With competition in the binary options industry on the rise, we are seeing one of the major service providers make use of its patents related to binary options technology. Just like companies in other industries, TRADOLOGIC is gearing to aggressively protect all of its patented intellectual property.
According to a letter seen by Forex Magnates’ reporters, a legal representative of TRADOLOGIC has informed a number of binary options brands about them allegedly infringing on the company’s patents.
This includes some of the brands of other binary options technology providers and standalone brokers who are using their own technology, particularly the ones regulated by CySEC.
The legal representatives of TRADOLOGIC have informed a big number of competitors, alleging patent infringement and claiming exclusive rights to four patented products related to a system and methodology for providing a platform for the trade of select financial instruments (in this case binary options, which are referred to in one of the patents displayed below as exotic options).
In addition, the document highlights the use of certain tools for binary options trading, namely concerning the possibility to “close now” or “extend” a given binary option.
The document concerns three US patents and one which has been granted to the company in Japan.
What to Look for in a Forex Technology Provider?Go to article >>
Our reporters have obtained a copy of one of the patents allegedly infringed, which is displayed at the end of this article.
TRADOLOGIC claims exclusivity in its rights over the ability of competitors to use the patented products which are mentioned in the letter and claims to hold an absolute right to granting permission to other brands to use its trading methodology systems.
The documents alleges competitors have been using patented products from January 2013, and asks the firms to either stop using the products that are infringing on the company’s patents, or sign a licensing agreement with TRADOLOGIC.
In the event that firms allegedly infringing on the patents do not respond within a 7 day term, TRADOLOGIC intends to file an official complaint to CySEC, instigating an official investigation against the companies involved.
Questions can be raised as to how TRADOLOGIC might use the US patent law to its leverage, since none of the CySEC regulated brands are allowed to onboard customers in the United States, only some unregulated offshore entities have been violating U.S. law by onboarding U.S. clients.