Friends, Romans, barcode enthusiasts. Something big happened last week. Yes. We all know that Cheryl Cole got sacked from some mega US TV series; but that is not the HUGE news I am talking about!
The HUGE news is that NeoMedia’s patents were re-examined by the Patent authorities in the US. This is after a long and tiresome legal battle (one of many in NeoMedia’s history) and low and behold they have been upheld.
What does this mean?
To cut a long story short it means Barcodegate has come to an end. NeoMedia was one of the first players in the barcode space it banked on mobile barcodes and this “banking” should finally cash-in.
NeoMedia’s barcode patents were submitted first, they are valid and a licensing fee is due by all the players that want to participate in this arena. But, don’t take my word for it.
I decided to contact the current CEO of NeoMedia Laura Marriott (or Lioness – as us insiders call her!) This is what she had to say.
Bena: Do you think this will herald the end of companies questioning NeoMedia Patents?
Bena, I certainly hope so. With each re-exam, we believe the patents become stronger so we hope this will bring an end to the scrutiny by others. As our patent counsel, Tony Barkume has said,
“confirmation of a patent challenged by reexamination twice in four years is highly unusual and we believe this puts the issues of its validity to rest.”
Bena: Do you feel as though you are now officially the patent holder and can pave the way for a successful business in barcodes moving forward.
NeoMedia is focused now on selling direct to brands and agencies, along with the indirect strategy that it had pursued prior to my joining the team. We are focused on this direct approach in North America and Western Europe and are seeing the fruits of our labour.
We are open to licensing our Intellectual Property to others in the ecosystem – and already have a number of IP licensees in place in the United States. We feel that licensing our IP is the best way to build a collaborative and sustainable ecosystem and welcome inquiries from those wishing to license.
Bena: There was a mention of an eBay deal but there has been little else on NeoMedia championing barcodes within operators, brands and agencies. Why?
I would love to be announcing all of the deals that we have in place but, for the most part, our brand clients are not willing to press release their campaigns or our deals with them at this time. It was the same way early on in my time at the MMA. When a new mobile media element launched, brands wanted to keep their vendors and strategies ‘close to the vest’ until such time as they were ready to announce their mobile plans. NeoMedia will publish case studies, customers or sales wins at times where it is beneficial for both our customer and our business and helps to drive our operations. I expect you will be seeing more news from us in 2011.
I also want to point out that as many brands experiment with 2D mobile barcodes today, they want to move their campaigns beyond trial or limited geographic implementation before announcing. If you are referencing a consumer packaged goods brand, there may be a 6-9 month lead time on packaging. So for example, while the deal may have closed in November, it may be the following November before the campaign goes national and even later than that before the brand is willing to disclose the details in a press release or case study. Our focus is on ensuring our customer’s successes in their campaigns – and the PR will come, at the time that is right for the client.
What we think?
I liked Laura’s answers and I think that she did a good job of getting to the point. I feel happy for her and the NeoMedia team as these court cases and questions about patents are a dark shadow over the company. With this latest news NeoMedia should start to put the patent issues to one side and focus on the future.
There is a lot of talk of NFC or other solutions stopping mobile barcodes success. I think this is easy to say but hard to swallow. In short, mobile barcodes are now. The term the year of mobile barcodes needs to be replaced with the term era and this era has already started.
“this era has already started.”
Based on what?
You do realize that while barcodes now sprout up all over the place, not one hard statistic in regard to metrics (actual scan numbers) has been released in close to a year. In fact, all we’ve seen are zero-context percentages that hype the Industry but raise more doubt than confidence.
Now, one player locks in Patents and all the emerging companies in this space in the past 12-24 months (not the old guard, the young start ups) have to pass over fees to Neomedia?
To imply that NFC isn’t a real Contender overlooks the perfect-storm of carriers, device manufacturers, OS platforms and payment partners all lining up to create standards for NFC (sound a bit like Japan a dozen years ago for QR?). Sure, most NFC talk is about it being a payment solution, but that creates a user habit that will carry through to how the handful of consumers currently use QR. NFC may not be able to be in-magazine and in-newspaper, but, those are not generating any numbers now (print will never excel as being a conduit to mobile, but that’s another story, but in general, people reading print don’t want to divert their attention over to digital formats; studies forthcoming).
