OMHEX to fight $64 million eSpeed patent suit

Swedish transaction technology vendor and exchange operator OMHEX says it will fight a $64 million patent lawsuit filed in the US by electronic broker eSpeed.

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OMHEX to fight $64 million eSpeed patent suit

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OM Technology was named in a suit filed by eSpeed last year in connection with its delivery of software for electronic fixed income outfit BrokerTec, now owned by Icap.

In court hearings, eSpeed has filed for damages of up to $64 million for infringement of its patent.

In a statement, OM says it will vigorously contest the damages calculation and has re-asserted its belief that the eSpeed patent is invalid. The company intends to seek dismissal of the suit promptly following the conclusion of the discovery period on 30 June.

OMHEX, the parent company to OM Technology, says it has not made any reserves for this dispute.

Icap said BrokerTec USA has an agreement with OM Technology that indemnifies the trading network if OM's system were found to infringe any patent. Garban's ETC system - also named in the suit - and which Icap denies infringes the eSpeed electronic trading patent, is not covered by this indemnity.

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