NeoMedia Commentary on CTIA Code Scan Action Team White Paper
Below is directly from NeoMedia - its response to the notorious CTIA White Paper - more responses to follow this week from different players. The response below is directly from Iain McCready CEO NeoMedia.
………..
It’s great that the CTIA Code Scan Action Team have published a white paper towards establishing an ecosystem for mobile barcode scanning in the U.S. It is critical to have an interoperable solution that can process revenue generating transactions in the near future.
The stated intent of the White Paper is to “help define, develop and promote a multi-player, interoperable ecosystem” when coupled with the objective to “Accelerate widespread publication and usage of 2D code scanning in the US” are sound premises which we fully support
It also fully supports the indirect code scanning approach which of course is covered by key NeoMedia patents in the US and for which presently, no one else is licensed to use.
Unfortunately what is proposed in the white paper is a completely closed and proprietary one that will not achieve their aims and provide one player a clear path to the market for at least a year. That can’t be allowed to happen.
It is unbelievable to base any standard on proprietary codes. Even more so to insist that any reader must incorporate algorithms to read both proprietary codes and open standards codes (EZcode and Datamatrix in this case). This locks up the market on the reader side for a single player, namely the proprietor of the chosen proprietary symbology.
As there will be no embedded handsets for at least a year, and the reader will only be available by download, this means that only Scanbuy can provide the reader. Given the architecture depicted in the white paper, they alone will be able to run campaigns in the US. This is hardly open to multiple players, interoperable or competitive.
The reasons we have been given for choosing a proprietary code are 1) Speed to market 2) Traction the code already has and 3) The carriers have already worked with them before
1 and 2 are simply not true and 3 is a sort of reason but not a good one.
The White Paper states that “… proprietary code symbologies allow Code Publishers, Campaign Managers and carriers to control code usage and prevent abuse”. Do they? In fact, proprietary codes do not give any more control over code usage than non-proprietary ones, nor do they allow more abuse prevention than a standard code symbology. It is the indirect access method, that adds this value, regardless of the chosen symbology. There is simply not a single discipline in which EZcode outperforms DataMatrix, QR Code or Aztec Code.
There are other issues with EZcode, too.
EZ Code has not been subjected to a rigorous standardization and review process like other symbologies (the industry standard codes DataMatrix, QR Code and Aztec Code have all been reviewed and approved by AIM and ISO)
At the CTIA show we got a lot of negative feedback from publishers complaining that commercial printers and software systems do not support printing of EZCode. This raises licensing and operational concerns and we have heard that as much as $1 a code is being sought – but if you don’t have true competition you either pay up or don’t use the technology which again is against the aims of the white paper
I believe that this paper was written with the right intentions but has perversely achieved the exact opposite. We will be responding officially to the CCSAT and I genuinely hope that we can establish a positive dialogue with them.
Iain McCready
Related News:
- UpCode UK CEO Mark Hendriksen on CTIA Mobile Barcode Scan Action White Paper
- Jim Levinger CEO Nextcode on CTIA White Paper on mobile barcodes
- CTIA Camera-phone based barcode scanning white paper
- CTIA White Paper on Mobile Barcodes Part 2 – Bena Roberts turns green
- UpCode USA Response to CTIA Mobile Barcode Paper and Registry

17 Responses to “NeoMedia Commentary on CTIA Code Scan Action Team White Paper”
Nice comments, even though they are not entirely accurate.
A proprietory code does add levels of security to the process, that open source codes do not, even in the direct model. How is this possible?
Simple. Lets say that company XYZ developes their own proprietory code such as UPS has done . Lets also assume they intend to issue and use these codes using both DIRECT and INDIRECT methods. As the proprietory code creator, all these new codes must travel through their servers to be decoded, or in the DIRECT model, this company has to approve and issue the direct codes to the recipients. So company XYZ can both control the content of the code(DIRECT), and control the destination of the code(indirect) if it leads to a harmful web site.
If this company is reputable and supported by an agency like CTIA, they are going to maintain very high standards for any codes they issue to ensure consumer safety using the technology. I would hope they would not issue a code to someone, that links to a site containing a known virus for example.
So there is an added level of security that does not exist with the open source code which I could make myself on any of many code publishing sites, then send unsuspecting users to a web site that steals their information for example.
