UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`
`Trading Technologies International, Inc.
`
`
`
`Civil Action No. 10-cv-884
`
`Judge James F. Holderman
`
`Magistrate Judge Arlander Keys
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`
`
`
`
` Plaintiff,
`
`v.
`
`
`TradeStation Securities, Inc., and
`TradeStation Group, Inc.,
`
`
`
` Defendants.
`
`
`
`
`TRADESTATION SECURITIES, INC.’S AND TRADESTATION GROUP, INC.’S
`INITIAL INVALIDITY CONTENTIONS PURSUANT TO LOCAL PATENT RULE 2.3
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`Pursuant to Local Patent Rule 2.3(b), Defendants TradeStation Securities, Inc. and
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`TradeStation Group, Inc. (collectively “Defendants” or “TradeStation”), by and through their
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`undersigned attorneys, hereby disclose their initial invalidity contentions for the asserted claims
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`of the asserted patents. TradeStation‟s disclosure is limited to the following claims, which are
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`the only claims asserted in this case by Plaintiff Trading Technologies International, Inc.
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`(“Plaintiff” or “Trading Technologies”):
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`1. U.S. Patent No. 6,766,304 (the “‟304 Patent”): Claims 1-3, 5-9, 11-40.
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`2. U.S. Patent No. 6,772,132 (the “‟132 Patent”): Claims 1-4, 7-11, 14-17, 20, 22-30,
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`32-40, 42-56.
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`3. U.S. Patent No. 7,212,999 (the “‟999 Patent”): Claims 1, 3, 12-16, 18-21, 23, 26-28,
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`30-33, 35.
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`4. U.S. Patent No. 7,533,056 (the “‟056 Patent”): Claims 1-3, 5, 7, 9-10.
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`1
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`Page 1 of 168
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`TRADING TECH EXHIBIT 2031
`IBG ET AL. v. TRADING TECH
`CBM2015-00181
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`

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`5. U.S. Patent No. 7,676,411 (the “‟411 Patent”): Claims 1-6, 8-22, 24-28.
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`6. U.S. Patent No. 7,693,768 (the “‟768 Patent”): Claims 1-2, 4-8, 10-23.
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`7. U.S. Patent No. 7,725,382 (the “‟382 Patent”): Claims 1-2, 4-19, 21-32.
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`TradeStation‟s discovery and investigation are continuing. These disclosures are based
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`on information obtained to date. The Court has not yet construed the asserted claims. By
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`offering these contentions TradeStation does not adopt, endorse, or reject any particular claim
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`construction, and TradeStation explicitly reserves all rights to amend and/or supplement these
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`contentions in its Final Contentions at the appropriate time as provided by the Scheduling Order,
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`and moreover TradeStation reserves all rights to make such other appropriate amendments or
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`supplementation as may be required by any Claim Construction or other Orders entered in this
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`case.
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`Pursuant to Patent Local Rule 2.3, TradeStation is providing these contentions to apprise
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`Plaintiff of TradeStation‟s current invalidity contentions – these contentions are not intended to
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`proffer any proposed claim constructions. In many instances, TradeStation prepared its
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`Preliminary Invalidity Contentions, in part, based on positions adopted by Plaintiff in its
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`Preliminary Infringement Contentions. As a result, it is important to note that, where an element
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`of a prior art reference is associated with a given claim element herein, this does not mean that
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`TradeStation necessarily contends or agrees that the limitation is present in the prior art reference
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`under the proper interpretation of the claim, but rather that the limitation may be present either
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`under (1) the proper interpretation of the claim or (2) an interpretation apparently being urged by
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`Plaintiff (as reflected in Plaintiff‟s pleadings or as otherwise implied by Plaintiff by its
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`accusations directed at TradeStation‟s products), which may very well be erroneous. Indeed, it
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`appears Plaintiff may be attempting to take positions that are contravened by the Federal
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`Circuit‟s opinion in Case Nos. 2008-1392, 2008-1393, 2008-1422; Plaintiff should be barred by
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`principles of collateral estoppel from adopting such positions. TradeStation does not concede the
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`accuracy of Plaintiff‟s proposed claim scope or constructions or application of such constructions
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`to TradeStation‟s products and such inclusion should not be construed as an admission that the
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`prior art meets the claims under all constructions. In light of the prior art disclosed herein, no
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`asserted claim is both valid and infringed by any TradeStation product.
