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StreamCast sues Skype Founders

Allegations of foul play over P2P technology

     
1:17 pm on Mar 29, 2006 (gmt 0)

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The suit says Skype uses FastTrack technology to transfer calls across the Internet and notes Zennstrom and Friis have "profited handsomely" from Skype's $4.1 billion sale to eBay.

Because of all this, StreamCast says its network and business was irreparably harmed. The plaintiff says that since Skype uses FastTrack or strongly derivative technology, StreamCast should get all proceeds from the eBay-Skype deal and gain control of FastTrack. Damages also are being sought from the other defendants, though Skype clearly has the most money at stake. Skype said it had no comment on ongoing litigation.

[informationweek.com...]

2:17 pm on Mar 29, 2006 (gmt 0)

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Should be interesting...
4:00 pm on Mar 29, 2006 (gmt 0)

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Just reading further into this, I see it's a RICO claim and not a patent infringement.

RICO stands for the "Racketeer Influenced and Corrupt Organizations Act".

I'm not quite sure I follow this line, but hopefully the judge will understand!

TJ

4:32 pm on Mar 29, 2006 (gmt 0)

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I guess the racketeering bit is this part 'The suit charges that Zennstrom and Friis secretly sold FastTrack ... and that the defendants shut down StreamCast's Morpheus network and transferred its user base to Kazaa'

I remember when that happened - before KaZaA was a spyware laiden rubbish pit.
I also remember KaZaA lite, and all the fun of trying to run adware free P2P... nice!

6:24 pm on Mar 29, 2006 (gmt 0)

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Ignoring any racketeering allegations, unless it can be shown that use of disputed technology by Skype is directly harmful to StreamCast, I can see no justification for granting an injunction.

If granted, this could lead to a whole new industry for carpetbagging lawyers. It will also force politicians to get involved because it could be very bad for the global economy if every major innovation is subject to a multibillion dollar lawsuit with speculators forcing services to be shut-down without even, necessarily, having a strong case.

Kaled.

6:44 pm on Mar 29, 2006 (gmt 0)

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Interesting case.

Ignoring any racketeering allegations

They're rather unlikely to be alleging that Skype has been engaged in literal Mafia-style racketeering. In spite of the name of the act and it's original purpose, RICO has in the past been applied rather broadly.

"Skype Founders Sued for Racketeering" is just Information Week going for the sensationalist headline, I'd say.

best, a.