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Skype Founders sues eBay, investors over copyright violation
TT Bureau |  |  17 Sep 2009

Skype founders on Wednesday slapped a lawsuit on eBay Inc. and a consortium of investors that stand to buy Skype from eBay, in a move that may possibly jeopardize the $1.9 billion sale.

The lawsuit, filed in the Northern California U.S. District Court by Skype founders Niklas Zennstrom and Janus Friis-owned firm Joltid Ltd., alleged that Skype has violated copyright laws by using its particular technology- global index software without sanction.

Thereby, the suit seeks a permanent injunction against Skype, damages for copyright infringements and profits that Skype has minted by leveraging technology.

The suit says that Skype has used the global index software since 2007 in manners unauthorized by Joltid,” such as extending it to third parties, replicating and altering it.

The damages, the suit claims are amassing at a rate of more than $75 million daily.

“The Skype companies have continued to infringe Joltid's copyrighted works on a massive scale,” the lawsuit said.

The litigation embroils further as it calls the group of investors that agreed to buy a 65 percent stake in Skype earlier this month as defendants, citing that they were aware of Skype's copyright violation before they entered the deal.

Those investors comprise of private-equity firm Silver Lake, venture-capital firms Index Ventures and Andreessen Horowitz, and the Canada Pension Plan Investment Board.

In its defense, the company in a statement said, “Their allegations and claims are without merit and are founded on fundamental legal and factual errors.”

Meanwhile, eBay has started developing its own alternative software.

Shares at eBay falls 1.6 percent hours after the news broke.

    
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17 Sep 2009(IST)  
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