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This excerpt taken from the EBAY 10-Q filed Apr 28, 2009. Skype depends on key technology that is licensed from third parties. Skype licenses technology underlying certain key components of its software from third parties it does not control, including the technology underlying its peer-to-peer architecture and firewall traversal technology and the video compression/decompression used to provide high video quality. Although Skype has contracts in place with its third-party technology providers, there can be no assurance that the licensed technology or other technology that we may seek to license in the future will continue to be available on commercially reasonable terms, or at all. The loss of, or inability to maintain, existing licenses could result in a decrease in service quality or loss of service until equivalent technology or suitable alternatives can be developed, identified, licensed and integrated. While we believe Skype generally has the ability to either extend these licenses on commercially reasonable terms or identify and obtain or develop suitable alternatives, the costs associated with licensing or developing such alternatives could be high and the technical challenge of assuring “backward compatibility” with older versions of Skype’s technology may be difficult to overcome. Any failure to maintain these licenses on commercially reasonable terms or to license or develop alternative technologies would harm Skype’s business. In March 2009, Skype filed a claim in the English High Court of Justice (No. HC09C00756) against Joltid Limited, a licensor of certain peer-to-peer communication technology used in Skype’s business. Following the filing of the claim, Joltid purported to terminate the license agreement between the parties. See Item 1 — Legal Proceedings” above. Our businesses depend on continued and unimpeded access to the Internet. Internet service providers may be able to block, degrade, or charge us or our users additional fees for our offerings. Our customers rely on access to the Internet to use our products and services. In many cases that access is provided by companies that compete with at least some of our offerings, including incumbent telephone companies, cable companies, mobile communications companies, and large Internet service providers. Some of these providers have stated that they may take measures that could degrade, disrupt, or increase the cost of customers’ use of our offerings by restricting or prohibiting the use of their lines for our offerings, by filtering, blocking, delaying, or degrading the packets containing the data associated with our products, or by charging increased fees to us or our users for use of their lines to provide our offerings. Some of these providers have contractually restricted their customers’ access to VoIP offerings (which would include Skype) through their terms of service with their customers. These activities are technically feasible and may be permitted by applicable law. In addition, Internet service providers could attempt to charge us each time our customers use our offerings. Worldwide, a number of companies have announced plans to take such actions or are selling products designed to facilitate such actions. Interference with our offerings or higher charges for access to our offerings, whether paid by us or by our customers, could cause us to lose existing customers, impair our ability to attract new customers, and harm our revenue and growth. These excerpts taken from the EBAY 10-K filed Feb 20, 2009. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third-party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality or loss of service until equivalent
technology or suitable alternatives can be developed,
identified, licensed and integrated. While we believe Skype
generally has the ability to either extend these licenses on
commercially reasonable terms or identify and obtain or develop
suitable alternatives, the costs associated with licensing or
developing such alternatives could be high and the technical
challenge of assuring “backward compatibility” with
older versions of Skype’s technology may be difficult to
overcome. Any failure to maintain these licenses on commercially
reasonable terms or to license or develop alternative
technologies would harm Skype’s business. Skype and one of
its licensors are currently attempting to resolve a dispute
concerning certain key licensed technology. The parties
previously entered into a “standstill agreement” to
allow further time to resolve the dispute without the
possibility of immediate litigation. While Skype is continuing
to attempt to resolve the matter, in February 2009, Skype
terminated this standstill
Table of Contents
agreement, and either party may commence a lawsuit against the
other party beginning in March 2009. Although Skype is confident
of its legal position, as with any litigation, there is the
possibility of an adverse result if the matter is not resolved
through negotiation. In such event, continued operation of
Skype’s business as currently conducted would likely not be
possible.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us or our users additional fees for our
offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to VoIP
offerings (which would include Skype) through their terms of
service with their customers. These activities are technically
feasible and may be permitted by applicable law. In addition,
Internet service providers could attempt to charge us each time
our customers use our offerings. Worldwide, a number of
companies have announced plans to take such actions or are
selling products designed to facilitate such actions.
