Agreement Converts $51 Million Judgment into 3-Year $54 Million
License
TEMPE, Ariz.--(BUSINESS WIRE)--
Limelight
Networks, Inc. (NASDAQ:LLNW) (Limelight), a global leader in digital
content delivery, announced today that it has entered into a settlement
agreement with Akamai Technologies to bring the longstanding battle over
the '703 patent to a conclusion. The settlement converts the
approximately $51 million judgment into a $54 million license that will
be paid in 12 equal quarterly installments starting August 1, 2016.
With this agreement, both parties have waived all rights to appeal, and
Akamai will release the $51 million letter of credit that bonded the
judgment. As a result, Limelight will regain access to the full amount
in restricted cash supporting the letter of credit this month.
The agreement allows Limelight to operate its network free from any
restrictions, or future risk of infringement, with respect to the ‘703
and certain other patents.
This agreement excludes patents that Akamai asserted as counterclaims in
the patent infringement case filed by Limelight against Akamai and XO
Communications in the Eastern District of Virginia in late 2015 and does
not otherwise impact Limelight’s rights in that case. More information
on this case and other pending litigation is available in Limelight's
quarterly report on Form 10-Q filed with the SEC on April 28, 2016.
Limelight’s quarterly report on Form 10-Q for the second quarter will be
filed later this week.
“We are pleased by the outcome of this agreement. It eliminates the
continuing risk from the ‘703 patent and allows us to extend the $51
million payment over a three-year period at an attractive interest
rate,” said Robert Lento, chief executive officer of Limelight. “This
agreement, coupled with the series of financial and operational
improvements, further enhances our confidence in Limelight’s value
creation opportunity.”
About Limelight
Limelight Networks (NASDAQ: LLNW), a global leader in digital content
delivery, empowers customers to better engage online audiences by
enabling them to securely manage and globally deliver digital content,
on any device. The company’s award-winning Limelight Orchestrate™
platform includes an integrated suite of content delivery technology and
services that helps organizations secure digital content, deliver
exceptional multi-screen experiences, improve brand awareness, drive
revenue, and enhance customer relationships — all while reducing costs.
For more information, please visit http://www.limelight.com,
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Copyright© 2016 Limelight Networks, Inc. All rights reserved. All
product or service names are the property of their respective owners.
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Source: Limelight Networks, Inc.