Shock threat to shut Skype

By dvb2000
in Back Page News

 Share

Recommended Posts

Mentor

dvb2000

Posted
Posted

http://www.smh.com.au/technology/biz-tech/...90731-e3qe.html

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??.

??If Skype was to lose the right to use the Joltid software as the result of the litigation, and if alternative software was not available, Skype would be severely and adversely affected and the continued operation of Skype?s business as currently conducted would likely not be possible,?? eBay wrote.

In the filing eBay also said that, even if it was successful in developing alternative software, the technical challenge of assuring backward compatibility with older versions of Skype?s technology ??may be difficult to overcome??.

This was echoed by analysts, with the Info-Tech Research Group?s Jayanth Angl telling Bloomberg that ??it would be quite difficult to replace what they already have as the underlying component to their service??.

??There are a number of barriers to that, not the least of which are legal barriers,? he said.

The case is set to go to trial in June next year, which could seriously hinder eBay?s plans to spin Skype off as a separate company in a public stock offering next year.

Already, eBay has had to write down Skype on its books to $US1.7 billion, an admission that the business is not worth nearly as much as it originally paid for it. However, its revenues for the second quarter grew 25 per cent to $US170 million.

But, even though Skype has not been a major financial success, it has succeeded in becoming the dominant internet telephony service globally.

Skype has more than 480 million user accounts - almost twice as many as Facebook - and the application comes bundled with more than 50 mobile phones and even the Sony PSP.

Link to comment
https://www.neowin.net/forum/topic/804722-shock-threat-to-shut-skype/
Share on other sites
Grand Master

+Ryster Subscriber²

Posted
  • Subscriber²
Posted
This is great news! eBay really deserve whatever they get for constantly raising their fees. It's not like they're short of money. :crazy:

It's not like they're a business out to make money or anything like that. /sarcasm

The only way to tell a company that their prices are too high is to stop buying their products. As long as you continue to pay those high fees, they'll continue charging them.

Grand Master

Comic Book Guy

Posted
Posted
Crickey! Skype shutdown would be a major problem for me and my contacts...

See the post above yours, there are two alternatives, Gizmo5 is more Skype-like, but VoxOx is the new app on the block and gets my vote.

Mentor

Inklin

Posted
Posted

They can't just shut down skype, there would be massive outcry on all corners of the globe and I suppose there will be a lot of unhappy companies... I was thinking of changing my phone to 3 UK for the free skype abilities but this has put me off until I know skype is safe!

Grand Master

Chicane-UK Veteran

Posted
  • Veteran
Posted
See the post above yours, there are two alternatives, Gizmo5 is more Skype-like, but VoxOx is the new app on the block and gets my vote.

New offerings are all well and good but there are a LOT of services now dependent on Skype. There are are countless devices made and sold specifically to work with Skype - even the mobile network "3" here in the UK market a phone which is exclusively a Skype mobile phone.

Add into that the companies who depend on Skype for business, and have Skype-in numbers, etc - it does add up to make a headache that a lot of companies who sell products based on Skype and companies / people who use Skype could really do without! :(

It's an unacceptable situation frankly.

Enthusiast

Futurix

Posted
Posted
See the post above yours, there are two alternatives, Gizmo5 is more Skype-like, but VoxOx is the new app on the block and gets my vote.

It will take a lot of time for all my contacts (including my non-techy parents) to switch to something else...

And VoxOx is too US-oriented. Not sure about Gizmo5, cannot find anything about UK in numbers on their website.

Grand Master

Comic Book Guy

Posted
Posted
It will take a lot of time for all my contacts (including my non-techy parents) to switch to something else...

And VoxOx is too US-oriented. Not sure about Gizmo5, cannot find anything about UK in numbers on their website.

VoxOx is not US oriented, I am in Canada, signed up no problem, why because it does international.

Grand Master

BajiRav

Posted
Posted
Well quite, if Skype wasn't closed source, you don't get issues regarding licensing happening. Hopefully if eBay decide to re-release Skype without the licensed part, they decide to open-source Skype to protect it in the future.

Open source doesn't magically avoid licensing issues.

Grand Master

Vykranth

Posted
Posted

The whole story is probably the tip of the iceberg shadowing some backstage negociations for a renewal of license between Skype and Joltid. EBay is trying to make Joltid the bad guys which cling to their patents and licenses.

A beautiful example of modern greed and gullibility.

Grand Master

+M2Ys4U Subscriber¹

Posted
  • Subscriber¹
Posted
New offerings are all well and good but there are a LOT of services now dependent on Skype. There are are countless devices made and sold specifically to work with Skype - even the mobile network "3" here in the UK market a phone which is exclusively a Skype mobile phone.

Add into that the companies who depend on Skype for business, and have Skype-in numbers, etc - it does add up to make a headache that a lot of companies who sell products based on Skype and companies / people who use Skype could really do without! :(

It's an unacceptable situation frankly.

Quite frankly, it's their own fault for depending on a service not under their control. I think a similar thing could happen with Twitter, were it ever to shut down suddenly.

I put the blame for the entire problem, however, squarely on eBay on this one.

