.  The consulting
contract  was  cancelled  by the new management after their election in February
2007.  CTT has filed counter-claims against ICR.  The matter remains unresolved.

     Employment  Matters  -  In  August  2007,  a  former employee filed another
complaint  with  OSHA  alleging  that  CTT  had  unfairly  banned  him  from the
workplace.  We believe the complaint is without merit and expect to overcome the
complaint as in other filings by Mr. Bechtel.  This case is still in preliminary
stages  and  no  outcome  can  be  predicted  at  this  time.

     Summary  -  We  may  be a party to other legal actions and proceedings from
time  to  time.  We  are  unable to estimate the legal expenses or losses we may
incur,  or damages we may recover in these actions, if any, and have not accrued
potential  gains  or  losses in our financial statements.  We record expenses in
connection  with  these  actions  as  they  are  incurred.

     We  believe we carry adequate liability insurance, directors' and officers'
insurance,  casualty  insurance,  for owned or leased tangible assets, and other
insurance  as  needed  to cover us against claims and lawsuits that occur in the
ordinary  course  of our business.  However, an unfavorable resolution of any or
all  matters,  and/or  our incurrence of legal fees and other costs to defend or
prosecute  any  of  these  actions  may  have  a  material adverse effect on our
consolidated  financial  position,  results  of  operations  and cash flows in a
particular  period.


                                       13
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS

FORWARD-LOOKING  STATEMENTS

Statements about our future expectations are "forward-looking statements" within
the  meaning  of  applicable  Federal Securities Laws, and are not guarantees of
future  performance.  When  used  in  this  Form  10-Q, the words "may," "will,"
"should,"  "anticipate,"  "believe,"  "intend,"  "plan,"  "expect,"  "estimate,"
"approximate,"  and  similar  expressions  are  intended  to  identify  such
forward-looking  statements.  These  statements  involve risks and uncertainties
inherent in our business, including those set forth in Item 1A under the caption
"Risk Factors," in our most recent Annual Report on Form 10-K for the year ended
July  31,  2007,  filed  with  the Securities and Exchange Commission ("SEC") on
October  29,  2007, and other filings with the SEC, and are subject to change at
any time.  Our actual results could differ materially from these forward-looking
statements.  We  undertake  no obligation to update publicly any forward-looking
statement.

OVERVIEW

     We  are  a  full  service  technology  transfer  and licensing provider. We
provide  technology  transfer,  selling  and  licensing  services focused on the
technology needs of our customers, matching those requirements with commercially
viable  technology  solutions,  bridging  the  gap  between  market  demand  and
innovation. We develop relationships with universities, companies, inventors and
patent  or  intellectual  property  holders to obtain the rights or a license to
their  intellectual  property, principally patents and inventions (collectively,
the  "technology"  or "technologies"). They become our clients, for whom we find
markets  to  sell  or  further  develop  their  technology.  We  also  develop
relationships  with  those  who have a need or use for technologies. They become
our  customers,  usually  through  a  license  or  sublicense.  We  identify and
commercialize  innovative  technologies  in  life  and  physical  sciences,
electronics,  and  nano  science  developed  by  universities,  companies  and
inventors.  Our  goal  is  to  maximize the value of intellectual assets for the
benefit  of  our  clients,  customers  and  shareholders.

     We  earn  revenues  primarily  from  licensing  our  clients'  and  our own
technologies to our customers (licensees).  Our customers pay us royalties based
on  usage of the technology, and we share those royalties with our clients.  Our
customer's revenues and therefore our revenues fluctuate due to one-time upfront
license  fees,  frequency  of  new  licenses  granted,  expiration  of  existing
licenses,  and/or  the expiration or economic obsolescence of patents underlying
licenses.  In  fiscal  2008,  we  began  test  marketing in the US an electronic
device  used  for  stress  reduction and memory improvement purposes, selling 33
units  in the first six months 2008.  The Company is seeking US distributors for
this  product.

