eBay could have just pulled the biggest FAIL of the year

  • UPSGuy
  • Lurker ಠ_ಠ
  • Web Master
  • User avatar
  • Posts: 2733
  • Loc: Nashville, TN

Post 3+ Months Ago

It looks like the original Skype owners are suing eBay for copyright infringement surrounding Skype. eBay bought Skype back in '05 for a cool $2.6 billion & they've recently arranged to dump the app for 1.9 billion (talk about a loss!). Is it possible that they went through that entire purchase process the first time somehow allowing the founders to keep the copyright on the source code? If that's the case, they they deserve the FAIL award! Let's not forget, however, that the founders have been a pain in the bottom about the whole resale thing since day one. I'm inclined to believe this is just another trick to try and prevent the sale until they can figure something else out. Or at least scare some investors off and drive the price down to something they can afford. They've been whining that they wanted Skype back ever since the sale to private investors was announced and trying their hardest to scrape together a comparable offer.

Quote:
Four years ago, Swiss venture capital firm Index Ventures became one of the first backers of Skype. Now, just two weeks after Index and a group of private investors agreed to buy 65% of the Internet calling service from eBay, the VC firm has been drawn into a messy legal battle with Skype’s founders.

In a lawsuit filed Wednesday in California court, entrepreneurs Niklas Zennström and Janus Friis allege eBay and Skype’s new investors are in violation of copyright law and seek damages that could total more than $75 million for each day they operate Skype. Experts say the suit could delay eBay from closing the $1.9 billion sale – which still awaits regulatory approval – or scare off Skype’s new investors altogether.

Allegations from Zennström and Friis have been a monkey on eBay’s back ever since March, when the pair’s company Joltid filed a lawsuit that would prevent eBay from using the core technology that makes the Internet calling service work, and which eBay had been licensing from Joltid since purchasing Skype in 2005. That lawsuit is scheduled for trial next year in a British court. “The first suit said ‘every time somebody downloads the Skype program, you are stepping on our intellectual property.’ Now they are saying ‘we’re going to charge you for it,’” says Randy Katz, partner of law firm Baker Hostetler, which is not affiliated with any of the plaintiffs or defendants.


Source: BusinessWeek
  • Anonymous
  • Bot
  • No Avatar
  • Posts: ?
  • Loc: Ozzuland
  • Status: Online

Post 3+ Months Ago

  • Don2007
  • Web Master
  • Web Master
  • Don2007
  • Posts: 4924
  • Loc: NY

Post 3+ Months Ago

First of all, let me say how bad I feel when billionaires have money problems. It just breaks my heart. As soon as I feel a little better, I'll burn a customer's files to a CD, from an old PC, for $75.

I don't care who wins or looses.
  • joebert
  • Fart Bubbles
  • Genius
  • User avatar
  • Posts: 13503
  • Loc: Florida

Post 3+ Months Ago

Wait, why did they sell it if they just want it back ? :scratchhead:

Is Skype a company or a product ?
If it's a company, and the one who developed a product to begin with, isn't that product an asset that comes with the company ?
  • Don2007
  • Web Master
  • Web Master
  • Don2007
  • Posts: 4924
  • Loc: NY

Post 3+ Months Ago

Skype is an internet telephone service. Vonage is another one. Vonage tries to stop you from canceling the way AOL used to do.
  • UPSGuy
  • Lurker ಠ_ಠ
  • Web Master
  • User avatar
  • Posts: 2733
  • Loc: Nashville, TN

Post 3+ Months Ago

More direct to the concern at hand, it's both. I would think similarly about product transfer. That's what leads me to believe they are just trying to stir up more trouble. Back around April/May, the original founders hit up a bunch of private equity firms in attempts to raise around a billion for an offer.

eBay has swapped CEO's since purchasing Skype. The current CEO has taken the opinion that they have bigger fish to fry and that Skype just doesn't jive with eBay or PayPal, which bring in the largest part of the revenue. My guess is that the founders are just attempting to keep their baby from dying after it swaps hands to an incapable company. Maybe they have a new direction they'd rather take it in. Who knows. Here's a breakdown of eBay's numbers for last year in comparison:

Quote:
In addition to those two businesses, it owns Skype, which has no strategic or tactical relationship with the other two divisions. According to eBay's 10-K, its 'communications division', which is how it refers to Skype, brought in $381 million last year. eBay's entire revenue was $7.7 billion. It also reported that the cumulative number of Skype registered users increased to 405.3 million at 31 December 2008 from 276.3 million on 31 December 2007. That makes the revenue yield of each user remarkably small.
  • mk27
  • Proficient
  • Proficient
  • User avatar
  • Posts: 334

Post 3+ Months Ago

If this is just about the "core technology", eBay cannot lose. For an easy million they could get that core technology written again from scratch in no time at all. I would think like weeks.

These guys are just making a money grab.

Post Information

  • Total Posts in this topic: 6 posts
  • Users browsing this forum: sazal786 and 48 guests
  • You cannot post new topics in this forum
  • You cannot reply to topics in this forum
  • You cannot edit your posts in this forum
  • You cannot delete your posts in this forum
  • You cannot post attachments in this forum
 
 

© 1998-2014. Ozzu® is a registered trademark of Unmelted, LLC.