Skype and Kazaa hit with Rico lawsuit

StreamCast Networks, creator of the Morpheus file-swapping software, has filed a lawsuit naming Kazaa and Skype Technologies, among others, as defendants.

The suit, filed in US District Court in the Central District of California, claims StreamCast owns the technology underlying internet-calling provider Skype's software. Also named as defendants are Skype founders Janus Friis and Niklas Zennström, who are also the developers behind the Kazaa file-swapping software. StreamCast and Kazaa have argued in the past over software licensing fees.

James Baker, the lead plaintiff attorney representing StreamCast, told silicon.com sister site CNET News.com: "We have filed a suit alleging Rico and other claims, and we intend to litigate it aggressively. At this time, we have no other comments."

Rico stands for the Racketeer Influenced and Corrupt Organizations Act. While the full complaint has not been made available on the court's website, Skype and Kazaa are respectively named first and fourth as defendants in the case, indicating they have a significant role in the suit.

A representative for Skype declined to comment on the case. eBay, which acquired the Luxembourg-based company for $2.5bn in October 2005, was not named in the suit, and the company could not be reached for comment. Representatives from Kazaa, or its owners Sharman Networks, could not be reached.

Baker said the case has recently been reassigned to US District Court Judge Steven V Wilson. Wilson is the same judge who presided over the MGM Studios vs Grokster case concerning peer-to-peer technology that ultimately went to the Supreme Court. Baker went before Wilson in that landmark case as the lead defence counsel for StreamCast.

Other plaintiffs in the StreamCast case include Altnet CEO Kevin Bermeister, Bluemoon, Brilliant Digital Entertainment, Indigo Investment, Joltid, Joltid Ou Blastoise, LA Galiote, Sharman Networks and several "John Does".

Candace Lombardi writes for CNET News.com