RealTime IT News

Akamai, Speedera Gear Up for Legal Battle

The battle between Speedera Networks and Akamai Technologies has intensified as the content delivery rivals traded lawsuits and the FBI reportedly raided Speedera's Santa Clara, Calif., headquarters.

Speedera announced Wednesday that it filed claim this week against Akamai in the U.S. District Court in San Jose, California for unfair competition, false advertising, trade libel and intentional interference with prospective business advantage.

The lawsuit seeks unspecified actual and punitive damages as well as injunctive relief against Akamai for making false statements about Speedera's financial condition and false statements about the performance of Speedera's content delivery services.

"Over the past several months we have received numerous reports from customers, prospects and others that Akamai was making false statements about our financial condition and the performance of our services in an apparent attempt to influence our investors and our customers," said Ajit Gupta, President and Chief Executive Officer of Speedera.

The lawsuit comes one day after Akamai filed an application in California Superior Court to immediately enjoin Speedera Networks, Inc. from further access to, and use of, Akamai trade secrets that co-founder and CTO Richard Day has allegedly stolen from a protected database maintained by Keynote Systems, Inc., a third party provider of website testing services.

The suit seeks an injunction to prevent further access to Akamai's data hosted on the database, an order to prevent destruction of documents, and an order restraining Speedera from contacting or offering services to any prospects identified in the data.

"We're appalled that by stealing our data, as our suit alleges, Speedera tried to create a business, not by making an investment in its own company, but by misappropriating the hard work and significant investment Akamai has made," said Paul Sagan, president of Akamai.

Speedera's president and CEO, Ajit Gupta stated that Speedera is a licensed user of Keynote Systems and that whatever information Speedera allegedly obtained from Keynote is not protected or confidential information.

A hearing on Akamai's application for a temporary restraining order is scheduled for today in San Francisco Superior Court.

The New York Times reported today that FBI agents searched Speedera's offices on Monday, in a raid that was likely related to the Akamai's most recent legal action.

Agents removed a computer from Day's office as well as documents, the newspapaper said. A Speedera spokesman denied the allegations.

This is not the first time the two companies have been sitting across from each other in a courtroom. Akamai filed a lawsuit in Boston in February claiming that that Speedera's CDN services infringe on Akamai patents, and that Speedera's "Universal Delivery Network" infringes on an MIT-owned patent exclusively licensed to Akamai and used by its "FreeFlow" network. That case is still pending.

Colin Haley, managing editor of boston.internet.com, contributed to this report.