Skype service under threat

August 3, 2009

Skype’s VoIP service may be facing legal problems which might force eBay to shut down the popular service in the future, although eBay officials continue to reassure consumers that Skype will not be closed.

The future of Skype was called into question when eBay filed an UK lawsuit that alleged it was unable to end a license agreement with Joltid.

Joltid apparently felt it was jolted by the lawsuit and replied with a counterclaim that states the Skype service violated the terms of the initial agreement between the two companies.

eBay hopes to keep the system up and running throughout the coming legal battle and is currently trying to develop software that will allow Skype to stay up, even if the licensing agreement does not have a resolution in the coming days.

Of course, it would be much cheaper for eBay if it simply found a solution to its legal disputes with Joltid.

Skype currently has over 480 million registered users which is probably the reason eBay is looking to solve the problem before the June 2010 trial date.

eBay stated in its latest SEC filing that Skype is not in any legal trouble as it has not violated any legal concerns, but that it needs to develop alternative software to address the problems with licensing through Joltid.

Joltid claims that eBay is only allowed to access the technology behind Skype via its license with Joltid which is now past its expiration date and has not been renewed.


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