This topic is now closed to further replies.
 Share
Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.

  • Posts

    • Save 66% on a MagTag Ultra Slim Tracker Card for Apple or Android

      By News Staff · Posted

      Save 66% on a MagTag Ultra Slim Tracker Card for Apple or Android by Steven Parker Never Lose Anything Again with MagTag Today's highlighted deal comes via our Gear + Gadgets section of the Neowin Deals store where you can save 66% on this MagTag Ultra Slim Tracker Card - Works with Apple Find My App. Keep track of your world with MagTag, a sleek, ultra-slim, reliable tracker that’s built to help you safeguard your most important items. In the size of a credit card, just 1.5mm thick, you can slip MagTag easily into your wallet, backpack, passport pouch luggage…etc. Integrated seamlessly with Apple’s FindMy app, MagTag offers precise real-time global tracking, instant left-behind alerts, loud location beeping, and a long-lasting rechargeable battery. Whether you’re heading to work, on vacation, or simply running errands, MagTag ensures you never lose what matters most. No item left behind Precision Global Tracking: Works seamlessly with the Apple FindMy app, providing real-time tracking anywhere in the world, powered by the vast Apple network. Ultra Slim Design: At just 1.5mm thick and the size of a credit card, MagTag slips easily into your wallet, passport pouch, backpack, or luggage. Instant Alerts: Receive notifications the moment you leave behind your valuables, and locate them easily with a loud beeping sound. Versatile Attachment Options: With a built-in keyring hole, attach MagTag to keys, ID lanyards, kids’ bags, or name tags for easy access and protection. Long Battery Life & Wireless Charging: Lasts up to 5 months on a single charge and can be easily recharged with any Qi wireless charger. Durable & Waterproof: IP68 waterproof and dustproof built to withstand your adventures, perfect for vacations and everyday use, no matter where life takes you. Specs Color: Black Materials: ABS Dimensions: 0.05" x 3.35" x 2.13" (1.5mm x 85mm x 54mm) Ultra-slim Apple FindMy App Built-in keyring hole Battery life: up to 5 months Charging: Qi wireless IP68 rating (waterproof, dustproof) Manufacturer's 90-day warranty Good to know Ships to US Expected Delivery: Expected Delivery: Jun 23 - Jul 2 All sales final. This item is excluded from coupons. Here's the deal: This MagTag Ultra Slim Tracker Card (for Apple or Android) normally costs $59.99, but you can pick it up for just $19.99 for a limited time - that represents a saving of $19. For a full description, specs, and shipping info, click the link below. MagTag Ultra Slim Tracker Card now just $19.99 (was $59.99) Get the two-pack and save 70% Ships only to Contiguous US Support queries If you have queries or need support for any of the Neowin Deals, please use the contact form here. Neowin Deals are managed and sold by StackCommerce who represent Neowin on an affiliate basis. Why we post these deals We post these because we earn commission on each sale so as not to rely solely on advertising, which many of our readers block. It all helps toward paying staff reporters, servers and hosting costs. So for those that keep moaning and complaining, be thankful we're still online for you to even do that. Other ways to support Neowin Whitelist Neowin by not blocking our ads Create a free member account to see fewer ads Make a donation to support our day to day running costs Subscribe to Neowin - for $14 a year, or $28 a year for an ad-free experience Disclosure: Neowin benefits from revenue of each sale made through our branded deals site powered by StackCommerce.
    • I never knew Windows had a "hidden" collection of tools

      By jordanspringer · Posted

      I cannot believe this is a news post from Neowin. This should be embarassing, coming from a "senior editor". Is it your first day using Windows?! Maybe it's time to find a new Windows news site.
    • Module Blocked - Is this Okay?

      By SuperDuckGuy · Posted

      It's from having Core Isolation enabled in Windows security settings, which is a good thing!  It's letting you know it's not loading the Bonjour module as it's not signed in a way it would prefer. Bonjour was most likely installed along with iTunes. Feel free to disable that message using the checkbox.
    • Rockstar confirms Grand Theft Auto VI pre-orders begin next week, unveils cover art

      By TCA · Posted

      I'm looking forward to starting over online. I have no reason to keep all the money, cars, rank after 13 years. Now if I can just move my character itself and nothing else. I would be fine with that. But I doubt they would do a setup that way.
    • Module Blocked - Is this Okay?

      By Sir Topham Hatt · Posted

      Recently been getting this error when restarting Windows. Is it a problem?

  • Recent Achievements

    • Week One Done
      Huge Trailer earned a badge
      Week One Done
    • Week One Done
      Classifyskilleducation earned a badge
      Week One Done
    • One Month Later
      eurospharma62 earned a badge
      One Month Later
    • Week One Done
      With What earned a badge
      Week One Done
    • Week One Done
      Harris Gilbert earned a badge
      Week One Done

  • Popular Contributors

    1. 1
      +primortal
      584
    2. 2
      +Edouard
      169
    3. 3
      PsYcHoKiLLa
      74
    4. 4
      Michael Scrip
      66
    5. 5
      ATLien_0
      64
    Show More

  • Tell a friend

    Love Neowin? Tell a friend!