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Licensing Dispute Threatens Future of Skype
tomlins writes "eBay is faced with the prospect of having to close down the hugely popular VoIP app Skype due to its reliance on proprietary code still owned by Skype's original founders, who are threatening to pull the plug on the licensing agreement they have with eBay."
They got $2.6 Billion for a dinky little 8MB program, and still aren't happy?
They obviously did not think that one through very well. The article reads like they bought everything except the protocol, audio codec, or encryption algorithm (one or more of the three - the article isn't detailed enough to say which) - something which stops any replacement they create from being backwards compatible with any other versions of Skype. From that alone, it gives me the impression this is a patent issue, not a copyright issue. Perhaps we can "con" a large company into not supporting software patents out of this mess? ;-)
I also wonder what the potential liability here is, given that portions of Skype are a paid service.
Why would the founders of Skype be threatening to revoke the licensing agreement? What is their side?
And why would eBay pay billions of dollars for something without some guarantee that they'd be able to run it for a while?
This is like a super-sized version the story about the music industry claiming that it's ridiculous that people would think they could forever listen to their DRM music.
On an individual level, people allow themselves to be screwed for a few dollars at a time, just to be able to listen to the music but - paying more than 2 billion for most of something without a contract ensuring that it's not a total waste of money? Wow.
Up until 3.0 Ekiga did suck dick, I agree. And prior to Ekiga the previous GnomeMeeting worked fine. Ekiga has only been sucking between 2.0 up until 3.0. If you haven't tried it lately I recommend the later versions. Good news is that it's a thriving project with constant updates, just look at the changelogs for the 3.2.X series alone. Whatever it is it's completely free and while it has sucked dick at certain times at least it will never let its users to get it up the ass.
I am the lawn!
not trolling here... can you make calls to landlines or cell phones from within Ekiga?
I used to communicate with my wife when she was out of town on business. The fortune 500 co she worked for had no problem letting her install Skype on her laptop, so it worked for both of us - free computer to computer calls when she was in Turkey, Argentina, Hong Kong, etc. Our biggest problem was the time zone difference.
Then about a year ago the company's IT department decided that Skype was "bad", and disabled it on all company laptops. My solution? An ubuntu live CD and ekiga. Now we can communicate again when she's away.
Seven puppies were harmed during the making of this post.
Does not work in case of skype you always can use google voice talk (which works better btw. skype is inferior) or directly SIP!
One of Skype's big advantages is conference calling (and now, desktop sharing as well). I don't think either Google Talk nor any SIP providers I know do that. Ekiga would seem to be the nearest open alternative to Skype. Odd how the "downloads" page on ekiga.org makes no mention of their Windows version, which according to their wiki (where a Win32 download link appears), appears to be released almost in parallel to the Linux versions. Oh well, I'll mail them about that.
"And the meaning of words; when they cease to function; when will it start worrying you?"
On a related note: there used to be this nice open source skype-alternative (using SIP and all that) called openwengo, but i cant find it anymore. the company also offered a flash based SIP client (wengovisio), and a flash-based teleconferencing thing (wengomeetings), but i cant find any of them anymore. quite a pity.
a little side-rant: the person that designed the SIP protocol in such an incredibly NAT-unfriendly manner should be drawn and quartered. I know there are work-arounds, but i blame this NAT-unfriendliness for the rise of skype, and now we're stuck with that nonstandard closed protocol crap. I think it was the glorious idea of incorporating the IP addresses inside the SIP packets, or something like that. sigh.
on a related note: whatever happened to Google's open-source VoIP thingy that incorporated with XMPP/Jabber? I think it was called 'Jingle', but I haven't heard a lot about it since then. And what protocol is Google using for their video-chat in gmail?
eBay buying Skype doesn't make sense. Compare it to Nokia buying Trolltech, maps companies, opening up Symbian with their own money and even starting to enhance their love-hate J2ME virtual machine.
All makes sense if you think about them, in long term strategy and expanding to new markets and I speak about billions here. Billions spent to make things free and even allowing el cheapo Chinese manufacturers have a real OS on their cell phones and I can easily figure why. On eBay case, I can't.
If Amazon purchased Skype, it would make absolute sense but not eBay. Amazon had their "expand to new horizons" since the beginning, remember how people laughed at them when they enabled competitors to advertise on their own pages? That was ages ago. Remember S3 first launch?
The original founders sold Skype to eBay for US $2.7 billion. eBay has now written down the value of Skype to US $1.7 billion, and are planning to spin off the company next year. Along come the founders and threaten to cripple Skype. It seems to me that this drives the potential price of Skype much lower than even the $1.7 billion. When the public offering is made, the original founders come in, buy the now really cheap stock, and then somehow change their minds about licensing their technology for Skype. The price goes up up up, and the guys make another couple of billion! Brilliant....
This was their intent. However, most sellers didn't want to have any exposure to potential buyers. That shouldn't come as much of a surprise, considering how hostile relations on eBay can get between buyers and sellers.
"It's the end of the world as we know it, and I feel fine."