IBG LLC, Interactive Brokers LLC, Tradestation
`Group Inc., Tradestation Securities, Inc.,
`Tradestation Technologies, Inc. and IBFX, Inc.
`v.
`Trading Technologies International, Inc.
`
`CBM2015-00181 (Patent No. 7,676,411)
`CBM2015-00182 (Patent No. 6,772,132)
`
`PETITIONER’S DEMONSTRATIVES
`
`Sterne, Kessler, Goldstein & Fox P.L.L.C.
`
`October 19, 2016
`
`1
`
`IBG 1058
`IBG v. Trading Technologies
`CBM2015-00181
`
`

`
`Alice Corp. Pty. Ltd. v. CLS Bank Int’l
`
` Step 1: Is patent directed to one of the
`three judicial exceptions to patentable
`subject matter: laws of nature, natural
`phenomena, abstract ideas?
`
` Do claim elements, both individually and
`as an ordered combination, recite any
`significant limitation or “inventive
`concept”?
`
`’132 Petition, pp. 15-16.
`’411 Petition, pp. 15-16.
`
`2
`
`

`
`The ’132 Claims are Ineligible
`Under 35 U.S.C. § 101
`
`3
`
`

`
`The ’132 claims fail Alice step 1
`
`Abstract Idea:
`placing an order based on observed
`(plotted) market information, as well
`as updating market information
`’132 Petition, pp. 15-18.
`
`’132 Patent, Claim 1.
`
`4
`
`

`
`The ’132 claims fail Alice step 1
`
`Commodity trading is a fundamental economic practice.
`
`’132 Patent, 1:12-13.
`
`. . .
`
`’132 Reply, p. 5.
`
`’132 Patent, Claim 1.
`
`5
`
`

`
`The ’132 claims fail Alice step 1
`
`The ’132 claims do not improve the functioning of a computer.
`
`TT’s expert, Dr. Olsen, agrees:
`Q. Okay. Does the GUI in Figure 3 make the computer run
`faster?
`
`…A
`
`. It does not.
`
`…Q
`
`. Does the GUI in Figure 3 allow the computer to use less
`energy?
`A. That is not one of the claimed improvements, no.
`
`…Q
`
`. Does the GUI in Figure 3 make the computer more
`efficient relative to the network?
`A. That’s not one of the claimed improvements, no.
`Olsen Dep. Tr., 57:18-18:13.
`
`’132 Reply, p. 3.
`
`6
`
`

`
`The ’132 claims fail Alice step 1
`TT’s expert, Mr. Thomas, agrees:
`Q. Anything in any of the claims of the ’411 that would allow the computing
`device to process data faster?
`
`HE WITNESS: The invention detailed in the patent does not relate to processing
`anything -- the general concept of what you said about processing data faster. It
`relates to specifically what is detailed in the claims and described in the
`specification.
`Q. Anything in any of the claims of the ’411 Patent that would allow the
`computing device to process data more efficiently?
`…
`THE WITNESS: And my answer is the same. …
`Q. Anything in any of the claims of the ’411 Patent that would allow the
`computing device to process data more reliably than say a Figure 2 type GUI?
`A. I mean my answer is the same. …
`
`…T
`
`…Q
`
`. And would your answer be the same for all of those questions for the ’132
`patent?
`A. Yes.
`
`’132 Reply, p. 3.
`
`Thomas Dep. Tr., 393-397.
`
`7
`
`

`
`The ’132 claims fail Alice Step 1
`
`The ’132 patent simply provides a graphical representation of what a
`trader has done in his mind since trading began.
`
`TT’s expert,
`Mr. Thomas:
`
`’132 Petition, p. 8.
`
`Thomas Dep. Tr., Ex. 1034, p. 63.
`
`8
`
`

`
`The ’132 claims fail Alice step 2
`
`abstract idea is implemented on a generic computer
`
`’132 Patent, 4:4-11.
`
`’132 Petition, pp. 19-20.
`
`’132 Patent, 4:66-5:3.
`
`9
`
`

`
`The ’411 Claims are Ineligible
`Under 35 U.S.C. § 101
`
`10
`
`

`
`The ’411 claims fail Alice step 1
`
`Abstract Idea:
`placing an order based on observed
`(plotted) market information, as well
`as updating market information
`’411 Petition, 15-18.
`
`’411 Patent, Claim 1.
`
`11
`
`

