ISE Granted Stay In CBOE's Patent Suit

In the case of Chicago Board Options Exchange, Incorporated v. International Securities Exchange, LLC, Case No. 1:13-cv-01339-JMF, the Honorable Jesse M. Furman of the United States District Court for the Southern District of New York issued a ruling yesterday that halted CBOE's patent suit against ISE while the validity of the patents-in-suit is examined by the U.S. Patent and Trademark Office (USPTO). ISE had previously filed petitions with the USPTO to invalidate the CBOE patents (US Patent Nos. 7,356,498, 7,980,457 and 8,266,044). Judge Furman agreed with ISE that serious validity questions regarding the CBOE patents should be resolved by the USPTO and not the district court. As a result, the court proceedings will now be suspended pending a decision on the matter by the USPTO.

Gary Katz, ISE President and Chief Executive Officer, said, "We are very pleased that Judge Furman halted CBOE's suit, recognizing the need to first determine whether the patents referenced by CBOE in this case are, in fact, valid. This was an important decision that protects us from expending additional time and money while we wait for the Patent Office's decision."

For more information on the ruling, Judge Furman's detailed written opinion will be made available by the court in the coming days.