Federal Circuit Invalidates E-Trading Patent

Written April 24, 2019

The US Court of Appeals for the Federal Circuit on April 18, 2019, invalidated three of Trading Technologies LLC’s patents on a user interface for electronic trading technology, affirming the Patent Trial and Appeal Board’s finding that the patents were ineligible under § 101 after the Board instituted Covered Business Method (CBM) Patent review. Trading Technologies Int’l v. IBG LLC, Fed. Cir., No. 17-02257, 4/18/19.

Pursuant to § 18(a)(1)(E) of the AIA, the Board may only institute CBM review for a patent that is a CBM patent. Trading Technologies contested that its patents, “which are directed to a financial trading method used by a computer,” were ineligible for CBM review because the patents were for technological inventions.

However, the Federal Circuit agreed with the Board that the patents covered a method for making a financial products trader more efficient, which is not a technical invention or solution.