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`Moreover, TradeStation believes the asserted claims are directed to unpatentable subject
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`matter under 35 U.S.C. § 101 in light of the United States Supreme Court‟s recent decision in
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`Bilski v. Kappos, 130 S. Ct. 3218 (2010). Although the Local Rules do not mandate specific
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`disclosure of defenses arising under § 101, TradeStation notes here that the asserted claims are
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`all directed to basic economic practices represented in a graphical user interface and are thus
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`unpatentable under Bilski and recent cases applying Bilski.
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`TradeStation reserves its right to amend and supplement these contentions based on fact
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`and expert discovery are yet to be completed.
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`The reference cited in the attachments to this document disclose the elements of the
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`asserted claims and in some instances obvious variants thereof, either explicitly or inherently, or
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`may be relied upon to show the state of the art in the relevant timeframe. In addition, the cited
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`references may disclose an obvious variation of a recited claim element.
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`A.
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`Patent Local Rules 2-3(b)
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`1. Identification of References
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`Each of the references below (and/or the underlying products described therein) qualifies
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`as prior art under one or more sections of 35 U.S.C. §§ 102 and/or 103. For example, many of
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`the listed United States Patents qualify as prior art under at least 35 U.S.C. §§ 102(a), 102(b),
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`3
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`and/or 102(e). The invalidating disclosure in each of the listed references and materials is
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`express and/or inherent. Also, as shown below, any document or product anticipating an
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`asserted claim pursuant to 35 U.S.C. § 102 also renders the claim obvious pursuant to 35 U.S.C.
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`§ 103 when viewed alone or in combination with other prior art references provided herein. The
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`references provided herein may also be relied upon to show the state of the art in the relevant
`
`time frames.
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`TradeStation contends that the following items of prior art anticipate each asserted claim
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`of the ‟999 Patent, or render those claims obvious:
`
`A.
`
`U.S. Patent No. 6,408,282 (“Buist ‟282”), issued June 18, 2002. Buist‟282 is
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`prior art against the ‟999 Patent under 35 U.S.C. § 102(e). Buist ‟282 anticipates
`
`or renders obvious the asserted claims 1-3, 12-16, 18-21, 23, 26-28, 30-33, and 35.
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`B.
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`The Wit Capital Digital Stock Market system (“DSM”), the operation of which is
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`explained in various depositions of the developers of that system taken in
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`Plaintiff‟s litigation against eSpeed, as well as declarations of those developers
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`from that case, and documents produced in that case that have not yet been made
`
`available to TradeStation, anticipates or renders obvious the asserted claims 1-3,
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`12-16, 18-21, 23, 26-28, 30-33, and 35. DSM is prior art against the ‟999 Patent
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`under 35 U.S.C. § 102(b).
`
`C.
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`U.S. Patent No. 5,297,031 (“Gutterman ‟031”), issued May 22, 1994. Gutterman
`
`is prior art against the ‟999 Patent under 35 U.S.C. § 102(b). Gutterman ‟031
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`anticipates or renders obvious the asserted claims 1-3, 12-16, 18-21, 23, 26-28,
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`30-33, and 35.
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`4
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`D.
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`Orientation Materials for Participants New Future Options Trading System,
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`September 1997 (Tokyo Stock Exchange), produced at TSE609 et seq. (“TSE
`
`Orientation”) is prior art against the ‟999 Patent under 35 U.S.C. § 102(b). TSE
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`Orientation anticipates or renders obvious the asserted claims 1-3, 12-16,18-21,
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`23, 26-28, 30-33, and 35.
`
`E.
`
`Futures/Options Trading System Guidelines for Operating the Trading Terminals,
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`August 1998 (Tokyo Stock Exchange), produced at TSE628 et seq. (“TSE
`
`Futures”) is prior art against the ‟999 Patent under 35 U.S.C. § 102(b). TSE
`
`Futures anticipates or renders obvious the asserted claims 1-3, 12-16,18-21, 23,
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`26-28, 30-33, and 35.
`
`F.
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`U.S. Patent No. 6,188,403 B1 (“Sacerdoti ‟403”), issued February 12, 2001.
