Online trading major Interactive Brokers Group (NASDAQ:IBKR) has issued a statement regarding the outcome of a patent infringement lawsuit brought against the broker by Trading Technologies.
The jury found that the broker infringed two patents owned by Trading Technologies, but it also recognized that any infringement by Interactive Brokers was not willful, and therefore not subject to enhanced damages.
The jury awarded $6.6 million to Trading Technologies.
Below is Interactive Brokers’ full statement:
“Interactive Brokers Group (NASDAQ:IBKR) today announces that a jury has returned a verdict in a patent trial in which Trading Technologies International, Inc. (“Trading Technologies”) had accused IBG LLC and its wholly-owned subsidiary Interactive Brokers LLC (together “IBG”) of willfully infringing its patents. Although the jury found that IBG infringed two patents owned by Trading Technologies, the jury recognized that any infringement by Interactive Brokers was not willful, and therefore not subject to enhanced damages. The jury awarded $6,610,985 to Trading Technologies, an amount far less than it had sought in damages.
This trial was part of a long-running patent dispute which has been pending since February 2010 in federal court in the Northern District of Illinois. Trading Technologies originally claimed that IBG had infringed a total of twelve of its U.S. patents. After the conclusion of Covered Business Method Review proceedings in the U.S. Patent and Trademark Office, and subsequent appeals to the U.S. Court of Appeals for the Federal Circuit, eight of the twelve patents were held invalid. The district court subsequently held in a summary judgment ruling that two of the remaining four patents were invalid. Trial was held on the remaining two patents beginning on August 6.
This lawsuit targeted IBG’s BookTrader module of its Trader Workstation platform, which is used by some customers of IBG. There are no claims of continuing infringement by IBG of any patents held by Trading Technologies, and IBG is not required to make any systems, software or other technology changes as a result of today’s verdict. The two patents that were at issue in the trial have expired.
IBG continues to believe that Trading Technologies’ patents are invalid, and even if valid, that IBG’s BookTrader module did not infringe the patents.
IBG and its founder Thomas Peterffy have been at the cutting edge of electronic trading for four decades. IBG is proud of its industry-leading technology, and its reputation for innovation in the financial services field”.