The other issue is how he took acception to their selecting Scanbuy as the source code. Not true either. They chose two formats to work with, and promised more to come as adoption expands. So its not an all or nothing for Scanbuy model they have selected to go with initially. That code will be competeing with the open source data matrix codes in the future.
Its refreshing to see how all my other initial assertions of what this white paper mean, have been backed by the CEO of Neomedia. Yes Scanbuy will have the lock on the reader for some time, since they developed the proprietory code that readewr has to be able to function with. Yes because the data matrix is not fully implemented yet, they will also have a jump on the market going forward as I too pointed out.
Thats exactly why spending dollars to get in the door with CTIA was a very smart move, if they did that, as I pointed out to the poster in another thread, who cried about how Scanbuy had to buy their way into this white paper.
So to sum things up, a direct coded proprietory code does in fact offer levels of security that an open access or open standard code does not, since the issuer of that code symbol, most likely will be held accountable by the consumer and the market, for any adverse actions that code might inflict on them. And a reputable business is going to do everything possible to limit that negative exposure which is damaging to their business model.
Comment made on September 18th, 2008 at 7:06 pmBrewskih, I have to say - your comment makes me sick and even greener…
“if spending dollars to get into the door with ctia was a very smart move”
WHAT. I am sorry but I really don’t agree with any kind of money for favours initiatives. If that is the case this is a cartel and the authorities need to be alerted.
Everyone has implied this has happened and I only hope its not true. I have 3 interviews with US students next week who I will be sending out on a investigative tour of the US mobile barcode industry. OK - this is not panorama and I am not the BBC - but I want to know what is going on.
Comment made on September 18th, 2008 at 9:06 pmBena,
I too do not believe it has happened, but a certain group of neomedia shareholders keep posting that rumor, so I am merely playing the devils advocate and rebutted their assertions.
I have repeatedly asked them to provide any evidence to support their claims that Scanbuy has paid anyone for any of the deals or trials they have been selected for. And you guessed right, to date they have provided nothing to support of verify their claims.
Its actually libel on their part, to go around the web making false claims about a company, that can tarnish that companies reputation, in an effort to bash a company because its a competitor of a company they own stock in.
I think what really has happened is that Scanbuy has stood up and is being the man, one poster suggested they be or do.
These same posters at one time claimed because Scanbuy conducted trials with partners for free, there was something nefarious going on. When Neomedia does the same thing to get their foot in the door, the same posters claim its smart business.
As to whether paying for exposure or access to new markets is equivalent to a cartel thats a whole other discussion, but I will say, here in the US is standard business practice. Even in partnership deals in many cases moneys change hands. Our government auctions off blocks of airwaves to the highest bidder so they can access potential markets competitors can not. Our salesman offer a business discounted pricing(a monetary gain) to get their business away from a competitor. Its all part of business, and if you are receiving something of value in return for the money, typically it is considered legitimate as long as its not a bribe. Heck even our politicians are allowed to give voters whats called (STREET MONEY) to get them to go to the polls and vote during an election. Below is an interesting link on how its used in our politics.
By the way, you have misquoted me. The part about if they did that was left out, except the word if was moved from the back of the quote to the front, giving the quote a whole new meaning.
“”"”Thats exactly why spending dollars to get in the door with CTIA was a very smart move, if they did that, “”
http://www.wisegeek.com/in-us-politics-what-is-street-money.htm
Comment made on September 18th, 2008 at 10:24 pm“if spending dollars to get into the door with ctia was a very smart move”…
Plain and simple, it’s called “bribery”.
Comment made on September 19th, 2008 at 1:29 ambrewskih u are an idiot. look at u, the self appointed barcode expert. don’t make me laugh LoL. youre talking direct encoding but ctia is not using direct encoding are they? NOPE! they are using INDIRECT! a code is code. how it is encoding is what really matters. your lame ass example doesnt jive.
Comment made on September 19th, 2008 at 2:58 amBena:
What a hypocrite.
You don’t believe in taking money for favours!
What about all of the spin, leeway, promotion, and bias you show towards Neomedia for being a sponsor of this blog?
Yes, you want to blog about the industry, but you certainly favor the company that is buttering your bread. You chose to issue an article about Neomedia every day at CTIA, because YOU took money, therefore you did the a FAVOUR.