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`Sacerdoti ‟403 is prior art against the ‟999 Patent under 35 U.S.C. § 102(b).
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`Sacerdoti „031 anticipates or renders obvious the asserted claim 15.
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`G.
`
`U.S. Patent No. 5,619,631 (“Schott ‟631”), issued April 8, 1997. Schott ‟631 is
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`prior art against the ‟999 Patent under 35 U.S.C. § 102(b). Schott ‟631 anticipates
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`or renders obvious the asserted claim 15.
`
`H.
`
`GL‟s Tradepad. Software (“Tradepad”), the operation of which was developed in
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`discovery taken in Plaintiff‟s litigation against eSpeed, the contents of which have
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`not yet been made fully available to TradeStation. Tradepad is prior art under 35
`
`U.S.C. § 102(b) and/or relevant to an obviousness analysis under § 103.
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`TradeStation contends that the following items of prior art anticipate each asserted claim
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`of the ‟304 Patent, or render those claims obvious:
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`A.
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`U.S. Patent No. 6,408,282 (“Buist ‟282”), issued June 18, 2002. Buist‟282 is
`
`prior art against the ‟304 Patent under 35 U.S.C. § 102(e). Buist ‟282 anticipates
`
`or renders obvious the asserted claims 1-3, 5-9, and 11-40.
`
`B.
`
`DSM is prior art against the ‟304 Patent under 35 U.S.C. § 102(b), and anticipates
`
`or renders obvious the asserted claims 1-3, 5-9, and 11-40.
`
`C.
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`U.S. Patent No. 5,297,031 (“Gutterman ‟031”), issued May 22, 1994. Gutterman
`
`is prior art against the „304 Patent under 35 U.S.C. § 102(b). Gutterman ‟031
`
`anticipates or renders obvious the asserted claims 1-3, 5-9, and 11-40.
`
`D.
`
`TSE Orientation is prior art against the ‟304 Patent under 35 U.S.C. § 102(b).
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`TSE Orientation anticipates or renders obvious the asserted claims 1-3, 5-9, and
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`11-40.
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`E.
`
`TSE Futures is prior art against the ‟304 Patent under 35 U.S.C. § 102(b). TSE
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`Futures anticipates or renders obvious the asserted claims 1-3, 5-9, and 11-40.
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`F.
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`U.S. Patent No. 6,195,647 B1 (“Martyn ‟647”) is prior art against the ‟304 Patent
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`under 35 U.S.C. § 102(b). Martyn ‟647 anticipates or renders obvious the
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`asserted claims 1-3, 5-9, and 11-40.
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`G.
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`U.S. Patent No. 5,960,411 (“Hartman ‟411), issued September 28, 1999 is prior
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`art against the ‟304 Patent under 35 U.S.C. § 102(b) and 35 U.S.C. § 102(e).
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`Hartman ‟411 anticipates or renders obvious the asserted claims 1-3, 5-9, and 11-
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`40.
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`TradeStation contends that the following items of prior art anticipate each asserted claim
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`of the ‟132 Patent, or render those claims obvious:
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`A.
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`U.S. Patent No. 6,408,282 (“Buist ‟282”), issued June 18, 2002. Buist‟282 is
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`prior art against the ‟132 Patent under 35 U.S.C. § 102(e). Buist ‟282 anticipates
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`or renders obvious the asserted claims 1-4, 7-11, 14-17, 20, 22-30, 32-40, 42-56.
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`B.
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`DSM is prior art against the ‟132 Patent under 35 U.S.C. § 102(b), and anticipates
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`or renders obvious the asserted claims 1-4, 7-11, 14-17, 20, 22-30, 32-40, 42-56.
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`C.
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`TSE Orientation is prior art against the ‟132 Patent under 35 U.S.C. § 102(b).
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`TSE Orientation anticipates or renders obvious the asserted claims 1-4, 7-11, 14-
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`17, 20, 22-30, 32-40, 42-56.
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`D.
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`TSE Futures is prior art against the ‟132 Patent under 35 U.S.C. § 102(b). TSE
`
`Futures anticipates or renders obvious the asserted claims 1-4, 7-11, 14-17, 20,
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`22-30, 32-40, 42-56.
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`E.
