Mixed News For Limelight In Akamai Patent War (LLNW, AKAM)

Shares of content delivery firm Limelight Networks (LLNW) are up more than 6% today after the company announced some good news in its patent case against archrival Akamai Technologies (AKAM).

Late last night, the company said that the U.S. District Court for the District of Massachusetts granted Limelight's request to throw out one of the patents from the case, which goes to trial next Monday. Earlier this week, Akamai tossed a second patent from the case. One remains.

But Jefferies analyst Katherine Egbert has more sober news for Limelight investors today. She reminds us that the remaining patent is Akamai's "first and most successful patent," which it used to get a permanent injunction against Cable and Wireless and a preliminary injunction against Speedera, which Akamai later acquired.

So, most important: Despite favorable pre-trial rulings, Limelight could still face an injunction that could throw a wrench into its business.

See Also: Limelight Networks Gets A Downgrade