Skype May Be Axed If eBay Loses Court Case

The web phone call service Skype may be axed if its owner eBay loses a legal battle with its founders, the parent company has admitted.

Internet firm eBay bought the popular service, which allows users to make free calls through their internet connection, for more than £1bn in 2005.

But Joltid, a company run by Skype's founders, still owns the technology behind it.
It leases the peer-to-peer connection software to eBay.
A row over whether eBay broke its licence agreement could threaten a planned stock market flotation of the service - or force eBay to axe Skype altogether.
Documents to regulators in the United States revealed the extent of the legal wrangles.
eBay said it was "confident" about the outcome but if it lost, "continued operation of Skype's business as currently conducted would likely not be possible".
Joltid accused eBay of modifying a code used in the system, which it said went against the agreed terms.
As a result, eBay launched legal action at the High Court arguing the software lease could not be terminated.
Joltid then made a counter-claim threatening to pull out of the licence agreement.
Skype has gained 480 million users worldwide thanks to a service which allows people to make voice or video calls for no additional cost other than that of their internet connection.
The documents filed to the Securities and Exchange Commission reveal eBay is attempting to create new software in order to break its reliance on Joltid.