DCT
2:25-cv-00057
Intercurrency Software LLC v. Tor Currency Exchange Ltd
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Intercurrency Software LLC (Texas)
- Defendant: Tor Currency Exchange Limited (United Kingdom)
- Plaintiff’s Counsel: Garteiser Honea, PLLC
- Case Identification: 2:25-cv-00057, E.D. Tex., 01/21/2025
- Venue Allegations: Venue is asserted on the basis that Defendant is not a resident of the United States and may be sued in any judicial district, and that Defendant is subject to personal jurisdiction in the Eastern District of Texas.
- Core Dispute: Plaintiff alleges that Defendant’s online and mobile currency exchange platforms infringe four patents related to systems and methods for conducting financial transactions in a user’s preferred currency.
- Technical Context: The technology at issue involves integrating real-time currency conversion into financial trading platforms to provide transactional certainty for international investors.
- Key Procedural History: The complaint notes that the patents-in-suit have been cited by patents issued to Bank of America, which may be presented to suggest industry relevance. The complaint also includes preemptive arguments that the claims are patent-eligible, asserting that the relevant fields of art were considered by the patent examiners during prosecution.
Case Timeline
| Date | Event |
|---|---|
| 2007-04-18 | Priority Date for ’107, ’863, ’930, and ’701 Patents |
| 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 |
| 2025-01-21 | 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 in prior art financial systems where foreign investors trading assets (e.g., U.S. securities) had to use the asset's market currency (e.g., U.S. dollars). This required pre-converting bulk sums of their home currency and left them uncertain about the final profit or loss of a transaction due to subsequent exchange rate fluctuations (Compl. ¶15; ’107 Patent, col. 1:38-60). The patent asserts that prior systems did not perform currency conversion at a "transactional level" (Compl. ¶16; ’107 Patent, col. 1:61-65).
- The Patented Solution: The invention proposes a "three-tier architecture" comprising a brokerage, a market exchange, and a currency exchange, integrated into a single platform (Compl. ¶18; ’107 Patent, col. 2:24-33). This consolidated system presents all prices, quotes, and transaction results to the user in their preferred currency, performing the necessary currency conversion automatically when a transaction is executed. This allows a trader to know the exact outcome of a transaction in their own currency at the time of the trade (’107 Patent, Abstract; col. 2:33-38).
- Technical Importance: This approach aimed to provide transactional certainty and transparency for international investors by integrating real-time currency conversion directly into the trading workflow (’107 Patent, col. 2:33-35).
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.
- Conducting a transaction of the asset by transmitting a request to a market exchange server.
- Receiving a settlement notification when the transaction is performed according to user-set conditions.
- Performing a currency conversion from the market currency to the preferred currency.
- The complaint does not explicitly reserve the right to assert dependent claims, though this remains a possibility.
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 ’107 Patent, the ’863 Patent addresses the same technical problem: the risk and uncertainty for traders when the currency of an asset differs from the trader’s home currency, which obscures the true cost and profit/loss of a transaction (’863 Patent, col. 1:52-60).
- The Patented Solution: The invention describes a consolidated trading platform that displays financial assets to a user in their preferred currency. A key aspect is that the displayed value of the asset changes dynamically in accordance with constantly updated prevailing exchange rates, even if the underlying market value of the asset remains unchanged (’863 Patent, Abstract; col. 8:55-col. 9:2). The system architecture connects an investor's client device to brokerage, asset exchange, and currency exchange servers to facilitate this functionality (’863 Patent, FIG. 2A, 2B).
- Technical Importance: By displaying asset valuations that fluctuate in real-time with exchange rates, the invention makes cross-border investing more transparent and predictable for the end user (’863 Patent, col. 2:33-35).
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 the asset in the preferred currency, where the valuation changes based on the updated exchange rate even when the asset's market value is static.
- Conducting a transaction of the asset.
