Note: This was originally scheduled to be posted on Friday, July 31, but was delayed by hardware problems.

Online auction giant eBay has a problem: they own Skype, but not the core technology powering the VoIP service. Joltid, the company formed by the creators of Skype, has until recently licensed the technology to eBay. But no more. And eBay admits (on page 15) that Skype without its techno-guts ain’t worth much:

“Skype has begun to develop alternative software to that licensed through Joltid. However, such software development 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.”

I guess buying the car and leasing the engine seemed like a good idea to eBay at the time.

Submitted by: Dan Giancaterino, Education Services Manager
on August 04, 2009 - 11:25 am

Comments (1) | More Business, Internet, Law, Technology Posts