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`U.S. Patent No. 5,960,411 (“Hartman ‟411), issued September 28, 1999 is prior
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`art against the ‟132 Patent under 35 U.S.C. § 102(b) and 35 U.S.C. § 102(e).
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`Hartman ‟411 anticipates or renders obvious the asserted claims 1-4, 7-11, 14-17,
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`20, 22-30, 32-40, 42-56.
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`TradeStation contends that the following items of prior art anticipate each asserted claim
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`of the ‟411 Patent, or render those claims obvious:
`
`A.
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`U.S. Patent No. 6,408,282 (“Buist ‟282”), issued June 18, 2002. Buist‟282 is
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`prior art against the ‟411 Patent under 35 U.S.C. § 102(e). Buist ‟282 anticipates
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`or renders obvious the asserted claims 1-6, 8-22, 24-28.
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`B.
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`DSM is prior art against the ‟411 Patent under 35 U.S.C. § 102(b), and anticipates
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`or renders obvious the asserted claims 1-6, 8-22, 24-28.
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`C.
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`U.S. Patent No. 5,297,031 (“Gutterman ‟031”), issued May 22, 1994. Gutterman
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`is prior art against the „411Patent under 35 U.S.C. § 102(b). Gutterman ‟031
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`anticipates or renders obvious the asserted claims 1-6, 8-22, 24-28.
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`D.
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`TSE Orientation is prior art against the ‟411 Patent under 35 U.S.C. § 102(b).
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`TSE Orientation anticipates or renders obvious the asserted claims 1-6, 8-22, 24-
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`28.
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`E.
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`TSE Futures is prior art against the ‟411 Patent under 35 U.S.C. § 102(b). TSE
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`Futures anticipates or renders obvious the asserted claims 1-6, 8-22, 24-28.
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`F.
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`U.S. Patent No. 5,960,411 (“Hartman ‟411), issued September 28, 1999 is prior
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`art against the ‟411 Patent under 35 U.S.C. § 102(b) and 35 U.S.C. § 102(e).
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`Hartman ‟411 anticipates or renders obvious the asserted claims 1-6, 8-22, 24-28.
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`G.
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`U.S. Patent No. 5,619,631 (“Schott ‟631”), issued April 8, 1997. Schott ‟631 is
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`prior art against the ‟411 Patent under 35 U.S.C. § 102(b). Schott ‟631 anticipates
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`or renders obvious the asserted claims 18-25.
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`TradeStation contends that the following items of prior art anticipate each asserted claim
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`of the ‟768 Patent, or render those claims obvious:
`
`A.
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`U.S. Patent No. 6,408,282 (“Buist ‟282”), issued June 18, 2002. Buist‟282 is
`
`prior art against the ‟768 Patent under 35 U.S.C. § 102(e). Buist ‟282 anticipates
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`or renders obvious the asserted claims 1-2, 4-8, and 10-23.
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`B.
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`DSM is prior art against the ‟768 Patent under 35 U.S.C. § 102(b), and anticipates
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`or renders obvious the asserted claims 1-2, 4-8, and 10-23.
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`C.
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`TSE Orientation is prior art against the ‟768 Patent under 35 U.S.C. § 102(b).
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`TSE Orientation anticipates or renders obvious the asserted claims 1-2, 4-8, and
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`10-23.
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`D.
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`TSE Futures is prior art against the ‟768 Patent under 35 U.S.C. § 102(b). TSE
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`Futures anticipates or renders obvious the asserted claims 1-2, 4-8, and 10-23.
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`E.
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`U.S. Patent No. 5,960,411 (“Hartman ‟411), issued September 28, 1999 is prior
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`art against the ‟768 Patent under 35 U.S.C. § 102(b) and 35 U.S.C. § 102(e).
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`Hartman ‟411 anticipates or renders obvious the asserted claims 1-2, 4-8, and 10-
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`23
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`TradeStation contends that the following items of prior art anticipate each asserted claim
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`of the ‟382 Patent, or render those claims obvious:
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`A.
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`U.S. Patent No. 6,408,282 (“Buist ‟282”), issued June 18, 2002. Buist‟282 is
`
`prior art against the ‟382 Patent under 35 U.S.C. § 102(e). Buist ‟282 anticipates
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`or renders obvious the asserted claims 1-2, 4-19, and 21-32.
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`B.
