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`Filed:
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`UNITED STATES PATENT AND TRADEMARK OFFICE
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`BEFORE THE PATENT TRIAL AND APPEAL BOARD
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`TD AMERITRADE HOLDING CORPORATION, TD AMERITRADE,
`INC., and TD AMERITRADE ONLINE HOLDINGS CORP., Petitioner
`v.
`TRADING TECHNOLOGIES INTERNATIONAL, INC.
`Patent Owner
`
`Case CBM2014-00137
`Patent No. 7,685,055
`
`DECLARATION OF RICHARD HARTHEIMER
`
`TRADING TECH EXHIBIT 2102
`TD Ameritrade v. Trading Technologies
`CBM2014-00137
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`Page 1 of 14
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`I, Richard Hartheimer, declare as follows:
`1. Introduction
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`1.
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`I have been retained by the law firm of Finnegan, Henderson, Farabow,
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`Garrett & Dunner, LLP on behalf of Trading Technologies International, Inc. as an
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`independent expert consultant in the above-referenced proceeding. Although I am
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`being compensated at my usual hourly rate for the time I spend on this matter, no
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`part of my compensation depends on the outcome of this proceeding, and I have no
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`other interest in this proceeding.
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`2.
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`I understand this proceeding involves U.S. Patent No. 7,685,055
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`(“the ’055 patent”) (Ex. 1001). I understand that the ’055 patent is assigned to
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`Trading Technologies.
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`3.
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`I have been asked to consider certain documents, and to provide my
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`opinions regarding these documents. My opinions are set forth below.
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`2. Qualifications
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`4. My resume is attached to this declaration as Appendix A.
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`5.
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`Briefly, I have more than 25 years of experience in the design,
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`development, and implementation of trading systems, including both user interfaces
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`and system architecture. I have significant expertise in the design of user interfaces
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`that are uniquely tailored to the desires and needs of professional traders, as well as
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`Page 2 of 14
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`various other aspects of trading system design, development, and implementation.
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`Based on my experience designing, developing, and implementing trading systems, I
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`also have an intimate understanding of both trader perspectives and marketplace
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`needs.
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`6. My accomplishments include designing, developing, and implementing a
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`trading system that is now the largest broker worldwide for interbank Spot currency
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`trading, designing and commercializing a flagship trading system that is utilized by the
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`entire FX brokerage community, managing the creation of an FRA trading product,
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`creating an institutional banking product where corporate clients consolidate daily
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`statements from multiple banks and effect payments and other banking instruments
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`from their own offices well before the eCommerce era, and designing and developing
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`a news distribution system for a major financial institution. I am also a named
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`inventor on 12 issued U.S. patents in the field of electronic trading.
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`7.
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`I have considerable experience and expertise designing trader interfaces.
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`I was instrumental in designing the user interface for an interbank trading system in
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`1988 and again in 1992. I chaired a committee of traders and developers in 1991
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`where we collaborated to come up with a trading user interface superior in many ways
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`to anything available at the time. This interface served as a model for several later
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`electronic trading product user interfaces. Subsequently in 2005 I designed a user
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`Page 3 of 14
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`interface for a broking system that was the cornerstone of my company’s product set.
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`More recently in 2012, I designed and managed the development of a trader interface
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`to make an aggregated dealing market available to a bank’s internal traders.
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`3. Information Considered
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`8.
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`In forming my opinions, I have reviewed the following materials: U.S.
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`Patent No. 7,533,055 (Ex. 1001), along with its file history (Ex. 1002); Petitioner’s
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`Petition for Covered Business Method Patent Review of US Patent No. 7,685,055
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`Under 35 U.S.C. § 321 and § 18 of the Leahy-Smith America Invents Act (Paper 1)
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`and associated materials, including Declaration of Kendyl A. Román (Ex. 1003,
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`“Román Decl.”), Declaration of David Rho (Ex. 1004, “Rho Decl.”), U.S. Patent No.
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`5,297,031 to Gutterman et al. (Ex. 1006, “Gutterman”), Petitioner’s Translation of
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`“Futures/Option Purchasing System Trading Terminal Operation Guide” (Ex. 1008,
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`“TSE”); Patent Owner’s Preliminary Response (Paper 17); and Decision Institution of
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`Covered Business Method Patent Review 37 C.F.R. § 42.208 (Paper 19).
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`4. Person of Ordinary Skill in the Art
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`9.
