Skype Embroiled in a Law Suit

In recent weeks a legal dispute between Skype'sSo what impact is this dispute likely to have? eBay
former owner and current owners has hit thehave admitted that they may have to shut down
headlines. Former owners Joltid Ltd have accused theSkype should they loose the case. This will have a
current owners, eBay, of infringing copyright ruleshuge impact in the VoIP market, as Skype is the
with regards to the technology used to run the VoIPmost popular brand within this part of the
service. Joltid have revoked the licence for thetelecommunications industry. Joltid have expressed an
software and eBay, who deny they have doneinterest in buying Skype back and eBay could be
anything wrong, are taking the company to court,forced to sell it to them if they don't have a licence
with the case due to begin in June 2010.eBay boughtto use the technology themselves. The company
Skype in 2005 for around $2.6 billion, which has sincewithout the use of the technology will certainly not
gone up to $3.1 billion due to Skype's impressivebe worth $4 billion. For now they are trying to
performance, as set out in the original contract. Sincedevelop their own alternative technology, but doing
this deal Skype's success has continued on anthis without breaking copyright laws will not be easy.
upward curve. In 2008 Skype's pay-for service,If they manage to do this though, they will be able
Skype Out, was responsible for almost eight and ato use it as they own the Skype brand and there is
half billion calls worldwide. eBay have been looking tonothing in their contract with Joltid to say that they
sell the company since the beginning of 2009 for ancan't use it with another piece of software.
estimated $4 billion. In the deal with Joltid, eBay didn'tThis will be an interesting story to watch, and
buy the technology used to run the software butsomething that could have a huge impact on the
leased it. eBay have revealed how the technologyVoIP industry, although many experts are expecting
works in some other legal cases and according tothat the two parties will come to some sort of
Joltid this breaks the rules of their agreement.agreement.