Hi!
I believe they will sattle this down. This is just a common case of 
corporate muscling around. In the end, eBay will sign some long term 
contract with Joltid or just buy it off for a billion or two.
----- Original Message ----- 
From: "Lino and Louie" <[email protected]>
To: "skype english list" <skypeenglish at emissives.com>
Sent: Friday, July 31, 2009 3:24 PM
Subject: [Skypeenglish] Shock threat to shut Skype


> Someone on my Twitter  point me to this article. I hope this doesn't 
> happen
> to Skype next year.
> Shock threat to shut Skype
>
> Niklas Zennstrom and, inset, Janus Friis.
>
> Asher Moses
> July 31, 2009 - 1:38PM
> eBay says it may have to shut down Skype due to a licensing dispute with 
> the
> founders of the internet telephony service.
>
> The surprise admission puts a cloud over the 40 million active daily users
> around the world who use Skype for business or to keep in touch with 
> friends
> and far-flung relatives.
>
> A recent study by market researcher TeleGeography found Skype carried 
> about
> 8 per cent of all international voice traffic, making it the world's 
> largest
> provider of cross-border voice communications.
>
> The online auction powerhouse bought Skype from entrepreneurs Niklas
> Zennstrom and Janus Friis for $US2.6 billion in 2005, but this did not
> include a core piece of peer-to-peer communications technology that powers
> the software.
>
> eBay has since been licensing the technology from the founders' new 
> company,
> Joltid, but the pair recently decided to revoke the licensing agreement.
>
> The matter is now the subject of a legal battle in the English High Court 
> of
> Justice, with eBay trying to force Joltid to let it continue using the
> technology.
>
>
> In a quarterly report filed with the US Securities and Exchange 
> Commission,
> eBay said in no uncertain terms that if it lost the right to use the
> software it would most likely have to shut Skype down.
>
> eBay said it was working on developing ''alternative software'' to that
> licensed through Joltid, but this ''may not be successful, may result in
> loss of functionality or customers even if successful, and will in any 
> event
> be expensive''.
>
> ''If Skype was to lose the right to use the Joltid software as the result 
> of
> the litigation, and if alternative software was not available, Skype would
> be severely and adversely affected and the continued operation of Skype's
> business as currently conducted would likely not be possible,'' eBay 
> wrote.
>
> In the filing eBay also said that, even if it was successful in developing
> alternative software, the technical challenge of assuring backward
> compatibility with older versions of Skype's technology ''may be difficult
> to overcome''.
>
> This was echoed by analysts, with the Info-Tech Research Group's Jayanth
> Angl telling Bloomberg that ''it would be quite difficult to replace what
> they already have as the underlying component to their service''.
>
> ''There are a number of barriers to that, not the least of which are legal
> barriers," he said.
>
> The case is set to go to trial in June next year, which could seriously
> hinder eBay's plans to spin Skype off as a separate company in a public
> stock offering next year.
>
> Already, eBay has had to write down Skype on its books to $US1.7 billion, 
> an
> admission that the business is not worth nearly as much as it originally
> paid for it. However, its revenues for the second quarter grew 25 per cent
> to $US170 million.
>
> But, even though Skype has not been a major financial success, it has
> succeeded in becoming the dominant internet telephony service globally.
>
> Skype has more than 480 million user accounts - almost twice as many as
> Facebook - and the application comes bundled with more than 50 mobile 
> phones
> and even the Sony PSP.
>
>
> Source: smh.com.au
>
> Lino Morales and Louie Lab
> Remember, friends don't let friends go to hell.
> Email and Windows Live Messenger:
> lino.morales at lljfm.net
> Skype lino_and_louie
> Twitter:
> www.twitter.com/lino_and_louie
> For Blind Christian Men, visit:
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> to subscribe to Blind Men For Christ.
> And check out our site at:
> www.lljfm.net
> where you'll find our blog and other links.
>
>
>
>
>


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