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`In my opinion, one of ordinary skill in the art for purposes of this
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`proceeding is a person having (1) a bachelor’s degree or equivalent experience, and (2)
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`two years of experience designing and/or developing user interfaces, including
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`experience designing and/or developing graphical user interfaces for electronic
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`trading based on input from a person with knowledge of the needs of an electronic
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`trader. I have more than the level of ordinary skill in the art described above.
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`However, because of my background and my extensive dealings with people having
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`ordinary skill in the art, I am fully capable of speaking about what one of ordinary skill
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`in the art would have understood from reading the specification of the ’055 patent
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`and the other documents discussed in this declaration.
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`5. The “adjusting” of independent claims 1 and 17
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`10.
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`I understand Petitioner is alleging that TSE renders claims 1, 3, 4, and 6-
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`19 obvious. Supporting this allegation is the Petitioner`s explanation of why TSE
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`renders claims 1 and 17 obvious. Within this the Petitioner alleges that “TSE discloses
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`‘adjusting the first plurality price levels’ limitation [1C],[17C].” Petition at 20-22. I
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`disagree.
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`11. Claims 1 and 17 of the ’055 patent state, “displaying a first plurality of
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`price levels along a static price axis...” (emphasis added). This clause immediately
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`precedes the clause “... adjusting the first plurality price levels among a range of price
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`levels to an adjusted plurality of price levels....” For this reason, one of ordinary skill
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`in the art would recognize that claims 1 and 17 require that the first plurality of price
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`levels be displayed along a static price axis before the adjustment.
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`12.
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`Petitioner asserts on pages 20-21 of its petition that in TSE, moving from
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`a compressed method display to a non-compressed method display adjusts a plurality
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`of price levels. Petitioner specifically states, “Thus, when moving between modes, the
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`display ‘adjust[s] the first plurality of price levels among a range of price levels to an
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`adjusted plurality of price levels including the first plurality of price levels.’ (Rho Dec.,
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`¶34.).” Petition at 21. Subsequently in the same section, Petitioner also states, “In
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`TSE, a display is transitioned from a compressed price display to a non- compressed
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`price display ‘in response to an input command received via an input device associated
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`with the computing device.’” Petition at 22.
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`13. Moreover, in the next section titled, “TSE discloses ‘displaying a bid and
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`ask display region on the graphical user interface’ limitation [1D], [17D],” Petitioner
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`again cites moving from a compressed to a non-compressed mode: “When
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`transitioning from a compressed to a non-compressed display (adjusting the first
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`plurality of price levels), the ‘number of the plurality of locations changes according to
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`adjusting he first plurality of price levels.’”
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`14.
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`In my opinion, the compressed display of TSE cited by the Petitioner
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`does not have a static price axis. This is because the central price is continuously
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`repositioned in the compressed display such that it is always centered in the display,
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`moving the price axis accordingly and making the price axis non-static. Indeed, the
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`Page 6 of 14
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`TSE document explains, “In the ‘Compressed Price Display System,’ the ‘Board
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`Display Central Price’ is always automatically edited and displayed in the center of the
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`board.” TSE 7-25, p0115 3rd bullet. Also, the compressed method display only
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`displays prices that satisfy certain requirements (e.g., those with an order), TSE 6-3,
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`further confirming that the prices in the compressed method display are not displayed
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`on a static price axis because they are constantly changing (i.e., appearing or
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`disappearing based on the existence or non-existence of orders).
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`15. As I explained above, claims 1 and 17 require that the first plurality of
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`price levels be displayed along a static price axis before the adjustment. Since the only
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`price axis in the compressed display of TSE is non-static, no price levels can be
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`displayed in the compressed display along a static price axis. Therefore, in my opinion,
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`any change from the compressed display to another display—the only alleged
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`“adjusting” identified by Petitioner—cannot be the claimed “adjusting,” which
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`requires that the first plurality of price levels be displayed along a static price axis
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`before the adjustment.
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`Page 7 of 14
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`6. The “reposition command to reposition the static price axis when a
`designated price is within a designated number of price levels from the
`lowest value or the highest value along the static price axis” of independent
`claims 1 and 17
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`16.