Interference with our offerings or higher charges for access to
our offerings, whether paid by us or by our customers, could
cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
Skype depends on key technology that is licensed from third parties. Skype licenses technology underlying certain key components of its software from third parties it does not control, including the technology underlying its peer-to-peer architecture and firewall traversal technology and the video compression/decompression used to provide high video quality. Although Skype has contracts in place with its third-party technology providers, there can be no assurance that the licensed technology or other technology that we may seek to license in the future will continue to be available on commercially reasonable terms, or at all. The loss of, or inability to maintain, existing licenses could result in a decrease in service quality or loss of service until equivalent technology or suitable alternatives can be developed, identified, licensed and integrated. While we believe Skype generally has the ability to either extend these licenses on commercially reasonable terms or identify and obtain or develop suitable alternatives, the costs associated with licensing or developing such alternatives could be high and the technical challenge of assuring “backward compatibility” with older versions of Skype’s technology may be difficult to overcome. Any failure to maintain these licenses on commercially reasonable terms or to license or develop alternative technologies would harm Skype’s business. Skype and one of its licensors are currently attempting to resolve a dispute concerning certain key licensed technology. The parties previously entered into a “standstill agreement” to allow further time to resolve the dispute without the possibility of immediate litigation. While Skype is continuing to attempt to resolve the matter, in February 2009, Skype terminated this standstill
Table of Contentsagreement, and either party may commence a lawsuit against the other party beginning in March 2009. Although Skype is confident of its legal position, as with any litigation, there is the possibility of an adverse result if the matter is not resolved through negotiation. In such event, continued operation of Skype’s business as currently conducted would likely not be possible. Our businesses depend on continued and unimpeded access to the Internet. Internet service providers may be able to block, degrade, or charge us or our users additional fees for our offerings. Our customers rely on access to the Internet to use our products and services. In many cases that access is provided by companies that compete with at least some of our offerings, including incumbent telephone companies, cable companies, mobile communications companies, and large Internet service providers. Some of these providers have stated that they may take measures that could degrade, disrupt, or increase the cost of customers’ use of our offerings by restricting or prohibiting the use of their lines for our offerings, by filtering, blocking, delaying, or degrading the packets containing the data associated with our products, or by charging increased fees to us or our users for use of their lines to provide our offerings. Some of these providers have contractually restricted their customers’ access to VoIP offerings (which would include Skype) through their terms of service with their customers. These activities are technically feasible and may be permitted by applicable law. In addition, Internet service providers could attempt to charge us each time our customers use our offerings. Worldwide, a number of companies have announced plans to take such actions or are selling products designed to facilitate such actions. Interference with our offerings or higher charges for access to our offerings, whether paid by us or by our customers, could cause us to lose existing customers, impair our ability to attract new customers, and harm our revenue and growth. This excerpt taken from the EBAY 10-Q filed Oct 23, 2008. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third-party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality or loss of service until equivalent
technology or suitable alternatives can be developed,
identified, licensed and integrated. While we believe Skype has
the ability to either extend these licenses on commercially
reasonable terms or identify and obtain or develop suitable
alternative products, the costs associated with licensing or
developing such products could be high. Any failure to maintain
these licenses on commercially reasonable terms or license or
develop alternative technologies would harm Skype’s
business. Skype and one of its licensors are currently
attempting to resolve a dispute concerning licensed technology.
Failure to successfully resolve this dispute would harm
Skype’s business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us or our users additional fees for our
offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to VoIP
offerings (which would include Skype) through their terms of
service with their customers. These activities are technically
feasible and may be permitted by applicable law. In addition,
Internet service providers could attempt to charge us each time
our customers use our offerings. Worldwide, a number of
companies have announced plans to take such actions or are
selling products designed to facilitate such actions.
