The Board of Patsystems plc, the global supplier of electronic trading technology, announced on 20th May that it had reached agreement with Trading Technologies International Inc. ('TT') in relation to a lawsuit filed against Patsystems on 19th May 2005 in the United States District Court (" the Court") by TT, alleging that Patsystems had infringed certain of TT's patents. The lawsuit has been resolved by entry of a consent judgment and the Settlement Agreement between the parties is now effective. Patsystems is now free to disclose more details of the Agreement.
TT has absolved Patsystems from any potential past liability that may have arisen under the Granted Patents. Patsystems has acknowledged the validity of TT's Granted Patents and has also agreed to pay a variable royalty of at least 10 cents per lot for any transaction using 'DOME' (Patsystems' original depth of market screen) with a minimum monthly royalty of $50 per screen, effective from 20 August 2005.
As part of this Agreement, TT has covenanted not to sue either Patsystems or its clients for alleged infringement of the Granted Patents in relation to past or future use of Patsystems' current ''Reflector'' product (Patsystems' dynamic depth of market execution screen), which Patsystems introduced in late 2004 to replace DOME and for which Patsystems has applied for patent protection in order to provide protection to its clients. Consequently, Patsystems plans to withdraw DOME from the market before 19 August 2005. Thereafter, if Patsystems' clients require DOME-like functionality, it will be available under the license described above.
The Patsystems Board does not believe that this agreement will have any material impact on the financial outlook of Patsystems.
Commenting, CEO, Kevin Ashby said ''this agreement is good for Patsystems, our clients and third-party relationships. It lifts the uncertainty with respect to our liabilities, reconfirms Reflector as a non-infringing product and allows us all to concentrate on our businesses going forward.''