01—Abstract
Summary
Summary of the 8-K filed October 8, 2010. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from CBOE Holdings, Inc. (CBOE) on October 8, 2010, reports a significant legal development.
C2 Options Exchange, Inc. ('C2'), a wholly-owned subsidiary of CBOE, has filed a lawsuit against International Securities Exchange, Inc. ('ISE') in the U.S. District Court for the Northern District of Illinois. The lawsuit seeks a declaratory judgment concerning U.S. Patent No. 6,618,707, which is assigned to ISE and pertains to an automated exchange for trading derivative securities. C2 is proactively asserting its rights and is seeking a ruling that ISE's patent is not infringed, not valid, and not enforceable against C2.
This action is a response to ISE's prior assertion of the same patent against CBOE's Hybrid Trading System in a separate, ongoing litigation. C2 believes that rulings in the prior case support its position that its exchange platform does not infringe on ISE's patent.
02—Key points
Key Highlights
- C2 Options Exchange (a CBOE subsidiary) filed a lawsuit against International Securities Exchange (ISE).
- The lawsuit concerns U.S. Patent No. 6,618,707, related to automated derivative trading systems.
- C2 is seeking a declaratory judgment that the ISE patent is not infringed, invalid, and unenforceable against C2.
- This legal action is proactive in asserting C2's rights regarding its trading platform.
- The patent in question is the same one ISE previously asserted against CBOE's Hybrid Trading System.
- C2 believes prior court rulings in the CBOE/ISE litigation support its non-infringement claim.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose is to disclose that C2 Options Exchange, a subsidiary of CBOE Holdings, Inc., has filed a lawsuit against International Securities Exchange, Inc. (ISE) regarding a patent related to automated trading systems.
Why is C2 suing ISE?
C2 is filing a lawsuit to proactively protect its rights and to seek a court declaration that ISE's U.S. Patent No. 6,618,707 is not infringed, is invalid, or is unenforceable against C2's trading platform.
Is this patent dispute new?
No, the patent at issue is the same one that ISE previously asserted against CBOE's Hybrid Trading System in a separate, ongoing legal case. C2 is taking action in light of that existing dispute.
Does CBOE believe it is infringing on ISE's patent?
No, C2 strongly believes it does not infringe on ISE's patent, citing various rulings in the prior litigation between CBOE and ISE as support for its position.
04—Continue