New York Mercantile Exchange (Nymex) has agreed to pay $8m
to Espeed, ending a lengthy court battle over the latter's
controversial Wagner patent.
Espeed said ownership of the patent has now resulted in $48m
in scheduled payments out to 2007.
The patent, which covers the electronic trading of futures in
the US, was originally awarded to former Commodity Futures
Trading Commission official Susan Wagner in 1990. It was bought
in April 2001 by Espeed, which has used it to extract licensing
deals from a number of US electronic futures markets.
Patent infringement litigation against Chicago Board of Trade
and Chicago Mercantile Exchange ended in 2002, with each
exchange agreeing to pay Espeed $15m. Earlier that year,
IntercontinentalExchange (ICE) signed a licensing agreement
pledging at least $2m per year.
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