     The  following  discussion  and  analysis  provides  information we believe
relevant  to  an  understanding  of  our  financial  condition  and  results  of
operations.  This discussion and analysis should be read in conjunction with our
Condensed  Consolidated  Financial  Statements  and  the  Notes  thereto.

     RELIANCE  ON  ONE  REVENUE  SOURCE

During  fiscal  2007,  we  had  a significant concentration of revenues from our
homocysteine  assay  technology.  The patent for this technology expired in July
2007  and  we  will  not  receive  revenues  for sales made after that date.  We
continue  to  seek  revenue  from  new  technology  licenses  to  mitigate  the
concentration  of  revenues,  and  replace  revenues  from  expiring  licenses.

     PRESENTATION

     We  rounded  all  amounts  in  this Item 2 to the nearest thousand dollars,
except  per  share  data.  Certain amounts may not total precisely.  All periods
discussed  in  this  Item  2  relate  to  our fiscal year ending July 31: first,
second,  third  and  fourth quarters ending October 31, January 31, April 30 and
July  31,  respectively.

                                       14
<PAGE>
RESULTS  OF  OPERATIONS  -  THREE MONTHS ENDED JANUARY 31, 2008 ("SECOND QUARTER
2008")  VS.  THREE  MONTHS  ENDED  JANUARY  31,  2007  ("SECOND  QUARTER  2007")

     SUMMARY  OF  RESULTS

     We  incurred  a net loss for the second quarter 2008 of $1,299,000 or $0.16
per  share,  compared  to  a  net loss of $3,563,000 or $0.44 per share, for the
second quarter 2007, a decreased net loss of $2,264,000, or $0.28 per share.  As
explained  in  detail below, the decrease in the net loss reflects a decrease of
$2,637,000  in  expenses  partially offset by a decrease in revenue of $374,000.

     REVENUES

     In  the  second  quarter  2008,  total  revenues were $530,000, compared to
$904,000  for  the  second  quarter  2007,  a  decrease  of  $374,000,  or  41%.

     Retained  royalties  for  the  second quarter 2008 were $429,000, which was
$315,000,  or  42%  less than the $744,000 of retained royalties reported in the
second  quarter  2007.  The  following  compares  retained  royalty  revenues by
technology  in  the  second  quarter  2008  with  the  second  quarter  2007.

                           For  the  three  months  ended  January  31,
                           --------------------------------------------
                                                 Increase   % Increase
                               2008      2007   (Decrease)   (Decrease)
                           --------  --------  -----------  -----------

Homocysteine assay         $ 57,000  $579,000  $ (522,000)        (90)%
Sexual Dysfunction          320,000    60,000     260,000          433%
All other technologies       52,000   105,000     (53,000)        (50)%
                           --------  --------  -----------
 TOTAL RETAINED ROYALTIES  $429,000  $744,000  $ (315,000)        (42)%
                           ========  ========  ===========

     Royalty revenues from our homocysteine technology decreased $522,000 in the
second quarter 2008 compared to the second quarter 2007, or a 90% decrease.  The
decrease  is  due  to  the  expiration  of  the  underlying patent in July 2007.

     Royalty  revenues from our sexual dysfunction technology increased $260,000
in  the second quarter of 2008 compared to the second quarter of 2007, or a 433%
increase.  As  a  result  of  settling  our  arbitration  proceeding against our
licensee,  Palatin  Technologies, Inc., we recovered $800,000, recording revenue
of $320,000 and reducing patent enforcement expenses $480,000 in accordance with
the  agreement  with  our  client.

     Investment  income  includes  dividends and interest earned on our invested
cash.  Investment  income  was  $51,000  in the second quarter 2008, which was a
decrease  of  $109,000, or 68% from the $160,000 reported for the second quarter
2007.  The  decrease  was due to lower invested balances for the current quarter
as  compared  to  the  prior  year.

     Product sales for the second quarter of fiscal 2008 consist of sales of our
thermal  therapy  units,  and  our  new  electronic stress management and memory
improvement  device.  In  fiscal  2008,  we  began  test  marketing  the  stress
reduction  and  memory  improvement  device  in  the US, selling 13 units in the
second  quarter  2008.  The Company is seeking US distributors for this product.

