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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Skype founders sue eBay, investors Thu Sep 17, 2009 10:30am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Gabriel Madway SAN FRANCISCO (Reuters) - The founders of Skype have sued owner eBay Inc and an investor group that has agreed to buy the Webphone service, accusing them of copyright violation and potentially disrupting the $1.9 billion deal. The lawsuit brought by Joltid Ltd, a Swedish firm owned by Skype founders Niklas Zennstrom and Janus Friis, says Skype used its technology without authorization. It comes on the heels of a legal dispute between Joltid and Skype in Britain over software rights. Filed in Northern California U.S. District Court this week, the latest suit seeks a permanent injunction against Skype and damages. EBay has denied the allegations. Joltid believes damages are piling up at a rate of more than $75 million a day. "The Skype companies have continued to infringe Joltid's copyrighted works on a massive scale," the lawsuit said. "Each day that the Skype Companies continue to make available its Internet telephone software for download, Skype users download Joltid's copyrighted works approximately six times per second." Ebay licenses peer-to-peer technology from Joltid for Skype, but has begun to develop its own alternative software given the uncertain outcome of pending litigation with Joltid. "Their allegations and claims are without merit and are founded on fundamental legal and factual errors," eBay said in a statement. Analysts have said the once-celebrated Skype business is an incongruous division of an Internet sales and auction house, and many have long urged the firm to spin off the unit or unload it. The Internet auction house said on Wednesday it remained on track to close the Skype transaction in the fourth quarter. JOOST BUSINESS Ebay agreed to sell a 65 percent stake in Skype for $1.9 billion to a consortium including Netscape founder Marc Andreessen's Andreessen Horowitz, venture firm Index Ventures, private equity firm Silver Lake, and the Canada Pension Plan Investment Board. Joltid's suit named those investors as defendants, along with Skype, eBay, and Mike Volpi. Sources last week said Zennstrom and Friis had contacted several private equity firms to try and buy back their old business. Days ago, Web TV firm Joost -- also owned by Zennstrom and Friis -- removed Volpi as chairman. Volpi had joined Index Ventures by that time. Joost said they were investigating Volpi's actions during his tenure at the company, but did not elaborate. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Twitter funding would value it at $1 billion: report Also On Reuters Former Cold War foes team up to probe warming seas Skype founders sue eBay, investors Turk crowned world's tallest man at over 8 feet 1 inch More Technology News Twitter funding would value it at $1 billion: report Virtual reality used for blind to map real world Italy antitrust chief warns Google of heavy fines Ebay petitions EU to stop blocks on Internet trade Behind the snags, drama, hype: Meet the Boeing 787 More Technology News... Related News Ebay petitions EU to stop blocks on Internet trade 9:48am EDT Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video U.S. abandons missile shield in Europe UPDATE 4-Skype founders sue eBay, investors Leno show loses 7 million viewers on second night | Video Japan scientists create 3-D images you can touch U.S. to shelve Europe missile shield plans: report Flu experts gear up for pandemic of vaccine worry To bomb, or to bunker? Israel's Iran choices narrow Dan Brown novel breaks one-day sales records Swine flu death rate similar to seasonal flu: expert Behind the snags, drama, hype: Meet the Boeing 787 Most Popular Articles RSS Feed Video No public option in Senate bill Pitt: Stopping the next crisis Dollar punished Talk of the Town Bomb in Afghan capital Abuse charges shock Australia Obama: No pending Afghan decision Famous vent their fury Battle over Afghan policy Airline staff held on drug charges Most Popular Videos RSS Feed Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Labs | Journalism Handbook | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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