HFT Solutions Technologies, LLC v. Jump Trading, LLC

HFT Solutions Technologies, LLC, a wholly-owned subsidiary of publicly traded Network-1 Technologies, Inc., initiated this patent infringement lawsuit against Jump Trading, LLC. HFT Solutions operates as a patent assertion entity (PAE) or Non-Practicing Entity (NPE), acquiring and monetizing intellectual property portfolios, with Network-1 Technologies having a stated strategy of developing and licensing its intellectual property. Defendant Jump Trading is a prominent proprietary trading firm based in Chicago, specializing in algorithmic and high-frequency trading (HFT) strategies across global asset classes, including futures, options, cryptocurrency, and equities. Jump Trading relies heavily on advanced technological infrastructure for ultra-low latency trade execution.

The litigation centers on Jump Trading's alleged infringement through its use of Field-Programmable Gate Array (FPGA) systems and platforms in its high-frequency trading operations. Specifically, the complaint identifies accused instrumentalities as FPGA systems, including trading platforms that incorporate FPGA boards such as the Bittware XUP-VV8 and AMD Alveo UL3524 and UL3422. HFT Solutions asserts U.S. Patent No. 10,931,286, alongside U.S. Patent No. 11,128,305 and U.S. Patent No. 11,575,381. All three patents are titled "Field programmable gate array with external phase-locked loop" and generally describe FPGA systems with an external phase controller designed to provide phase matching between receiver and transmitter clocks with minimal latency, a critical feature for the nanosecond-level speed requirements of HFT.

The case was filed on December 26, 2024, in the United States District Court for the Northern District of Illinois, with the initial assignment to District Judge John J. Tharp Jr.. The Northern District of Illinois is a recognized venue for patent litigation, and its judges' rulings have historically shown a relatively high affirmation rate on appeal to the Federal Circuit. Given Jump Trading's headquarters in Chicago, the venue is directly relevant to the defendant's operations. This case is notable as part of a broader patent assertion campaign by HFT Solutions targeting the high-frequency trading industry, a sector highly dependent on technological speed and efficiency. A parallel lawsuit asserting the same patents was also filed against Citadel Securities, another major HFT firm. This pattern suggests a strategic effort by HFT Solutions to license its "HFT Patent Portfolio," which it acquired in March 2022 and claims covers technologies crucial for low-latency trading using FPGAs, with patent terms expected to extend until 2040. While no specific PTAB IPRs were identified for this case against Jump Trading, a similar motion to dismiss based on patent ineligibility under 35 U.S.C. § 101 was denied in the parallel Citadel Securities action, indicating the validity of these high-frequency trading patents may be a key contested issue.

HFT Solutions Technologies, LLC initiated a patent infringement lawsuit against Jump Trading, LLC in the United States District Court for the Northern District of Illinois, Case No. 1:24-cv-13214, filed on December 26, 2024. The case remains active.

Here's a chronological summary of the key legal developments and outcomes:

• Filing & Initial Pleadings:

  • 2024-12-26: HFT Solutions Technologies, LLC, a wholly-owned subsidiary of Network-1 Technologies, Inc., filed its complaint against Jump Trading, LLC. The lawsuit alleges infringement of U.S. Patent Nos. 10,931,286, 11,128,305, and 11,575,381. These patents generally relate to field-programmable gate array (FPGA) systems used in high-frequency trading to reduce processing latency, particularly concerning clock domain management technology. The case was assigned to District Judge John J. Tharp Jr..
  • As of the current date, specific details regarding Jump Trading, LLC's answer to the complaint and any counterclaims filed in this particular case (1:24-cv-13214) are not publicly available through general web searches. In a parallel case brought by HFT Solutions against Citadel Securities (1:24-cv-13213), Citadel filed an answer and counterclaims on January 5, 2026, seeking declaratory judgment of non-infringement and invalidity of the asserted patents.

• Pre-trial Motions of Substance:

  • No significant pre-trial motions, such as motions to dismiss, transfer, or stay pending inter partes review (IPR) or post-grant review (PGR) proceedings, have been publicly reported for this case.

• Claim Construction (Markman) Outcomes:

  • There is no publicly available information indicating that a Markman hearing has been held or that a claim construction order has been issued in this case.

• Discovery Milestones:

  • Specific discovery milestones or disputes with strategic significance have not been publicly reported.

• Trial Events, Verdict, and Post-Trial Motions:

  • Given the relatively recent filing date (December 2024), the case has not yet reached trial, verdict, or post-trial motions.

• Settlement, Dismissal, Judgment, or Appeal:

  • The case remains active, and there has been no settlement, dismissal, judgment, or appeal as of May 29, 2026.

• Parallel PTAB IPR/PGR Proceedings:

  • Searches of the USPTO Patent Trial and Appeal Board (PTAB) database for U.S. Patent Nos. 10,931,286, 11,128,305, and 11,575,381 do not show any active or concluded inter partes review (IPR) or post-grant review (PGR) proceedings initiated against these patents.

HFT Solutions Technologies, LLC is represented by counsel from Russ August & Kabat.

Based on available information, the following attorney has been identified:

• Erik de la Iglesia
  • Role: Counsel (specific role such as lead or local counsel not explicitly stated, but his involvement in "IPR, Claim Construction, Intervening Rights" suggests a significant role).
  • Firm: Russ August & Kabat, Los Angeles, California.
  • Experience Note: Erik de la Iglesia is an expert witness and IP strategist with an entrepreneurial background in information technology, having worked as a chief architect for hardware and software companies. His legal and litigation experience with Russ August & Kabat includes patent infringement, validity, and post-grant proceedings.

Russ August & Kabat is recognized for its preeminent patent litigation practice, consistently ranked among the country's most sought-after firms, with a history of trial wins and significant settlements against major technology companies. The firm has over fifty attorneys and two offices in Los Angeles, with lawyers holding advanced degrees in various technical fields.

Despite extensive web searches for counsel representing Jump Trading, LLC in HFT Solutions Technologies, LLC v. Jump Trading, LLC, case number 1:24-cv-13214 in the United States District Court for the Northern District of Illinois, the specific attorneys of record for the defendant could not be definitively identified through public online resources.

While the plaintiff, HFT Solutions Technologies, LLC, is represented by attorneys from Russ August & Kabat, information regarding Jump Trading, LLC's legal team for this particular patent infringement case is not publicly available in the search results.

It is common for attorney appearance information to be detailed on the official court docket, which is accessible via PACER. However, without direct PACER access, public web searches, including legal news sites and firm websites, did not yield a conclusive list of the defendant's counsel.

The case was filed on December 26, 2024, and is currently active. U.S. District Judge John J. Tharp Jr. is assigned to the case, with Magistrate Judge Daniel P. McLaughlin referred.

While some other cases involving Jump Trading, LLC, such as Jump Trading LLC v. Nick Patterson, et al. (Supreme Court case 24-1266), list firms like Kobre & Kim LLP and Latham & Watkins, LLP as counsel for Jump Trading, this representation is specific to that separate matter and cannot be assumed for the HFT Solutions patent infringement case.