                                       15
<PAGE>
     EXPENSES
                                        For the three months ended January 31,
                            --------------------------------------------------
                                                        Increase   % Increase
                                  2008         2007    (Decrease)   (Decrease)
                            -----------  ----------  ------------  -----------

Cost of product sales       $   48,000   $        -  $    48,000            -
Personnel and other
  direct expenses relating
  to revenues                  907,000    1,418,000     (511,000)         (36)
General and adminis-
  trative expenses             916,000    2,869,000   (1,953,000)         (68)
Patent enforcement
   expenses net
  of reimbursements           (123,000)     180,000     (303,000)        (168)
Loss on sale of available-
  for-sale securities           81,000            -       81,000            -
                            -----------  ----------  ------------
 TOTAL EXPENSES             $1,829,000   $4,467,000  $(2,638,000)         (59)
                            ===========  ==========  ============

     Total expenses decreased $2,638,000 in the second quarter 2008, compared to
the  second  quarter  2007.

     Cost  of product sales for the second quarter of fiscal 2008 consist of the
cost  of our thermal therapy units, and our new electronic stress management and
memory  improvement  product.

     Personnel  and  other  direct expenses relating to revenues decreased a net
$511,000  in  the second quarter 2008, compared to the second quarter 2007, with
decreases  in  payroll  and  related  taxes  of  $229,000,  a result of reducing
headcount  40%, from 20 to 12, severance $266,000, employee stock option expense
$51,000,  employee  bonuses  $16,000, and recruiting expenses $21,000, offset by
increases  in consulting fees of $13,000 and direct expenses incurred to develop
new  technologies  $63,000.

     General  and  administrative  expenses  decreased  a  net $1,953,000 in the
second  quarter  2008,  compared  to  the  second  quarter 2007 primarily due to
settlement of litigation with our current CEO last year for $1,000,000, plus the
related  legal  fees  of  $713,000,  including  $650,000  paid  directly  to the
plaintiffs  attorney  as  part of the settlement, proxy and annual meeting costs
from  last  year  totaling  $571,000  and  elimination  of prior year investment
banking expenses totaling $31,000, offset by increases in other litigation costs
of  $212,000,  primarily for Marcovitch, investor relations costs $48,000, audit
and  SOX  section  404 compliance expenses $53,000, marketing costs $33,000, and
directors  fees  and  expenses  $22,000,  including  stock  option  expenses.

     Patent  enforcement  expenses,  net  of  reimbursements,  decreased  a  net
$303,000  in  the  second  quarter  2008,  compared  to the second quarter 2007.
Patent  enforcement  expenses  vary,  depending  on  the  activity  relating  to
outstanding  litigation.  The  benefit recorded for reimbursements in the second
quarter  is  the  result  of  settling  our  arbitration proceeding with Palatin
Technologies,  Inc.,  whereby  we were able to recoup $480,000 of incurred legal
fees.

     Loss on sale of available-for-sale securities of $81,000 relates to sale of
available  for  sale  Palatin  and  Clinuvel  securities.

RESULTS  OF  OPERATIONS  - SIX MONTHS ENDED JANUARY 31, 2008 ("FIRST HALF 2008")
VS.  SIX  MONTHS  ENDED  JANUARY  31,  2007  ("FIRST  HALF  2007")

     SUMMARY  OF  RESULTS

     We  incurred  a net loss for the first half 2008 of $3,859,000 or $0.47 per
share,  compared  to  a net loss of $4,685,000 or $0.59 per share, for the first
half  2007,  a decreased net loss of $826,000, or $0.12 per share.  As explained
in  detail  below, the decrease in the net loss is due to a decrease in expenses
of  $1,895,000  partially  offset  by  a  decrease  in  revenue  of  $1,068,000.


                                       16
<PAGE>
REVENUES

     In  the  first  half  2008,  total  revenues  were  $731,000,  compared  to
$1,799,000  for  the  first  half  2007,  a  decrease  of  $1,068,000,  or  59%.

