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.
`Petitioners
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`v.
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`TRADING TECHNOLOGIES INTERNATIONAL, INC.
`Patent Owner
`____________________
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`Patent No. 7,685,055
`____________________
`
`
`DECLARATION OF DAVID RHO
`IN SUPPORT OF PETITION FOR
`COVERED BUSINESS METHOD REVIEW OF U.S. PATENT 7,685,055
`
`
`TDA 1004
`CBM of U.S. Pat. No. 7,685,055
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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.
`Petitioners
`
`v.
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`TRADING TECHNOLOGIES INTERNATIONAL, INC.
`Patent Owner
`____________________
`
`Patent No. 7,685,055
`____________________
`
`
`DECLARATION OF DAVID RHO
`IN SUPPORT OF PETITION FOR
`COVERED BUSINESS METHOD REVIEW OF U.S. PATENT 7,685,055
`
`
`TDA 1004
`CBM of U.S. Pat. No. 7,685,055
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`
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`I, David Rho, declare as follows:
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`1.
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`I have been engaged by Sterne, Kessler, Goldstein & Fox P.L.L.C. on
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`behalf of Petitioners, TD Ameritrade Holding Corporation, TD Ameritrade, Inc.,
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`and TD Ameritrade Online Holdings Corp. (“Petitioners”) for the above-captioned
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`covered business method review proceeding. I understand that this proceeding
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`involves United States Patent 7,685,055, entitled “System and Method for
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`Automatic Repositioning of Market Information in a Graphical User Interface,” by
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`Harris Brumfield, et al., filed May 3, 2006 and issued March 23, 2010 (the “’055
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`Patent”). I understand that the ’055 Patent is currently assigned to Trading
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`Technologies International, Inc. (“TTI”).
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`2.
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`I understand the ’055 Patent is a continuation of U.S. Patent
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`Application No. 10/403,881, filed Mar. 31, 2003, which is a continuation of U.S.
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`Patent Application No. 10/125,894, filed on April 19, 2002 now U.S. Pat No.
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`7,389,268, which is a continuation-in-part of U.S. Patent Application No.
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`09/971,087, filed Oct. 5, 2001 now U.S. Pat No. 7,127,424, which claims the
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`benefit of U.S. Provisional Application No. 60/238,001, filed Oct. 6, 2000. The
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`U.S. Patent Application No. 10/125,894 is also a continuation-in-part of U.S.
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`Patent Application No. 09/590,692, filed Jun. 9, 2000 now U.S. Pat No. 6,772,132
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`and U.S. Patent Application No. 09/589,751, filed Jun. 9, 2000 now U.S. Pat No.
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`6,938,011, both of which claim the benefit of U.S. Provisional Application No.
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`60/186,322, filed Mar. 2, 2000. U.S. patent application Ser. No. 10/125,894 also
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`claims the benefit of U.S. Patent Application No. 60/325,553, filed Oct. 1, 2001
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`3.
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`For purposes of the covered business method review, I assume the
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`earliest possible priority date of the ’055 Patent is the March 2, 2000 filing date of
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`Provisional Application No. 60/186,322.
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`4.
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`I have reviewed and am familiar with the specification of the ’055
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`Patent. I understand that the ’055 Patent has been provided as Exhibit 1001. I will
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`cite to the specification using the following format (’055 Patent, 1:1-10). This
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`example citation points to the ’055 Patent specification at column 1, lines 1-10.
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`5.
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`I have reviewed and am familiar with the file history of the ’055
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`Patent. I understand that the file history has been provided as Exhibit 1002.
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`6.
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`I have also reviewed and am familiar with the following prior art used
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`in the Petition for Covered Business Method Review of the ’055 Patent:
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`• U.S. Patent No. 5,077,665 to Silverman et al. (“Silverman”). I
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`understand that Silverman has been provided as Exhibit 1005.
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`• U.S. Patent No. 5,297,031 to Gutterman et al. (“Gutterman ”). I
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`understand that Gutterman has been provided as Exhibit 1006.
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`• A certified translation of “Futures/Option Purchasing System Trading
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`Terminal Operation Guide” (“TSE”). I understand that the original
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`Japanese language document was provided as Exhibit 1007, the
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`certified translation provided as Exhibit 1008, and the certification of
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`translation provided as Exhibit 1009.
