StreamCast Networks, developer of morpheus file-sharing software, lost its $4.1 billion lawsuit in U.S. District Court against Skype and parent eBay. StreamCast claimed that Skype's founders broke an agreement to give StreamCast the right of first refusal to Skype's VoIP phone technology. The founder had been with Kazaa at the time.

The judge ruled that StreamCast didn't have a case under federal antitrust laws and dismissed all claims against the defendants. StreamCast has the option to appeal or pursue it case in state court.