     Retained  royalties  for  the  first  half  2008  were  $553,000, which was
$921,000,  or 62% less than the $1,474,000 of retained royalties reported in the
first  half 2007. The following compares retained royalty revenues by technology
in  the  first  half  2008  with  the  first  half  2007.

                                     For  six  months  ended  January  31,
                                     -------------------------------------

                                                    Increase   % Increase
                               2008        2007    (Decrease)   (Decrease)
                           --------  ----------  ------------  -----------

Homocysteine assay         $ 83,000  $1,155,000  $(1,072,000)        (93)%
Sexual Dysfunction          320,000      60,000      260,000          433%
All other technologies      150,000     259,000     (109,000)        (42)%
                           --------  ----------  ------------
 TOTAL RETAINED ROYALTIES  $553,000  $1,474,000  $  (921,000)        (62)%
                           ========  ==========  ============


     Royalty  revenues  from our homocysteine technology decreased $1,072,000 in
the  first  half  2008  compared to the first half 2007, or a 93% decrease.  The
decrease  is  due  to  the  expiration  of  the  underlying patent in July 2007.

     Royalty  revenues from our sexual dysfunction technology increased $260,000
in  the  first  half  of  2008  compared  with the first half of 2007, or a 433%
increase.  As  a  result  of  settling  our  arbitration  proceeding against our
licensee,  Palatin  Technologies, Inc., we recovered $800,000, recording revenue
of $320,000 and reducing patent enforcement expenses $480,000 in accordance with
the  agreement  with  our  client.

     Investment  income  includes  dividends and interest earned on our invested
cash.  Investment  income  was  $120,000  in  the  first  half 2008, which was a
decrease of $205,000, or 63% from the $325,000 reported for the first half 2007.
The  decrease  was due to lower invested balances for the first half as compared
to  the  prior  year.

     Product  sales  for  the  first  half 2008 consists of sales of our thermal
therapy  unit,  and  our new electronic stress management and memory improvement
device.  In fiscal 2008, we began test marketing the stress reduction and memory
improvement  device  in  the  US,  selling 33 units in the first half 2008.  The
Company  is  seeking  US  distributors  for  this  product.

     EXPENSES

                                         For the six months ended January 31,
                                         ------------------------------------
                                                    Increase      % Increase
                                  2008        2007    (Decrease)   (Decrease)
                            ----------  ----------  ------------  -----------

Cost of product sales       $   51,000  $        -  $    51,000            -
Personnel and other
  direct expenses
  relating to revenues       2,015,000   2,475,000     (460,000)         (19)
General and administ-
  rative expenses            2,193,000   3,613,000   (1,420,000)         (39)
Patent enforcement
  expenses net
  of reimbursements             32,000     396,000     (364,000)         (92)
Loss on permanent
  impairment of available-
  for-sale securities          228,000           -      228,000            -
Loss on sale of available-
  for-sale securities           71,000           -       71,000            -
                            ----------  ----------  ------------  -----------
  TOTAL EXPENSES            $4,590,000  $6,484,000  $(1,894,000)         (29)
                            ==========  ==========  ============

     Total expenses decreased $1,894,000 in the first half 2008, compared to the
first  half  2007.

                                       17
<PAGE>

     Cost of product sales for the first half fiscal 2008 consist of the cost of
our  thermal  therapy  unit, and our new electronic stress management and memory
improvement  product.

     Personnel  and  other  direct expenses relating to revenues decreased a net
$460,000 in the first half 2008, compared to the first half 2007, with decreases
in payroll and related taxes $483,000, the result of reducing headcount 40% from
20  to 12, severance expense $93,000, and employee stock option expense $74,000,
offset  by  increased consulting expenses $24,000, employee bonuses $44,000, and
other  direct  expenses  incurred  to  develop  new  technologies  $118,000.