Comment made on September 19th, 2008 at 7:41 amElin - I have checked your IP and I would be careful about shouting abuse at me. GoMo News and myself are a member of the National Union of Journalists and I take being called a hypocrite very seriously. I have full insurance and am considering defamation. Bena
Comment made on September 19th, 2008 at 10:54 amI think the drafters of the CTIA white paper need to be advised to have their lawyers carefuly read the following.
http://www.usdoj.gov/atr/public/hearings/ip/222655.htm
Comment made on September 19th, 2008 at 12:31 pmLOL @ BREW TEA,
I see you switched your grammer, ater being exposed as a multiple alias user on another thread here by me. yeah that really throws others off as to who you really are….LMAO.
Maybe U better learn to comprehend a discussion U are reading.
The statement was made that proprietary codes do not offer any more safeguards then non proprietary codes, and I challenged that statement with factual knowledge. I see how U had some great information to contribute to that discussion, to prove my statement false….NOT
Instead U r right back at ur old games of name calling and personal attacks to try to get the discussion off the issues.
Never said I was any kind of expert. Further more any moron who read my post, knows I wasn’t talking about direct method, but actually referred to both direct and indirect methods and what safeguards are available to each. I think I pointed out the EZCODE proprietory method, did have safeguards inherent in it that the direct method does not, contrary to the CEO of Neomedia’s claim, that proprietary codes had no safeguards.
So maybe you should be having your immature discussion with the CEO of Neomedia, who used the comparison of proprietary codes(EZ CODE-INDIRECT) not being any more secure then non proprietary codes(QR for example-direct)
CEO’s quote
“”"”The White Paper states that “…proprietary code symbologies allow Code Publishers, Campaign Managers and carriers to control code usage and prevent abuse”. Do they? In fact, proprietary codes do not give any more control over code usage than non-proprietary ones, nor do they allow more abuse prevention than a standard code symbology.”"”"
Please take some reading comprehension courses before engaging in public discussion, where u clearly do not understand what u read. I understand now days they start teaching comprehension skills at about the 5th grade level here in the US.
Did my use of U and UR fool you as too who I am. Oh shucks I forgot to change my screenname as well……LOL
Comment made on September 19th, 2008 at 6:26 pmI’ve followed this blog for over a year, and I think I am done. Bena you are not a jornalist. Regardless of your membership in NUJ, this is a blog … not a news site.
The amount of sensationalism thrown around here is darned near disgusting.
Let’s talk about where we are at. Someone, with no evidence mind you, started a rumor that ScanBuy paid CTIA for preferential treatment in a white paper than no one not reading this forum is likely to see.
You retort that you are assembling a crack team of undergrad students to look in to the claim, made by a lone grammatically incoherent NEOM supporter.
Then you threaten defamation against Elin for pointing out one could easily say you are uncomfortably close to NEOM? Abuse, what the hell? Would any sort of real journalist call this out? No.
Could there be other explanations as to why ScanBuy was mentioned in the paper? Could they have offered . Could the US carriers have demanded it? Could it be that you just don’t understand the US barcode maket as well as you think?
I vote for the latter, but that is just one guy’s opinion.
Comment made on September 19th, 2008 at 6:44 pmTom, thanks for reading GoMo for the past year.
I have never started rumours and I don’t think I am a guru in the US market - hence I am trying to hire students to help me. I realise that Elin might be your friend -but this is my fourth out of order blog from her and this time I am just tired.
You might not realise but I also have another venture that I am full time on and very passionate about (www.visibilitymobile.com). GoMo is currently my third baby. I have nothing to gain from being biased.
I have a degree (BA Hons) in Media a MA in Business and Economics and have been an analyst for over 10 years - but still I don’t mind what you want to call me. I feel that social media (the new journalism) is the future and I thank you for reading GoMo News for the past year.
I am not rude to anyone and you don’t pay to read this so reading is a matter of choice. I wish you good karma. You might not believe me but I thank you for being one of the 35,000 regular monthly unique users that read GoMo.
Comment made on September 19th, 2008 at 8:14 pmBena
There are two mobile barcode sponsors on GoMo News - Neo Media and Upcode. There will be one more shortly. NeoMedia’s sponsorship will end when I have finished all articles from CTIA and published all the coverage. UpCode is a multimedia sponsor - more to be revealed soon.
