High Frequency Trading Systems LLC, a non-practicing entity controlled by Erik Stamell, a managing partner of business lenders Credibly and Retail Capital LLC, switched to new counsel on its latest enforcement action against MarketAxess LLC for infringement of a patent related to rebrokering orders on trading systems.

Allen, Texas-based High Frequency hired the law firm of Jackier Gould LLC for its action against MarketAxess after previously using the Devlin Law Firm on enforcement actions against Forex Capital Markets LLC, Gain Capital Holdings and TMC Bonds LLC. Those cases may have been settled because all of them have been dismissed with prejudice.

Mary Sedarat, a spokeswoman for MarketAxess couldn’t be reached for comment.

Neither Stamell, nor High Frequency’s counsel Eric Bean, a partner with Jackier Gould LLC in Troy, Michigan could be reached for comment. Robert Kiddie, a partner with the Devlin Law Firm in Wilmington Delaware, declined to comment.

The action against MarketAxess was filed on Monday August 22 in U.S. District Court in the Eastern District of Michigan and is before Judge Denise Page Hood.

According to the complaint, the patent in suit is U.S. Patent No. 7,231,363, entitled “Method and System for Rebrokering Orders in a Trading System,” which was was issued by the U.S. Patent and Trademark Office on June 12, 2007.

The inventions of the ’363 resolve technical problems related to the use of computerized trading methods and systems. For example, the inventions allow flexibility in the interaction between participants in electronic trading systems.

The inventors are listed as Webster Hughes and Charles Fefferman. Dr. Hughes holds a PhD from Princeton University. Dr. Hughes is the co-inventor of two patents including the
’363 patent and teaches a seminar on Mortgage Backed Securities at UNC Kenan-Flagler
Business School. Dr. Fefferman also has a PhD from Princeton University.

The complaint notes that the ‘363 was subjected to inter partes reexamination and, on March 8, 2011, the USPTO duly and legally issued a reexamination certificate.

Drs. Hughes and Fefferman assigned the 363 patent first to Bond Corp. and then to Wall Corp., before it was assigned to High Frequency in October 2015.

MarketAxess “has and continues to directly infringe one or more claims of the ’363 patent by making, using, selling, importing and/or providing and causing to be used a computerized trading system platform, in which the platform enables the execution of intermediate orders by broker-dealers and/or other intermediaries in response to an order by an investor, which by way of example includes Defendant’s MarketAxess.”

The complaint also alleges that since at least the time MarketAxess received notice, it has induced and continues to induce others to infringe at least one claim of the ’363 patent under 35 U.S.C. Section 271(b) “by, among other things, and with specific intent or willful blindness, actively aiding and abetting others to infringe, including but not limited to Defendant’s partners, clients, customers, and end users, whose use of the Accused Instrumentalities constitutes direct infringement of at least one claim of the ’363 patent."

High Frequency is seeking award of damages adequate to compensate for MarketAxess’ past infringement of the ’363 patent, and any continuing or future infringement through the date such judgment is entered, including interest, costs, expenses and an accounting of all infringing acts including, but not limited to, those acts not presented at trial.

In addition, High Frequency is seeking a declaration that this case is exceptional under 35 U.S.C. Section 285 and an award of reasonable attorneys’ fees.

—To reach the reporter responsible for this story, please contact Dan Lonkevich at 707 318-7899 or dan@thepatentinvestor.com