     General and administrative expenses decreased a net $1,420,000 in the first
half  2008,  compared  to  the  first  half 2007, primarily due to settlement of
litigation  with our current CEO for $1,000,000 last year plus the related legal
fees of $730,000, including $650,000 paid directly to the plaintiffs attorney as
part  of  the  settlement.  In  addition,  we incurred approximately $562,000 of
costs last year related to the proxy fight and the annual meeting.  Last year we
incurred  $63,000  in  investment banking costs on a contract that was cancelled
when  the  new  management  team  assumed control.  These savings were offset by
current  year  expenses  of  $480,000  related  to  the  Marcovitch  litigation,
increased  audit  and  section  404  compliance  expenses of $138,000, increased
investor  relations  expenses  $109,000,  increased  marketing  expenses $76,000
primarily  related  to  launching  our  stress  reduction and memory improvement
device,  a  net increase in directors fees and expenses $60,000, including stock
expenses,  and  an  increase  other  legal/litigation  fees  of  $72,000.

     Patent  enforcement  expenses,  net  of  reimbursements,  decreased  a  net
$364,000  in  the  first  half  2008,  compared  to the first half 2007.  Patent
enforcement  expenses  vary,  depending  on the activity relating to outstanding
litigation.  The  reduction in patent enforcement expenses for the first half of
2008  compared  with  the  first  half  of  2007  is  the result of settling our
arbitration  proceeding with Palatin Technologies, Inc., whereby we were able to
recoup  $480,000  of  incurred  legal  fees.

     Loss  on  permanent impairment of available-for-sale securities of $228,000
relates  to our investment in Palatin shares. During the first quarter of fiscal
2008,  the  Company  determined  that the decline in market value of the Palatin
shares was other than temporary and wrote the investment down to its fair market
value  as  of  October  31,  2007.

Loss  on sale of securities of $71,000 relates to our sale of available for sale
Palatin  and  Clinuvel  securities.

     FINANCIAL  CONDITION  AND  LIQUIDITY

     Our  liquidity  requirements  arise  principally  from  our working capital
needs, including funds needed to find and obtain new technologies and to protect
and  enforce  our  intellectual  property  rights,  if  necessary.  We  fund our
liquidity  requirements  with  a combination of cash on hand and cash flows from
operations,  if  any,  including  royalty  legal  awards.

     At  January  31,  2008,  we  had  no  outstanding  debt or available credit
facility,  and  believe  it  would  be  very  difficult  for  CTT to obtain debt
financing  due to the current composition of our balance sheet, including a lack
of  hard  assets  against  which  to borrow, and the unpredictable nature of our
annual  cash  flows.  Our financing options currently are limited.  We must rely
on  cash  on  hand and cash flows from operations, if any, though this situation
could  change  in  the  future.

     We  believe we will successfully increase recurring revenues in fiscal 2008
by  licensing  new  technologies  to  customers  and collecting due, but unpaid,
royalties  on  existing  licenses,  to  more than offset our operating costs and
produce  a  profit  for  fiscal  2008.  To date, such revenue and achievement of
profitability  has  not  yet  occurred.  If  necessary, we will meet anticipated
operating  cash requirements by further reducing costs, and/or pursuing sales of
certain  assets and technologies while we pursue licensing opportunities for our
remaining  portfolio  of  technologies.  Our  litigation  costs,  including  the
lawsuit  against  Ben  Marcovitch,  should  have future costs at greatly reduced
levels than what is reflected in our Statement of Operations through January 31,
2008.  The  Company may not have sufficient cash flow to fund operating expenses
beyond  the  next  12  months.

                                       18
<PAGE>
     Cash  and  cash equivalents consist of demand deposits and interest earning
investments  with  maturities  of three months or less, including overnight bank
deposits  and  money  market  funds.  We  carry  cash  equivalents  at  cost.

     At  January 31, 2008, cash and cash equivalents were $4,522,000 compared to
$6,572,000 at July 31, 2007.  The loss of $3,859,000 for the first six months of
fiscal  2008  contained  non-cash  charges of $565,000 and changes in assets and
liabilities  of  $372,000,  resulting  in cash used in operations of $2,851,000.
Cash  flow  provided  by  investing  activities  includes  proceeds  of $823,000
primarily  from  the  sale  of  available-for-sale securities.  These activities
reduced cash by $2,050,000.  As of March 10, 2008, our cash and cash equivalents
balance  is  approximately  $3,600,000.