Interference with our offerings or higher charges for access to
our offerings, whether paid by us or by our customers, could
cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
This excerpt taken from the EBAY 10-Q filed Jul 24, 2008. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology, and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third-party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality or loss of service until equivalent
technology or suitable alternatives can be developed,
identified, licensed and integrated. While we believe Skype has
the ability to either extend these licenses on commercially
reasonable terms or identify and obtain or develop suitable
alternative products, the costs associated with licensing or
developing such products could be high. Any failure to maintain
these licenses on commercially reasonable terms or license or
develop alternative technologies would harm Skype’s
business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us or our users additional fees for our
offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to VoIP
offerings (which would include Skype) through their terms of
service with their customers. These activities are technically
feasible and may be permitted by applicable law. In addition,
Internet service providers could attempt to charge us each time
our customers use our offerings. Worldwide, a number of
companies have announced plans to take such actions or are
selling products designed to facilitate such actions.
Interference with our offerings or higher charges for access to
our offerings, whether paid by us or by our customers, could
cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology, and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third-party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality or loss of service until equivalent
technology or suitable alternatives can be developed,
identified, licensed and integrated. While we believe Skype has
the ability to either extend these licenses on commercially
reasonable terms or identify and obtain or develop suitable
alternative products, the costs associated with licensing or
developing such products could be high. Any failure to maintain
these licenses on commercially reasonable terms or license or
develop alternative technologies would harm Skype’s
business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us or our users additional fees for our
offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to VoIP
offerings (which would include Skype) through their terms of
service with their customers. These activities are technically
feasible and may be permitted by applicable law. In addition,
Internet service providers could attempt to charge us each time
our customers use our offerings. Worldwide, a number of
companies have announced plans to take such actions or are
selling products designed to facilitate such actions.
Interference with our offerings or higher charges for access to
our offerings, whether paid by us or by our customers, could
cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
This excerpt taken from the EBAY 10-Q filed Apr 24, 2008. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology, and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third-party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality or loss of service until equivalent
technology or suitable alternatives can be developed,
identified, licensed and integrated. While we believe Skype has
the ability to either extend these licenses on commercially
reasonable terms or identify and obtain or develop suitable
alternative products, the costs associated with licensing or
developing such products could be high. Any failure to maintain
these licenses on commercially reasonable terms or license or
develop alternative technologies would harm Skype’s
business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us or our users additional fees for our
offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to VoIP
offerings (which would include Skype) through their terms of
service with their customers. These activities are technically
feasible and may be permitted by applicable law. In addition,
Internet service providers could attempt to charge us each time
our customers use our offerings. Worldwide, a number of
companies have announced plans to take such actions or are
selling products designed to facilitate such actions.
Interference with our offerings or higher charges for access to
our offerings, whether paid by us or by our customers, could
cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
These excerpts taken from the EBAY 10-K filed Feb 29, 2008. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology, and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality or loss of service until equivalent
technology or suitable alternatives can be developed,
identified, licensed and integrated. While we believe Skype has
the ability to either extend these licenses on commercially
reasonable terms or identify and obtain or develop suitable
alternative products, the costs associated with licensing or
developing such products could be high. Any failure to maintain
these licenses on commercially reasonable terms or license or
develop alternative technologies would harm Skype’s
business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us or our users additional fees for our
offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our
Table of Contents
users for use of their lines to provide our offerings. Some of
these providers have contractually restricted their
customers’ access to VoIP offerings (which would include
Skype) through their terms of service with their customers.
These activities are technically feasible and may be permitted
by applicable law. In addition, Internet service providers could
attempt to charge us each time our customers use our offerings.
