When Skype voice over-the-internet system was offered in Costa Rica, it was a welcome alternative to ICE’s monopoly on phone services. For a flat rate, Costa Ricans could call just about anywhere for a fraction of the cost … now that may change due to a legal spat over a licensing agreement.
Online retailer eBay bought Skype in 2005 for about US$2.6 billion. HOWEVER, that deal didn’t include the peer-to-peer (P2P) networking technology (non-geekism definition: peer to peer networking sites, like Limewire has been under fired for copyright violations, letting users download music) on which it runs. That technology is owned by a company called Joltid and licensed to Skype.
San Jose, California-based eBay is asking the English High Court of Justice in London, to find that Joltid’s efforts to terminate the agreement are invalid and that Skype is not in breach of the licensing agreement. And Joltid is attempting to terminate the agreement based on allegations that Skype has breached its terms. Skype said that it strongly refutes those allegations and is confident of its legal position. Skype currently uses Global Index technology from Joltid to make its P2P connections on the back-end and, without this technology; Skype would just become a shell without the software engine to drive it.
Joltid is a company owned by one of the Skype’s founders Niklas Zennstrom, which has licensed the [Global Index] technology to Skype. When Zennstrom sold Skype to eBay he retained the licensing rights to the Global Index technology through his company Joltid.
It is the typical, “We want more [money] of the pie.”
eBay Skype is confident of its legal position. Skype has begun to develop alternative software to that licensed through Joltid. However, this is the catch that will effect Costa Rican’s (and others) currently using the system; such software development may not be successful, may result in loss of functionality or customers even if successful, and will in any event be expensive,” eBay said, adding, “their new software has no guarantee of success.”
So what does this mean to Costa Rica? Hummm … needless to say, those that conduct international business, like hotels and travel agencies may suddenly find themselves out of phone service and back into the frying pan of ICE.
One of the alternatives of using voice over-the-internet systems that has been taking off in Costa Rica is MagicJack, a cool USB device that allows unlimited phone service to the US/Canada for $19.00/year. This is what I use when traveling. All one needs is an internet connection and it works with WiFi.
Many are buying the device in the US, setting up a US number, and then taking it to Costa Rica. The connection at times may not be the best, but still, for unlimited calls at a little over a $1/month … I rest my case in this, just-in-case, backup cable phone service.
This is a good web site !
Good for Magic Jack….Bad for all of us who regularly use SKYPE…!