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Skype's Legal Situation Clears

chill writes "Skype's co-founders, Janus Friis and Niklas Zennstrom, have agreed to transfer ownership of the remaining Skype technology that eBay didn't own, paving the way for eBay to complete its sale of a majority stake in Skype to an investor consortium. In exchange, Friis and Zennstrom will join the investor consortium and obtain a 14 percent stake in Skype. The other consortium partners, led by Silver Lake, will own a 56 percent stake in Skype, and eBay will hold on to 30 percent, eBay said Friday."

49 comments

  1. Meg Whitman by Anonymous Coward · · Score: 1, Insightful

    Shouldn't this situation be a huge strike against Meg Whitman's senate run? No one understood why she bought Skype, it never worked out for them, and she didn't even negotiate the sale properly.

    1. Re:Meg Whitman by herojig · · Score: 1

      I doubt the majority of the voting public will ever hear about nor understand this issue. Meg Whitman will win because all others in Sacramento have failed miserably, and folks will figure if a superman can't get the job done, hire a superwoman.

      --
      I think therefore I can't be ~TTNH
    2. Re:Meg Whitman by Anonymous Coward · · Score: 0

      Look, Meg White was serviceable drummer, but she is hardly an electable one. Now I hear she is also forming the White Skypes or something with stuff she got off eBay. If I were Jack, I would rein her in pronto.

  2. Wow by Anonymous Coward · · Score: 1, Insightful

    That mess cleaned up much easier than I expected.

    1. Re:Wow by Anonymous Coward · · Score: 0

      Yeah, except I wonder if you can explain who was Friday?

    2. Re:Wow by siloko · · Score: 1

      Yeah, there was me worrying that these chaps wouldn't get their well earned billions.

    3. Re:Wow by kubrick · · Score: 1

      ... again.

      --
      deus does not exist but if he does
  3. Not sure that should be the case. by SuperKendall · · Score: 1, Interesting

    I don't think it's Meg's fault that the contract lawyers screwed up royally here. You hire lawyers because no mortal is going to be able to tell what is actually transferred. If Meg knew she was buying, well, nothing then I would agree with you that it should count against her - but remember that eBay had to be told what the original owners actually owned.

    Otherwise eBay has not really been run into the ground like other companies have been, I'd say she's done about as well as could be expected apart from the whole skype thing.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Not sure that should be the case. by Anonymous Coward · · Score: 1, Funny

      Yes, eBay has not been run into the ground. It even better than geocities!

    2. Re:Not sure that should be the case. by something_wicked_thi · · Score: 4, Insightful

      What makes you think the contract lawyers were so incompetent so as not to notice something like this? My bet is they knew what was up, told the execs and they continued, anyway. It's possible what you say is true, but if I were to bet on who was dumber - an exec-turned-politician, or a random contract lawyer, well, I know which one my money's on.

  4. Skype will still be kicking. by Z00L00K · · Score: 4, Interesting

    And that's a generally good idea. The amount of people using Skype is considerable, so just owning and running it should provide a goodwill in the general public for any company that's involved. That doesn't mean that the brand is worth a humongous amount of money, just that it's worth a decent amount of money.

    The bad side with Skype is that it seems to be rather bloated these days occupying a rather large amount of memory in our computers.
    It's the #3 application in memory consumption on my machine. Considering the services it's offering that is a bit high.

    --
    If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    1. Re:Skype will still be kicking. by DigiShaman · · Score: 1

      That, and it consumes a crap-tastic amount of CPU cycles. However, I'm willing to deal with it because the audio quality is superb.

      --
      Life is not for the lazy.
    2. Re:Skype will still be kicking. by Malc · · Score: 1

      No, the worst bit about Skype is that UI has been eBay-ified. It's becoming a dog to use. No doubt they'll start using different fonts all over the place in the next version...

      The number one memory hog for me is leaky Firefox. Then multiple instances of Visual Studio, Outlook, Adobe Acrobat reader, and a bunch of other stuff before Skype.

    3. Re:Skype will still be kicking. by Anonymous Coward · · Score: 1, Insightful

      The bad side with Skype is that it seems to be rather bloated these days occupying a rather large amount of memory in our computers. It's the #3 application in memory consumption on my machine. Considering the services it's offering that is a bit high.

