OANDA, GAIN Capital clash over docs in patent infringement lawsuit
OANDA and GAIN Capital continue their legal battle about Forex patents in the New Jersey District Court. The latest point of disagreement in this legal dispute stems from a set of requests for production (RFPs) of documents.
The brokers have met and conferred through an exchange of correspondence and telephone conference, but have been unable to resolve the issue. On June 9, 2022, OANDA served the RFPs, which seek documents and communications concerning the development, use, and/or operation of the accused infringing products. Specifically, the RFPs seek documents regarding specific components of GAIN’s currency trading system—the majority of which are components identified by GAIN in its non-infringement contentions
For example, the RFPs seek documents and communications concerning the following components referenced in GAIN’s non-infringement contentions:
- “direct socket connections”;
- “trading modules that communicate with a remote deal server”;
- “remote deal server”;
- “Rate Server Spreader” and
- “Rates Manager”;
- and any other aspect of the accused product that GAIN will use to support an argument that it does not infringe the patents-in-suit.
The RFPs also seek documents that will show how GAIN’s infringing product carries out several functions covered by the claims in the Patents-in-Suit. For example, the RFPs seek documents concerning the following:
- “how interest is calculated and paid out”;
- how GAIN “determines and adjusts pricing of currencies”;
- “the development, use, and/or operation of any margin control manager, or any other aspect . . . concerning margin accounts or account margins”; and
- “how [GAIN] hedge[s] or manage[s] risk”.
The RFPs identified specific individuals OANDA believed likely have relevant documents and communications regarding these items. These document custodians are individuals that GAIN had identified as persons with relevant knowledge in their own discovery responses.
However, GAIN stated that it has not—and will not—collect and search emails and other electronically stored information (ESI) from the proposed custodians. GAIN stated that it will not collect and search ESI from particular custodians without a new ESI order setting a discrete number of custodians and search terms, and that it would stand on its objections.
According to OANDA, this conduct is a violation of GAIN’s obligations.
Let’s recall that in this lawsuit OANDA alleges that GAIN infringes two patents, U.S. Patent Nos. 7,146,336 (“the ’366 patent”) and 8,392,311 (“the ’311 patent”).
On March 5, 2013, the United States Patent and Trademark Office issued United States Patent No. 8,392,311, entitled “Currency Trading System, Methods, and Software.” The ’311 Patent teaches, among other things:
In one aspect, the present invention comprises a system for trading currencies over a computer network. A preferred embodiment comprises: (a) a server front-end; (b) at least one database; (c) a transaction server; (d) a rate server; (e) a pricing engine; (f) an interest rate manager; (g) a trade manager; (h) a value at risk server; (i) a margin control manager; (j) a trading system monitor; and (k) a hedging engine. In another aspect, the present invention comprises methods for trading currency over a computer network. In another aspect, the present invention comprises software for currency trading over a computer network.
On December 5, 2006, the United States Patent and Trademark Office duly and legally issued United States Patent No. 7,146,336, entitled “Currency Trading System, Methods, and Software.”
The ʼ336 Patent teaches, among other things:
In one aspect, the present invention comprises a system for trading currencies over a computer network. A preferred embodiment comprises: (a) a server front-end; (b) at least one database; (c) a transaction server; (d) a rate server; (e) a pricing engine; (f) an interest rate manager; (g) a trade manager; (h) a value at risk server; (i) a margin control manager; (j) a trading system monitor; and (k) a hedging engine. In another aspect, the present invention comprises methods for trading currency over a computer network. In another aspect, the present invention comprises software for currency trading over a computer network.
GAIN will have to respond to OANDA’s letter no later than September 27, 2022.