Same behavior  here - also using 3rd monitor via kensington display
link. Mouse flickering like mentioned above - some information about my
config:

Ubuntu 14.04

Monitor links:
first  DVI 1680x1050
second HDMI 1680x1050
third Kensington Displaylink usb 1680x1050 

lspci
00:02.0 VGA compatible controller: Intel Corporation Core Processor Integrated 
Graphics Controller (rev 12)

lsusb -tv
/:  Bus 02.Port 1: Dev 1, Class=root_hub, Driver=ehci-pci/2p, 480M
    |__ Port 1: Dev 2, If 0, Class=Hub, Driver=hub/8p, 480M
/:  Bus 01.Port 1: Dev 1, Class=root_hub, Driver=ehci-pci/2p, 480M
    |__ Port 1: Dev 2, If 0, Class=Hub, Driver=hub/6p, 480M
        |__ Port 1: Dev 3, If 0, Class=Human Interface Device, Driver=usbhid, 
1.5M
        |__ Port 2: Dev 4, If 0, Class=Human Interface Device, Driver=usbhid, 
1.5M
        |__ Port 2: Dev 4, If 1, Class=Human Interface Device, Driver=usbhid, 
1.5M
        |__ Port 6: Dev 5, If 0, Class=Vendor Specific Class, Driver=udl, 480M

dmesg:

[    2.908713] usb 1-1.6: New USB device found, idVendor=17e9, idProduct=0036
[    2.908718] usb 1-1.6: New USB device strings: Mfr=1, Product=2, 
SerialNumber=3
[    2.908721] usb 1-1.6: Product: Kensington M01063
[    2.908724] usb 1-1.6: Manufacturer: DisplayLink
[    2.908727] usb 1-1.6: SerialNumber: 2012C1001134

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https://bugs.launchpad.net/bugs/1278223

Title:
  Mouse Flickering after adding 3rd Monitor

Status in “xorg” package in Ubuntu:
  Confirmed

Bug description:
  My issues is, after adding a 3rd monitor to Ubuntu 14.04, the mouse
  flickers (or blinks) when the cursor is on monitors one or two, but
  not 3.

  Monitor 1: 1440 x 900 - Laptop's Native Monitor
  Monitor 2: 1920 x 1080 - Laptop's HDMI Port's External Monitor
  Monitor 3: 1024 x 768 - SIIG USB 2.0 to VGA Pro Monitor

  Here's the video card that feeds my laptop's native monitor, monitor 2
  (hdmi).

  lspci | grep 'VGA\|Display'
  00:02.0 VGA compatible controller: Intel Corporation Mobile 4 Series Chipset 
Integrated Graphics Controller (rev 07)
  00:02.1 Display controller: Intel Corporation Mobile 4 Series Chipset 
Integrated Graphics Controller (rev 07)

  The 3rd Monitor is powered through a Display Link certified SIIG USB
  2.0 to VGA Pro adapter (A2H1320X1374 - not sure what this number, but
  it is a sticker on back of the device):

  lsusb -tv
  /:  Bus 01.Port 1: Dev 1, Class=root_hub, Driver=ehci-pci/6p, 480M
      |__ Port 6: Dev 2, If 0, Class=Video, Driver=uvcvideo, 480M
      |__ Port 6: Dev 2, If 1, Class=Video, Driver=uvcvideo, 480M

  dmesg
  [    1.688343] usb 2-1: New USB device found, idVendor=17e9, idProduct=02ee
  [    1.688348] usb 2-1: New USB device strings: Mfr=1, Product=2, 
SerialNumber=3
  [    1.688351] usb 2-1: Product: VGA Display Adapter
  [    1.688353] usb 2-1: Manufacturer: DisplayLink
  [    1.688356] usb 2-1: SerialNumber: 119785

  Additionally, unity-control-center crashes sometimes after I "Restore
  previous settings", after selecting a resolution too high. This
  freezed my laptop, requiring a hard reboot.

  ProblemType: Bug
  DistroRelease: Ubuntu 14.04
  Package: unity-control-center 14.04.1-0ubuntu5
  ProcVersionSignature: Ubuntu 3.13.0-8.27-generic 3.13.2
  Uname: Linux 3.13.0-8-generic x86_64
  NonfreeKernelModules: wl
  ApportVersion: 2.13.2-0ubuntu2
  Architecture: amd64
  CurrentDesktop: Unity
  Date: Sun Feb  9 18:43:13 2014
  InstallationDate: Installed on 2014-02-02 (7 days ago)
  InstallationMedia: Ubuntu 14.04 LTS "Trusty Tahr" - Alpha amd64 (20140202)
  SourcePackage: unity-control-center
  UpgradeStatus: No upgrade log present (probably fresh install)

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