Recycling press releases or asking “soft” questions may get you interviews, but, it reduces the quality of this blog.
Good grief! I love NFC and think it will be huge -but handsets are a huge problem. I am only saying that barcodes are now as the tech is so readily available. The year of mobile barcodes is passe – my point was to seize the moment and just do it.
Warm regards and please don’t get too upset with me as a cancer survivour stress is a killer and I want to send out positive energy.
BenaX
One of the reasons NeoMedia’s 048 patent is so hotly contested is because it contains claims related to RFID & NFC.
Two entities have tried to kill this patent & both have failed. First EFF/Scanbuy & now another undisclosed party.
Love it or hate it …… This patents is here to stay!
Kudos to NeoMedia
Anonymous: The patent does not contain “RFID and NFC.” It does contain a 3 similar claims that uses a radio frequency to an index:
“13. The method of claim 1 wherein the step of reading a data carrier modulated with an index comprises inputting into the user computing device an RF signal modulated with information correlated to the index.”
“48. The system of claim 36 wherein the input device comprises means for inputting an RF signal modulated with information correlated to the index. ”
“83. The user computing device of claim 71 wherein the input device comprises means for inputting an RF signal modulated with information correlated to the index.
And that is the end of the job of a radio frequency so that would not include NFC. What it would allow is for a campaign to bury a radio chip in your magazine and then retrieve that signal from the magazine. That signal would then go to NeoMedia and NeoMedia would return a URL.
According to my wife, the Neomedia technology is already deployed. You go in to a grocery store, use software app. compatible w/ camera on your mobile phone to scan the barcode and you get a discount at the checkout when the code gets scanned in. At least that is her explanation (short version). She says a lot of people are using this to save money on food and other items.
New to this blog.
I live in Los Angeles and I went to the Annenberg Space for Photography this weekend. In a packed house on an exhibit about beauty, I noticed people approaching posted photos of models and scanning the bottom right corner with their camera phones. The phones were attached to headsets. I was instantly intrigued…
I inquired and was told that it’s the new thing. “You just take a picture of the barcode and it gives you information about the photo” the guy said to me as he walked away, smiling. I felt left out of the loop as I saw more people doing the same and others, like me looking around because we had clearly missed something. Upon further inquiry, I found that a small company called Neomedia along with Scanbuy were creating this movement.
Funny how once aware, you can’t help but notice. My sister, flying Delta checked in using “scan technology”, a poster on sunset claimed to give discounts for drinks by taking a photo of a billboard, the flower pot at home depot that tells you how much water to give the plant by taking a photo, the magazine ad that you want to remember but don’t have time to input in your phone, the business card that someone handed you a while ago with a code in it (you had no idea what the code was for and you were too embarrasssed to ask). Suddenly, all those things make sense and you feel like you’re on the brink of something big.
I for one am glad that this technology is coming to the forefront. As a consumer who claimed to be connected (own all the gadgets) I was blindsided, in a great way!
Looking forward to using this technology on a regular basis. It could simplify a wide array of functions. The applications seem endless. Thank you Neomedia and Scanbuy for making it happen.
Jon
As the inventor of ’048 I am extremely pleased with NeoMedia and confident this patent will now begin to bear fruit for them and others.
Bravo Laura!
Sorry to say, but these patents will be in much better hands outside of Neomedia. The company is ridden with debt, lack of leaderhip and conjoined at the hip of YA Global. Neomedia had the opportunity to capitalize on their patent portfolio, only to see the Neustar clearinghouse go up in smoke. Neomedia, the patent holder of the indirect method, doesn’t even recommend the indirect method (refer to recent conference calls or case studies). Where is Neomedia going? Do these patents really mean anything or is it just hype for YA Global to convert shares and cash in? I predict the stock price will be back down to .05 levels, outstanding share float to be millions more than prior to re-exam confirmation and a large handfull of new shareholders left with meaningless shares wondering what the heck just happened. Fact is that history repeats itself…and the crooks at Neomedia and YA cash in ever time at their shareholders expense.
