Google vs. the Little Guy
Google was strong-arming Smartphone producers to keep them from employing its location software. Ted Morgan, the Skyhook wireless CEO gave Motorola’s executives a warning “Expect some fireworks from Google (GOOG) when the deal is announced”. Smart phones from Motorola would use Skyhook's software, which helps to locate a phone's location, in its place of a Google's edition of the technology. However Motorola handsets would still use Google's Android operating system, Skyhook, which is not Google, would gather a lot of the minute-by-minute information on the location of millions of Motorola users. For the reason that Google had plans to make billions by sending advertisements to people founded on whether they are attending a ball game or in various stores, that information was valuable.
Things turned sour when Boston-based Skyhook filed a case against Google on Sept. 15 in Massachusetts state court. Skyhook was seeking tens of millions of dollars for damages and also a close to Google's "intentional interference" in contracts that scared away Motorola and other unnamed Skyhook customers. Skyhook alleged that Google lied that Skyhook's technology was not well-matched with Android. Morgan argues that Google never was an obstacle until Motorola made an announcement of its Skyhook deal. It is at this point that Rubin called Jha regarding Skyhook compatibility issues, Skyhook asserts. Morgan states that his team twisted its software to make sure it kowtowed to Google's specifications, "but we never heard back from Google." If it looses in the suit, Skyhook will essentially be cut out of Android market. If it happens to win, the market will still be tough. Even though the company has won contracts with Hewlett-Packard (HPQ), Dell (DELL), and Samsung, it has lost over half its sales: Apple which was the source. While Skyhook has exported millions of iPhones since the year 2008, recently apple revealed that it has deserted Skyhook to have its own location technology. "Entrepreneurs are taught to pick something important to focus on," states Morgan. "But maybe we chose something too important."