Worldwide, a number of companies have announced plans to take
such actions or are selling products designed to facilitate such
actions. Interference with our offerings or higher charges for
access to our offerings, whether paid by us or by our customers,
could cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
Skype depends on key technology that is licensed from third parties. Skype licenses technology underlying certain key components of its software from third parties it does not control, including the technology underlying its peer-to-peer architecture and firewall traversal technology, and the video compression/decompression used to provide high video quality. Although Skype has contracts in place with its third party technology providers, there can be no assurance that the licensed technology or other technology that we may seek to license in the future will continue to be available on commercially reasonable terms, or at all. The loss of, or inability to maintain, existing licenses could result in a decrease in service quality or loss of service until equivalent technology or suitable alternatives can be developed, identified, licensed and integrated. While we believe Skype has the ability to either extend these licenses on commercially reasonable terms or identify and obtain or develop suitable alternative products, the costs associated with licensing or developing such products could be high. Any failure to maintain these licenses on commercially reasonable terms or license or develop alternative technologies would harm Skype’s business. Our businesses depend on continued and unimpeded access to the Internet. Internet service providers may be able to block, degrade, or charge us or our users additional fees for our offerings. Our customers rely on access to the Internet to use our products and services. In many cases that access is provided by companies that compete with at least some of our offerings, including incumbent telephone companies, cable companies, mobile communications companies, and large Internet service providers. Some of these providers have stated that they may take measures that could degrade, disrupt, or increase the cost of customers’ use of our offerings by restricting or prohibiting the use of their lines for our offerings, by filtering, blocking, delaying, or degrading the packets containing the data associated with our products, or by charging increased fees to us or our
Table of Contentsusers for use of their lines to provide our offerings. Some of these providers have contractually restricted their customers’ access to VoIP offerings (which would include Skype) through their terms of service with their customers. These activities are technically feasible and may be permitted by applicable law. In addition, Internet service providers could attempt to charge us each time our customers use our offerings. Worldwide, a number of companies have announced plans to take such actions or are selling products designed to facilitate such actions. Interference with our offerings or higher charges for access to our offerings, whether paid by us or by our customers, could cause us to lose existing customers, impair our ability to attract new customers, and harm our revenue and growth. This excerpt taken from the EBAY 10-Q filed Oct 29, 2007. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology, and the video
compression/decompression used to provide high video quality.
Although Skype has contracts in place with its third party
technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality until equivalent technology or
suitable alternatives can be developed, identified, licensed and
integrated. While we believe Skype has the ability to either
extend these licenses on commercially reasonable terms or
identify and obtain or develop suitable alternative products,
the costs associated with licensing or developing such products
could be high. Any failure to maintain these licenses on
commercially reasonable terms or license or develop alternative
technologies would harm Skype’s business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us for our users’ additional fees for
our offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to VoIP
offerings (which would include Skype) through their terms of
service with their customers. These activities are technically
feasible and may be permitted by applicable law. In addition,
Internet service providers could attempt to charge us each time
our customers use our offerings. Worldwide, a number of
companies have announced plans to take such actions or are
selling products designed to facilitate such actions.
Interference with our offerings or higher charges for access to
our offerings, whether paid by us or by our customers, could
cause us to lose existing customers, impair our ability to
attract new customers, and harm our revenue and growth.
This excerpt taken from the EBAY 10-Q filed Jul 27, 2007. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its peer-to-peer architecture and
firewall traversal technology, and the audio and video
compression/decompression used to provide high sound and video
quality. Although Skype has contracts in place with its third
party technology providers, there can be no assurance that the
licensed technology or other technology that we may seek to
license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality until equivalent technology or
suitable alternatives can be developed, identified, licensed and
integrated. While we believe Skype has the ability to either
extend these licenses on commercially reasonable terms or
identify and obtain or develop suitable alternative products,
the costs associated with licensing or developing such products
could be high. Any failure to maintain these licenses on
commercially reasonable terms or license or develop alternative
technologies would harm Skype’s business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us for our users’ additional fees for
our offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to
Skype’s offerings through their terms of service with their
customers. These activities are technically feasible and may be
permitted by applicable law. In addition, Internet service
providers could attempt to charge us each time our customers use
our offerings. Worldwide, a number of companies have announced
plans to take such actions or are selling products designed to
facilitate such actions. Interference with our offerings or
higher charges for access to our offerings, whether paid by us
or by our customers, could cause us to lose existing customers,
impair our ability to attract new customers, and harm our
revenue and growth.
This excerpt taken from the EBAY 10-Q filed Apr 25, 2007. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its
peer-to-peer
architecture and firewall traversal technology, and the audio
and video compression/decompression used to provide high sound
and video quality. Although Skype has contracts in place with
its third party technology providers, there can be no assurance
that the licensed technology or other technology that we may
seek to license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality until equivalent technology or
suitable alternatives can be developed, identified, licensed and
integrated. While we believe Skype has the ability to either
extend these licenses on commercially reasonable terms or
identify and obtain or develop suitable alternative products,
the costs associated with licensing or developing such products
could be high. Any failure to maintain these licenses on
commercially reasonable terms or license or develop alternative
technologies would harm Skype’s business.
