Solution:

-install nvidia 390 (or any older - check or switch using "Additional Drivers" 
app on Ubuntu ), and then, install:
-DisplayLink USB Graphics Software for Ubuntu 4.1 (or newer I guess)

Restart and done!

--
Key here as it seems is that you need to:

1) update graphic card's driver first
2) then uninstall current display link drivers  (sudo displaylink-installer 
uninstall)
3) install the display link drivers for Ubuntu (that is important - it must be 
last thing)

I have two additional monitors and 16.04 Ubuntu.

Write to me: acidosen@<put-google-mail-system>.com if it worked for you

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You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to xorg in Ubuntu.
https://bugs.launchpad.net/bugs/1278223

Title:
  Mouse Flickering after adding 3rd Monitor

Status in xorg package in Ubuntu:
  Incomplete

Bug description:
  *PLEASE READ FIRST BEFORE CONSIDERING MAKING A COMMENT*
  If you are having an issue and want it addressed, it is most helpful to file 
a new report. If you were led here by DisplayLink's website, you were led here 
in error as no useful debugging information has been provided by the original 
reporter, which is necessary to root cause, and solve the issue he reported. 
Posting comments about how you think you have the same problem isn't helpful 
here.

  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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