License infringement.

The claim that Akamai has submitted versus Cotendo declares the infraction of three licenses.

The most current of the patents, 7,693,959, is dated April 2010, yet it’s a continuation of numerous previous applications– its age is well demonstrated by things like its reference to the Netscape Navigator browser as well as references to ADC suppliers that disappeared years ago. It appears to be a kind of generic basic CDN patent, however it regulates using replication to distribute objects, not simply caching.

The 2nd Akamai patent, 7,293,093, essentially covers the “whole site distribution” strategy.

The earliest of the licenses, 6,820,133, was obtained by Akamai when it got Netli. It basically covers the basic ADN technique of enhanced interaction between two web server nodes in a network. I do not recognize how defensible this license is; there are comparable ones held by a range of ADC as well as WOC suppliers who utilize such strategies.

My assumption is that the patent issues won’t impact the CDN market in any type of substantial method, and the claim is most likely to drag on permanently. Combating the lawsuit will certainly set you back money, however Cotendo has deep-pocketed backers in Sequoia as well as Standard. It will certainly sustain supposition that Akamai will try to buy them, but I do not think that it’s mosting likely to be a basic way to eliminate competitors in this market, particularly offered what I have actually seen of the roadmaps of other competitors (under NDA). Dynamic velocity is also engaging to remain a monopoly (and also by the way, the ex-Netli executives are now devoid of their affordable lock-up), and also the only factor it’s taken this long to show up was that a lot of CDNs were focused on the significant, and technically much less complicated, possibility in video delivery.

It’s an intriguing signal that Akamai takes Cotendo seriously as a rival, though. In my point of view, they should; given that early this year, I’ve frequently seen Cotendo as a bidder in the bargains that I look at. The AT&T offer is simply a sweetener– and considering that AT&T will use your corporate enteprise discount to a Cotendo offer, that indicates that I have actually obtained business customers that in some cases check out 70% price cuts on top of an already less-expensive price quote. As well as Akamai’s problem is that Cotendo isn’t just, as Akamai alleges in its legal action, an inexpensive rival; Cotendo is trying to introduce and also use points that Akamai doesn’t have.