Table of Contents
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us for our users’ additional fees for
our offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to
Skype’s offerings through their terms of service with their
customers. These activities are technically feasible and may be
permitted by applicable law. In addition, Internet service
providers could attempt to charge us each time our customers use
our offerings. Worldwide, a number of companies have announced
plans to take such actions or are selling products designed to
facilitate such actions. Interference with our offerings or
higher charges for access to our offerings, whether paid by us
or by our customers, could cause us to lose existing customers,
impair our ability to attract new customers, and harm our
revenue and growth.
This excerpt taken from the EBAY 10-K filed Feb 28, 2007. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain key components of
its software from third parties it does not control, including
the technology underlying its
peer-to-peer
architecture and firewall traversal technology, and the audio
and video compression/decompression used to provide high sound
and video quality. Although Skype has contracts in place with
its third party technology providers, there can be no assurance
that the licensed technology or other technology that we may
seek to license in the future will continue to be available on
commercially reasonable terms, or at all. The loss of, or
inability to maintain, existing licenses could result in a
decrease in service quality until equivalent technology or
suitable alternatives can be developed, identified, licensed and
integrated. While we believe Skype has the ability to either
extend these licenses on commercially reasonable terms or
identify and obtain or develop suitable alternative products,
the costs associated with licensing or developing such products
could be high. Any failure to maintain these licenses on
commercially reasonable terms or to license or develop
alternative technologies would harm Skype’s business.
Our
businesses depend on continued and unimpeded access to the
Internet. Internet service providers may be able to block,
degrade, or charge us for our users’ additional fees for
our offerings.
Our customers rely on access to the Internet to use our products
and services. In many cases that access is provided by companies
that compete with at least some of our offerings, including
incumbent telephone companies, cable companies, mobile
communications companies, and large Internet service providers.
Some of these providers have stated that they may take measures
that could degrade, disrupt, or increase the cost of
customers’ use of our offerings by restricting or
prohibiting the use of their lines for our offerings, by
filtering, blocking, delaying, or degrading the packets
containing the data associated with our products, or by charging
increased fees to us or our users for use of their lines to
provide our offerings. Some of these providers have
contractually restricted their customers’ access to
Skype’s offerings through their terms of service with their
customers. These activities are technically feasible and may be
permitted by applicable law. In addition, Internet service
providers could attempt to charge us each time our customers use
our offerings. Worldwide, a number of companies have announced
plans to take such actions or are selling products designed to
facilitate such actions. Interference with our offerings or
higher
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charges for access to our offerings, whether paid by us or by
our customers, could cause us to lose existing customers, impair
our ability to attract new customers, and harm our revenue and
growth.
This excerpt taken from the EBAY 10-Q filed Jul 28, 2006. Skype
depends on key technology that is licensed from third
parties.
Skype licenses technology underlying certain components of its
software from third parties it does not control, including the
technology underlying its
peer-to-peer
architecture and firewall traversal technology, and the audio
and video compression/decompression used to provide high sound
and video quality. All of these technologies are key to the
software Skype provides. In addition, various other technologies
used by Skype are licensed from third parties. Although Skype
has contracts in place with its third party technology
providers, there can be no assurance that the licensed
technology or other technology that we may seek to license in
the future will continue to be available on commercially
reasonable terms, or at all. The loss of, or inability to
maintain, existing licenses could result in delays, a decrease
in service quality, or a complete failure of Skype’s
product until equivalent technology or suitable alternatives can
be developed, identified, licensed and integrated. While we
believe Skype has the ability to
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either extend these licenses on commercially reasonable terms or
identify and obtain or develop suitable alternative products,
the costs associated with licensing or developing such products
could be high. Any failure to maintain these licenses on
commercially reasonable terms or to license or develop
alternative technologies would harm Skype’s business.
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