Net2Phone Sues Skype

Net2Phone has filed a lawsuit alleging that Skype infringed Net2Phone's Point-To-Point Internet Protocol patent issued in August 2000. The patent describes a method of swapping Internet Protocol (IP) addresses through processing units over the internet to create a point-to-point communication link between computers. The infringement is allegedly caused by Skype's use of Voice over Internet Protocol (VoIP), which allows peer-to-peer telephone communication over the internet.

Using a computer headset or a USB phone, Skype customers use a computer terminal to place phone calls to other Skype users or to non-internet phone users. For calls to Skype users, traditional phone networks are bypassed through the use of a peer-to-peer network that utilizes computer terminals of all online Skype users "in traffic routing, processing and bandwidth intensive tasks." For calls to non-Skype users, users pay a set rate for a connection to conventional phone networks.

Although there are other internet phone companies, such as Vonage , these utilize centrally managed systems to connect the user's computer terminal to the traditional phone networks and charge a monthly fee.