<div id="subtitle">RealNetworks shares jump after arbitrator says it need not pay damages to VeriSign</div><div><p>Shares of RealNetworks Inc. soared Wednesday after investors learned that the digital entertainment company will not have to pay damages to VeriSign Inc.</p><p>In 2008, RealNetworks started an arbitration action against VeriSign, a digital security company, to resolve a dispute about a 2001 alliance agreement between the two. VeriSign argued RealNetworks breached the agreement and interfered with the proposed sale of certain business units.</p><p>In May 2009, the arbitrator sided with VeriSign but didn't set any damages.</p><p>According to a Securities and Exchange Commission report filed late Tuesday, RealNetworks said the arbitrator has now reversed course and concluded RealNetworks is not responsible for any damages.</p><p>RealNetworks' stock jumped 53 cents, or 15 percent, to $3.98 in afternoon trading.</p><p>J.P. Morgan analyst Vasily Karasyov upgraded RealNetworks' stock to "Neutral" from "Underweight" after the ruling, saying it reduced the risk to RealNetworks' cash position and thus its stock price.</p><p>However, Karasyov wrote in a note to investors Wednesday that the upgrade doesn't mean he is any more positive about the company's operations.</p><p>"We believe the company is facing competitive and cyclical challenges which we expect to persist in the midterm. As such, we don't expect a material improvement in earnings trend," he wrote.</p><p>Shares of VeriSign slipped 35 cents to $21.76.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=65103973&bid=informcom" /></div><div id="copyright"><div>

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