DCT
2:24-cv-01059
Intercurrency Software LLC v. Xecom Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Intercurrency Software LLC (Texas)
- Defendant: Xe.com Inc. (Canada)
- Plaintiff’s Counsel: Garteiser Honea, PLLC
- Case Identification: 2:24-cv-1059, E.D. Tex., 12/18/2024
- Venue Allegations: Plaintiff alleges venue is proper because Defendant is not a resident of the United States and may be sued in any judicial district, and because Defendant is subject to personal jurisdiction in the Eastern District of Texas.
- Core Dispute: Plaintiff alleges that Defendant’s online currency conversion and money transfer services infringe four patents related to a consolidated financial trading platform that provides transactional certainty by displaying and executing trades in a user's preferred currency.
- Technical Context: The technology at issue addresses the financial risk and uncertainty that arises when trading assets, such as securities, that are priced in a currency different from an investor's home currency.
- Key Procedural History: The four Patents-in-Suit share a common priority date and form a patent family, with each subsequent patent being a continuation of the prior one. The complaint notes that the patents were assigned to the Plaintiff and alleges that the claims were allowed by the U.S. Patent and Trademark Office over relevant prior art.
Case Timeline
| Date | Event |
|---|---|
| 2007-04-18 | Earliest Priority Date for all Patents-in-Suit |
| 2018-08-28 | U.S. Patent 10,062,107 Issued |
| 2020-09-15 | U.S. Patent 10,776,863 Issued |
| 2022-09-20 | U.S. Patent 11,449,930 Issued |
| 2023-04-04 | U.S. Patent 11,620,701 Issued |
| 2024-12-18 | Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 10,062,107 - CONSOLIDATED TRADING PLATFORM
(Issued Aug. 28, 2018)
The Invention Explained
- Problem Addressed: The patent describes a problem faced by investors trading securities in a foreign currency (Compl. ¶15). Prior systems required separate, bulk currency conversions before and after trading, which meant the investor had "no certain knowledge of what profit or loss he was going to get" due to fluctuations in exchange rates between the time of the trade and the time of the currency conversion (’107 Patent, col. 1:56-60).
- The Patented Solution: The invention proposes a "consolidated trading platform" that integrates a brokerage, a market exchange, and a currency exchange into a "three-tier architecture" (’107 Patent, col. 2:24-27). This platform performs currency conversion "at a transactional level," allowing it to present all prices, profit-and-loss estimates, and settlements to a trader in their "preferred currency," thereby providing certainty as to the transaction's final value (Compl. ¶¶16-18; ’107 Patent, col. 1:61-67).
- Technical Importance: The described technology aims to remove the risk and complexity of currency fluctuations from international securities trading by providing real-time, transaction-specific conversions (’107 Patent, col. 1:61-67).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶35).
- Essential elements of Claim 1 include:
- Providing a trading server coupled to one or more currency exchange servers and one or more market exchange servers.
- Receiving an indicator of a preferred currency from a trader.
- Causing a client computer to display an asset in the preferred currency while the asset is traded in a market currency, which involves determining a prevailing exchange rate.
- Conducting a transaction of the asset by transmitting a request to a market exchange server.
- Receiving a settlement notification based on user-set conditions, calculating a prevailing exchange rate right before the transaction, and executing the transaction with that rate.
- Performing a currency conversion of the transaction from the market currency to the preferred currency.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 10,776,863 - METHOD AND APPARATUS FOR DISPLAYING TRADING ASSETS IN A PREFERRED CURRENCY
(Issued Sep. 15, 2020)
The Invention Explained
- Problem Addressed: As a continuation of the application leading to the ’107 Patent, the ’863 Patent addresses the same technical problem: the financial uncertainty for investors caused by the need to perform separate currency conversions when trading assets denominated in a foreign currency (’863 Patent, col. 1:36-60).
- The Patented Solution: The patent describes a functionally similar solution involving a consolidated platform that displays asset prices and executes transactions in a user's preferred currency (’863 Patent, Abstract). The system determines a prevailing exchange rate to present prices and costs with certainty, and it can perform a currency conversion as part of the asset transaction (’863 Patent, col. 2:23-33).
- Technical Importance: The invention provides a method to give a trader exact knowledge of the costs and potential profit or loss of a transaction in their home currency, irrespective of the asset's native market currency (’863 Patent, col.1:61-67).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶51).
