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To: TFF who wrote (11783)	11/7/2006 7:07:12 PM
From: TFF	Respond to of 12617

Trading Technologies suffers legal setback By Doug Cameron in Chicago Published: November 7 2006 01:58 \| Last updated: November 7 2006 01:58 Trading Technologies on Monday suffered the first legal setback in the US software group’s long-running effort to enforce patents on trading technology used by much of the global derivatives sector. The Chicago-based group’s claim of patent infringement was partially rejected by a US district court in a move which would allow eSpeed, the electronic bond trading unit of Cantor Fitzgerald, to offer its software without the risk of its clients being exposed to legal action. Trading Technologies has sued more than a dozen futures brokers, alleging that they used trading systems for their clients that infringed a patent the company secured in 2004. Most had already settled, and the company was expected to pursue alleged infringement against the large banks that dominate futures trading. New York-based eSpeed maintained it was now free to offer its customised software to traders. “The cloud is now lifted,” said Paul Saltzman, chief operating officer. “It was very difficult for us to gain traction with our customers.” However, Trading Technologies rebuffed eSpeed’s assessment ahead of a trial set for early next year on the court’s memorandum opinion. “The court did not rule on the issue of whether eSpeed or any other defendant is infringing the patents,” said the group in a statement. “TT remains very confident in its case and that the court will find that eSpeed’s products infringe.” Mr Saltzman rejected the claim: “The court couldn’t have been clearer that the scope of TT’s patent related only to ‘static’ price display,” he said, noting the court’s interpretation of the market-pricing environment as dynamic. Copyright The Financial Times Limited 2006

To: TFF who wrote (11783)	11/7/2006 7:08:53 PM
From: TFF	Respond to of 12617

ESpeed says patent decision in its favor By Al Yoon NEW YORK, Nov 6 (Reuters) - ESpeed Inc. (ESPD.O: Quote, Profile, Research), the electronic bond trading unit of Cantor Fitzgerald, on Monday said a federal court has "squarely rejected" a competitor's interpretation of a patent that has hindered ESpeed's futures trading business. ESpeed, based in New York, said the decision by the U.S. District Court for the Northern District of Illinois supports its assertions that its futures trading products do not infringe patents held by Trading Technologies International Inc. The judge's interpretation removes uncertainty that has hampered its product sales, it said in a statement. But Trading Technologies said the court's decision didn't relate to whether ESpeed or other defendants are infringing patents. Trading Technologies, based in Chicago, said in a statement it "remains very confident" that the court will find that ESpeed's products do infringe its patents. The patent covers how prices are displayed, said Paul Saltzman, ESpeed's chief operating officer. The judge defined the term "static display of prices" in Trading Technologies' systems differently than ESpeed's features, he said. "It was very difficult to sell our products in the face of this even though we consistently indicated that our products fell outside the scope of the Trading Technologies patent," Saltzman said. ESpeed in August said it expected operating revenues for 2006 of more than $154 million, compared with $150.2 million in 2005. It doesn't disclose how much was from futures trading. Shares of ESpeed reached a 21-month high of $9.97 on Monday before closing down 17 cents at $9.41 on the Nasdaq. Trading Technologies has sued at least 16 other trading and software firms since 2004. Several companies settled with closely held Trading Technologies by licensing the patent. ESpeed suffered a legal defeat last year when a judge invalidated an electronic bond trading technology patent it had said was infringed by a unit of its main competitor, ICAP Plc.