Limelight and Akamai strike licensing deal to settle patent dispute

Akamai Technologies and Limelight Networks have agreed a $54 million licensing deal, bringing to an end the companies’ long-running patent battle.

The agreement, finalised on Monday, August 1, converts a  judgment from July that ordered Limelight to pay Akamai $51 million in damages into a “$54 million licence that will be paid in 12 equal instalments”.

Under the  agreement, Limelight will pay Akamai in quarterly instalments over three years, starting on August 1.

Limelight will then be able to operate its network without facing any restrictions or risking infringement of the patent in question, US number 6,108,703.

Akamai had sued Limelight for infringing the patent, which covers a method of delivering content on a webpage.

Following litigation, in 2014 the US Supreme Court held in the case that induced infringement requires a single direct infringer.

In November,  WIPR reported that the case was heading back to the US District Court for the District of Massachusetts for a final judgment after the US Court of Appeals for the Federal Circuit rejected Limelight’s remaining claims in the dispute.

The court entered its final judgment last month.

Robert Lento, CEO of Limelight, said: “This agreement, coupled with the series of financial and operational improvements, further enhances our confidence in Limelight’s value creation opportunity.”