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`A complete listing of additional materials considered and relied upon in
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`preparation of my declaration is provided as Exhibit 1015. I have relied on these
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`materials to varying degrees. Citations to these materials that appear below are
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`meant to be exemplary but not exhaustive.
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`7.
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`The ’055 Patent describes automatic repositioning of market
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`information in a graphical user interface. (’055 Patent, Title.) I am familiar with
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`the technology described in the ’055 Patent as of the earliest possible priority date
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`of the ’055 Patent (March 2, 2000).
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`8.
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`I have been asked to provide my technical review, analysis, insights
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`and opinions regarding the ’055 Patent and the above-noted references that form
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`the basis for the grounds of unpatentability set forth in the petition for Covered
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`Business Method Review of the ’055 Patent.
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`I.
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`QUALIFICATIONS
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`9.
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`See my Curriculum Vitae provided as Exhibit 1014 for a listing of my
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`qualifications.
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`II. MY UNDERSTANDING OF CLAIM CONSTRUCTION
`I understand that, during a covered business method review, claims
`10.
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`are to be given their broadest reasonable construction in light of the specification
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`as would be read by a person of ordinary skill in the relevant art.
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`I. MY UNDERSTANDING OF OBVIOUSNESS
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`11.
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`I am not a lawyer and will not provide any legal opinions. Although I
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`am not a lawyer, I have been advised certain legal standards are to be applied by
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`technical experts in forming opinions regarding meaning and validity of patent
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`claims.1
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`12.
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`I understand that a patent claim is invalid if the claimed invention
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`would have been obvious to a person of ordinary skill in the field at the time of the
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`1 I have relied on the Federal Circuit Bar Association Model Patent Jury
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`Instructions, February 18, 2010, as well as my own experience regarding cited
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`cases.
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`purported invention, which is often considered the time the application was filed.
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`This means that even if all of the requirements of the claim cannot be found in a
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`single prior art reference that would anticipate the claim, the claim can still be
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`invalid.
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`13. As part of this inquiry, I have been asked to consider the level of
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`ordinary skill in the field that someone would have had at the time the claimed
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`invention was made. In deciding the level of ordinary skill, I considered the
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`following:
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`• the levels of education and experience of persons working in the field;
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`• the types of problems encountered in the field; and
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`• the sophistication of the technology.
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`14. To obtain a patent, a claimed invention must have, as of the priority
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`date, been nonobvious in view of the prior art in the field. I understand that an
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`invention is obvious when the differences between the subject matter sought to be
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`patented and the prior art are such that the subject matter as a whole would have
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`been obvious at the time the invention was made to a person having ordinary skill
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`in the art.
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`15.
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`I understand that to prove that prior art or a combination of prior art
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`renders a patent obvious, it is necessary to (1) identify the particular references
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`that, singly or in combination, make the patent obvious; (2) specifically identify
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`which elements of the patent claim appear in each of the asserted references; and
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`(3) explain how the prior art references could have been combined in order to
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`create the inventions claimed in the asserted claim.
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`16.
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`I understand that certain objective indicia can be important evidence
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`regarding whether a patent is obvious or nonobvious. Such indicia include:
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`commercial success of products covered by the patent claims; a long-felt need for
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`the invention; failed attempts by others to make the invention; copying of the
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`invention by others in the field; unexpected results achieved by the invention as
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`compared to the closest prior art; praise of the invention by the infringer or others
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`in the field; the taking of licenses under the patent by others; expressions of
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`surprise by experts and those skilled in the art at the making of the invention; and
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`the patentee proceeded contrary to the accepted wisdom of the prior art.
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`III. LEVEL OF ORDINARY SKILL IN THE ART
`17. One of ordinary skill in the art at the time of the alleged invention,
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`would have had the equivalent of a Bachelor’s degree or higher in computer
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`science and at least 2 years working experience designing graphical user interfaces,
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`and direct or indirect experience with trading or related systems.
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`IV. TSE
`A. Overview
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`18. TSE is a “Futures/Options Trading System” that “handles the trades in
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`the [Bond Futures Market, Bond Future Option Market, Index Futures Market,
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`Index Option Market, and Stock Option Market] with different commodities
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`characteristics.” (TSE, 4-1.) As explained by TSE, “[e]ach of the aforementioned
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`market may have a different price display, and input unit, etc.” (Id.)
