“It doesn’t hurt to ask,”
~Harris Brumfield, TT CEO
A Jury in Chicago has decided that eSpeed Inc., eSpeed International LTD and Ecco Ware LTD violated Trading Technologies International Inc.’s patents for the static ladder and single click order entry. The deliberations lasted just four days after a three and a half week trial and the damages are reportedly $3.5 million.
“I think what they are primarily interested in is having their patents be declared valid and then being able to use those patents to control the entire market and force everyone to take licenses or use different products,” says Neal Cohen, at attorney for Faegre & Benson LLP who represents CQG. “So, from their perspective, this is a test case. But I don’t think their master strategy is simply to win judgment against eSpeed, but to win a judgment against all the competitors that are designing electronic trading software for the futures market,” he says, adding that he is 99.9% certain there will be an appeal. “Nobody is really going to have an answer for a couple years,” he says, noting that in addition, eSpeed has filed a charge of inequitable conduct against TT, a claim against TT alleging it committed fraud or didn’t disclose required information in the pursuit of the patents. If eSpeed succeeds, it would render the patents unenforceable.
Schiff Hardin LLP attorney Stacie R. Hartman represented Peregrine Financial Group, a brokerage firm that settled a similar suit filed by TT, says that the case emphasizes the need for futures industry professionals to document and protect their ideas and the process of their creation. “Before launching any new product or trading system, consider what patents are already out there, to make sure you're not infringing them. But also consider them offensively – maybe your own work is entitled to protection by patents or other IP.”