This patent is the cornerstone for mobile advertising. The industry cannot thrive without it.
S. Ballmer…tell me you’re not Mr Softy’ s S. Ballmer!!
Do you believe I’m Mr. Softy’s Ballmer?
I’m not, I’m emphasizing how easily people get caught up in anonymous posters pretending to be someone else to sucker more people into buying Neomedia shares. So that begs the question, can you honestly believe that Hudetz actually posted on this blog?
To quote Laura Marriott from a recent NEOM shareholder conference call:
“To date, we have not seen any practical applications of encoding schemes that we believe would work around our IP. We believe that Partial Indirect also referred to as Managed Direct would likely fall within our IP, subject of course, to review by council.”
Example of Managed Direct: http://neom.us/1938472
I bought shares of neo media and like Anonymous said came true. I am wondering what happened. The stock is back at .05 and the more research I have done, the scarier it gets. I am a little confused. If Neom just won a suit for its patents, will they reap reward and pay off their debt? Where does this company go from here?
Another question I have is this; If they are such crooks, then why are they still trading?
Mr. Anon,
I think you misinterpreted that statement or took it out of context. That should’ve meant that:
“To date, we have not seen any practical applications of encoding schemes that we believe would work around our IP to avoid our patent…”
It’s back down to .05 levels because the patent that won re-exam isn’t even a focus for Neomedia. Go back and listen to the Q3 2010 conference call…Marriott states that managed direct is the new focus (which throws indirect out – that’s what this patent covers, plus if you’ll notice the Neustar clearing house no longer has the focus it once did). Another reason why it plummeted is because management at Neomedia is in the business to satisfy their financier – YA Global – at the expense of retail shareholders. They always have and always will be in that business, regardless of the crud Marriott throws at you. So about the legality of the trading…technically from what they have made public it’s legal. But, the Klawonn suit is trying to unearth the shady happens between YA and Neom….specifically trading records. It will be a very joyess day to us long shareholders if Klawonn wins. Neomedia may actually be forced to acquire a new principal financier. Us longs that have been consistently screwed by Neomedia and YA know that there is short swing trading, we just can’t prove it yet. Hopefully Klawonn will vindiacte us all.
Friends ‘n Romans…there are other questions Neomedia need to answer.
Given the rapidly emerging mobile barcode market, with Neomedia supposedly owning a significant part of the IP controlling its infrastructure:
Can they not negotiate a better funding arrangement than the one they currently have with YA?
Do they want to?
Is Neomedia’s patented IP still relevant and important to mobile barcodes?
If so, why do almost all mobile barcode players ignore (flaunt) it?
so what if YA Global is in the mix..if this technoligy or (patent) is going to grow it needs funding mobil bar codes really are in our future…if its not why is the patent being challenged..its apparent someone wants it…and i your pissed off at the share price..give them time they made me lots of money thanks NEOMEDIA
Hi,
I’m planning to use QR codes for my store / business. I’m even interested in pursuing a reseller agreement if possible – I’d come across both Neomedia and Scanbuy and landed on this page as a result. For QR codes specifically, can someone pl. tell me – 1. Is it not IP that is sort of “free” – and actually owned by Densa ?? 2. Which one would be a better company to go with for a reselling opportunity (Scanbuy seems to offer it on their website), not even sure if neomedia offers the same. 3. Are there any other players that I could consider.
Pl. help – much appreciated!
Thanks,
John
Go with Scanbuy you will be happy.
John…after a protracted dispute, Scanbuy have a licensing agreement with Neomedia. If you ‘go with Scanbuy’ as Elin suggests, you may need to check that their agreement extends to their appointed resellers.
Neomedia have finally bitten the bullet, and appointed IP Global to help them enforce their patented IP.
One of their patents, known as the 048 patent, has been challenged several times at the USPTO, so somebody seems to think it’s valuable.
People using Neomedia’s IP without any agreement in place, have had their day in the sun…they’ll either have to license, or face litigation.