- Essential elements of Claim 1 include:
- Coupling a trading server to currency and market exchange servers.
- Receiving an indicator of a preferred currency from a trader.
- Causing a client computer to display an asset in the preferred currency, which involves determining a prevailing exchange rate to convert from the market currency.
- Conducting a transaction of the asset via a market exchange server.
- Receiving a settlement notification and executing the transaction using a calculated prevailing exchange rate.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 11,449,930 - METHOD AND APPARATUS FOR TRADING ASSETS IN DIFFERENT CURRENCIES
(Issued Sep. 20, 2022)
- Technology Synopsis: The patent discloses a system for trading assets where a trading server, coupled to currency and market exchanges, displays costs and fees in a user’s preferred "first currency" for an asset traded in a "second currency" (’930 Patent, Abstract). The system dynamically updates these displayed costs based on a prevailing exchange rate and executes the transaction using a second, transaction-time exchange rate to finalize the settlement (’930 Patent, Claim 1).
- Asserted Claims: Independent Claim 12 is asserted (Compl. ¶67).
- Accused Features: The complaint alleges that Defendant’s provision of a trading server coupled to currency and market exchange servers infringes the patent (Compl. ¶67).
U.S. Patent No. 11,620,701 - PLATFORM FOR TRADING ASSETS IN DIFFERENT CURRENCIES
(Issued Apr. 4, 2023)
- Technology Synopsis: This patent describes a trading platform where a client machine, coupled to a trading server, can send an indicator of a preferred currency (’701 Patent, Claim 8). The platform calculates and displays costs for an asset transaction in this preferred currency, dynamically updating them based on a "first prevailing exchange rate," and then executes the transaction and settlement using a "second prevailing exchange rate" calculated at the time of the transaction (’701 Patent, Claim 8).
- Asserted Claims: Independent Claims 1 and 8 are asserted (Compl. ¶83).
- Accused Features: The complaint alleges that Defendant’s provision of a trading server coupled to currency and market exchange servers infringes the patent (Compl. ¶83).
III. The Accused Instrumentality
Product Identification
The "Accused Instrumentalities" are Defendant's "Xe Personal and Business platforms" available at its website, https://www.xe.com/, and its "mobile Xe app" (Compl. ¶30).
Functionality and Market Context
The complaint identifies the accused products as offering "global currency conversions & money transfers" (Compl. p. 8). A screenshot of Defendant’s website shows an interface for converting an amount from one currency (e.g., USD) to another (e.g., EUR) (Compl. p. 8). The complaint alleges these services constitute a "consolidated trading platform" and that Defendant is a "leading" provider in the field of currency information and transfers (Compl. ¶30, p. 8).
IV. Analysis of Infringement Allegations
U.S. Patent 10,062,107 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| providing a trading server coupled to one or more currency exchange servers and one or more market exchange servers | Defendant provides trading servers that are coupled to its currency exchange servers and to one or more market exchange servers. | ¶35(i) | col. 3:1-3 |
| receiving in the trading server an indicator of a preferred currency from a trader | The trading server receives an indicator of a preferred currency from the trader. | ¶35(ii) | col. 8:53-54 |
| causing a client computer associated with the trader to display at least an asset in the preferred currency while the asset is being traded in a market currency... | Defendant’s system causes the client computer to display an asset in the preferred currency. | ¶35(iii) | col. 8:55-65 |
| conducting in the trading server a transaction of the asset by transmitting a transaction request from the trading server to a market exchange server when the trader decides to proceed with trading the asset | The system conducts a transaction by transmitting a request from the trading server to a market exchange server. | ¶35(iv) | col. 9:5-9 |
| receiving a settlement notification in the trading server when the transaction of the asset is performed by the market exchange server in accordance with conditions set by the user... the trading server is configured to calculate the prevailing exchange rate... right before the transaction takes place... and executes the transaction... | The trading server receives a settlement notification and is configured to calculate the prevailing exchange rate from exchange rates obtained right before the transaction and execute with it. | ¶35(v) | col. 9:10-22 |
| performing a currency conversion of some portion or all of the transaction from the market currency to the preferred currency when the preferred currency is not identical to the market currency, the conversion being performed with the calculated prevailing exchange rate | The system performs a currency conversion from the market currency to the preferred currency using the calculated exchange rate. | ¶35(vi) | col. 9:23-28 |
U.S. Patent 10,776,863 Infringement Allegations
The complaint does not provide a detailed, element-by-element infringement theory for the ’863 Patent. It alleges that Claim 1 is infringed by Defendant’s act of making, using, and selling the Accused Instrumentalities, which are alleged to provide a "trading server... coupled to one or more currency exchange servers... and one or more market exchange servers" (Compl. ¶51). This general allegation forms the basis of the infringement claim for the ’863 Patent, but specific components of the accused system are not mapped to the other limitations of Claim 1.
