Skype, the world’s biggest Internet telephony system, was bought by eBay back in 2005 from Joltid for a massive US$2.6 billion dollars. Unfortunately, this price didn’t include the Global Index peer-to-peer software that Skype is based on. Now, Joltid is trying to cancel Skype’s license for the Global Index software, which will basically mean that Skype will have to shut down completely.
The Importance of the Global Index Software
The Global Index software is a crucial component of Skype’s infrastructure. It enables the peer-to-peer connections that allow users to make voice and video calls over the Internet. Without this software, Skype would lose its core functionality, rendering it unable to operate as it currently does. This software is what differentiates Skype from other VoIP (Voice over Internet Protocol) services by providing a more reliable and scalable solution for millions of users worldwide.
Are Joltid looking for eBay to sell Skype back to them at a huge discount? Or are they trying to shut Skype down forever? We’ll keep you posted as we learn more.
Potential Implications for Users and the Market
Should it lose the license, and should it not be able to write new code to replicate what it might lose, eBay has admitted that “Skype would be severely and adversely affected” and that “Skype’s business as currently conducted would likely not be possible”. This would not only impact the millions of users who rely on Skype for personal and business communication but also shake up the entire VoIP market. Competitors like Zoom, Microsoft Teams, and Google Meet could see a surge in users, but the transition might not be seamless for everyone.
Moreover, the loss of Skype could have broader implications for eBay’s business strategy. Skype was initially acquired to integrate its communication capabilities into eBay’s platform, enhancing buyer-seller interactions. Losing Skype would mean eBay would have to rethink its approach to integrating communication tools, potentially leading to additional costs and delays.
Via Gizmag
In the broader tech industry, this situation highlights the risks associated with acquiring companies that rely on proprietary technology owned by third parties. It serves as a cautionary tale for future acquisitions, emphasizing the importance of securing all necessary licenses and rights to critical software components.
The ongoing litigation between Joltid and eBay over the Global Index software license is a significant issue that could have far-reaching consequences. Whether Joltid’s ultimate goal is to regain control of Skype or to shut it down entirely remains to be seen. What is clear, however, is that the outcome of this legal battle will be closely watched by industry insiders and users alike.
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