Skype May Get Shut Down
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’’.
Tags: Internet, skype
Posted in Technology
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