RCG overreaches

In mid March, Judge James T. Moran sanctioned Rosenthal Collins Group (RCG) and ordered the company to pay for Trading Technologies International Inc.’s (TT) legal and software consulting fees after the court determined that software presented by RCG as evidence of prior art recently had been altered. Proof of prior art could have negated TT’s patents regarding its static ladder software.

RCG had presented the Wit Capital Digital Stock Market, created and developed by Walter D. Buist, in its motion for summary judgment against TT and as proof that Wit DSM anticipated and invalidated TT’s patents for a double click method to execute trades. In the memorandum, Moran writes that “RCG was somewhat disingenuous in filing its summary judgment motion,” adding that it neglected to tell the court of differences in the original and modified software and that Buist had no knowledge of the double click method before 2005 or 2006.

In other developments, James L. Katz, an attorney specializing in patent law from Brinks Hofer Gilson & Lione, has filed requests with the U.S. Patent and Trademark Office (USPTO.) to reexamine the TT patents and says that prior art for the static ladder order entry system was described in manuals for a trading system created for the Tokyo Stock Exchange. Katz says that although the Tokyo Stock Exchange prior art was considered in a preliminary injunction in the eSpeed vs. TT infringement case, there has been no analysis of the manuals, nor the double click and static ladder functions. The USPTO will grant or deny the request by July 6. Reexamination requests usually are granted, can take years to complete and would unlikely affect the trial, which is scheduled to begin on June 28.

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