Trading Technologies International, Inc. v. eSpeed, Inc.

595 F.3d 1340, 93 U.S.P.Q. 2d (BNA) 1805, 2010 U.S. App. LEXIS 3914, 2010 WL 653271
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 25, 2010
Docket2008-1392, 2008-1393, 2008-1422
StatusPublished
Cited by91 cases

This text of 595 F.3d 1340 (Trading Technologies International, Inc. v. eSpeed, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trading Technologies International, Inc. v. eSpeed, Inc., 595 F.3d 1340, 93 U.S.P.Q. 2d (BNA) 1805, 2010 U.S. App. LEXIS 3914, 2010 WL 653271 (Fed. Cir. 2010).

Opinions

Opinion for the court filed by Circuit Judge RADER, in which District Judge CLARK joins. Circuit Judge LOURIE concurs in the result. Concurring opinion filed by District Judge CLARK.

RADER, Circuit Judge.

The United States District Court for the Northern District of Illinois held that eS-peed, Inc., Ecco LLC, Ecco Ware Ltd., and eSpeed International Ltd. (collectively, “eSpeed”) infringed the asserted claims of U.S. Patent No. 6,772,132 (“'132 patent”) and U.S. Patent No. 6,766,304 (“'304 patent”) with one accused service product, but not willfully. The district court further held that the two other accused products did not literally infringe and then precluded Trading Technologies International, Inc. (“TT”) from asserting infringement under the doctrine of equivalents. After giving the patents-in-suit a filing date back to the provisional application, the district court found that the on-sale bar of 35 U.S.C. § 102(b) did not apply. The district court also found no indefiniteness problem in the asserted claims. Finally the district court detected no inequitable conduct during the prosecution of the patents-in-suit. Because this record discloses no reversible error, this court affirms.

I.

TT is the owner by assignment of the '132 and '304 patents. Both patents share a common provisional application filed on March 2, 2000. The United States Patent and Trademark Office (“PTO”) issued the '132 patent on August 3, 2004, based on a June 9, 2000 application. The PTO issued the '304 patent on July 20, 2004, based on a June 27, 2001 application. The '304 patent is a divisional of the '132 patent. The specifications of the patents are, for all relevant purposes, identical.

The patents claim software for displaying the market for a commodity traded in an electronic exchange. '132 patent col.3 11.11-16. The software’s graphical user interface (“GUI”) includes “a dynamic display for a plurality of bids and for a plurality of asks in the market for the commodity and a static display of prices corresponding to the plurality of bids and asks.” Id. The claimed invention facilitates more accurate and efficient orders in this trading environment. Id. col.3 11.21-24.

Prior art computer trading displays showed the best bid price and the best ask price (together, “the inside market”) in fixed, predetermined grids. The best bid price is the highest price at which there is an offer to buy the contract. The best ask price is the lowest price at which there is an offer to sell the contract. The inside market is the focal point of trading activity because these offers most accurately reflect the current price of the commodity.

Returning to the prior art, these displays had grids for the inside market that never changed. As the market fluctuated, however, the prices listed in those grids changed — often times very rapidly. To buy at the inside market, a trader, for example, placed the mouse cursor on the grids for the inside market and clicked the mouse. Of course, as traders sent bids and offers to the market, the price and quantity of the traded commodity changed. These changes altered the inside market. In the prior art era with fixed grids for the inside market, traders had a problem. A trader who wished to place an order at a [1346]*1346particular price would miss that market opportunity if the inside market moved as the trader tried to enter an order. In a fast moving market, missing an intended price could happen often and have very significant economic consequences.

The invention addressed the problem by-implementing static price levels. Figures 3 and 4 0f the '132 patent illustrate the invention,

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’132 patent, figs.3, 4. The figures display the bids and offers for a certain commodity in an electronic exchange. Column 1005 labeled “Prc” shows the contract prices. Id. col.7 11.36-38. Column 1003 labeled “BidQ” and column 1004 labeled “AskQ” respectively show the bid quantities and the ask quantities for the associated price. Id. col.7 11.35-36. In Figure 3, the inside market labeled 1020 indicates the best bid price of 89 and the best ask price of 90. Id. col.7 11.40^42. A trader may enter an order by clicking in the bid or ask grid corresponding to the trader’s price. Id. col.4 11.9-19.

Figure 4 displays the same market at a later time. The bid and ask quantities dynamically change in response to market fluctuations. Id. col.7 11.48-51. In Figure 4, the inside market has shifted upward such that the best bid price is now 92 and the best ask price is 93. Id. col.8 11.38-48. While the inside market has changed, the values in the price column remained fixed. Id. col.8 11.44-48. Over time, the inside market could shift to prices not currently displayed on the trader’s screen. Id. col. 8 11.49-51. In this case, the price column must be re-centered to keep the inside market in view. Id. col.8 11.49-60.

[1347]*1347The claimed invention features static price levels. These unmoving figures have numerous advantages over the prior art. First, a trader can visually follow the market movement as the inside market shifts up and down along the price column. Id. col.5 11.58-65. Second, and perhaps most important, a trader has confidence in making an offer at the intended price. Id. col.3 11.3-4. Because the invention has static price levels, the order entry region will remain associated with the same price. Therefore, the trader does not need to worry about “clicking on” or entering an order at the instant after a price change. Thus, the invention prevents accidental orders at an unintended price. The patents tout that these improvements ensure fast and accurate execution of trades. Id. col.3 11.21-24.

eSpeed, Inc. provides an electronic exchange for trading commodities. It also designs and sells trading platforms for use with its electronic exchange. On August 12, 2004, TT initiated this suit against eS-peed, Inc., alleging that eSpeed, Inc.’s trading platforms infringed TT’s patents. After eSpeed, Inc. acquired Ecco LLC in October 2004, TT joined Ecco LLC in the suit. In December 2005, TT amended its complaint to join the subsidiaries eSpeed International, Inc. and Ecco Ware Ltd. This opinion refers to all defendants collectively as “eSpeed.” TT asserts the following claims against eSpeed: claims 1, 2, 7, 14, 15, 20, 23-25, 27, 28, 40, 45, 47, 48, 50, and 52 of the '132 patent; and claims 1,11, 14, 15, and 26 of the '304 patent. Claim 1 is the representative claim for both patents.

Claim 1 of the '132 patent:

A method of placing a trade order for a commodity on an electronic exchange having an inside market with a highest bid price and a lowest ask price, using a graphical user interface and a user input device, said method comprising:
setting a preset parameter for the trade order;
displaying market depth of the commodity, through a dynamic display of a plurality of bids and a plurality of asks in the market for the commodity, including at least a portion of the bid and ask quantities of the commodity, the dynamic display being aligned with a static display of prices corresponding thereto, wherein the static display of prices does not move in response to a change in the inside market;

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595 F.3d 1340, 93 U.S.P.Q. 2d (BNA) 1805, 2010 U.S. App. LEXIS 3914, 2010 WL 653271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trading-technologies-international-inc-v-espeed-inc-cafc-2010.