Limelight-Akamai Judge: No Permanent Injunction Yet, No New Trial* (LLNW, AKAM)

(Updated) Mixed news for Limelight Networks (LLNW) in its patent war with larger rival Akamai Technologies (AKAM): U.S. Federal Judge Rya Zobel says it’s “premature” to grant Akamai’s request for a permanent injunction against Limelight, which is violating an Akamai-controlled patent. That’s good news for Limelight — an injunction would jeopardize about half of its business. But it’s not out of the woods yet — the judge could still rule against Limelight at a later time.

Judge Zobel also denied Limelight’s motions, including a request for a new trial. The court hasn’t announced a date for the resolution of Limelight’s other, pending defenses, according to a press release.

In February, a U.S. District Court jury ordered that Limelight pay Akamai $45.5 million for the infringement. (For perspective, Limelight’s quarterly revenues are around $30 million.)

Analysts expect that Limelight will announce a technology workaround during its Q2 earnings call, likely in August. Will it still be around then? Or will it get scooped up by Level3 (LVLT), AT&T (T), or Akamai (AKAM) in the meantime?

Limelight shares traded up 0.5% to $3.84 today; Akamai closed at $35.48, up 2% on the day.

See Also:
Judge: Too Early To Shut Limelight Down In Akamai Patent Case
What’s Limelight’s Non-Patent-Infringing Business Worth?
Limelight Networks Feeling Pricing Pressure, Q1 Misses

Disclosure: SAI Chairman Kevin Ryan is a major investor in Panther Express, which competes with Akamai and Limelight.

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