      More bad sides: Details on the consortium buying Skype:IQT (with precedents) Skype already comes with back door into your system now..
      The question is, what will skype in all its bloated glory be capable of after it is taken off eBays hands? At least eBay had the goal of making money off their investment.
      Open sourcing the Skype linux client also benefits IQT, since Linux skype users are such a small fraction of the market getting them on side only helps increase the network effect for the closed source skype spy client.

      Skype spy client is an extremely poor alternative to an open communication standard with a lively community of compatible talk clients. Unfortunately such a community has not yet materialized. And before you point to SIP clients, please do a little bit of research from "Joe Six pack's" point of view which is: Download and install Skype spy client in three mouse clicks and talk. SIP clients AFAIK are overly complicated to use - and it seems the protocol is built to make sure they stay that way. Sad, just sad.

      .

    4. Re:Skype will still be kicking. by Allicorn · · Score: 1

      back door into your system now

      Irresponsible wording.

      The linked article is about speculation that Skype->Skype calls can be tapped. Since Phone->Phone calls can be tapped just as easily, as can Skype->Phone and Phone->Skype, this would appear to be a non-issue. Unless of course you're a tinfoil-hat-wearing loony who's #1 reason for switching to Skype was so that the gubmint couldn't listen in on your no-doubt fascinating and national-security-implicating calls to your mom.

      The article makes no suggestion whatsoever of Skype being a "back door into your system".

      --
      OMG!!! Ponies!!!
    5. Re:Skype will still be kicking. by Anonymous Coward · · Score: 0

      occupying a rather large amount of memory in our computers.

      You mean in your computers? Skype consistently hovers around 38 megs of memory (Private working set) on my netbook and performs very well. Do you have an ass-ton of add-ons loaded, or what?

    6. Re:Skype will still be kicking. by Drakin020 · · Score: 1

      My recommendation is to find an older version of the application and install that. That's what I've done so far.

      I run version 3.8, and at the moment it's taking up about 16MB of memory (Vista 64-bit)

      I've seen the newer versions, and would stay far away from that.

      --
      The greatest revenge in life is massive success.
    7. Re:Skype will still be kicking. by Anonymous Coward · · Score: 0

      You think you're talking to *me*, Holmes? I don't pay anything for gas. I pay SEK 690 (roughly USD 100) a month for an unlimited public transport pass that'll get me within 2 blocks of anyplace I want to go in the greater Stockholm area, 24/7. Including ferry boats to some of the islands. Does your Suburban Assault Vehicle float?

      I'm very happy with my mobile phone and I pay about USD 50 a month for a plan that includes free calls to any other number in the country. And I can ring almost anywhere else in Europe, Asia, or Australia for about $1.50 a call. I get 24 mb broadband Internet with no bandwidth cap for about USD 50 as well.

      I also get low-cost medical and dental care, my kids get free education all the way through graduate school, I'm not afraid to walk the streets at night, I have 6 weeks paid vacation a year (in a country where nearly everyone gets at least 5), I can't be summarily fired from my job or kicked out of my flat without cause/due process, and I can look forward to a retirement that's on a rather nicer level than the cardboard-box and tinned-beans sort that's waiting for you once the nut-jobs get done finishing off what's left of your Social Security.

      Suck on *that*, Clem Cadiddlehopper.

    8. Re:Skype will still be kicking. by Anonymous Coward · · Score: 0

      lol retard.. rightwing lunatics and their inferiority complexes .. you should ask Fox if you can get your own show on their network!

    9. Re:Skype will still be kicking. by Anonymous Coward · · Score: 0

      Skype is the one application, I can't live without. Ebay is the one online service I will never use because it is so user-unfriendly.
        99.99% of people couldn't care less about memory consumption or how many cpu cycles are used by SKYPE.

      My guess is that SKYPE is on the edge of a waterfall (in the positive sense) and will completely dominate IP telephony within 5 years or so.

      EBAY is a joke. Their website is shit. I tried to use it but gave up with all their password policy bollocks. It doesn't surprise me that they are selling SKYPE. However in 10 years, SKYPE will still be huge, as for Ebay..... , who knows...

    10. Re:Skype will still be kicking. by RockDoctor · · Score: 1

      I run version 3.8, and at the moment it's taking up about 16MB of memory (Vista 64-bit)

      Odd ; my 3.8 installation is running about 51MB on Vista 32-bit.
      That link for OldVersions looks worth a raiding session.

