Akamai, Limelight Settle Legal Case Over Content Delivery System Patent

Limelight Networks reached a settlement Monday with Akamai Technologies to end their long-running patent infringement battle over an Akamai-owned content delivery system patent that was the subject of a 2014 Supreme Court case (see report in the June 3, 2014, issue). Limelight agreed to pay $54 million to Akamai -- spread over 12 consecutive quarters -- in exchange for a patent license and a commitment from both parties to reliquish their right to further appeals of the case. A U.S. District Court in Boston ordered Limelight last month to pay Akamai $51 million damages for infringing Akamai’s patent after the case was remanded from the U.S. Court of Appeals for the Federal Circuit (see 1607010068). “We are pleased by the outcome of this agreement. It eliminates the continuing risk from [Akamai’s] patent and allows us to extend the $51 million payment over a three-year period at an attractive interest rate,” said Limelight CEO Robert Lento in a news release.