`
`The ’411 claims fail Alice step 1
`
`commodity trading is a fundamental economic practice
`
`’411 Patent, 1:21-23.
`
`’411 Patent, Claim 1.
`
`’411 Reply, pp. 5-6.
`
`12
`
`

`
`The ’411 claims fail Alice step 1
`
`The ’411 claims do not improve the functioning of a computer.
`
`TT’s expert, Dr. Olsen, agrees:
`Q. Okay. Does the GUI in Figure 3 make the computer run
`faster?
`
`…A
`
`. It does not.
`
`…Q
`
`. Does the GUI in Figure 3 allow the computer to use less
`energy?
`A. That is not one of the claimed improvements, no.
`
`…Q
`
`. Does the GUI in Figure 3 make the computer more
`efficient relative to the network?
`A. That’s not one of the claimed improvements, no.
`Olsen Dep. Tr., 57:18-18:13.
`
`’411 Reply, p. 4.
`
`13
`
`

`
`The ’411 claims fail Alice step 1
`
`TT’s expert, Mr. Thomas, agrees:
`Q. Anything in any of the claims of the ’411 that would allow the computing
`device to process data faster?
`
`…T
`
`HE WITNESS: The invention detailed in the patent does not relate to processing
`anything -- the general concept of what you said about processing data faster. It
`relates to specifically what is detailed in the claims and described in the
`specification.
`Q. Anything in any of the claims of the ’411 Patent that would allow the
`computing device to process data more efficiently?
`…
`THE WITNESS: And my answer is the same. …
`Q. Anything in any of the claims of the ’411 Patent that would allow the
`computing device to process data more reliably than say a Figure 2 type GUI?
`A. I mean my answer is the same. …
`
`’411 Reply, p. 4.
`
`Thomas Dep. Tr., 393-397.
`
`14
`
`

`
`The ’411 claims fail Alice Step 1
`
`The ’411 patent simply provides a graphical representation of what a
`trader has done in his mind since trading began.
`
`TT’s expert,
`Mr. Thomas:
`
`’411 Petition, p. 8.
`
`Thomas Dep. Tr., Ex. 1033, p. 63.
`
`15
`
`

`
`The ’411 claims fail Alice step 2
`
`abstract idea is implemented on a generic computer
`
`’411 Patent, 4:8-12.
`
`’411 Petition, p. 19.
`
`’411 Patent, 5:1-3.
`
`16
`
`

`
`TSE is a Prior Art Printed
`Publication
`
`17
`
`

`
`TSE is a prior art printed publication
`
`TSE was disseminated to the interested public
`in August 1998
`
`Mr. Kawashima:
`Q. Do you know who at the Tokyo Stock Exchange
`prepared this document?
`A. I was in charge of preparing this document.
`
`…Q
`
`. … When was this 1998 manual given to the
`participants at the Tokyo Stock Exchange?
`A. (Through interpreter) In August of 1998.
`Q. And about how many participants of the Tokyo
`Stock Exchange was it given to?
`A. It was given to all those able to conduct futures
`option trading. That would be around 200
`companies.
`
`2005 Kawashima Dep. Tr., 12:1-13:5.
`
`18
`
`TSE:
`
`August, 1998
`Tokyo Stock Exchange
`Operation System Division
`
`TSE, p. 5.
`
`’132 Petition, p. 11; ’132 Reply, pp. 10-13.
`’411 Petition, p. 11; ’411 Reply, pp. 10-14.
`
`

`
`TT’s Alleged Secondary
`Considerations Fail
`
`19
`
`

`
`TT’s Alleged Secondary Considerations Fail
`
`Three reasons:
`1. TT cannot overcome the Petitions’ strong prima facie
`obviousness showings
`
`2. TT failed to establish the requisite nexus
`
`3. TT’s evidence does not support the alleged secondary
`considerations
`
`’132 Reply, pp. 17-31.
`’411 Reply, pp. 17-31.
`
`20
`
`

`
`Cannot Overcome prima facie Obviousness
`
`’132 Reply, pp. 17-18.
`’411 Reply, pp. 17-18.
`
`21
`
`

`
`Cannot Overcome prima facie Obviousness
`
`’132 Reply, pp. 17-18.
`’411 Reply, pp. 17-18.
`
`22
`
`

`
`Cannot Overcome prima facie Obviousness
`
`TT’s expert, Mr. Thomas, admits that all the
`’132 claim elements were known
`
`Mr. Thomas:
`
`’132 Thomas Decl., ¶ 99; see ’132 Reply, p. 18.
`
`23
`
`

