Skype Sued for $4 Billion Over VoIP

StreamCast Networks , the company behind the Peer to Peer (P2P) file sharing program Morpheus , has sued 22 firms including eBay over patent infringement of Voice over Internet Protocol (VoIP) technology. StreamCast has sued Skype , now owned by eBay , for US$4 billion for using its network and infringing on its patent rights. The suit also seeks an injunction that prohibits eBay from selling Skype’s VoIP. Also, Sharman Networks, the founders of Kazaa , another file sharing network, have been indicted for providing the VOIP with Skype. The complaint states, “Defendants have orchestrated an elaborate overseas shell game in an attempt to steal and wrongfully profit from technology that rightfully belongs to StreamCast, and which the defendants have used and are using to their advantage.” So this time, for a change it’s the small fry gunning for the big fish. Let’s see who bites the bait.