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`DSM is prior art against the ‟382 Patent under 35 U.S.C. § 102(b), and anticipates
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`or renders obvious the asserted claims 1-2, 4-19, and 21-32.
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`C.
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`U.S. Patent No. 5,297,031 (“Gutterman ‟031”), issued May 22, 1994. Gutterman
`
`is prior art against the „382 Patent under 35 U.S.C. § 102(b). Gutterman ‟031
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`anticipates or renders obvious the asserted claims 1-2, 4-19, and 21-32.
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`D.
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`TSE Orientation is prior art against the ‟382 Patent under 35 U.S.C. § 102(b).
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`TSE Orientation anticipates or renders obvious the asserted claims 1-2, 4-19, and
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`21-32.
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`E.
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`TSE Futures is prior art against the ‟768 Patent under 35 U.S.C. § 102(b). TSE
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`Futures anticipates or renders obvious the asserted claims 1-2, 4-8, and 10-23.
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`F.
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`U.S. Patent No. 5,960,411 (“Hartman ‟411), issued September 28, 1999 is prior
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`art against the ‟382 Patent under 35 U.S.C. § 102(b) and 35 U.S.C. § 102(e).
`
`Hartman ‟411 anticipates or renders obvious the asserted claims 1-2, 4-19, and
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`21-32.
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`G.
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`U.S. Patent No. 5,619,631 (“Schott ‟631”), issued April 8, 1997. Schott ‟631 is
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`prior art against the ‟382 Patent under 35 U.S.C. § 102(b). Schott ‟631 anticipates
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`or renders obvious the asserted claims 2-3, and 19-20.
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`H.
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`U.S. Patent No. 5,774,877 (“Patterson, Jr. ‟877”), issued June 30, 1998. Patterson,
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`Jr. ‟877 is prior art against the ‟382 Patent under 35 U.S.C. § 102(b). Patterson,
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`Jr. ‟877 anticipates or renders obvious the asserted claims 6-7, and 23-24.
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`2. Statement of Whether Prior Art Anticipates or Renders Obvious
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`The following list identifies exemplary prior art that anticipates or renders obvious the
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`asserted patent claims. Some references are listed as both anticipating and as rendering the
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`claims obvious. To the extent the references are found to be not anticipating, the references,
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`alone or in combination with another reference(s), alternatively render the claims obvious. The
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`application of each reference to the asserted claims is shown in the attachments to these
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`contentions.
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`A.
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`Buist ‟282 renders obvious by itself and/or in combination with one or more of
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`Gutterman ‟031, TSE Futures, TSE Orientation, DSM, Hartman ‟411, Schott ‟631,
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`Patterson, Jr. ‟877, and Martyn ‟647. Gutterman ‟031 renders obvious by itself
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`and/or in combination with one or more of Buist ‟282, TSE Orientation, Tradepad,
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`Hartman ‟411, Schott ‟631, Patterson, Jr. ‟877, and Martyn ‟647.
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`B.
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`TSE Orientation renders obvious by itself and/or in combination with one or more
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`of TSE Futures, DSM, Buist ‟282, Gutterman ‟031, Hartman ‟411, Tradepad,
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`Schott ‟631, Patterson, Jr. ‟877, and Martyn ‟647.
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`C.
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`Hartman ‟411 renders obvious by itself and/or in combination with one or more of
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`Buist ‟282, Gutterman ‟031, TSE Orientation, TSE Futures, DSM, Tradepad,
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`Schott ‟631, Patterson, Jr. ‟877, and Martyn ‟647.
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`D.
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`Schott ‟631 renders obvious by itself and/or in combination with one or more of
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`Buist ‟282, Gutterman ‟031, TSE Orientation, TSE Futures, DSM, Tradepad,
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`Hartman ‟411, Patterson, Jr. ‟877, and Martyn ‟647.
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`E.
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`Patterson, Jr. ‟877 renders obvious by itself and/or in combination with one or
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`more of Buist ‟282, Gutterman ‟031, TSE Orientation, TSE Futures, DSM,
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`Tradepad, Hartman ‟411, Schott ‟631, and Martyn ‟647.
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`F.
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`Martyn ‟647 renders obvious by itself and/or in combination with one or more of
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`Buist ‟282, Gutterman ‟031, TSE Orientation, TSE Futures, DSM, Tradepad,
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`Hartman ‟411, Schott ‟631, and Paterson, Jr. ‟877.
