`
`TRADING TECH EXHIBIT 2020
`TD Ameritrade v. Trading Technologies
`CBM2014-00131
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`9/2/2014
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`Crain's Eureka Index ranks Chicag o's most innomtive firms - Focus - Crain's Chicago Business
`
`NET—A—PORTER.
`
`COM
`
`
`
`Chicago-based Trading Technologies pulled off a rare trifecta in Crain's annual look at the most
`innovative companies in Illinois based on patent activity, a ranking that weighs both quantity and
`quality: It was in the top 10 for total patent output among Illinois companies last year and in the
`top 20 for quality of patents issued. It also had the highest patent output per employee among 70
`companies that had at least three patents.
`
`Crain's also sought out the most innovative
`individuals, with a look at the most prolific patent
`producers over the past generation. Michael Burns,
`Trading Technologies' vice president of R&D, is
`among the biggest patent winners in the Chicago
`area, with 100 since 1980, according to data
`gathered for Crain's by Deborah Strumsky, a
`professor at the University of North Carolina at
`Charlotte. (See “Mr. Innovation," this issue.)
`
`“Trading Technologies has been a catalyst for firms
`like CME and CBOE to have a greater appreciation
`about the importance of patents in their industry,"
`says James Malackovvski, CEO of Ocean Tomo,
`which specializing in valuing intellectual property.
`
`Trading Technologies also has used patents to keep
`rivals at bay or make them pay. And now the firm is
`looking for ways to use technology to slow trades
`down and prevent the next flash crash.
`
`“For the first time since electronic trading first
`existed, the innovation is notjust around being
`faster," says Rick Lane, Trading Technologies' chief
`technology officer. “Now innovation is in risk—
`helping people trade safer.”
`
`Not all patents are created equal. Ocean Tomo
`evaluates patents based on the likelihood that
`companies will maintain and invest in them.
`
`The company with the highest Eureka Index score for
`patents issued last year was Cummins Allison, a
`Mount Prospect company that makes currency-
`counting equipment. It's followed by laboratory-
`equipment maker Alltech Associates Inc. in Deerfield
`and Chicago's Groupon Inc., which scored high
`largely for patents it acquired from Priceline.com
`founder Jay Walker.
`
`Two of the top 10 companies are in specialty
`chemicals—Coskata Inc. a Warrenville-based
`
`I “III" I’IWIEII
`
`Innovation Is about quality as well
`as quantity. Ocean Tome LLC rated
`firms' patent portfolios based on
`the likelihood they'll be put to use.
`HIE" IIIIIILITI' SHIRE
`Number
`Cum mins AI lison Inc.
`0' patents
`
`
`Alltech Associates Inc.
`.h.
`
`Groupon Inc.
`154.4
`5
`
`
`Cosltata Inc.
`150.?
`6
`
`
`Hal IStar Co.
`I483 4
`
`
`
`Hidtronics Inc.
`
`
`Pactiv Cor
`I
`Hos ira Inc.
`I l6
`
`North ate Technolo ies Inc.
`m a
`
`|I’ideo'et Technolo ies Inc.
`u—m w
`
`Abbott Laboratories
`
`m 51!?
`H dro-Gear LP
`
`m 22
`
`http://vwvw.Chicag obusiness.con1/articleJZO130427/ISSU E02304279995/crai ns-e-ureIe-i ndex- ranks-c-hicag os-mos-t-I nnovative—fiIrms
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`9/2/2014
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`Crain's Eurela Index ranls Chicago's most innovative firms - Focus - Crain's Chicago Business
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`meor an Chase- 5' “0‘ (Bank ””9)
`
`3
`
`ethanol maker, and Chicago-based HallStar.
`HallStar's additives are used in everything from cars
`to cosmetics to help products resist breaking down in
`FootlE ui mentTechnoIo ies Co.
`the sun. It operates the world's leading photostability w 4
`
`center; customers include 3M Co., Procter & Gamble
`Co. and Johnson & Johnson,
`Tradin Technolo ies International Inc.
`Hall
`32
`
`Zebra Technolo ies Cor
`.
`
`“We're working on cool stuff that makes products
`better, doing chemistry-based solutions that matter,"
`
`Another sector that stands out is life sciences. Three
`CME Grou Inc.
`of the top 15 companies in the Eureka Index are in m 43
`
`pharmaceuticals or medical devices and products:
`Abbott, Hospira Inc. and Northgate Technologies Inc.
`Elgin-based Northgate, best known for products
`used to deliver gases to surgical patients, is working
`on an aerosol to help reduce scar tissue.
`
`6
`[I enan Harketln Solutionslnc.
`
`
`Schumacher Electric Can}.
`
`J:-
`
`”It's a $1 billion problem," says Bob Mantell, general
`manager of Northgate, a 38-employee division of
`Trudell Medical International of London, Ontario.
`
`SERIOUS GAMING
`
`Few companies take innovation as seriously as WMS
`Gaming Inc. About one-third of the company's 1,500
`US. employees work in research and development.
