Akamai Technologies has accepted a compensation payment in settlement of a long-running patent infringement lawsuit filed against Digital Island.
The legal battle began in 2000, when Akamai filed a lawsuit against Digital Island accusing it of using Akamai-patented technology in its Footprint content delivery service. Digital Island was subsequently acquired by Cable & Wireless (C&W) and merged with Cable & Wireless Internet Services (CWIS).
In December 2001, a federal jury in Boston determined that C&W had infringed on the Akamai patent but the legal maneuvering continued. C&W hit back by filing its own lawsuits against Akamai in Boston, San Francisco and London, asserting that Akamai's EdgeSuite services infringe on C&W's content delivery patents.
In November last year, with CWIS' parent company, Cable and Wireless America (CWA), facing bankruptcy, the companies agreed to drop the handful of patent infringement lawsuits that they had filed against each other. At the time, C&W said that it no longer used any of the Footprint technology, but Akamai said it would continue to seek payment for damages.
A month later, CWA filed for bankruptcy protection after C&W claimed its US division was losing $1m a day. CWA was auctioned off to Savvis Communications in January.
Akamai said that it was pleased with the settlement agreement it reached with CWIS and promised to continue to enforce its intellectual property rights aggressively. Terms of the settlement, including the amount of the cash payment awarded to Akamai, were not disclosed.
The company also said that the Federal District Court in Boston granted a motion brought by Akamai to overturn the jury verdict as it related to aspects of Akamai's content delivery technology. Those claims are not now invalid, Akamai said.
C&W said it has had no involvement in the matter since CWA was sold under bankruptcy protection, and declined to make any further comment.
Representatives from Savvis could not be reached for comment.
Laura Rohde writes for IDG News Service