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08-01-2009, 12:54 AM #1Evenly Divided
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Skype’s Future In Serious Doubt due to Legal Battle [MERGED]
A legal battle has put the future of Skype in jeopardy, according to eBay, which owns the online communications system.
If Skype loses the right to use a key part of its software and can’t create an adequate replacement, “Skype’s business as currently conducted would likely not be possible,” eBay said in its quarterly filing with the U.S. Securities and Exchange Commission.
One thing I fail to understand is how a company with 480,000,000 registered users and the financial backing of Ebay can’t develop it’s own prorietary component to replace the current one causing this controversy?
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08-01-2009, 01:00 AM #2Web Hosting Master
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08-01-2009, 07:57 AM #3Web Hosting Master
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Any alternatives to skype ? not really a big skype fan anyway
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08-01-2009, 10:39 AM #4Web Hosting Master
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Why is this just coming to light? Why has Joltid waited so long to sue them over it? I really think there is more to both sides of this story, and I can't wait to see how it works out.
I use Skype, but I am no fan of it.I'm part of the Chicago Breast Cancer 3 Day!
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08-01-2009, 01:13 PM #5Web Hosting Master
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Looking forward to the case in London, if it does go pear shape it couldn cost Skype a lot of money!
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08-01-2009, 01:28 PM #6Evenly Divided
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Do you think the case will make it that far or will Skype attempt to settle or replace the software before then?
Surely they won't leave their company future upto a lawsuit, would they!? Or do they not have much choice.
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08-01-2009, 02:58 PM #7Web Hosting Master
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Skype aren't being suied, Skype have filed a claim in against the developes at the High Courts in London and plan to fight it.
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08-01-2009, 05:26 PM #8Home Theater Enthusiast
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They have 1 year to create the new software. GET IR DONE!
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08-04-2009, 01:16 PM #9Marketing Maestro
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Skype’s Future In Serious Doubt
Not sure if this has already been posted, but quote:
eBay has confirmed that it may be forced to shut down Skype after a large dispute with its original founders regarding license agreements.
When eBay purchased the VoIP-service in 2005, for $2.6 billion, the agreement did not include a piece of code which is necessary to power Skype and its operations. Because of this, eBay has been forced to license the code from the 2001 company of the founders, Joltid, which claims to be the “leader in peer-to-peer communications.” It is its “peer-to-peer communications” and rights to code that allows Skype to do what it does. Joltid has now told eBay that it is considering ending its licensing agreement, meaning that eBay will no longer have the ability to run Skype. eBay has confirmed that if Joltid does revoke the agreement, then it is quite likely that Skype will have to shut down.
Skype is used by over forty-million users worldwide and is responsible for 8% of vocal communications over the internet. It has been confirmed that Skype is the biggest operator in its field, and recently, the company said that they expect its 2011 revenue to be over $1 billion, but this will clearly not be the case if the license eBay holds to the code for the software is revoked. The possibility of Skype closing has left millions of its users concerned that they will no longer be able to easily and cheaply keep in contact with friends and family who live overseas.
When eBay purchased Skype in 2005, I think that it had a great bargain on its hands. However, I think that it was quite foolish of the company to propose a deal and accept an outcome where it would not own the code that makes Skype work. Without that, Skype is nothing, and if communications and discussions broke down and the founders decided to stop eBay and Skype using this technology, then eBay may have quite frankly wasted that $2.6 billion, as eBay will not have re-generated this amount yet, not to mention the time dedicated to it. The deal, I feel, should have included the right to use the technology without limits and without there ever being a possibility of losing this right.
The matter is now in the hands of the English High Court of Justice, and eBay is demanding that Joltid continue to allow it to use the technology that makes Skype what it is. eBay says it is attempting to develop a piece of technology similar to what it once had rights to use from Joltid, but it claims that it will be very expensive and that it may not present all of the functionality that users once had when Skype was using Joltid’s technology.
Not only that, but eBay is bound to become unpopular with those millions of users that have fallen in love with Skype. I’m sure over the coming weeks there are bound to be a lot of questions for the two companies. The case will go to trial in June 2010, and eBay still says there is a likely chance Skype will close because of the problems that the new technology would pose. I’m wishing that this clearly great piece of technology that is well-loved by millions of people around the world does not come to a sudden standstill, and that those loyal customers are not forced to find a more expensive alternative.
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08-04-2009, 03:07 PM #10Web Hosting Master
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eBay has confirmed that it may be forced to shut down Skype after a large dispute with its original founders regarding license agreements.
-mike
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08-04-2009, 03:43 PM #11Business Consultant Manager
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Since I just renewed my Skype phone number for another year, yea... that sucks.
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08-04-2009, 03:45 PM #12Evenly Divided
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As I mentioned on my blog, can a company with 480,000,000 so-called users really go tits up? You're telling me they don't have millions and millions of dollars available to hammer out a new product to run in the background?
Am I missing something?
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08-04-2009, 03:45 PM #13Web Hosting Master
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08-06-2009, 03:46 PM #14Business Consultant Manager
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08-06-2009, 04:00 PM #15Web Hosting Master
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08-06-2009, 04:25 PM #16Aspiring Evangelist
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It's hard to imagine there never being an alternative to Skype if it disappears. No one has mentioned Three (mobiles) yet who have built a huge volume of sales on the back of it. Hmmmmmm.....I'm now wondering if that is why they have reduced the price of their previously £69.95 model to just £49.95? Desperately trying not to get caught out with useless stock?
I use Skype a great deal so definitely hope there is a positive outcome to this issue.
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08-06-2009, 05:00 PM #17
The guy who negotiated that contract for Ebay should be on the street. How can you be so stupid?
Aaron Wendel
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08-07-2009, 03:39 PM #18Web Hosting Master
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sounds like a publicity stunt.
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08-07-2009, 05:59 PM #19Hosting Billing Master
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Seems pretty unlikely that they would be unable to work something out or rewrite the necessary code considering how big of a player Skype is and the financial backing of eBay.. I too suspect it's a publicity stunt.. likely to virally garner attention and support for Skype/eBay.
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