A United States District Court found on March 3 that the Chicago Board Options Exchange (CBOE) did not infringe upon a patent held by the International Securities Exchange (ISE).
In the action, ISE alleged CBOE’s hybrid trading systems violated a patent titled "Automated Exchange for Trading Derivative Securities." The exchanges have sparred for years over intellectual properties, sparking suits and counter-suits. Most recently, ISE submitted a claim for $300 million in damages in the patent case in May 2010.
"We are gratified that the Court has ruled in CBOE’s favor," says CBOE Chairman and CEO William Brodsky. "This ruling vindicates our long-held position that CBOE’s innovative systems in no way infringe on ISE’s patent."
An ISE spokeswoman says they intend to file an appeal. "We were disappointed by the judge’s decision and disagree with the court’s interpretation of the issues at hand," she says.