Identified Points of Contention
- Scope Questions: A central dispute may arise over whether Defendant’s currency conversion and money transfer service constitutes a "consolidated trading platform" for transacting an "asset" as contemplated by the patents. The patents’ specifications heavily reference trading of "securities" such as stocks, bonds, and commodities (’107 Patent, col. 2:20-23), raising the question of whether a direct currency-for-currency exchange is the type of "transaction of the asset" covered by the claims.
- Technical Questions: The infringement theory depends on mapping Defendant's system to the patents' "three-tier architecture," specifically the "market exchange server" limitation. The complaint alleges the existence of such a server (Compl. ¶35(i)), but a key question for the court will be whether the data source for currency rates used by the Accused Instrumentality functions as the "market exchange server" described in the patent specification, which provides a venue for trading assets (’107 Patent, col. 5:4-5).
V. Key Claim Terms for Construction
Term: "consolidated trading platform"
- Context and Importance: This term, appearing in the title and description of the lead patent, is foundational to the case. Its construction will determine whether a currency exchange service like Defendant's can be considered the type of system claimed by the patents.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The patent states the invention is "related to systems and methods for providing a consolidated trading platform allowing traders to trade various assets" (’107 Patent, col. 1:7-10). Plaintiff may argue this language supports a broad definition covering any system that integrates a financial transaction with currency exchange.
- Evidence for a Narrower Interpretation: The specification repeatedly frames the invention in the context of "conducting security transactions" and lists examples of "electronically traded financial assets such as stocks, bonds, options, commodities (e.g., oil, gold), futures/derivatives contracts" (’107 Patent, col. 2:16-23). This may support a narrower construction limited to platforms for trading such securities.
Term: "asset"
- Context and Importance: Asserted Claim 1 of the ’107 Patent requires, among other things, conducting a "transaction of the asset." The definition of "asset" is critical because if it does not encompass a currency itself (in a currency-for-currency exchange), the infringement allegation may fail.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification notes that "assets may include, but not be limited to, various securities" (’107 Patent, col. 4:56-58), which could suggest the term is not exhaustively defined by the listed examples.
- Evidence for a Narrower Interpretation: The problem described by the patent involves an investor in one country trading a security listed on a foreign exchange, where the "asset" (e.g., a stock) is distinct from the currencies involved in the transaction (’107 Patent, col. 1:26-44). This context suggests the "asset" is the item being traded, not the medium of exchange itself.
VI. Other Allegations
- Indirect Infringement: The complaint alleges that Defendant induces infringement by advertising its services and thereby encouraging infringing use by its customers (Compl. ¶¶40, 43). It further alleges contributory infringement for providing services for use in systems that fall within the scope of the claims (Compl. ¶40).
- Willful Infringement: The willfulness allegation is based on alleged knowledge of the patents gained upon the filing and service of the complaint (Compl. ¶39). The complaint also pleads willful blindness, alleging that Defendant has a "practice of not performing a review of the patent rights of others" before launching its services (Compl. ¶44).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the patent terms "consolidated trading platform" and "asset," which are rooted in the specification's context of multi-national securities trading, be construed to cover a service that exclusively performs currency conversion and money transfers? The outcome may depend on whether a currency-for-currency exchange is considered a "transaction of the asset" within the meaning of the claims.
- A key evidentiary question will be one of architectural mapping: can Plaintiff demonstrate that Defendant's technology platform embodies the specific "three-tier architecture" recited in the patents, particularly the "market exchange server" element? The case will likely require a technical determination of whether Defendant’s system for sourcing live exchange rates is functionally and structurally the same as the "market exchange server" described in the patents as a venue for asset trading.