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`I understand that Trading Technologies has taken the position that the
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`translation of TSE in the Petitioner’s exhibit is incorrect. I also understand that
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`Trading Technologies has taken the position that the second bullet on page 7-25 of
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`TSE actually reads, “[i]n a ‘Basic Board Screen’ in the ‘Uncompressed Price Display
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`Mode,’ the ‘Floating Display Area’ of the ‘Board Display Center Price’ is set to a range
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`of ‘Three Prices Up and Down’ when the board screen is split into two parts, and to a
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`range of ‘One Price Up and Down’ when the board screen is split into four or six parts,
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`and the prices at the center part of a board are automatically revised and displayed if
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`that range is exceeded.” This is in contrast to the Petitioner’s translation, which reads,
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`‘Top and Bottom 3 Prices’, and ‘Top and Bottom 1 Price’ in the above instead of ‘Three Prices
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`Up and Down’ , and ‘One Price Up and Down.’
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`17. Under Trading Technologies’ translation, ‘Three Prices Up and Down’ and
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`‘One Price Up and Down’, it is apparent that these ranges are relative to the center of the
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`screen. TSE states in 7-3-2 Central Price in the Board Display, “A board screen where
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`scrolling is not being performed is called a ‘Basic Board Screen,’ and the board
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`information displayed is updated so that the ‘Board Display Central Price’ is always
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`Page 8 of 14
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`displayed in the center of the board.” One of ordinary skill in the art would understand
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`that these ranges are defined from the center of the board screen, as any other
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`definition would be at variance with the TSE objective of keeping a central price in the
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`center of the board screen, because it would systematically bias the central price away
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`from the center of the board screen by allowing the central price to float further away
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`from the center of the board screen in one direction than in an opposite direction.
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`18.
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`In my opinion, the ranges in TSE could not be relative to a value that is
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`the lowest value or the highest value along an axis, because such ranges would span
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`values not shown on the board screens. As a result, the central price would be able to
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`float off the board screens before it exceeds the ranges, making any update triggered
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`by the central price exceeding the ranges too late to fulfill TSE’s objective—keeping
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`the central price in the center of the board.
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`19. Therefore, it is my opinion that the ranges in Trading Technologies’
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`translation cannot correspond to any “designated number of price levels from the
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`lowest value or the highest value along the static price axis,” as required by
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`independent claims 1 and 17.
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`Page 9 of 14
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`7. The “receiving a second reposition command to reposition the static price
`axis when a timer expires” of claims 13 and 18.
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`20.
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`Petitioner asserts on pages 30-31 of its petition that a central price in the
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`compressed price display of TSE is repositioned at the end of a 3 second timer, citing
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`TSE at 7-1. The only reference to any period of time on page 7-1 of TSE reads “The
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`board/quotation information is automatically updated at 3 seconds interval.” In my
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`opinion, this statement was just addressing general updating and has nothing to do
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`with repositioning any static price axis in the compressed price display of TSE.
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`21.
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`Petitioner, however, states on page 31 of its petition that, “Accordingly,
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`a PHOSITA would recognize that ‘a second reposition command’ would be received when
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`the Board is placed into a Compressed Display and the command would ‘reposition the
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`static price axis when a timer expires.’ (Rho Dec., ¶49.)” This is problematic, as the
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`compressed display cited by Petitioner does not have a static price axis, as discussed
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`above.
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`22. As the Compressed Display does not contain a static price axis, no
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`repositioning of a static price axis can occur in the compressed display of TSE.
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`Therefore, no command to reposition anything in the compressed price display has
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`anything to do with the claimed “receiving [of] a second reposition command to
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`reposition the static price axis when a timer expires.”
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`Page 10 of 14
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`I
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`8. Conclusion
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`23.
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`I declare under penalty of perjury under the laws of the United States of
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`America that all statements made herein of my knowledge are true, and that all
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`statements made on information and belief are believed to be true, and that these
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`statements were made with the knowledge that willful false statements and the like so
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`made are punishable by fine or imprisonment, or both, under Section 1001of Tide 18
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`of the United States Code.
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`Date: March 6.2015
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`By:
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`
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`Richard Hartheimer
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`11
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`1
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`Page 11 of 14
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`APPENDIX A
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`APPENDIX A
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`Page 12 of 14
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`RICHARD HARTHEIMER
`66 Joseph Trotter Close, London EC1R 1UB UK; +44 7903 738 086 richard.hartheimer@gmail.com
`-------------------------------------------------------------------------------------------
`Orchestrate management,IT and sales to create and deploy innovative e-commerce products
`from Inception to production. Create solutions tailored to business needs while matched to the
`capabilities of the supplying organization. Hands-on,results oiiented; able to focus team
`members in achieving objectives with complex requirements and time constraints.
