Wednesday, May 4, 2011

Skyhook lands early win in Google suit, as motions get denied

By Rodney H. Brown

Skyhook Wireless Inc. has received good news in its suit against search giant Google Inc., with the Suffolk Superior Court Tuesday denying Google’s request for a motion to dismiss the case for a summary judgement in the case.

According to a court document, Justice Judith Fabricant issued the order that states, “the Motion to Dismiss or, in the Alternative, for Summary Judgement in favor of Defendant Google, Inc., is DENIED, without prejudice to any further motion for summary judgement after completion of discovery.”

In September, Skyhook filed suit in U.S. District Court of Massachusetts against Google for infringement of patents related to wi-fi use in determining a cell phone’s location, and for business interference for using that technology. Boston-based Skyhook said in its suit that Google is infringing its United States Patent No. 7,414,988, “Server for Updating Location Beacon Database” by maintaining a server Google calls its “WiFi location database.” Skyhook is also suing for infringements of three other patents related to wi-fi location technology and services.

In addition, Skyhook alleged in a second complaint filed in Suffolk County Superior Court that Google used its relationships with handset manufacturers to muscle Skyhook’s GPS software out of the market. Google and Skyhook were partners in the location-based services, after the companies signed a deal in April for Google’s Android operating system to use software made by Skyhook to pinpoint users for location-based apps on the Droid line of phones made by Motorola Inc.

It is that Suffolk-located suit that was the subject of Tuesday’s denial rulings against Google’s motions. Skyhook CEO Ted Morgan said that he was pleased that the case will move forward, but knows it has really just started.

“This is still the early innings in the case,” Morgan said. “I think this is a big milestone in the overall time line because Google has really resisted going into the next phase of full discovery. They have been holding back on providing the documentation the court has been asking for and they have asked to dismiss the case outright.”

According to that business interference suit: “On information and belief, shortly thereafter, Andy Rubin (Google’s Vice President of Engineering overseeing development of Android) called Sanjay Jha (Co-Chief Executive Officer of Motorola Inc. and Chief Executive Officer of Motorola’s Mobile Devices business) multiple times to impose a ‘stop ship’ order on Motorola preventing Motorola from shipping Android wireless devices featuring Skyhook’s XPS client software.”

Skyhook has been busy since, signing a deal in January with Priceline.com, which is using Skyhook’s geolocation technology in its “Hotel Negotiator” app for the Android phone. Aimed at business travelers, Hotel Negotiator finds and compares hotel room deals nearby the user’s current location.  In March, Skyhook inked a deal to have its Core Engine wi-fi and GPS-based location technology embedded in the new NGP gaming system that will come to market at the end of the year from Sony Computer Entertainment Inc.

Morgan said that for the most part those deals are a reflection of business as usual at Skyhook, and the company has been able to handle the burden of the suits well so far.

“We feel very good about this,” he said. “The legal expenses are sizable and obviously a burden we would rather not have to shoulder, but when we went into this we had a good sense of how long this would take and how much it would cost, We went into it with our eyes wide open – 95 percent of our effort is still in growing the company and landing new customers The real impact in just dollars and cents is paying the lawyers.”