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StreamCast takes shot at eBay over Skype's Internet phone service.


STREAMCAST Networks StreamCast Networks, Inc., is an American corporation, specializing in peer-to-peer software.

Formerly named MusicCity, StreamCast created Morpheus, which was one of the first major peer-to-peer applications.

StreamCast was also a defendant in the MGM v.
 Inc., creator of the controversial peer-to-peer file-sharing program A file-sharing program is used to directly or indirectly transfer files from one computer to another computer over a network (e.g. the Internet). While the term may be used to describe client-server disk sharing (also known as shared file access or disk mounting), it is more  Morpheus, filed a lawsuit against eBay Inc. and 21 other defendants, asking for a worldwide injunction on the sale and marketing of eBay's Skype Internet voice products.

StreamCast first filed a lawsuit against Skype in April, but did not name eBay in the original suit. The amended suit includes the San Jose-based auction giant, which acquired Skype last year for more than $4 billion. The suit centers on file-sharing technology called FastTrack P2P See peer-to-peer and point-to-point. . Skype and 21 other companies use it; StreamCast claims it owns it. The lawsuit is filed under the Racketeer Influenced and Corrupt Organizations Act, among others.

Skype's Internet-based free phone service uses peer-to-peer software, and StreamCast alleges that technology was taken through a conspiracy.

StreamCast developed the technology with Kazaa, the infamous European peer-to-peer file-sharing network, whose co-founders, Niklas Zennstrom and Janus Friis Janus Friis (b. 1976) is a Danish entrepreneur best known for co-founding the file-sharing application KaZaA, and the peer-to-peer telephony application Skype. In September 2005, he and his partner Niklas Zennström sold Skype to eBay for $2.6bn. , founded Skype. They then sold Skype to eBay for more than $4 billion. StreamCast's suit claims the Skype founders misappropriated mis·ap·pro·pri·ate  
tr.v. mis·ap·pro·pri·at·ed, mis·ap·pro·pri·at·ing, mis·ap·pro·pri·ates
1.
a. To appropriate wrongly: misappropriating the theories of social science.
 technology from their partnership and secretly--and illegally--transferred the rights in the sale to eBay.

"The rights to the Skype and FastTrack technologies were swept out from under our feet, and our 28 million Morpheus users were stolen from us," said Michael Weiss Michael Weiss can refer to one of several people:
  • Michael T. Weiss, actor
  • Michael Weiss, pianist, composer
  • Michael Weiss (figure skater)
  • Michael Weiss, CEO of StreamCast Networks
, chief executive of StreamCast Networks. The suit was filed in Federal Court in Los Angeles.

Peer-to-peer file sharing networks came under fire for illegal music swapping, and one by one companies have either folded (Grokster), or gone legit le·git  
adj. Slang
Legitimate.
 (Napster Inc.) by offering a pay-for-downloads version. Morpheus has remained in the peer-to-peer space, but has offered an e-wallet feature that gives users the opportunity to pay for downloads.

Staff Reporter Hilary Potkewitz can be reached by e-mail at hpotkewitz@labusinessjournal.com or at (323) 549-5225, ext. 226.
COPYRIGHT 2006 CBJ, L.P.
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Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:cases
Author:Potkewitz, Hilary
Publication:Los Angeles Business Journal
Article Type:Brief article
Geographic Code:1USA
Date:May 29, 2006
Words:294
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