Limelight Networks Inc. fell 9% after losing a last-ditch effort to overturn a $45.5 million patent-infringement verdict won by Akamai Technologies Inc. in 2008.
A three-judge appeals court panel on Monday rejected “alternative arguments” that Limelight had raised in the dispute over ways to store and deliver video content on the Internet. In August, 10 judges of the court said that Limelight had infringed the Akamai patent, while telling the original panel to address “residual issues.”
The outstanding arguments regarding infringement and damages “have no merit,” the panel of the U.S. Court of Appeals for the Federal Circuit ruled.
The dispute is over content delivery networks, and Limelight had initially argued that it couldn’t be liable for infringement if it didn’t do all the steps in the process. That failed, and the latest arguments were that the trial judge had incorrectly interpreted key terms of the patent and given the jury bad instructions on damages.
The patent was issued in 2000 and still has about four years of life left in it, based on the usual term of 20 years from the date of the 1999 patent application. Akamai said it may seek a court order, called an injunction, blocking further use of its invention.
“We look forward to returning to the district court and ensuring that we are fully compensated for all our damages, including supplemental damages and interest we believe we are entitled to, as well as an injunction,” said Jeffrey Young, an Akamai spokesman.
Limelight said it wasn’t ready to give up on a case that’s already lasted a decade.
“We are disappointed this outcome isn’t aligned with earlier rulings in our favor and we are determined to continue the process,” Limelight CEO Bob Lento said in a statement.
He said the company is considering its options, including a possible petition to the U.S. Supreme Court, which has already heard the case once.
Limelight dropped 18 cents to $1.87 at 4 p.m. in New York trading. Akamai rose almost 1 percent to $59.14.
The case is Akamai Technologies Inc. v. Limelight Networks Inc., 09-1372, U.S. Court of Appeals for the Federal Circuit (Washington).