Skype and Net2Phone settle four year patent battle

After a long running battle since 2006, pioneer of internet calling kit Net2Phone, owned by IDT, has announced that it has settled its patent problems with popular telephony service and instant messaging software Skype.

The original alleged patent infringement saw Net2Phone complaining about an Internet Protocol (IP) communications link between two devices. Net2Phone held a patent on this in 2000 and saw Skype as treading on its turf. Since then the lawyers have been going at each others throats, gearing up a step last month when IDT filed a civil antitrust lawsuit against eBay and Skype – eBay owned all of Skype in 2006, the time of the original lawsuit.

Reports say that the full complaint filed in July pointed the finger at Skype and eBay as having a view to monopolise the internet telephony market. 

Details of the settlement are not being made public by Skype, eBay, or IDT. IDT’s official line is: “Skype, Inc., Skype Technologies SA, Skype Communications, S.A.R.L., IDT Corporation, Net2Phone, Inc., IDT Telecom, Inc., and Union Telecard Alliance, LLC, have settled all outstanding disputes among the parties, including two patent infringement lawsuits pending in the United States District Court for the Western District of Arkansas.”

So someone’s probably been bunged some dosh. Again, the patent lawyers are the real winners here.