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`19. The system of TSE includes a client computer. (TSE, 1-1.) The client
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`computer “has a number of functions such as various order inputs, resale and buy
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`back/rights, exercise inputs, various inquiry inputs, various work operation
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`instructions, and board information inquiries responding to the information display
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`and the printer control function.” (TSE, 2-5.) “The basic operation of the client is
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`almost equal to that of the Windows personal computer.” (TSE, 3-1.) The client
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`“can be operated by the ‘keyboard’ or ‘mouse’.” (TSE, 2-5.) When using the
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`“mouse”, a “selection can be made by ‘[c]licking,’ etc..” (TSE, 3-2.)
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`20. TSE displays information graphical on a screen and thus has a
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`graphical user interface (“GUI”) for displaying market information. One example
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`of the GUI of TSE is the “Board/Quotation” Screen. TSE supports many display
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`options and modes for presenting market information on the Board/Quotation
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`Screen. For example, a user can select from 6 types of display forms that divide
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`the screen to display information for multiple (2, 4 or 6) Security names
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`simultaneously. (TSE, 7-13 to 14.) In addition, quotation information for 11 or 24
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`Security can be displayed with divided configurations of 2 Security names (11 or
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`24 quotations) and 3 Security names (11 quotations). (TSE, 7-14.) As highlighted
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`below, the “Board/Quotation” Screen includes Board Screen portion and a
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`Quotation Portion.
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`(TSE, 7-13.) The Board x 2, Board x 4, and Board x 6 display forms are depicted
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`below.
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`21. Below is an example of a Board Screen when the divided in 2 form is
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`selected by the trader. The Board Screen includes the ability to turn on scrolling
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`through the scroll buttons labeled ⑤. A Board Screen “where scrolling is not
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`being performed is called a ‘Basic Board Screen.’” (TSE, 7-25.) TSE refers to a
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`Board Screen having scrolling enabled as a “Scroll Screen.” (See id.) For
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`purposes of this proceeding, I refer to the Board Screen as having a Basic Board
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`Screen mode and a Scroll Screen mode.
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`(TSE, 7-17.)
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`22. When in Basic Board Screen mode, “the board information displayed
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`is updated so that the ‘Board Display Central Price’ is always displayed in the
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`center of the board.” (TSE, 7-25.) When in Scroll Screen mode, “the price display
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`position does not change automatically.” (Id.)
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`23. A user can transition the Board Screen to Scroll Screen mode by
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`“click[ing] either the [▲] or [▼] scroll button on the board screen with the
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`mouse.” (TSE, 7-26.) When in Scroll Screen mode the “H” is displayed in “Red.”
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`(TSE, 7-20.) A user can transition the Board Screen from Scroll Screen mode to
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`Basic Board Screen mode by “[c]lick[ing] on the ‘H’ (Home) button on the board
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`screen with your mouse.” (TSE, 7-26.)
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`24. As explained in TSE, when the Board Screen is in Screen Scroll
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`mode, “click[ing] either the [▲] or [▼] scroll button on the board screen with the
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`mouse” moves (scrolls) the screen ‘1 Price’ at a time each time the mouse is
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`clicked. (TSE, 7-26.)
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`25. The system of TSE allows a trader to customize the Board/Quotation
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`Screen based on how they prefer to view the market information while they
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`actively trade. For example, TSE provides menus to allow the trader to select the
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`divide form of the Board/Quotation Screen. (TSE, 7-15.) A trader can further
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`select from two price display methods, non-compressed or compressed method, for
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`each Board Screen. (Id. at 6-3.) In the non-compressed method, “[r]egardless of
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`the existence of the orders, etc. at the corresponding price, it is a method to display
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`all prices on the board.” (Id.) In the compressed method, “only the price that
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`satisfies” a set of requirements is displayed. (Id.) The following figure from TSE
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`6-3 depicts the “non-compressed” and “compressed” methods.
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`26. TSE’s “Board/Quotation Screen” functions differently depending on
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`its display mode. (Id.) For example, the “Board/Quotation Screen” can be in
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`“Basic Board Screen” mode or “Scroll Screen” mode. (Id. at 7-25 to 7-26.) When
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`the Board Screen is in Basic Board Screen mode, the display automatically updates
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`to maintain a central price “in the center of the board.” (Id. at 7-25.) The
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`automatic update of TSE can be either continuous or as a result of the occurrence
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`of an event.
