Jim Grimsby Junior.

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Feed: Betanews
Posted on: Thursday, September 17, 2009 11:45 AM
Author: Tim Conneally
Subject: Why are Skype's founders suing eBay again?

 


By Tim Conneally <http://www.betanews.com/author/tim> , Betanews 
<http://www.betanews.com> 

Yesterday, Skype's founders sued eBay for copyright infringement, claiming that 
eBay has been using Skype's underlying technology without permission since 
March, when eBay's license to use that technology ended.

The auction service eBay bought popular VoIP and instant messaging software 
company Skype in 2005 for a total of $3.1 billion, but allegedly did not buy 
the software's core P2P technology, which is owned by Joltid 
<http://joltid.com/> , a separate company run by Skype founders Niklas 
Zennstrom and Janus Friis.

As a Securities and Exchange Commission quarterly report stated today, "Joltid 
has alleged that Skype should not possess, use or modify certain software 
source code and that, by doing so, and by disclosing such code in certain US 
patent cases pursuant to orders from US courts, Skype has breached the license 
agreement."

Earlier this year, eBay announced its intentions to spin off 
<http://www.betanews.com/article/Skype-to-be-spun-off-not-sold-off-from-eBay/1239744180>
  Skype, after which, Zennstrom and Friis filed copyright infringement suit 
against eBay in London. They reportedly even tried to accumulate enough private 
capital to make a bid to buy back Skype, but that fell through, By the first of 
September, eBay had found investors willing to pay $1.9 billion for a 
<http://www.betanews.com/article/eBay-sells-65-of-Skype-for-19-billion/1251815019>
  controlling stake in Skype.

Yesterday's suit pulls those investors into the claim, with the intention of 
stopping the deal and recovering damages estimated at an astonishing $75 
million per day that eBay has run Skype without license.

Because of Zennstrom's and Friis' fight for Joltid's intellectual property, the 
pair has earned a reputation for suing everyone who attempts to lay their hands 
on Skype.

In August, LawPundit blogger Andis Kaulins wrote 
<http://lawpundit.blogspot.com/2009/08/is-skype-to-be-joltid-by-kazaa.html> , 
"In the case of Joltid we have here -- in our opinion -- another typical IP 
instance of overly greedy intellectual property rights holders who are prepared 
to try to hold a good share of the world's communication population (480 
million registered Skype users) for ransom simply because of their own petty 
personal selfish interests. We have little patience with such philosophies. IP 
rights holders in general must be told time and again in strong and stern 
judicial language that intellectual property rights do not somehow bestow world 
imperial rights upon them."

EBay spokesman John Pluhowski told The New York Times yesterday, "[Joltid's 
claims] are without merit and are founded on fundamental legal and factual 
errors...We remain on track to close the transaction in the fourth quarter of 
2009."

Copyright Betanews, Inc. 2009 <http://www.betanews.com> 

 
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