IN A CASE closely watched by intellectual property lawyers, a New York federal judge has issued an initial ruling that may undermine British Telecommunications Inc.’s claims that it owns rights to the use of Internet hyperlinking, the technology that allows users to go from one Web site or page to another.

Though the order focuses solely on the meaning of specific terms in British Telecom’s patent and does not address issues of invalidity and infringement, the judge’s analysis may serve as the basis to have British Telecom’s patent infringement suit against Prodigy Communications Corp. thrown out.