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December 26, 2007

Level 3 Files Suit Against Limelight Networks Over CDN Patents

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Dan Rayburn, Principal and EVPDan Rayburn
Principal and EVP, StreamingMedia.com
Implications: This morning, Google indexed a filing from December 17th from Level 3 Communications who filed a patent infringement suit against Limelight Networks (Case number 2:2007cv00589) in the District Court of Virgina. I have not been able to get a copy of the filing as of yet but I was able to speak to Level 3 about the filing this morning.

Analysis: While Level 3 is not giving out many details of the suit, as is common in these cases, they were able to confirm that the patent(s) in question were acquired by Level 3 from SAVVIS as part of the sale of SAVVIS's CDN assets. Level 3 would not say how many patents are in question or give out patent numbers at this time, but they did say that the infringement relates specifically to content distribution. They would not say what kind of content distribution, video, static, applications etc... but were willing to say that the patent(s) in question have never been previously asserted in any patent infringement case.

Level 3 has over 850 worldwide patents and patent applications in their portfolio and did say that when they decided to get into the CDN business that they viewed having patents pertaining to the product as being a key factor that would help determine their long term success. At this time, Level 3 would not comment on any other networks who might be infringing on their patents or speculate on additional infringement cases.

I've put in a request to Limelight Networks and will update the post if I hear from them this weekend. I also expect to have a copy of the filing shortly and am looking to see what records exist that talk about the SAVVIS patents, which really comes from the Cable and Wireless patents that SAVVIS acquired.


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