Akamai Wins Limelight Patent Suit, $45.5 Million

Akamai Technologies (AKAM) says its won its patent suit against archrival Limelight Networks (LLNW), the AP reports:

Akamai said jury in the U.S. District Court of Massachusetts ruled Limelight Networks infringed a content delivery patent asserted by Akamai. The jury awarded Akamai $45.5 million in damages, plus interest.

Akamai said it plans to ask the court to issue a permanent injunction prohibiting Limelight from continuing to sell infringing devices.

If the verdict holds up, it would be devastating for Limelight, whose shares are down almost 40% in afternoon trading. Last year the company lost $24 million on $66 million of revenue. And if the judge issues an injunction against Limelight, it might have to shut down its network.

Update: As expected, Limelight will appeal.

Akamai shares are up 7% on the news, trading around $35.85.