As an industry judge with a high level of regard I find your comments offensive and they damage business opportunities that I have - so yes defamation is an issue. Everyone else slates each other and the company and all four comments you have ever posted on GoMo have been personal attacks on me.
Comment made on September 20th, 2008 at 10:06 amI have been advised no longer to respond to your posts and to ban you from GoMo - because I have never banned anyone from GoMo News - I am not… BUT
This is a social media business to business blog - not a personal blog or a pure media entity - the lines and shape of how we gather the news and the perception of media is changing and people need to move with the times not have arguments about traditional media vs web 2.0 social media.
meanwhile the japanese system gets further and further ahead.
has nobody ever questioned why the Japanese were succesful with an open model yet here in the USA you guys cant write single article without the threats of lawyers……
I’ve made my comments on the CTIA white paper well known in my post at http://deancollinsblog.blogspot.com/2008/09/ctiacodescanactionteamwhite-paper.html
So whether you are a reporter, or a blogger you would have to agree that the japanese system has far more users and campaigns and until we get anywhere close to them everything that is proposed in the USA is moot until real innovaters like Ralph Lauren sieze the opportunity and move forward with innovative campaigns.
Cheers,
Comment made on September 26th, 2008 at 3:12 pmDean Collins
http://www.Cognation.net
The more I read here, the more confused I become. The threat of suits for defamation etc., just do not make sense.
Bena, you recently replied to one of my querries, that my post about really ground breaking news in the mobile 2D arena was removed because the company hadn’t contacted you with the news first, or one of us hadn’t paid you the 20 pounds to allow us to submit the press release about that news, and you were not offering free publicity.
First of all I included the link to the news release merely for verification of the information, not so the release gets generated for free. Something that more of your posters should do, so there are less lies or myths posted here then currently occur, since this blog has the ability to effect publicly trading companies and their stock prices.
So if the requirements here are that someone has to pay, for breaking news to be discussed, then there is a bias and its not defamation, when someone questions it here.
Especially when you allow other posters to post links to press releases in their comments regularly, for the one company you have thus far shown favoritism too. This poster after you removed my comment, just yesterday posted a new comment on this other company, with a new link to a press release you have not yet posted or discussed. That is a double standard, or that poster is being charged to add links to his comments, which I doubt is the case. And he has been allowed to do so for the past year he has been posting here, before that company even became a sponsor or gold sponsor or whatever.
The comment above mine has a link to their web site at the bottom of the comment, which to me appears to be free publicity of their products, something you just told me is not allowed unless I pay 20 pounds.
Then on your sponsor page, you say this is a young mobile blog with not only an aim to report the news, but to also separate the fact from fiction, with one if its special focus’ on 2D bar code. If this aim is only accomplished with paying subscribers, perhaps a disclaimer to that effect should be included on the home page, at the top, so every visitor understands the industry coverage here is biased by who is paying and who is not, and does not cover the industry as suggested.
This is not a personal attack, as I did not bring up the issue of bias and defamation suits. I am only responding to your comments on those issues, with my perception as well as my actual experience just a couple days ago in another thread, where you made it clear to me anyhow, that your bias is toward paying readers, and those not paying, or companies not willing to come to you with their news first will not be covered. And readers who come across new news on these companies are not allowed to comment on that news here either as it amounts to free publicity for the non paying company.
Comment made on September 27th, 2008 at 4:08 pmBrewskih
I have reached out to all mobile barcode players in the past year. Some have been receptive and talk to me on a very high level - others like Scanbuy - have used me to publish pictures of barcodes in times square and with telefonica in Spain -but have faltered when I have asked tough questions. If you read GoMo - you know that intelligence and answering tough questions is what makes me respect companies.
This week was one of the hardest of my life and if you read the disclaimer I published on Monday - I said that I wasn’t going to talk about mobile barcodes this week.
I am not picking on you - I have also sent an email to others that post here asking them not to link to other places or post comments where there are no press releases. I did receive the personal note you sent me - and I was going to respond on Monday.
I have nothing to hide. I am sorry that the defamation issue upset -you. But if you look at GoMo closely you would know I have been looking for investment and the timing of those comments were VERY un fortunate. On top of that Erin has been rude from day one.. with very little substance or intelligence - so I don’t think she was adding any value to the blog - hence my firm hand.
