Rival peer-to-peer software maker Streamcast Networks claims the popular Net phone provider stole its technology. (eWEEK.com)Internet phone service provider
Skype Technologies said it plans to defend itself against explosive allegations that its technology is actually owned by another company,
Streamcast Networks.
Skype, owned by eBay, of San Jose, Calif., has been accused of creating a secret shell firm in order to steal away some peer-to-peer technology developed by Streamcast, then use it to build the Skype service, according to a lawsuit Streamcast filed in January in U.S. District Court in Los Angeles.
The complaint seeks $4.1 billion in damages, and demands that Skype stop using the Streamcast features. Streamcast's complaint was first reported upon the week of March 27 by Andy Abramson of the Web site VoIP Watch.
The defendants are Skype and its co-founders. eBay is not named in the suit.
Google and Skype race for the next IM frontier. Read more here.
When asked for comment, Skype spokesperson Kat James replied on March 29 that Skype has "not yet been formally served but are aware of the claim. This case has absolutely no merit and if necessary, we will defend ourselves vigorously."
"We believe in the claims," responded Charles Baker, Streamcast's lead attorney. "Or else we wouldn't have filed the suit."
The Streamcast-Skype case pits old rivals against each other again.
Streamcast Networks, of Los Angeles, distributes the P2P software Morpheus, which is primarily used to swap files of digital music, videos or text over the Internet.
Read the full story on eWEEK.com: Skype Faces $4.1 Billion Racketeering Lawsuit
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