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`G.
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`Tradepad renders obvious by itself and/or in combination with one or more of
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`Martyn ‟647, Buist ‟282, Gutterman ‟031, TSE Orientation, TSE Futures, DSM,
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`Hartman ‟411, Schott ‟631, and Paterson, Jr. ‟877.
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`Buist ‟282, Gutterman ‟031, TSE Orientation, TSE Futures, DSM, Patterson, Jr. ‟877,
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`and Martyn ‟647 are all in the same field on endeavor. They all describe graphical user
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`interfaces which improve the process of trading stocks, bonds, and commodities. Therefore it
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`would be obvious for one skilled in the art to combine the teachings of Buist ‟282,
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`Gutterman ‟031, TSE Orientation, Patterson, Jr. ‟877, and Martyn ‟647.
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`Schott ‟631 describes a method for altering data by manipulation of representations
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`dynamic graphs. The background of Schott ‟631 describes well known methods of manipulating
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`a user interface using a mouse or other pointing device. A personal having ordinary skill in the
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`art would combine the teaching of Schott ‟631 with the teachings of Buist ‟282, Gutterman ‟031,
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`TSE Orientation, Patterson, Jr. ‟877, and Martyn ‟647 in order to enhance the user interface
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`experience.
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`Hartman ‟411 describes a method of single-action ordering of an item over the Internet.
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`A person having ordinary skill in the art would combine the teachings of Hartman „411 with the
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`teachings of Buist ‟282, Gutterman ‟031, TSE Orientation, Patterson, Jr. ‟877, Martyn ‟647 and
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`Schott ‟631 in order to improve the performance of the trading process.
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`3. Location Of Claim Elements in Prior Art References
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`A chart identifying where in each item of prior art each element of each asserted claim is
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`attached hereto in Attachments A-G. The citations in the chart are representative and should not
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`be construed as limiting. Where a single prior art reference includes each of the elements of the
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`claim, the claimed invention is anticipated. Where a combination of prior art references include
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`the elements of the claim, the claimed invention is obvious.
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`For each of the references identified in the chart, TradeStation has identified where
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`specifically in each reference the element is found by providing representative pinpoint citations
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`within the patent or publication. Those pinpoint citations are intended to be exemplary, however.
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`For each disclosed reference, TradeStation intends to rely on the reference in its entirety, rather
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`than only on the identified excerpts thereof. TradeStation reserves its right to supplement or
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`amend the attached chart with additional references as its investigation is ongoing, discovery is
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`not yet complete, and the asserted claims have not yet been construed by the Court.
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`4. Invalidity Based on Indefiniteness or Written Description
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`In its preliminary infringement contentions, Plaintiff has apparently taken the position the
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`asserted claims extend to trading interfaces where the price axis is automatically re-centered.
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`TradeStation notes that such a position runs directly contrary to the Federal Circuit‟s opinion in
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`Trading Technologies v. eSpeed at al, decided on February 25, 2010, in which the court noted
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`that the claimed “invention addressed the problem by implementing static price levels”
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`(emphasis added) and further that “the specification contains no reference to automatic re-
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`centering.” TradeStation thus disagrees with Plaintiff‟s position that the asserted claims could
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`cover a system that provides automatic re-centering. However, to the extent Plaintiff takes this
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`position, it is clear that the specification does not support claims to any such system, and thus the
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`asserted claims are invalid for lack of written description under 35 U.S.C. § 112 ¶ 1.
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`TradeStation‟s investigation into additional invalidity defenses under § 112 is ongoing
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`and TradeStation reserves its right to amend or supplement this disclosure at the appropriate time
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`as provided by the Scheduling Order.
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`5. Unenforceability
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`Both the ‟304 Patent and the ‟132 Patent issued more than five years prior to the initiation
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`of this lawsuit. Plaintiff‟s delay was unreasonable and inexcusable and is thus barred by the
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`doctrine of laches. Discovery is still in the early stages, and TradeStation accordingly reserves
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`its right to supplement or amend its disclosure relating to the unenforceability of those and the
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`other asserted patents.