`About two-thirds of them work in a $40 million tech
`center in Chicago's Avondale neighborhood. The
`company spends 16 percent of revenue on R&D.
`
`TouchSensor Technologies LLC
`5!-
`
`Chicaqo Board Options EIchanqe Inc.
`E
`
`”“9“an Inc.
`
`
`Inliddletr,I Corp.
`6'!-
`
`Tellabs Inc.
`
`36
`
`WMS, which started out making pinball machines,
`makes slot machines that are as cutting-edge as any
`IE Jr. [20. (Mars Inc.)
`WmWri
`video games, crammed with networking and mobile h I?
`
`technologies. Today, its slot machines are
`networked, and the company launched Jackpot Party
`Social Casino, one of the most popular games on
`Facebook. WMS is being acquired by Scientific
`
`Woodhead Industries Inc.
`.h.
`
`Pol era Corp.
`
`
`”We've got one of the largest patent portfolios in the
`.
`.
`.
`_
`,
`Darin er-Ne Inc.
`Industry," says Larry Pacey, chief Innovation officer. m 3
`
`With 203 patents, WMS was the fifth-most-active
`.
`.
`Inter-e Healthcare Inc.
`|ll|n0Is company last year—when more patents were
`“H
`awarded than ever. Of the dozen most prolific
`'
`individual patent winners in Illinois, seven were from
`Baxter International Inc.
`WMS, according to Ocean Tomo.
`
`3
`
`5
`
`GRAPHIC: The top 30 patent recipients in
`Illinois
`
`Source: Ocean Toma LLC
`
`GRAPHIC: Small but mighty innovators
`
`”Innovative companies are coming to realize that innovating is, by itself, not enough," says
`Jonathan Masur, a professor and patent-law specialist at the University of Chicago Law School.
`“They have to innovate and patent, or they leave themselves vulnerable to competitors who
`obtain patents. Firms have also begun to see patents as an important profit source, rather than
`just a sidelight to their other businesses."
`
`WMS learned those lessons the hard way.
`
`“We had some IP battles in the late "90s and early 20005 that we were on the wrong side of,” Mr.
`Pacey says. “We learned we needed to be better-equipped with the right portfolio."
`
`WMS was doing groundbreaking work on touch screens before the iPhone was released. It
`licenses that technology to
`
`http://vwwv.chicagobusiness.com/article/20130427/ISSU EOZ3M279995/crains-eureka-index-ranks-chicag os-most-innowative—firn‘s
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`Page 3 0f 5
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`9/2/2014
`manufacturers in the medical
`and aviation industries.
`
`Crain's Eurela Index ranle Chicag o's most innovative firms - Focus - Crain's Chicago Business
`
`It's not slowing down. WMS
`already has received as
`many patents this year as it
`did in all of 2012.
`
`”We've been successful at
`
`employees.
`
`creating entirely new
`products in this category," Mr.
`Pacey says. “We've got
`artists, designers, Ph.D.
`mathematicians, engineers
`who all work to create games.
`We work with movie studios.
`
`This place reeks of
`creativity."
`Editor's note: The Eureka Index has
`been updated to correct Ideal
`Industries' information. Ideal ranks
`19th, with two patents per 100
`
`Larry Pacey, chief innovation officer, WMS Industries
`John R. Boehm
`
`FOCUS
`
`Crain's 2013 EUREKA INDEX
`City of big ideas
`Small or large, public or private, Crain's second-annual Eureka Index uses patents to rank Chicago's most
`innoxative companies. In an industry where billions of dollars can be made or lost in the blink of an eye,
`Chicago-based Trading Technologies pulled off a rare trifecta.
`Mr. Innovation
`Specializing in everything from chemical catalysts to garage door openers ("It's surprising how much
`technology is in a garage door"), here are profiles of Chicago's most prolific inventors.
`
`How Groupon bought its way to patent prominence
`ONLINE EXTRA: One of the knocks on Groupon has been that it lacks intellectual property to keep
`competitors at bay. Not anymore.
`
`See how Abbott Labs stacks up
`VIDEO: We take a closer look at a perennial patent powerhouse.
`Issue date: April 29, 2013
`
`From this w eek's Focus
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`146
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`33
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`19
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`39
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`
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`8+1 5
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`Whatdo you think?
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`NOTE: Crain's Chicago Business has changed commenting platforms. Readers maycontinue to post
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`9/2/2014
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`Crain's Eureka Index ranks Chicag o's most innomtive firms - Focus - Crain's Chicago Business
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` .
`'— wait what? Chicago will
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`getting revenue? what a
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`Old Town to get spinning gym
`..|:
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`-.,-..-...
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`‘1'“1 .‘x — In bankruptcy, I've always
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`
`WHAT'S THIS?
`
`Gov. Quinn loses 'reformer' cred with
`patronage hiring scandal
`
`1i ' ”t: I} — Like Blago, Quinn grants
`money the State doesn't have to worthy
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`i—The commenter's viewpoint
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