Opening Salvos from Providers of Location-Based Apps

Opening Salvos from Proivders of Location-Based Apps

It took a little time for businesses to realize the opportunities of using Twitter and quite some time passed before Facebook became a powerhouse, but it seems like smartphones and their location-based, GPS apps were recognized for their potential as soon as they came out the gate.  And yesterday, Skyhook Wireless opened fire on Google for allegedly interfering with Skyhook’s sales contracts, as well as infringing on at least four patents vital to its checkin or location-finding software.

According to the lawsuit filed Wednesday, Skyhook claims Google contacted its customers, namely Motorola, saying that in order to make and sell the Google Android smartphone the manufacturers had to use Google’s location service and not Skyhook’s XPS program.  Skyhook said XPS had previously completed Google’s approval process.

Part of the vitriol behind this and similar struggles stem from the still developing location/mobile advertising market.  Controlling location data, checkin-style advertising, and other future uses of GPS smartphones is a huge opportunity now, even in the beginning stages.  And it appears to be only getting bigger.