Reuters Sues Bloomberg Over Patents

Financial news and data provider Reuters Group has sued Bloomberg, claiming that its rival violated three patents on trading technology.

The federal lawsuit, filed last week in Manhattan, asks the court to order Bloomberg to stop using the technology. The lawsuit also seeks unspecified damages.

The technology allows Reuters customers to trade securities based on market data provided by the service. Reuters and Bloomberg are fierce rivals in providing electronic news and market data to financial institutions.

Bloomberg called the suit “without merit.”

“We are confident we have not infringed on any patents,” Bloomberg spokeswoman Chris Taylor said Sunday.

The trading technology generated $88.4 million for Reuters last year, said Simon Walker, a London-based spokesman. He said the Reuters patents expire in 2016.

The lawsuit claims Bloomberg was “willful and wanton” in violating the patents, a distinction that could increase the damages awarded to Reuters if it wins the case.

Bloomberg was founded by New York Mayor Michael R. Bloomberg. He resigned as chief executive of the company after he was elected mayor in late 2001.

In 1999, federal prosecutors looked into whether a Reuters subsidiary had improperly obtained information from Bloomberg, according to Reuters. No charges were filed.