- Executing the transaction with 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: This patent, a continuation in the same family, describes a system addressing the uncertainty of cross-border financial transactions. It discloses a trading server that calculates and displays all costs and fees in a trader's selected currency, dynamically updating them based on real-time exchange rates, and executes transactions by performing the necessary currency conversion to provide the trader with a clear final settlement amount in their preferred currency (’930 Patent, Abstract; col. 2:15-38).
- Asserted Claims: Independent claim 12 is asserted (Compl. ¶67).
- Accused Features: The complaint alleges that Defendant's trading platform, specifically its trading servers coupled to currency and market exchange servers, infringes this 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, also a continuation, discloses a trading platform that integrates currency exchange functions to eliminate transactional uncertainty for investors. The system displays asset values in a user's preferred currency, dynamically adjusts that display based on live exchange rates, and executes trades by calculating and applying a prevailing exchange rate at the moment of the transaction to achieve a settlement in the preferred currency (’701 Patent, Abstract; col. 2:15-38).
- Asserted Claims: Independent claims 1 and 8 are asserted (Compl. ¶83).
- Accused Features: Infringement allegations target Defendant's trading platform, including its servers that couple to currency and market exchanges (Compl. ¶83).
III. The Accused Instrumentality
Product Identification
- The "Accused Instrumentalities" are identified as Defendant’s "TorFX Business and Personal Money Transfers platforms and systems" found at its website, as well as its mobile "TorFX app" (Compl. ¶30).
Functionality and Market Context
- The complaint alleges the accused products provide global payment services for currency exchange to both individual and corporate customers (Compl. ¶3-4). A screenshot provided in the complaint describes the TorFX app as a tool to "secure excellent exchange rates and manage your currency transfers on-the-go, 24/7," including features to "Check live exchange rates" and "Buy currency in advance" (Compl. p. 8). A second screenshot depicts the "Business Transfers" service, which is marketed as a way for businesses to manage foreign exchange exposure when paying for imported goods or repatriating earnings (Compl. p. 9). The complaint alleges these instrumentalities constitute a "consolidated trading platform" (Compl. ¶30).
IV. Analysis of Infringement Allegations
’107 Patent 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 coupled to currency and market exchange servers. | ¶35(i) | col. 8:46-52 |
| 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 causes a 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 trading server conducts a transaction by transmitting a request 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, wherein the conditions include a price at which the asset is traded... | The trading server receives a settlement notification when the transaction is performed according to user-set conditions, and is configured to calculate and apply a prevailing exchange rate. | ¶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... | A currency conversion is performed from the market currency to the preferred currency. | ¶35(vi) | col. 9:23-28 |
’863 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| coupling a trading server to one or more currency exchange servers and one or more market exchange servers | Defendant provides a trading server coupled to currency exchange servers and market exchange servers. | ¶51 | col. 8:48-52 |
| receiving in the trading server an indicator of a preferred currency from a trader | The complaint makes a general allegation of infringement of the claim, from which receiving a preferred currency is inferred. | ¶51 | col. 8:53-54 |
| causing a client computer associated with the trader to display the asset in the preferred currency... valuation of the asset in the preferred currency changes in accordance with the prevailing exchange rate updated constantly even when a market value of the asset remains unchanged | The complaint alleges this functionality is met by the accused platform. The screenshot of the TorFX app lists "Check live exchange rates" as a key benefit (Compl. p. 8). | ¶51 | col. 8:55-9:2 |
| conducting in the trading server a transaction of the asset... | The complaint's general infringement allegation covers this element. | ¶51 | col. 9:3-6 |
| wherein the trading server is configured to... execute[] the transaction with the calculated prevailing exchange rate obtained right before the transaction to prevent uncertainty in currency exchanges in another time | The complaint's general infringement allegation covers this element. | ¶51 | col. 9:16-21 |
Identified Points of Contention
- Scope Questions: A primary question may be whether Defendant's "money transfer" platforms (Compl. ¶30) constitute a "consolidated trading platform" for trading an "asset" as contemplated by the patents. The patent specifications consistently provide examples of assets such as stocks, bonds, and commodities (’107 Patent, col. 2:19-24; col. 6:50-52), whereas the accused instrumentalities appear focused on currency exchange itself. The case may turn on whether "currency" can be considered the claimed "asset."
