Level 3 Sues Limelight Over CDN Patent

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Level 3 Communications (LVLT) has filed suit against Limelight Networks (LLNW), asserting that Limelight is infringing patents that Level 3 acquired when it purchased a content delivery network from Savvis Communications (SVVS) earlier this year. The lawsuit makes more work for lawyers at Limelight, who are already litigating patent infringement claims with CDN market leader Akamai Technologies (AKAM) in a case that may go to trial this year.

The suit was first reported by Dan Rayburn, who noted that Level 3 mentioned patents when it acquired the Savvis CDN network. The news doesn’t seem to have had much impact on shares of Limelight, which have recently been trading between $7 and $8 a share. Limelight went public at $15 a share in a June IPO that saw its shares trade as high as $24. But the stock took a major hit in August when it lowered its revenue guidance, and has traded in single digits ever since.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.