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`13
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`Page 13 of 168
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`Respectfully submitted,
`
`By:_/s/ David J. Healey_____
`
`David J. Healey
`Anita E. Kadala
`Wasif H. Qureshi
`FISH & RICHARDSON P.C.
`1 Houston Center
`1221 McKinney St., Suite 2800
`Houston, TX 77010
`Tel: (713) 654-5300
`Fax: (713 652-0109
`healey@fr.com
`kadala@fr.com
`qureshi@fr.com
`
`George C. Summerfield
`Steven R. Pedersen
`STADHEIM & GREAR LTD.
`Wrigley Tower
`400 North Michigan Avenue,
`Suite 2200
`Chicago, IL 60611
`Tel: (312) 755-400
`Fax: (312) 755-4408
`summerfield@stadheimgrear.com
`pedersen@stadheimgrear.com
`
`Attorneys for Defendants
`TRADESTATION SECURITIES,
`INC. and TRADESTATION
`GROUP, INC.
`
`14
`
`Dated: October 12, 2010
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`Page 14 of 168
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`

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`
`
`ATTACHMENT A: ASSERTED CLAIMS OF THE 7,533,056 PATENT
`
`
`Prior Art
`
`Claim Limitation
`Claim 1
`A method of operation used by
`a computer for displaying
`transactional information and
`facilitating trading in a system
`where orders comprise a bid
`type or an offer type, the
`method comprising:
`
`
`
`Buist ’282. In the preferred embodiment, each of a
`multiplicity of users‟ workstations is simultaneously connected
`via the Internet to one of a plurality of broker/dealer computers
`and to a user-to-user trading system. Each broker‟s computer
`stores the account data and similar information customarily
`stored at a broker‟s server computer for the broker‟s clients.
`The preferred system communicates with each broker‟s server
`computer and in addition provides real-time updates for stock
`quotes both as a part of the service supporting day trading on
`national exchanges and as part of the service supporting user-
`to-user trading. For the user-to-user trading service the system
`maintains real-time data reflecting buy and sell orders for the
`supported securities, and is capable of displaying the same
`information for national exchanges if that data is provided by
`the exchange(s). (6:25-39)
`Buist ’282. The center column under “Decimals” is the price
`column, and lists stock prices in 1/16 increments. The three
`columns to the left of the price column set forth buy side orders
`and the three columns to the right set forth sell side orders. The
`“Limit Qty.” and “AON Qty.” columns list the size of orders at
`each price level posted into the system by other users. The
`Your orders show columns the user‟s order in the stock. The
`area 668 (in this example, containing the number 6000)
`contains the amount of the current ask size. The area 672 (in
`this example, containing the number 52.1875) contains the
`amount of the current ask price, and is highlighted in yellow.
`(12:51-61)
`Buist ’282. The center column under “Decimals” is the price
`column, and lists stock prices in 1/16 increments. The three
`columns to the left of the price column set forth buy side orders
`and the three columns to the right set forth sell side orders. The
`“Limit Qty.” and “AON Qty.” columns list the size of orders at
`each price level posted into the system by other users. The
`Your orders show columns the user‟s order in the stock. The
`area 668 (in this example, containing the number 6000)
`contains the amount of the current ask size. The area 672 (in
`this example, containing the number 52.1875) contains the
`amount of the current ask price, and is highlighted in yellow.
`(12:51-61)
`displaying a plurality of offer Buist ’282. The center column under “Decimals” is the price
`
`receiving bid and offer
`information for a product from
`an electronic exchange, the bid
`and offer information
`indicating a plurality of bid
`orders and a plurality of offer
`orders for the product;
`
`
`displaying a plurality of bid
`indicators representing
`quantity associated with the
`plurality of bid orders, the
`plurality of bid indicators
`being displayed at locations
`corresponding to prices of the
`plurality of bid orders along a
`price axis;
`
`
`
`
`15
`
`Page 15 of 168
`
`

`
`column, and lists stock prices in 1/16 increments. The three
`columns to the left of the price column set forth buy side orders
`and the three columns to the right set forth sell side orders. The
`“Limit Qty.” and “AON Qty.” columns list the size of orders at
`each price level posted into the system by other users. The
`Your orders show columns the user‟s order in the stock. The
`area 668 (in this example, containing the number 6000)
`contains the amount of the current ask size. The area 672 (in
`this example, containing the number 52.1875) contains the
`amount of the current ask price, and is highlighted in yellow.