If you had a blog and you posted the press release on Samsung and then emailed me to say - I have a scoop here is the release can you link…. I would have (on Monday).
Comment made on September 27th, 2008 at 8:12 pmBut just posting “this is really hot for scanbuy” isn’t doing anything for me or a “news” blog - it sounded biased.
On top of that - I repeat. Scanbuy if they wanted me to publish- they or the PR company should have sent me the release and pre-briefed me - like everyone else does. They don’t have to pay EUR 20 - I don’t need the money - but I was trying to make a point that this isn’t a charity and I have my credibility. Right now, I don’t care if anyone thinks I am biased - I know I am not biased and that is enough for me, my family, my kids and my friends.
If you want to stop reading GoMo - I will think it unfortunate but without convictions we cannot exist.
Bena
Bena,
If I offended anyone I apologize for that, but I felt those comments were relevant in this particular thread for various reasons.
First of all this topic was introduced, with you quoting the CEO of Neomedia making negative statements about this other companies products or bar codes. My comments were meant to illustrate that apparently the second largest player in this field, apparently does not agree with those comments on either the company or their bar codes, as they decided to embed one and use the other for all their products.
Secondly, I traditionally when discussing new developments with any company, include a link to the source information, so readers can give my comments what ever weight they deserve, based on the actual news released. I do so with Neomedia, as you have witnessed here as well, when I discussed the newly released financials in the past, commented on those financials and at the end of the comments included the link to the SEC web site so others could review the facts and then put my comments in perspective. And since there was a news release pertaining to my comments, I included that link at the bottom, so others could verify the information as being factual, a common practice on message boards and blogs.
Were my comments biased? Since they pertained to one company only I guess one could say they were biased, even if they were actual factual news on the subject matter. But they were far less biased then the comments of a CEO of a competitive company, who was offering OPINIONS of a negative nature about the competitors products.
I do recall when you were sent the pictures of the events in Spain and with Telefonica. As I recall at the time, it wasn’t the companies attempt to use you in any way. It was a response to the negative reporting and comments that were being made on this blog by one poster in particular, who went so far as to personally attack the manhood of the CEO of that company.
By the way it wasn’t an actual press release best I can tell. It was written by this company and posted on their web site at the time. Something that Neomedia has been known to do as well. The difference being when it has been done by Neomedia, the shareholders made sure it got reported over here, before any actual press release, and as you know, in a couple of instances, after it was posted over here, the actual article disappeared in some cases. Other times the news was reported here off a shareholders blog, with no confirmation of its accuracy, and there was no other information available web wide to confirm the OFFICIAL PR LOOKING web blog they posted on their blog and which got repeated here.
You also say if I had a blog that i could of contacted you with new news and you would link to my blog. Have you been applying that standard to the other posters here. I will ask that you look at the thread link below, which contains 3 comments to date, and is a little over two weeks old. All three comments from the same poster, whom I discussed in my earlier response to you. Two of those comments have nothing to do with the subject you started what so ever, and go outside this site for supposed new news. One goes to his blog, which he did not report to you so you could link to it, he merely injected it into the comments as I had done. The second comment provides a link to a third party site, which you did not link to and again he injected this news into your blog through his own comments. That third comment was made two days ago and after the date you had removed my post for containing a link to relevent info. And at least my comments were somewhat pertinent to the subject matter of that thread, where as this posters comments have nothing to do with the thread topic they are posted under. As I have stated in the prior comment, you have allowed this poster to do this since before you even knew anything about Neomedia, and I was around and reading then so I do know when this was. And Neomedia was not any kind of sponsor at the time.
http://www.gomonews.com/get-neoreader-from-neomedia-download-the-barcode-reader-application/#comment-2720
Comment made on September 28th, 2008 at 2:22 pmI am not offended. I have no idea who you are are and don’t want to go around in circles on the same issue - as the owner and founder and editor in chief of this blog - my decisions are final. If you don’t like it or want to continue to call be biased - I suggest you read something else. I am no longer working on any conflicting projects and my analysis of Samsung/scanbuy and other Upcode deals will be finished next week. I would appreciate it - if you just emailed me if you have any further comments. Bena
Comment made on September 28th, 2008 at 9:13 pmLeave a Comment