Thursday, March 30, 2006

Skype Faces $4.1 Billion Lawsuit From Former P2P Rival

Internet phone service provider Skype Technologies said it plans to defend itself against explosive allegations that its technology is actually owned by another company, Streamcast Networks.
Skype, owned by eBay, of San Jose, Calif., has been accused of creating a secret shell firm in order to steal away some peer-to-peer technology developed by Streamcast, then use it to build the Skype service, according to a lawsuit Streamcast filed in January in U.S. District Court in Los Angeles.
The complaint seeks $4.1 billion in damages, and demands that Skype stop using the Streamcast features. Streamcast's complaint was first reported upon the week of March 27 by Andy Abramson of the Web site VoIP Watch.
The defendants are Skype and its co-founders. eBay is not named in the suit.


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