`(12:51-61)
`Buist ’282. If the user double-clicks on a Buy button 1325 (or
`a Sell button), the application automatically pulls up a trade
`ticket (see FIGS. 5 & 11) that is filled with data from the user‟s
`positions file. The selection of “Sell” populates the trade ticket
`with the user‟s entire position in the selected stock. The
`selection of “Buy” populates the trade ticket with information
`including a default quantity value set in the preferences menu
`by the user. The user can double-click on the best bid or offer
`and hit or take the quantity at that price level. This action
`automatically populates the trade ticket with the selected price.
`The user can adjust any values in any pre-filled fields. (15:7-
`18)
`Buist ’282. If the user double-clicks on a Buy button 1325 (or
`a Sell button), the application automatically pulls up a trade
`ticket (see FIGS. 5 & 11) that is filled with data from the user‟s
`positions file. The selection of “Sell” populates the trade ticket
`with the user‟s entire position in the selected stock. The
`selection of “Buy” populates the trade ticket with information
`including a default quantity value set in the preferences menu
`by the user. The user can double-click on the best bid or offer
`and hit or take the quantity at that price level. This action
`automatically populates the trade ticket with the selected price.
`The user can adjust any values in any pre-filled fields. (15:7-
`18)
`Buist ’282. At step 2230, the user selects “Order Verification”
`function and in response, the application checks, at step 2235,
`for errors in the data that have been entered into the trade
`ticket. If at step 2240, an error has been found, the application
`displays at step 3250, an error message along with possible
`ways for correcting an error. Once the ticket is error-free, the
`application displays at step 2255, a flashing final verification
`screen. The user then makes the final decision whether to send
`the sell order, and at step 2260, selects the Send order function.
`The application then transmits the user‟s order to the
`broker/dealer system used by the user. At step 2265, the
`
`indicators representing
`quantity associated with the
`plurality of offer orders, the
`plurality of offer indicators
`being displayed at locations
`corresponding to prices of the
`plurality offer orders along the
`price axis;
`
`
`receiving a user input
`indicating a default quantity to
`be used to determine a
`quantity for each of a plurality
`of orders to be placed by the
`user at one or more price
`levels;
`
`
`
`receiving a user input
`indicating a desired price for
`an order to be placed by the
`user, the desired price being
`specified by selection of one
`of a plurality of locations
`corresponding to price levels
`along the price axis;
`
`
`and sending the order for the
`default quantity at the desired
`price to the electronic
`exchange.
`
`
`
`
`16
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`Page 16 of 168
`
`

`
`Claim 2
`The method of claim 1, further
`comprising: receiving a user
`input indicating a second
`desired price for a second
`order to be placed by the user,
`the second desired price being
`specified by selection of one
`of the plurality of locations
`corresponding to price levels
`along the price axis; and
`sending the second order for
`the default quantity at the
`second desired price to the
`electronic exchange.
`
`application assigns a reference number to the order and
`displays the order transmission status in three steps in the
`message line display. (19:54-67)
`
`Once the application determines that the ticket is error-free, at
`step 2165, the application displays the “Final Verification”
`screen (see FIG. 56). At this point, the display flashes, to
`emphasize the significance of this operation. Thereafter, the
`user makes the final decision whether to send the buy order,
`and at step 2170, selects the “Send order” option to facilitate
`the purchase. The request is then transmitted to the
`broker/dealer system used by the user. (19:16-23)
`
`Buist ’282. If the user double-clicks on a Buy button 1325 (or
`a Sell button), the application automatically pulls up a trade
`ticket (see FIGS. 5 & 11) that is filled with data from the user‟s
`positions file. The selection of “Sell” populates the trade ticket
`with the user‟s entire position in the selected stock. The
`selection of “Buy” populates the trade ticket with information
`including a default quantity value set in the preferences menu
`by the user. The user can double-click on the best bid or offer
`and hit or take the quantity at that price level. This action
`automatically populates the trade ticket with the selected price.
`The user can adjust any values in any pre-filled fields. (15:7-
`18)
`
`At step 2230, the user selects “Order Verification” function and
`in response, the application checks, at step 2235, for errors in
`the data that have been entered into the trade ticket. If at step
`2240,