      --
      Birds are not dinosaur descendants;birds are dinosaurs, for all useful meanings of "birds", "are" and "dinosaurs"
  5. That is... by Anonymous Coward · · Score: 0

    so Skypetastic! This will ease the fears a lot of Skype users, who used it as their primary phone, had.

  6. For those of us ignoring Skype... by CarpetShark · · Score: 3, Insightful

    For those of us who've been largely ignoring Skype since it's proprietary and there are open alternatives (namely SIP)...

    What's the upshot of all this? Skype announced recently that they're planning to open source stuff. Now the tech is going to be owned by a consortium. Does this mean that skype is moving towards being an open, non-proprietary solution?

    1. Re:For those of us ignoring Skype... by tsa · · Score: 4, Interesting

      That is not important. As far as I understand, only parts of the interface will be opened up. The protocul will stay closed, so you can't use in it anything but Skype. I had much rather seen it the other way around. Open protocols and document formats are far more important than open source.

      --

      -- Cheers!

    2. Re:For those of us ignoring Skype... by Malc · · Score: 4, Interesting

      I haven't found anything that works as well as Skype. SIP is way down the list in performance. Skype could cope like nothing else when I was living in China calling the West, dealing with high latency and packet loss.

    3. Re:For those of us ignoring Skype... by whancock · · Score: 1

      I'm in the same situation that you were, and have not had the same experience. Skype's performance under Windows is absolutely horrendous for me (as well as others I know who are using it). Funnily enough, I'm dual booting and it is markedly better under Ubuntu on the same laptop. Both versions are inferior to Google Chat, which I am happily using now. Unfortunately there is no *nix version yet, but I hear Google is working on it.

    4. Re:For those of us ignoring Skype... by Anonymous Coward · · Score: 4, Interesting

      In case you missed it, the newer versions of Pidgin support voice/video via XMPP/GTalk/etc. http://pidgin.im/

    5. Re:For those of us ignoring Skype... by tokul · · Score: 1

      Does this mean that skype is moving towards being an open, non-proprietary solution?

      It is as open as Microsoft Open XML.

      Open Skype is only publicity stunt to silence critics, put software maintenance costs on third party and reduce intentions of moving to other VOIP solution.

    6. Re:For those of us ignoring Skype... by Anonymous Coward · · Score: 0

      That is not important. As far as I understand, only parts of the interface will be opened up. The protocul will stay closed, so you can't use in it anything but Skype. I had much rather seen it the other way around. Open protocols and document formats are far more important than open source.

      So how does Fring do it?

    7. Re:For those of us ignoring Skype... by Anonymous Coward · · Score: 1, Insightful

      If you believe that then I don't think you've used Skype on Linux. The Linux client is far behind the windows client and only has one developer working on it, by opening up the UI that will allow the community to fix what ebay doesn't want to put the resources towards. By doing this it's a win, win situation:
      1) The community improves the client and gets a better client because of that
      2) Ebay can stop receiving the same complaints from Linuxs users that they receive over and over.

    8. Re:For those of us ignoring Skype... by tsa · · Score: 1

      I have no idea. I use Fring every now and then, and I always wondered how they do it. Maybe they have a license? How do they make money anyway?

      --

      -- Cheers!

    9. Re:For those of us ignoring Skype... by Anonymous Coward · · Score: 0

      consortium OF BILLIONAIRE INVESTORS, and not consortium of open-source hippies... So no open source hope here, move along...

    10. Re:For those of us ignoring Skype... by tokul · · Score: 1

      I don't think you've used Skype on Linux.

      My primary workstation runs Linux Debian. With Skype on it. I do know difference between Skype for Linux and Skype for Windows.

      Ebay won't open communication protocols. UI will be limited by closed library which handles communications. Third party developers might fix only their OS issues. They will have to beg ebay for any comm library enhancement.

    11. Re:For those of us ignoring Skype... by Anonymous Coward · · Score: 2, Insightful

      In case you missed it, the newer versions of Pidgin support voice/video via XMPP/GTalk/etc. http://pidgin.im/

      On every platform but Windows.

    12. Re:For those of us ignoring Skype... by BrokenHalo · · Score: 1

      I haven't found anything that works as well as Skype. SIP is way down the list in performance.

      I'll second that. While SIP is in many cases a little cheaper for voice communication than Skype, the other integrated features like instant messaging and SMS make Skype a killer app given its market saturation.

