Limelight Getting Dimmer?

After losing an infringement case brought against it by fellow content delivery network Akamai, Limelight Networks is going all out to reassure its customers that the $45.5 million judgment against it was merely a flesh wound.

In a letter posted to the company’s web site (and sent around to the media), Limelight notes its $197 million in cash on hand and explains why it’s waiting to file an appeal. All fine, but the admission that it’s working on a way to operate without infringing the Akamai patent means that this flesh wound is more akin to having a leg chopped off.

“Further, we are actively exploring alternatives that would enable us to continue to provide the same level of service that we always have and eliminate any issue of infringement, if such is determined with finality by the courts. Additionally, there are many aspects of our business that were either not accused of infringing or we believe are clearly outside the scope of what was litigated.”

The very existence of the letter indicates that customers are concerned. Shares in Limelight have dropped more than 35 percent since the Feb. 29 verdict, so now might be a good time for a deep-pocketed buyer with a fearsome legal team to step in.


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