The Chicago Board Options Exchange’s (CBOE) newly formed C2 unit, scheduled to begin trading on Oct. 29, preemptively asked for a judge’s ruling that its electronic trading platform does not infringe upon a patent held by International Securities Exchange (ISE) on Oct. 8.
The patent in question caused ISE to sue CBOE in November 2006, claiming its hybrid electronic exchange violated ISE’s electronic exchange patent. That litigation is ongoing.
“In filing its complaint against ISE, C2 is seeking to be proactive in asserting and protecting its rights relating to its trading platform,” according to a CBOE statement. “C2 strongly believes that, based on various rulings in that co-pending litigation between CBOE and ISE, the C2 exchange does not infringe ISE’s patent.”
ISE declined to comment other than to say they “intend to vigorously defend our intellectual property rights. CBOE is infringing our patent rights, and we took legal action against it to assert our rights. If C2 similarly decides to infringe our patent rights, we will take similar swift and decisive legal action against it.”