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`27. For example, when the display is in “Basic Board Screen” mode with
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`an “uncompressed price display,” the central price is repositioned to the center of
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`the board upon occurrence of an event. If the uncompressed Basic Board is in
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`“Board x 2” divided form, the event is when the central price falls within or
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`exceeds the range of the “Top and Bottom 3 Prices.” (TSE, p. 7-25.) If the
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`uncompressed Basic Board is in “Board x 4” or “Board x 6” form, the event is
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`when the central price falls within or exceeds the range of the “Top and Bottom 1
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`Price.” (Id.) When the display is in “Basic Board Screen” mode with a
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`“compressed price display,” the central price is continuously repositioned to the
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`center of the Board.
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`Claim 1.
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`B.
`28. Claim 1 is reproduced below. I have labeled the elements of claim 1
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`for ease of discussion.
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`[P] A method for repositioning a static price axis on a graphical user
`1.
`interface for displaying market information of a commodity being traded at
`an electronic exchange, the method comprising:
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`[A] receiving market information relating to a commodity from an
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`electronic exchange via a computing device, the market information
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`comprising an inside market with a current highest bid price and a current
`lowest ask price for the commodity;
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`[B] displaying a first plurality of price levels along a static price axis
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`on a graphical user interface of a display device associated with the
`computing device, where the first plurality of price levels range from a
`lowest value to a highest value along the static price axis;
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`[C] in response to an input command received via an input device
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`associated with the computing device, adjusting the first plurality price
`levels among a range of price levels to an adjusted plurality of price levels
`including the first plurality of price levels;
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`[D] displaying a bid and ask display region on the graphical user
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`interface, the bid and ask display region comprising a plurality of locations
`corresponding to the first plurality of price levels displayed along the static
`price axis, wherein each location corresponds to one of the first plurality of
`price levels, and wherein a number of the plurality of locations changes
`according to adjusting the first plurality of price levels;
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`[E] displaying a first indicator representing a quantity associated with
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`the current highest bid price at a first location in the plurality of locations of
`the bid and ask display region, wherein the first indicator ascends or
`descends the static price axis as changes in the current highest bid price
`occur as a result of each of the plurality of price levels along the static price
`axis not changing positions on the graphical user interface unless a
`reposition command is received;
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`[F] displaying a second indicator representing a quantity associated
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`with the current lowest ask price at a second location in the plurality of
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`locations of the bid and ask display region, wherein the second indicator
`ascends or descends the static price axis as changes in the current lowest ask
`price occur as a result of each of the plurality of price levels along the static
`price axis not changing positions on the graphical user interface unless the
`reposition command is received;
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`[G] receiving the reposition command to reposition the static price
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`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; and
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`[H] responsive to receiving the reposition command, automatically
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`repositioning the static price axis on the graphical user interface such that a
`current inside market price is displayed at a new desired location.
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`1. A method of displaying market information … ([P])
`29. As discussed above, TSE discloses a computerized trading method
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`and system that facilitates “trading commodities” by displaying market information
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`to traders via a GUI having a “Board Screen.” (TSE, 4-1, 7-17.) The Board
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`Screen display information for a commodity including the original share price,
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`Today’s volume, Total Failed Order Volume, the order price (market, closing,
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`limit), and order volume. (See TSE, 7-14 to 7-24.) As described in further detail
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`below, TSE also discloses “repositioning a static price axis on [the] graphical user
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`interface.”
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`2.
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`receiving market information relating to a commodity from an
`electronic exchange … ([A])
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`30. The system of TSE handles trades in 5 markets including the Bond
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`Futures market, the Index Future market, and the Stock Option market. (TSE, 4-
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`1.) TSE discloses that “the Board/Quotation information is automatically updated
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`at 3 second[] intervals” with market information, including new bids and offers.
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`(Id. at 7-1, 7-17.) The exchange of TSE has “an inside market with a current
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`highest bid price and a current lowest ask price.” TSE’s Board Screen displays the
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`inside market (current highest bid price and the current lowest ask price).
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`3. displaying a first plurality of price levels along a static price
`axis on a graphical user interface of a display device…([B])
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`In TSE’s Board Screen, the column labeled ⑪ [Order Price Column]
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`31.
