WASHINGTON (Reuters) - The U.S. Supreme Court ruled on Monday in favor of Limelight Networks Inc over claims by Akamai Technologies Inc that it infringed on patented technology for managing Web images and video.
The justices, in a 9-0 vote, said Limelight cannot be held liable for inducing patent infringement when no party has directly infringed on the patent in question.
The court, in an opinion by Justice Samuel Alito, reversed a August 2012 ruling by a divided U.S. Court of Appeals for the Federal Circuit in Akamai's favor, which effectively made it easier to prove that a company is liable based on the induced infringement theory.
The Akamai lawsuit was filed in 2006. A Massachusetts jury initially found that Limelight infringed the patents and awarded $40.1 million for lost profits and $1.4 million for damages.
The case is Limelight Networks v. Akamai Technologies, U.S. Supreme Court, No. 12-786.
Editing by Howard Goller and Bernadette Baum