Blog Post

eBay Goes To Court To Hang On To Fabric Of Skype

With Robert Andrews: Skype is taking to court the owner of the very P2P infrastructure on which it depends, in a licensing dispute that could even kill the internet phone company in its current form. Parent eBay (NSDQ: EBAY) filed suit in London’s High Court against Joltid, a Jersey, England-based company started by its own founders Niklas Zennstrom and Janus Friis that licenses its vital peer-to-peer technology.

After founding P2P filesharer KaZaA then selling it to Sharman Networks in 2002, Niklas Zennstrom and Janus Friis went on to start Joltid, further developing peer-to-peer technologies for distributed storage and communication. Zennstrom and Friis picked Joltid’s Global Index product to underpin Skype’s efficient means of routing internet voice calls, and the license has been in effect since.

Skype recently ripped up an agreement allowing either side to take action beginning March. But, according to eBay, Joltid, actually registered in the British Virgin Islands, says that’s a breach of terms and tried to end the licensing relationship. So eBay has asked the High Court to rule the termination attempt “invalid” and declare Skype is not in breach. The case was scheduled to be heard at the High Court on Friday.

eBay’s release says: “Skype strongly refutes those allegations and is confident of its legal position.” But its SEC filing shows how worried it really is – to put it baldly, Skype would be finished: “As with any litigation, there is the possibility of an adverse result if the matter is not resolved through negotiation. In such event, Skype would be adversely affected and the continued operation of Skype’s business as currently conducted would likely not be possible.”

One Response to “eBay Goes To Court To Hang On To Fabric Of Skype”

  1. bordentyer

    The Skype and Paypal issues are only diversionary tactics! When are the stockholders going to realize that ebay's CEO is taking them for HUGE fools??? He touts, "Don't look at ebay's numbers. I've got a new plan", but the "new plan" is STILL to kill ebay, ebay Inc.'s bread & butter. "Here, look at Paypal and ignore how I am destroying ebay's core and millions of what WOULD have been future patrons". Get rid of him before there is nothing left to save of ebay or your money!

    Read what his own employees think of him at Read the sentiments of (ex) ebay users by searching the internet for Terminate ebay's CEO, John Donahoe at

    It's time to look out for YOUR best interests and fire the person responsible for YOUR losses!

    Educate yourselves about what ebay's CEO, John Donahoe is REALLY doing to ebay Inc! Because of Donahoe's policies, sellers are constantly getting their items stolen from them by their buyers with the help of ebay Inc. and Paypal! Donahoe's policies are aiding thieving sellers shill bid against honest buyers! The site has turned into nothing more than a free-for-all for scammers from both sides. The honest buyers and sellers are leaving by the droves and if you really care about your money, I'd suggest you look at the REAL facts rather than buying into Donahoe's smoke and mirror parlor tricks! Take a good long hard look at ebay's recent decline and pay particular notice to the FACT that it began when Donahoe and Whitman teamed up with their "Disruptive Innovation" scheme against ebay. To hide the reality, ebay is purging it's boards by deleting honest posts and by suspending all members who dare post the truths about ebay's deceitful practices.

    Search the internet for this title, then decide how long you want your name connected to such a corrupt business: "Battle over bag: Seller loses out in online sale".

    Millions of online shoppers and sellers have already left, more are leaving. Either take your money out of this stock or fire Donahoe to save your investments!