Limelight Networks Soars After Patent Ruling

NEW YORK (AP) — Shares of Limelight Networks Inc. soared Monday after a court reversed a prior jury verdict and ruled in its favor, saying the network services provider does not infringe a patent held by Akamai Technologies Inc.

Akamai had said late Friday it will appeal the decision.

Limelight said Monday the U.S. District Court for Massachusetts set aside a jury verdict and ruled that Limelight does not infringe on Akamai's patent. Akamai had sued Limelight in 2006, alleging that Limelight was infringing on an Akamai content-delivery patent.

In February 2008, a jury found that Limelight did infringe Akamai's patent and awarded Akamai $45 million in damages.

"While Akamai will appeal the reversal, we believe Limelight is likely to be an acquisition target," wrote Wedbush Morgan analyst Kerry Rice in a note to investors. "The verdict should also eliminate a distraction for management, which can now refocus their efforts to attract new customers."

Rice kept a "Buy" rating on Limelight's shares. The analyst also said that Limelight's first quarter is likely on track to meet or exceed expectations.

Tempe, Ariz.-based Limelight's shares rose 84 cents, or 21 percent, to $4.75 in afternoon trading. The day's high of $4.98 set a 52-week high.

Shares of Cambridge, Mass.-based Akamai rose 38 cents, or 2 percent, to $19.86.