      I know there are alternative and more truly "free" products available that accomplish the same purposes separately, but Skype is the only one to provide an easily usable cross-platform integrated product that isn't rejected by non-geeks. I'd say it's a relief that the parties have managed in a definite case of "sudden outbreak of common sense" to settle their differences so amicably.

    13. Re:For those of us ignoring Skype... by felix9x · · Score: 1

      How is Pidgin compare in voice/video quality to Skype?
      Whats the time frame for it to be in Windows?
      Will it be able to do multi-person video conference?

    14. Re:For those of us ignoring Skype... by Smegly · · Score: 1

      For those of us who've been largely ignoring Skype since it's proprietary and there are open alternatives (namely SIP)...

      What's the upshot of all this? Skype announced recently that they're planning to open source stuff. Now the tech is going to be owned by a consortium. Does this mean that skype is moving towards being an open, non-proprietary solution?

      Your answer was hinted at in one of the posts above...

    15. Re:For those of us ignoring Skype... by Anonymous Coward · · Score: 0

      I haven't found anything that works as well as Skype. SIP is way down the list in performance. Skype could cope like nothing else when I was living in China calling the West, dealing with high latency and packet loss.

      ekiga v3.x is pretty good with audio, (as well as video these days the h264 video codecs).

      The only thing skype beats it on then is its ability to punch through firewalls and huge existing userbase.

    16. Re:For those of us ignoring Skype... by dkf · · Score: 1

      In case you missed it, the newer versions of Pidgin support voice/video via XMPP/GTalk/etc.

      Why would I use that if none of the people I want to call use it? Skype has a massive sitting-incumbent advantage. (No, I have no interest at all in developing VoIP systems; I work on other stuff.)

      --
      "Little does he know, but there is no 'I' in 'Idiot'!"
  7. not much of a surprise by Trepidity · · Score: 2, Insightful

    Bullshit legal controversy created as a negotiating tactic is resolved by negotiations in which everyone gets varying slices of the pie. Shocking!

    The main difficulty I've had in this brief saga is figuring out if there was some way I could root against everyone involved simultaneously.

    1. Re:not much of a surprise by boudie2 · · Score: 0

      Yes you can! By giving your money to those companies who don't use these tactics and questionable practices. Such as, er, um ... uhhhhh .... well, maybe I spoke precipitously when I said yes you can. No you can't.

    2. Re:not much of a surprise by SpinyNorman · · Score: 1

      I don't see why you're calling it a BS legal controversy.

      At issue was Skype technology that was licensed to eBay, not sold to them along with the rest of Skype. eBay apparently violated the license, hence this eventual settlement.

      If eBay had been in the right here they'd have been able to make this go away in court, and $385M (14% of Skype) is way too much to pay to make a legal hassle go away rather than paying to fight it, therefore it seems there was a genuine violation here, not just a baseless controversy.

    3. Re:not much of a surprise by chill · · Score: 1

      My grandfather used this tactic.

      As a die-hard White Sox fan in Chicago, he would watch Cubs games to root for whomever they were playing. Unless it was a New York team, then he would root for someone to get injured.

      Feel free to simply root for all of the Skype parties to strain or break something important.

      --
      Learning HOW to think is more important than learning WHAT to think.
  8. In China, it's Tom Skype. Any change there? by Anonymous Coward · · Score: 0

    Just today, I was told that PRC's gov't can monitor Skype conversations, ie, IF one side is the Chinese variation, namely: "Tom Skype" (sp?).

    Are variations like that one in the deal? Would they be open sourced?

    (Surprisingly, plain, vanilla Skype can be used in RoC (Taiwan)... can it solve the invasion of privacy in PRC...? Anybody here know?(

  9. I want their lawyer by Anonymous Coward · · Score: 0

    These two guys must be rolling around the floor in delerium! They get paid billions for their software by eBay, and then when eBay sells it off, they get paid billions again. F'n sweet deal for them! These guys lawyers are genius.

  10. Skype and Firefox by dna_(c)(tm)(r) · · Score: 1

    On Win XP the (silly) skype plugin made Firefox crash several times a day. Skype never asked whether I wanted the plugin.

  11. find an older version by tunapez · · Score: 1
    --
    Imagination drew in bold strokes, instantly serving hopes and fears, while knowledge advanced by slow increments...