Friday, July 31, 2009

Skype Could Be Cut Off For Good Over Dispute

(Paul Rogers/The Times)

From Times Online:

Skype might have to shut down because of a dispute over the core technology used to make the internet telephone system work.

EBay, which paid $2.6 billion (£1.6 billion) for the voice-over-the-internet system in 2005, is facing a court battle with the original founders of the company who retained the rights to the technology at the heart of the system.

EBay admitted in a regulatory filing that it might have to close down the company. It said it was trying to develop alternative software but if that did not work, or if eBay lost the right to the original software: "Skype would be severely and adversely affected and the continued operation of Skype's business as currently conducted would likely not be possible."

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