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`is a price axis having a “plurality of price levels.” (TSE, 7-17, 7-21.) The price
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`column of TSE has a range of price levels “from a lowest value to a highest value.”
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`The price column of TSE is static when the display is in specific modes. As
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`described above, when the display is in “Basic Board Screen” mode with an
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`“uncompressed price display,” the central price is repositioned to the center of the
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`board upon occurrence of an event. That is, the price axis in this display mode is
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`“static” (does not move) unless a repositioning event occurs
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`4.
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`in response to an input command received via an input device
`associated with the computing device, adjusting the first
`plurality price levels … ([C])
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`32. As discussed above, a trader can select from two price display
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`methods, non-compressed or compressed, for each displayed Board Screen. (TSE,
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`6-3.) In the non-compressed method, “[r]egardless of the existence of the orders,
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`etc. at the corresponding price, it is a method to display all prices on the board.”
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`(Id.) The compressed method, on the other hand, “display[s] only the price that
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`satisfies the following requirements out of the prices on the board[, including],
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`[t]he price with an order[, l]atest agreement price (including the standard price of
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`the day)[, q]uotation display price[, m]atching price.” (Id.)
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`33.
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`In TSE, a display is transitioned from a compressed price display to a
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`non-compressed price display “in response to an input command received via an
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`input device associated with the computing device.” For example, TSE teaches that
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`“[t]he price display method is specified for each screen by selecting the radio
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`button” using a mouse in the “[b]oard/[q]uotation [s]creen setting” window. (Id. at
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`6-4.)
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`34. Figure on TSE 6-3 is reproduced below. As illustrated in this figure,
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`the compressed method display has three price levels [002, 004, 007]. The non-
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`compressed method display (adjusted display) has seven price levels [001, 002,
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`003, 004, 005, 006, 007] including the three levels from the compressed display.
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`Thus, when moving between modes, the display “adjust[s] the first plurality of
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`price levels among a range of price levels to an adjusted plurality of price levels
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`including the first plurality of price levels.”
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`5. displaying a bid and ask display region on the graphical user
`interface … ([D])
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`35.
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`is a price column. (TSE, 7-17, 7-21.) The price column is a price axis having a
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`In TSE’s Board Screen, the column labeled ⑪ [Order Price Column]
`plurality of price levels. The columns labeled ⑫ [Order Volume Columns]
`labeled ⑬ [Number of Orders Column] display “the number of orders.” (Id.)
`Orders to the left of the price column ⑪ are outstanding asks and orders to the
`the right of price column ⑪ automatically populates the new order entry window
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`display “the order volume for each order price.” (Id. at 7-22, 7-23.) The columns
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`right are outstanding bids. (See also id. at 9-5.)(depicting that selecting an area to
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`with “buy order” code (3)).
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`6.
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` “displaying a first [second] indicator” ([1E], [1F])]
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`36. The columns labeled ⑫ in TSE’s Board Screen display “the order
`volume for each order price” and the columns labeled ⑬ display “the number of
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`orders.” (Id. at 7-22.) The Board Screen of TSE displays the highest bid price and
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`quantity (price: 13019; quantity: 17) and the lowest ask price and quantity (price:
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`13019; quantity: 5). As discussed above, the “first indicator” is at a “first location
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`in the plurality of locations of the bid and ask display region” and the “second
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`indicator” is at a “second location in a plurality of locations of the bid and ask
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`display region.”
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`37. TSE discloses “wherein the first indicator ascends or descends the
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`static price axis as changes in the current highest bid price occur” and “wherein
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`the second indicator ascends or descends the static price axis as changes in the
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`current lowest ask price occur.” TSE discloses that “the board/quotation
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`information is automatically updated at 3 second[] interval[s]” with market
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`information, including new bids and offers. (Id. at 7-1.)
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`7. “receiving the reposition command to reposition the static
`price axis” … ([G])
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`38. When the display is in “Basic Board Screen” mode with an
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`“uncompressed price display,” the central price is repositioned to the center of the
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`board upon occurrence of an event. If the uncompressed Basic Board is in “Board
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`x 2” divided form, the event is when the central price falls within or exceeds the
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`range of the “Top and Bottom 3 Prices.” (TSE, p. 7-25.) If the uncompressed
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`Basic Board is in “Board x 4” or “Board x 6” form, the event is when the central
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`price falls within or exceeds the range of the “Top and Bottom 1 Price.” (Id.) When
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`the display is in “Basic Board Screen” mode with a “compressed price display,”
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`the central price is continuously repositioned to the center of the Board.
