Financial information group Reuters is suing its principal rival Bloomberg over an alleged infringement of patents on electronic matching systems.
The suit, filed by Reuters in a federal court in New York on Friday, claims that Bloomberg violated three patents used for trading in foreign exchange and equity markets. Reuters is seeking millions of dollars in damages by alleging that Bloomberg infringed the patents in a "wilful and wanton" way with the launch of its PowerMatch foreign exchange trading system.
Bloomberg has denied any wrongdoing. "We are confident that we have not infringed the patent and we believe the suit to be without merit," spokesman Chris Taylor told reporters.
Bloomberg's move into the foreign exchange markets has raised hackles at Reuters which is desperate to head off any further incursions into its traditional strongholds by its New York-based rival.
"Automated trading is a core capability and we have incorporated this functionality into our products," says Reuters in a statment. "Although Reuters had preferred not to resort to litigation, it cannot allow the unauthorised use of its intellectual property."