Akamai Ends Four-Year Patent Dispute with Cable & Wireless Internet Services
In December 2001, a jury found that Digital Island's Footprint content delivery service infringed claims 1, 3, 5, 9, 17, 18 and 22 of U.S. Patent No. 6,108,703, issued in the name of Akamai founders Tom Leighton and the late Danny Lewin. Despite its finding that CWIS infringed claims 17, 18 and 22 of the '703 patent, the jury also found that those particular claims were invalid.
According to the resolution announced today, Akamai and CWIS have settled their remaining dispute - namely, the amount of damages to be paid to Akamai as a result of the jury's finding that CWIS was infringing Akamai's intellectual property rights. The settlement includes a cash payment to Akamai for these damages.
In a related development announced today by Akamai, the Federal District Court in Boston has granted a motion by Akamai to overturn the original jury verdict with respect to '703 patent claims 17, 18 and 22. This latest action means those claims, which cover important aspects of Akamai's core Internet content delivery technology, are not invalid.
"We are very pleased by the resolution of this long-standing dispute, because it reaffirms the value of Akamai's intellectual property and sends a strong message that we can and will successfully defend our business against others who attempt to exploit Akamai's investments in innovation," said Melanie Haratunian, Akamai Vice President and General Counsel. "It is especially gratifying that multiple key claims of the '703 patent previously have been deemed valid or now remain valid, and that the party who infringed those claims has agreed to make a significant financial payment to Akamai. While we prefer to demonstrate the superiority of our technology in the marketplace, rather than the courtroom, we will continue aggressively to enforce our intellectual property rights when necessary to protect shareholder value."
About Akamai
Akamai® is the global leader of distributed computing solutions and services, making the Internet predictable, scalable, and secure for conducting profitable e-business. The Akamai on-demand platform enables customers to easily extend their Web operations - with full control - anywhere, anytime, without the cost of building out infrastructure. Headquartered in Cambridge, Massachusetts, Akamai serves hundreds of today's most successful enterprises and government agencies around the globe. Akamai is The Business Internet. For more information, visit www.akamai.com.
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Jeff Young Media Relations Akamai Technologies, Inc. 617-444-3913 jyoung@akamai.com |
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Sandy Smith Investor Relations Akamai Technologies, Inc. 617-444-2804 ssmith@akamai.com |
Akamai to receive damages for infringement of U.S. Patent No. 6,108,703
CAMBRIDGE, Mass. - December 6, 2004 - Akamai Technologies, Inc. (NASDAQ: AKAM) today announced a final resolution of a long-standing patent dispute with Cable & Wireless Internet Services, Inc. (CWIS), the company originally known as Digital Island, Inc.In December 2001, a jury found that Digital Island's Footprint content delivery service infringed claims 1, 3, 5, 9, 17, 18 and 22 of U.S. Patent No. 6,108,703, issued in the name of Akamai founders Tom Leighton and the late Danny Lewin. Despite its finding that CWIS infringed claims 17, 18 and 22 of the '703 patent, the jury also found that those particular claims were invalid.
According to the resolution announced today, Akamai and CWIS have settled their remaining dispute - namely, the amount of damages to be paid to Akamai as a result of the jury's finding that CWIS was infringing Akamai's intellectual property rights. The settlement includes a cash payment to Akamai for these damages.
In a related development announced today by Akamai, the Federal District Court in Boston has granted a motion by Akamai to overturn the original jury verdict with respect to '703 patent claims 17, 18 and 22. This latest action means those claims, which cover important aspects of Akamai's core Internet content delivery technology, are not invalid.
"We are very pleased by the resolution of this long-standing dispute, because it reaffirms the value of Akamai's intellectual property and sends a strong message that we can and will successfully defend our business against others who attempt to exploit Akamai's investments in innovation," said Melanie Haratunian, Akamai Vice President and General Counsel. "It is especially gratifying that multiple key claims of the '703 patent previously have been deemed valid or now remain valid, and that the party who infringed those claims has agreed to make a significant financial payment to Akamai. While we prefer to demonstrate the superiority of our technology in the marketplace, rather than the courtroom, we will continue aggressively to enforce our intellectual property rights when necessary to protect shareholder value."
About Akamai
Akamai® is the global leader of distributed computing solutions and services, making the Internet predictable, scalable, and secure for conducting profitable e-business. The Akamai on-demand platform enables customers to easily extend their Web operations - with full control - anywhere, anytime, without the cost of building out infrastructure. Headquartered in Cambridge, Massachusetts, Akamai serves hundreds of today's most successful enterprises and government agencies around the globe. Akamai is The Business Internet. For more information, visit www.akamai.com.
