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Scare-mongering hype over Skype

Posted By Martyn Warwick , 03 August 2009 | 0 Comments | (0)
Tags: Internet Peer-to-Peer VoIP Finance Litigation

Panicky stories hit the press and TV over the weekend to the effect that Skype might be forced to shut down completely because, it is being claimed, eBay, the Internet auction site company that bought the VoIP technology for US$2.6 billion back in 2005, merely licensed from Skype's founders the rights to the technology that actually drives the free web calls system. Martyn Warwick reports.

However, there's more to the scare-mongering than meets the eye. Some time ago eBay announced that it intends to take Skype to IPO sometime late next year and the dispute threatens that potentially lucrative spin-off. Yup, surprise, surprise, this is about money.

Skype was founded by Niklas Zennstrom and Janus Friis and the service first became commonly available in 2002. Messrs. Zennstrom and Friis now have a new company, Joltid, that is domiciled in that renowned while-hot crucible of the technological revolution, the British Virgin Islands, and it seems likely the owners can smell a bit of extra dosh wafting their way on the tropical breeze.

eBay is taking Joltid to court to prevent the company from terminating the licensing agreement that allows the Internet auction house to use the patented peer-to-peer software that actually makes Skype work.


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