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`39. The “central price” is the recited “designated price.” When the
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`central price is “within a designated number of price levels from the lowest or the
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`highest value along the static price axis” (e.g., designated price within or exceeds
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`“top and bottom 3 prices” or “top and bottom 1 price”), a repositioning event
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`occurs.
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`8. “responsive to receiving the reposition command,
`automatically repositioning the static price axis” … ([H])
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`40. When the display is in “Basic Board Screen” mode with an
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`“uncompressed price display” and a repositioning event occurs (e.g., designated
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`price within or exceeds “top and bottom 3 prices” or “top and bottom 1 price”), the
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`static price axis is automatically repositioned such that a current inside market
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`price is displayed at a new location. (See id.)(When a repositioning even occurs
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`when in Basic Board Screen mode with uncompressed price display, the display “is
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`automatically edited and [the price is] displayed in the center of the board.” (Id.)
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`- 20 -
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`Claims 3 and 6
`
`C.
`41. As described above, TSE displays the inside market price for a
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`commodity. It would have been obvious to a PHOSITA to “establish[] that the
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`[second] designated price is based on an inside market for the commodity.”
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`Having the inside market centered in the GUI gives the trader more market data to
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`work with and make trading decisions. With the display centered on the inside
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`market, the trader can quickly see any market imbalance, which they might miss if
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`the inside market is too far to one extreme or the other of the display. Also, seeing
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`the market depth, the trader will gain insight to the market momentum, market
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`volatility and price support that might affect their trading decisions.
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`Claim 4
`D.
`42. TSE identifies at least three “designated prices”: 1) a “Special Quote
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`Price;” 2) the relevant order price, if there is a sell order or buy order that takes
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`priority over the latest contract price; and 3) the latest contract price. (TSE, p. 7-
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`25.) Any one of the three prices could be “establish[ed as]a second designated
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`price.” In TSE, the board information is updated so that the central price
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`(designated price) is always displayed in the center of the board. (TSE, p. 7-25.)
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`The center of the board is a “predetermined location in relation to the static price
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`axis.” In TSE, the display is automatically repositioned when the display is in
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`Basic Board Screen mode. As discussed above, this automatic repositioning could
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`- 21 -
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`
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`be continuous (e.g., when in a compressed price display) or in response to an event
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`(e.g., when in an uncompressed price display). Thus, TSE discloses
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`“automatically repositioning the static price axis on the graphical user interface to
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`position the second designated price at a predetermined location in relation to the
`
`static price axis.” The automatic repositioning of the static price axis in turn
`
`causes the current inside market price to be displayed at a new desired location on
`
`the Board Screen.
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`Repositioning Event Claims
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`E.
`43. Claims 7-12 merely recite conditions defining the repositioning event
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`relative to the price axis. As would be appreciated by a PHOSITA, setting when
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`the position of the designated price on the price axis triggers a repositioning event
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`is a mere design choice.
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`44. Claim 7: “when the designated price is within the designated number
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`of price levels above the lowest value.” Claim 9: “when the designated price is
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`within the designated number of price levels below the highest value.”
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`45.
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`In the ‘Basic Board Screen’ of the ‘Uncompressed Price Display
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`System,’ in the case of the 2-division board screen, the ‘Floating Display Area’ of
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`the ‘Central Board Display Price’ of the ‘Top and Bottom 3 Prices,’ and in the 4
`
`and 6-division board screens, and of the ‘Central Board Display Price’ of the ‘ Top
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`
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`- 22 -
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`
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`
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`and Bottom 1 Price’ is set, so if that range is exceeded, prices in the center of the
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`board are automatically edited and displayed. (TSE, p. 7-25 (emphasis added).)
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`46. Claim 8: “when the designated price falls below the lowest value
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`displayed along the static price axis.” Claim 10: “when the designated price falls
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`above the highest value displayed along the static price axis.” Claim 11: “when
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`the designated price is at the lowest value.” Claim 12: “when the designated price
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`is at the highest value.”