`
`a
`
`ACCOMPLISHMENTS:
`New Product Development
`o Designed and commercialized White Label product for Currenex to provide a complete
`eComm solution including liquidity,for FX brokers.Liaised closely with developers to
`ensure requirements were optimally implemented. Subsequently this became flagship
`product for Currenex utilized by entire FX brokerage community
`• Managed the creation of a FRA trading product,competing directly with the interest rate
`products of various Futures exchanges.
` Headed design,development and implementation of EBS, a foreign exchange system
`trading that now does 40% of Spot FX brokerage amongst banks worldwide
`• Transformed a software license vendor to an ASP,providing services to 65 banks
`o Created an Institutional banking product where corporate clients consolidate daily
`statements from multiple banks and effect payments and other banking Instruments
`from their own offices (well before eComm era)
`o Designed and developed a n·ews distribution system for Merrill Lynch to Its more than
`2000 branches
`Management I Leadership
`" Formulated and promoted plan that created sufficient confidence within each bank's It
`and treasury departments for 12 banks to each invest $4.5 million to create EBS
`e Directed the development and deployment of EBS,a worldwide braking system that was
`launched simultaneously at 25 banks
`• Created a new product development group for Cognotec; recruited capital market
`experts as business analysts and created all department processes
`o Represented Citicorp on EBS Board of Directors for four years
`• Chaired interbank trading committee for foreign exchange with membership from top 10
`FX banks
`
`Technical/Industry
`o Proficient in various securities instruments and their related financial applications. They
`include FX, derivatives, money markets and government bonds
`• Designed client-server model architecture, user interface and application structure
`underlying EBS, a brokerage system currently serving 1,000+ banks and other clients
`o Principal inventor for five patents covering methods for electronic trading
`
`EDUCATION
`M.B.A.,Rutgers University: New Brunswick,NJ,USA
`B.A. Physics,Dickinson College: Carlisle,PA,USA
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`Page 13 of 14
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`RICHARD BARTHEIMER
`
`EMPLOYMENT
`2009- Present
`Option Computers Ltd (aka Deall'lub) Programme Manager
`• Heading team developing world-beating Single Dealer Platform for a major bank
`
`Standard Chartered Bank Product Solutions Architect (contractor)
`Programme manager for eCommerce
`• Headed team developing amalgamation of 11 eCommerce systems to real-time position
`keeping utilizing industry-leading integration product
`o Managed acquisition and integration of Reuters eCommerce platform following purcha·se of
`American Express Bank
`
`2007 - 2009
`
`Product Development Executive
`Currenex
`European MD and Product Innovator
`• Led product and IT in the definition and execution of technology leading "first to market"
`online multi quote global currency exchange linking buyers and sellers worldwide, open to
`all Foreign Exchange and Money Market participants
`• Manage operations: Second-level support,regional development
`Accomplishment: Based largely on revenue from new technology solutions I defined, company
`recently was sold to State Street Bank for $565 million
`
`2003 - 2007
`
`Director of Product
`Cognotec
`Develop,Implement and market bank to client EComm product
`• Define strategic direction of the company with respect to its products
`• Specify system requirements to developers through formal process
`• Sell major products to key clients
`Accomplishment: Played leading role in transforming company from a bespoke software
`developer with 5 banking clients to a hosted service provider for 65 banks worldwide
`
`1998- 2003
`
`EBS Dealing Resources Director of Strategic Development
`Grow market share for EBS braking service
`• Determine customer needs through focus groups,surveys, and direct relationships
`• Set development priorities by consideration of all stakeholder needs
`• Manage team that specified system requirements for all projects
`Accomplishment: On my watch EBS grew to become the premier broker of FX,electronic or
`otherwise,doing over 40% of the worlds FX braking,serving 900+ banks
`
`1996-1998
`
`Chief Operating Officer
`Citicorp Dealing Resource·s
`Headed operations and EBS IT development
`• Manage the relationship between Citicorp and EBS
`• Oversaw the development and deployment of the EBS braking system
`• Designer of many of the technical innovations within EBS including Its applications
`architecture and communications network
`• Represent Citlbank on EBS Board of Directors ;chaired Requirements committee
`Accomplishment: Launched EBS braking service in September 1993
`
`1987- 1996
`
`1984 - 1987
`Vice President International Products
`Citicorp International
`Development manager for electronic banking systems for multi-national corporates
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`2
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`Page 14 of 14
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