`
`Cannot Overcome prima facie Obviousness
`
`TT’s expert, Mr. Thomas, admits that all the
`’411 claim elements were known
`
`Mr. Thomas:
`
`’411 Thomas Decl., ¶ 99; see ’411 Reply, p. 18.
`
`24
`
`

`
`TT Failed to Establish Nexus
`
`25
`
`

`
`TT Failed to Establish Nexus
`
`No presumption of nexus:
`TT’s evidence is not tied to the product it alleges is the invention
`
`MD Trader 2004: ?
`
`MD Trader 2005: ?
`
`…
`
`MD Trader 2013: ?
`
`’132 Reply, p. 20.
`’411 Reply, p. 20.
`
`Ex. 2233, p. 12.
`
`26
`
`

`
`TT Failed to Establish Nexus
`
`secondary considerations result from unclaimed/known features:
`speed, precision, one-click re-centering not claimed
`
`’132 Reply, p. 21.
`’411 Reply, p. 21-22.
`
`Ex. 2223, p. 3-4.
`
`27
`
`

`
`TT Failed to Establish Nexus
`
`secondary considerations result from unclaimed/known features:
`multi-screen visualization not claimed
`
`Ex. 2223, p. 3-4.
`
`’132 Reply, p. 21.
`’411 Reply, p. 21-22.
`
`28
`
`

`
`TT’s Evidence Does Not Support
`Secondary Considerations
`
`29
`
`

`
`TT’s Evidence Does Not Support
`Secondary Considerations
`
`Figure 3-style arrangement of market information
`was not against conventional wisdom
`
`INTEX 1984
`
`Gutterman 1990
`
`Weiss 1993
`
`TSE 1998
`
`’132 Petition, p. 17; ’132 Reply, p. 30.
`’411 Petition p. 17; ’411 Reply, p. 30.
`
`30
`
`

`
`TT’s Evidence Does Not Support
`Secondary Considerations
`Commercial success fails: TT provides no market share data, and
`does not quantify MD Traders’ contribution to its revenue
`
`’132 Reply, pp. 23-25.
`’411 Reply, pp. 23-25.
`
`31
`
`Ex. 2231, p. 1.
`
`

`
`TT’s Evidence Does Not Support
`Secondary Considerations
`Commercial success fails:
`commodities trading in U.S. explodes in early-to-mid 2000s
`
`’132 Reply, pp. 25.
`’411 Reply, pp. 25.
`
`32
`
`

`
`Claim 1, ’132 Patent
`
`Claim 1, ’132 Patent
`
`1. A method of placing a trade order for a commodity on
`an electronic exchange having an inside market with a
`highest bid price and a lowest ask price, using a graphical
`user interface and a user input device, said method com-
`prising:
`
`setting a preset parameter for the trade order
`
`through a
`displaying market depth of the commodity,
`dynamic display of a plurality of bids and a plurality of
`asks in the market for the commodity, including at least
`a portion of the bid and ask quantities of the
`commodity, the dynamic display being aligned with a
`static display of prices corresponding thereto, wherein
`the static display of prices does not move in response
`to a change in the inside market;
`
`displaying an order entry region aligned with the static
`display prices comprising a plurality of areas for
`receiving commands from the user input devices to
`send trade orders, each area corresponding to a price of
`the static display of prices; and
`
`selecting a particular area in the order entry region
`through single action of the user input device with a
`pointer of the user input device positioned over the
`particular area to set a plurality of additional param-
`eters for the trade order and send the trade order to the
`
`33
`
`

`
`Claim 3, ’132 Patent
`
`Claim 3, ’132 Patent
`
`2. A method of placing a trade order according to claim 1,
`wherein said trade order is a buy order if the position of the
`pointer at the time of said single action is within a bid order
`entry region and wherein said trade order is a sell order if the
`position of the pointer at the time of said single action is
`within an ask crder entry region.
`3. A method of placing a trade order according to claim 2,
`wherein the trade order is for a pre-determined fixed quan-
`tity and for a price corresponding to the position of the
`pointer at the time of said single action.
`
`34
`
`