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`47. Selecting these criteria for initiating a repositioning command is a
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`mere design choice. A PHOSITA would be motivated to initiate repositioning
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`when the designated price is at the edge or exceeds the displayed prices so that the
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`trader has access to the most market information.
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`Claim 13 and 18
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`F.
`48. As discussed above, in TSE “[t]he board/quotation information is
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`automatically updated at 3 second[] interval[s].” (TSE, p. 7-1.) Additionally,
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`when the Board Screen is a “Compressed Price Display,” the location of the central
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`price is “automatically edited and displayed in the center of the board.” (Id. at 7-
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`25.) Therefore, the central price is repositioned when the board/quotation
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`information is updated at the end of a 3 second timer.
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`- 23 -
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`
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`49. Accordingly, a PHOSITA would recognize that “a second reposition
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`command” would be received when the Board is placed into a Compressed Display
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`and the command would “reposition the static price axis when a timer expires.”
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`Claim 15
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`G.
`50. As described above, when in Basic Board mode, TSE repositions the
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`display such that the central price is displayed in the center of the board.
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`Therefore, the “new location” for the central price after the repositioning
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`“substantially centered between the lowest value and the highest value along the
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`static price axis.” As further discussed above, the designated price could be set as
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`the “inside market.”
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`V. TSE AND GUTTERMAN
`51. TSE fails to disclose “that the [second] designated price is based on a
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`last trade price for the commodity.” However, this is disclosed by Gutterman. In
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`Gutterman, a market bar “is positioned at the current trade price of the commodity
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`in response to information communicated to the workstation 10 by the exchangeʼs
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`price reporting system.” (Gutterman, 12:7-12.) “The market bar 137 moves up and
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`down along column 136 in response to changes in the market price.” (Id. at 12:15-
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`17.) Thus, the last trade order is a “designated price.”
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`- 24 -
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`52.
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`It would have been obvious to a PHOSITA to modify teachings of a
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`trading system discussed in TSE to use the last trade as discussed in Gutterman as
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`the designated price because such a combination is nothing more than a mere
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`design choice combining prior art elements, according to known methods to yield
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`predictable results.
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`VI. SILVERMAN, GUTTERMAN, AND TSE
`A. Overview
`53. Silverman, like the ’055 Patent, is directed to a “computerized
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`exchange” for “trading various trading instruments.” (Silverman, 4:57-5:3.) FIG. 1
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`of Silverman (reproduced below) depicts a functional block diagram of the trading
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`system of Silverman. As illustrated in FIG. 1, Silverman discloses a host or central
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`system 20. The host system executes trades by matching active bids and offers sent
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`from client sites. (Id. at 2:65-3:8, 5:7-11, 5:32-46.) The keystations 24, located at
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`the client sites and connected to the central system via a network, are used to
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`transmit bids and offers for the various trading instruments to the central system.
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`(Id. at 2:65-3:14, 5:20-32.)
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`- 25 -
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`
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`54. The host system 20 also maintains a “host book data base comprising
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`all of the active bids and offers in the system by trading instrument.” (Silverman,
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`2:66-68) As explained by Silverman, the host book “contains detailed information
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`from each client site on the particulars of each bid or offer.” (Silverman, 8:38-40.)
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`Thus, the host book includes the market depth (the current bid and ask prices and
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`quantities in the market) for a commodity. Similarly, each keystation 24 maintains
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`a keystation book for each instrument being actively traded. (Silverman, 10:15-25,
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`10:56-61.) The information used in the keystation book is used “to generate
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`displays at the keystations.” (Silverman, 8:17-18.) FIG. 5 of Silverman
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`(reproduced below with annotations) illustrates a typical keystation book.
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`- 26 -
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`55. The keystation book is “a subset of the system or central station or
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`host book ….” (Silverman, 8:13-14.) Keystation books are initially received from
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`and continuously updated by the central system 20. (Silverman, 3:46-4:10, 5:7-19,
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`5:37-49 (“real-time updates”), 7:56-8:61, 10:15-25.) The depth of display for a
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`commodity on a keystation is controlled by the host computer that determines the
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`maximum possible display depth for the keystation book and the keystation which
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`may further control the information displayed. (Silverman, 8:21-35.) A PHOSITA
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`would recognize that if the keystation can display a subset of the disp
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