     We currently have the benefit of using a portion of our accumulated NOLs to
eliminate  any future regular federal and state income tax liabilities.  We will
continue to receive this benefit until we have utilized all of our NOLs, federal
and  state.  However,  we cannot determine when and if we will be profitable and
utilize  the  benefit  of  the  remaining  NOLs  before  they  expire.

     CAPITAL  REQUIREMENTS

     The  Company  incurred an operating loss for the first half of fiscal 2008,
as  well  as  operating  losses in fiscal 2007 and 2006.  At the current reduced
spending levels, the Company may not have sufficient cash flow to fund operating
expenses  beyond  the  next  12 months.  This condition raises substantial doubt
about  the  Company's  ability  to  continue  as  a  going  concern.

     The  Company's  continuation  as  a  going  concern  is  dependent upon its
developing  other recurring revenue streams sufficient to cover operating costs.
Our  plan  is  to  increase annual recurring revenues, achieve profitability and
increase  shareholder  value.  To  accomplish  our  goals, we have increased our
global  marketing  capabilities,  searching  for  new  sources  of technologies,
licensing  those  technologies,  and  establishing strategic relationships.  The
Company  is  currently pursuing sale of certain assets and technologies while it
puts  its  plan into operation.  There can be no assurance that the Company will
be  successful  in  such efforts.  Failure to develop a recurring revenue stream
sufficient to cover operating expenses could significantly negatively affect the
Company's  financial  position.

     CONTRACTUAL  OBLIGATIONS  AND  CONTINGENCIES

     There have been no substantial changes to our contractual obligations since
July  31,  2007.

     Contingencies.  Our  directors,  officers,  employees  and agents may claim
indemnification in certain circumstances.  We are currently exposed to potential
indemnification  claims  by  a  former executive in connection with a civil suit
filed  by  the  SEC  (See  Note  9  of Notes to Condensed Consolidated Financial
Statements  includes  in  Part  I,  Item  1).  We  seek  to limit and reduce our
potential  financial  obligations  for indemnification by carrying directors and
officers  liability  insurance,  subject  to  deductibles.

     We  also carry liability insurance, casualty insurance, for owned or leased
tangible  assets,  and  other insurance as needed to cover us against claims and
lawsuits  that  occur  in  the  ordinary  course  of  business.

     Many  of  our  license  and service agreements provide that upfront license
fees,  license fees and/or royalties we receive are applied against amounts that
our  clients  or  we have incurred for patent application, prosecution, issuance
and maintenance costs.  If we incur such costs, we expense them as incurred, and
reduce  our  expense  if  we are reimbursed from future fees and/or royalties we
receive.  If  the  reimbursement  belongs to our client, we record no revenue or
expense.

     As  of  January  31,  2008,  CTT  and its majority owned subsidiary, Vector
Vision,  Inc.  ("VVI"),  have  remaining obligations, contingent upon receipt of
certain  revenues,  to  repay  up  to  $199,006  and  $208,394, respectively, in
consideration of grant funding received in 1994 and 1995.  CTT is also obligated
to  pay at the rate of 7.5% of its revenues, if any, from transferring rights to
certain  inventions  supported  by  the grant funds.  VVI is obligated to pay at
rates  of 1.5% of its net sales of supported products or 15% of its revenue from
licensing  supported  products,  if  any.  We

                                       19
<PAGE>
recognize  these  obligations  only  if we receive revenues related to the grant
funds.  We  recognized  approximately  $1,729  of  these  obligations  in  2008.

     Currently,  we  engage independent consultants who provide us with business
development,  consulting  and/or  evaluation  services  under contracts that are
cancelable  upon  certain written notice.  These contracts include contingencies
for  potential  incentive compensation earned solely on sales resulting directly
from  the  work of the consultant.  We have neither accrued nor paid significant
incentive  compensation  under  such  contracts  in  fiscal  2008  or  2007.

