Nasdaq Inc. has filed a patent infringement lawsuit against IEX Group, Inc. over the exchange operator's electronic-trading technology.
The company claims that IEX, the newest U.S. stock exchange operator, knowingly infringed on seven of its technology patents in developing its trading platform. Nasdaq said the patents represent millions of dollars in investments over decades.
"These seven patents cover important innovations that we, and our customers, rely on for reliability, scalability and transparency," Nasdaq General Counsel and Chief Regulatory Officer Edward Knight said in a statement.
Nasdaq claims that IEX employs several employees that previously worked at Nasdaq and are familiar with the company's technologies. Nasdaq is seeking to "obtain fair compensation for" IEX's use of Nasdaq's intellectual property.
IEX claimed in a statement that Nasdaq's lawsuit is "yet another attempt by Nasdaq to obstruct an innovative new competitor."
The lawsuit was filed in the U.S. District Court for the District of New Jersey.
