rob.harrison

Limelight Networks: Friday Stock Spike Pinned On Positive Lawsuit News

Currently both parties are in so-called discovery mode in which apparently over 450,000 pages have been exchanged. They are requesting an extension of time until the end of the year for completing the discovery. Court has set a status hearing conference on 8 August.

Limelight Networks: Friday Stock Spike Pinned On Positive Lawsuit News

Given Akamai's record on patent infringement litigation (RIAA; Speedera), they have settled litigation very much on their own terms. Limelight have defended themselves very vigorously in this matter and I would expect that the initially offered settlement terms (if any) would have been somewhat unfavorable. The question is probably now whether either side wants to settle. It may be in Akamai's interests to continue the case and Limelight may feel its position justified. The best thing to do would be to settle - it is good for the marketplace to have alternative CDN solutions offered and management time would be locked up in the legal battle rather than in the marketplace.

Akamai Likely to Prevail in Suit Against Limelight

For those interested, see the later post in which it is reported that Limelight won a first step on the case when the judge issued a so-called Markman order interpreting the claims very favourably for Limelight.

Limelight Networks: Friday Stock Spike Pinned On Positive Lawsuit News

Basically the current ruling in the Court Decision which has caused so much comment is only a small step on the road to a victory by either Akamai or Limelight. Essentially Akamai has sued Limelight for the infringement of three (not two) patents. The patents have been validly granted by the US Patent Office and Akamai has already enforced them against other companies (e.g. Speedera). This decision is what is called a Markman Order. Basically the judge has heard submissions from both sides about what the patents really mean and tried to sort out the legalese and bumpf from the true facts. The judge has decided what certain points of the claims mean - where those meanings are in dispute between the two parties. It does seem from the decision that Limelight came out on top and that Akamai may have more difficulty in arguing that Limelight infringe their patents - but there is still potentially a jury trial to come.

What Akamai have NOT patented is the concept of the CDN itself. They have tried to patent various aspects associated with the CDN - and indeed Limelight have also got a few patents themselves on this.

So the celebration is possibly a little too early. It may be good news for Limelight - and it certainly allows them to assess their defence, but it is not all over yet.