- Technical Questions: The complaint alleges infringement in a largely conclusory manner, especially for the ’863 Patent, by mapping broad product categories to claim elements. A point of contention will be whether the evidence shows that the accused TorFX platforms perform the specific functionalities recited, such as executing transactions based on "conditions set by the user" (’107 Patent, cl. 1) or dynamically re-valuing an "asset" in a preferred currency beyond simply displaying a live exchange rate for a currency pair (’863 Patent, cl. 1).
V. Key Claim Terms for Construction
The Term: "asset"
- Context and Importance: This term is fundamental to the scope of all asserted patents. The infringement dispute may center on whether the "currency" being exchanged in Defendant's platform qualifies as the "asset" being traded, as the term is used in the claims. The patents’ background and examples focus on trading non-currency instruments like securities (’107 Patent, col. 1:29-34).
- Intrinsic Evidence for a Broader Interpretation: The specification states that securities include "a wide array of electronically traded financial assets" (’107 Patent, col. 2:19-22). Plaintiff may argue that a foreign currency being purchased is a type of "financial asset" and thus falls within this broad language.
- Intrinsic Evidence for a Narrower Interpretation: The specification repeatedly uses examples of assets such as stocks (Microsoft), commodities (oil), and bonds, which are priced in one currency and traded by an investor using another (’107 Patent, col. 2:21-22; col. 6:15-17, 50-52). Defendant may argue that this consistent context limits the term "asset" to a financial instrument distinct from the currencies used to trade it.
The Term: "trading server"
- Context and Importance: The claims require a "trading server" that performs specific functions and couples to distinct "market exchange" and "currency exchange" servers. The complaint alleges Defendant's servers are "trading servers" (Compl. ¶35(i)). The construction of this term will determine if Defendant's system architecture matches the one claimed.
- Intrinsic Evidence for a Broader Interpretation: The patents are titled "Consolidated Trading Platform" and "Platform for Trading Assets", suggesting a general applicability to financial transactions. Plaintiff may argue that any server system that facilitates the exchange of financial value, such as currency, is a "trading server."
- Intrinsic Evidence for a Narrower Interpretation: The specification describes a "three-tier architecture" that includes a "brokerage," a "market exchange where securities/assets are traded," and a "currency exchange" (’107 Patent, col. 2:25-28; FIG. 2B). Defendant may argue its system is simply a currency exchange and lacks the separate "market exchange" functionality where an asset is independently traded, and therefore its servers do not meet the definition of the claimed "trading server."
VI. Other Allegations
Indirect Infringement
- The complaint alleges inducement to infringe for all four patents. The allegations are based on Defendant providing and advertising the accused platforms, which allegedly instructs and encourages end-users to use the platforms in a manner that directly infringes the method claims (Compl. ¶40, ¶43, ¶56, ¶72, ¶88).
Willful Infringement
- The complaint alleges willful infringement for all four patents, asserting that Defendant's infringement "will now be willful through the filing and service of this Complaint" (Compl. ¶39, ¶55, ¶71, ¶87). It further alleges willful blindness, claiming on information and belief that Defendant has a practice of not reviewing the patent rights of others before launching products (Compl. ¶44, ¶60, ¶76, ¶92).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the term "asset", which is exemplified in the patent specifications with securities, commodities, and other such instruments, be construed to read on the foreign currency itself in the currency-pair exchange transactions allegedly offered by Defendant's platforms? The outcome of this question will be critical to the infringement analysis.
- A key evidentiary question will concern the technical operation of the accused system: can Plaintiff produce evidence showing that Defendant’s currency transfer service performs the specific, multi-step transaction and settlement processes recited in the claims—such as executing trades based on user-set conditions and dynamically re-valuing an asset separate from its market price—or does a fundamental mismatch exist between the claimed securities trading platform and the accused currency exchange service?