Since the first release of Android, there has been a hook into the OS for arbitrary location services and it's intended that there be more than one location provider. Android itself provides at least two.

From the filing, it sounds like Skyhook had Motorola strip out Google's builtin location providers. I wouldn't be surprised if they also had them strip out the ability to add additional location providers. In fact, they say that Google has "allowed" another similar location provider to run on Android. My guess is that that other provider doesn't supersede the Android API. Again, this is speculation; I could be wrong.

I would imagine that anything that modifies the public API that developers code against renders the product Android non-compliant.