Ted Morgan, founder of Skyhook Wireless has just received a call from Steve Jobs of Apple, asking for a meeting. Ted must decide how to prepare for the meeting, which would finally give Skyhook anchor clients. Ted and his team worked for three years to build a new approach to Location Based Services, which uses Wi-Fi, rather than established satellite technology GPS. Skyhook approach is more accurate than the GPS in urban areas and, unlike GPS, it works indoors. However, the major device manufacturers do not want to be the first to use it. Skyhook does not have customers. Board of directors and investors are becoming restless. If Steve Jobs Ted offer a free license, or pay him for the user base of Apple - or should it insist on a substantial fee license? The case discusses the challenges faced by entrepreneurs in the creation of technology-based companies and in getting market traction compared to the established standard. "Hide
by Shikhar Ghosh, Thomas R. Eisenmann Source: Harvard Business School 19 pages. Publication Date: April 7, 2009. Prod. #: 809119-PDF-ENG
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