`
`Claims 24-26 and 29, ’132 Patent
`
`Claims 24-26 and 29, ’132 Patent
`
`24. A method according to claim 1, further comprising
`re-centering said prices corresponding to the bids and asks
`about an inside market price upon receipt of a re-centering
`instruction.
`
`25. A method according to claim 1, further comprising
`dynamically displaying working orders in alignment with
`the prices corresponding thereto.
`
`26. A method of displaying according to claim 1, further
`comprising dynamically displaying entered orders in align-
`ment with the prices corresponding thereto, wherein said
`entered orders indicate a quantity of said commodity for
`which a trader’s orders have been filled at said oorrespond-
`ing prices.
`
`29. A method of displaying according to claim 1, wherein
`said displaying the market depth of a commodity traded in
`a market further comprises dynamically displaying a last
`traded quantity for said commodity in alignment with the
`price corresponding thereto.
`
`35
`
`

`
`Claim 1, ’411 Patent
`
`Claim 1, ’411 Patent
`
`1. A method of displaying market information relating to
`and facilitating trading of a commodity being traded on an
`electronic exchange, the method comprising:
`receiving, by a computing device, market information for a
`commodity from an electronic exchange, the market
`information comprising an inside market with a current
`highest bid price and a current lowest ask price;
`displaying, via the computing device, a bid display region
`comprising a plurality of graphical
`locations, each
`graphical location in the bid display region correspond-
`ing to a different price level of a plurality of price levels
`along a price axis;
`displaying, via the computing device, an ask display region
`colllpl-l Slllg ll pllllallly of glaplllcal
`lllcallollsi each
`Emphlcal 109350“ in the 35]‘ dl3Pl3)’ 1'egifln Cmrespond‘
`lllg lo a dlffelelll Pllce level of the plurality of Price
`1eVe15 along the Price 3Xi5;
`dynamlcally ‘5ll5PlaYln3.- “la the comp‘-lllllg devices 3 first
`lndlcalol llepllesellll-‘lg ‘lllallllly associated Wllh at leasl
`011° trad‘: Order “3 buy Th‘-‘ °°mm°dll}’ at lhc Cum-‘nl
`hig11'35l bid Price in 3 first Sl'aPhi‘331 l'3°3tl°n Uflhe 131"‘
`rality ofgraphieal locations in the bid display region, the
`first graphical location in the bid display region corre-
`sponding to a price level associated with the current
`highest bid price;
`upon receipt ofmarket information comprising a new high-
`est bid price, moving the first indicator relative to the
`price axis to a second graphical location of the plurality
`of graphical locations in the bid display region, the sec-
`ond graphical location corresponding to a price level of
`the plurality of price levels associated with the new
`highest bid price, wherein the second graphical location
`is different from the first graphical location in the bid
`display region;
`
`dynamically displaying, via the computing device, a sec-
`ond indicator representing quantity associated with at
`least one trade order to sell the commodity at the current
`lowest ask price ir1 a first graphical location of the plu-
`rality ofgraphical locations in the ask display region, the
`first graphical location in the ask display region corre-
`sponding to a price level associated with the current
`lowest ask price:
`upon receipt ofmarket information comprising a new low-
`est ask price, moving the second indicator relative to the
`price axis to a second graphical location of the plurality
`ofgraphical locations in the ask display region, the sec-
`ond graphical location corresponding to a price level of
`the plurality of price levels associated with the new
`lowest ask price, wherein the second graphical location
`is different from the first graphical location in the ask
`display region;
`di splaying, via the computing device, an order entry region
`comprising a plurality of graphical areas for receiving
`single action commands to set trade order prices and
`send trade orders, each graphical area corresponding to
`a dillereiit price level along the price axis; and
`
`selecting a particular graphical area in the order entry
`region through a single action of the user input device to
`both set a price for the trade order and send the trade
`order having a default quantity to the electronic
`exchange.
`
`36
`
`

`
`Claims 9-11, ’411 Patent
`
`Claims 9-11, ’411 Patent
`
`9. The n1ethed ef elaim 1, further eenlprising dynamically
`displaying an entered erder indieater at a graphieal leeatien
`aligned with a priee level ef the plurality ef priee levels,
`wherein the entered erder indieate-r represents a user’s trade
`erder werking at the priee level aligned with the entered erder
`indieater.
`
`III]. The method ef elaini 9, further eemprising eaneeling
`the user’s trade erder represented by the entered e-rder indi-
`eater in respense te a single aetien ef tl1e user input deviee
`with the eurser ef the user input device pesitiened ever the
`entered nrder indieate-r.
`
`11. The method ef elain1 1, further eernpri sing reeeiving a
`re-eentering eenunand te eenter the inside market in a win-
`
`37