     CRITICAL  ACCOUNTING  ESTIMATES

     There  have  been  no  significant  changes  in  our  accounting  estimates
described under the caption "Critical Accounting Estimates" included in Part II,
Item 7, "Management's Discussion and Analysis of Financial Condition and Results
of  Operations,"  in  our Annual report on Form 10-K for the year ended July 31,
2007.

                                       20
<PAGE>
ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

     Our  marketable  securities  were  sold in the first half 2008, eliminating
market  risk  to  the  valuation  of  those  assets.


                                       21
<PAGE>
ITEM  4.  CONTROLS  AND  PROCEDURES

     (a)     Evaluation  of  disclosure  controls  and  procedures
             -----------------------------------------------------

     Our  management,  including  our  President,  Chief  Executive Officer, and
Interim  Chief  Financial Officer, evaluated the effectiveness of the design and
operation  of our disclosure controls and procedures (as defined in Exchange Act
Rules  13a-15(e) and 15d-15(e)) as of January 31, 2008.  Our disclosure controls
and  procedures are designed to ensure that information required to be disclosed
in  reports  filed  under  the  Securities  Exchange  Act  of  1934 is recorded,
processed,  summarized, and reported as specified in the Securities and Exchange
Commission's  rules  and  forms.  Based on this evaluation, our President, Chief
Executive  Officer,  and  Interim  Chief  Financial  Officer  concluded that our
disclosure  controls  and  procedures  were  effective  as  of January 31, 2008.

     (b)     Change  in  Internal  Controls
             ------------------------------

     There  were  no  changes  in  our internal control over financial reporting
during the quarter ended January 31, 2008, that have materially affected, or are
reasonably  likely  to  materially  affect,  our internal control over financial
reporting.




                                       22
<PAGE>
PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

     See  Note  9 to the accompanying unaudited condensed consolidated financial
statements  in  Part  I  of  this  Quarterly  Report  on  Form  10-Q.

Item 1A. Risk  Factors

     There  have  been  no  material  changes  with  respect to the risk factors
disclosed  in  our Annual Report on Form 10-K for the fiscal year ended July 31,
2007.

Item 2.  Unregistered  Sales  of  Equity  Securities  and  Use  of  Proceeds

     None

Item 4.  Submission  of  Matters  to  a  Vote  of  Security  Holders

     None

Item  5.  Changes  in  Registrant's  Certifying  Accountant

     None.


Item  6.     Exhibits

31.1 Certification  by  the  Principal  Executive  and  interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 302 of the
     Sarbanes-Oxley  Act  of  2002  (Rule  13a-14(a)  or  Rule  15d-14(a)).

32.1 Certification  by  the  Principal  Executive  and  interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley  Act  of  2002  (18  U.S.C.  1350)  (furnished  herewith).

                                       23
<PAGE>

                                   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,  thereunto  duly  authorized.


                              COMPETITIVE TECHNOLOGIES, INC.
                              (the registrant)

                              By /s/ John B. Nano.
                              ------------------------
                              John B. Nano
                              Chairman, President, Chief Executive Officer,
                              Interim Chief Financial Officer, Chief Accounting
                              Officer and Authorized Signer
                              March 17, 2008



                                       24
<PAGE>
                               INDEX TO EXHIBITS


Exhibit  No.     Description
------------     -----------


31.1 Certification  by  the  Principal  Executive  and  Interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 302 of the
     Sarbanes-Oxley  Act  of  2002  (Rule  13a-14(a)  or  Rule  15d-14(a)).

32.1 Certification  by  the  Principal  Executive  and  Interim  Chief Financial
     Officer  of  Competitive  Technologies, Inc. pursuant to Section 906 of the
     Sarbanes-Oxley  Act  of  2002  (18  U.S.C.  1350)  (furnished  herewith).



















                                    AMERICAN
                                 STOCK EXCHANGE
                                     LISTED
                                      CTT



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