Monday, May 03, 2010

Derivative Suit Filed Against Yorkville Advisors

After years of alleged stock manipulation and legally questionable dilutive practices via "Death Spiral Financing", the NeoMedia shareholders finally had enough.

One courageous shareholder, with the support of the investment community, took action by seeking legal council, which resulted in a letter sent to NeoMedia's Management and Board of Directors on January 27, 2010.

The letter demanded that NeoMedia bring suit against their principle investor and majority debt holder Yorkville Advisors within 60 days in order to recover short-swing profits earned in connection with unreported purchases and sales of NeoMedia's equity securities, pursuant to Section 16(b) of the Securities Exchange Act of 1934.

Yorkville was, and continues to be, a statutory insider of the company by virtue of its beneficially owning more than 10% of NeoMedia's common stock. As a statutory insider, Yorkville continues to be subject to the short-swing trading provisions of Section 16(b).

After 60 days passed with no response from NeoMedia, a Derivative Suit was filed last week by a shareholder on behalf of NeoMedia in order to recover the short-swing profits unlawfully made by Yorkville Advisors. The complaint demands Yorkville "disgorge" (pay directly to NeoMedia) all profits made by Yorkville in NeoMedia stock since 2004.

It is important to note that, since this is a derivative suit, NeoMedia is named as a defendant. The company on behalf of which the complaint is brought is always named as a "nominal defendant". But NeoMedia is not a "real" defendant, they are actually the real plaintiff.

Yorkville now has 21 days after being served with this summons to file an answer to the complaint, or a motion under rule 12 of the Federal Rules of Civil Procedure. Failure to respond will result in a default judgment, which will be entered against Yorkville for the relief demanded in the complaint.

When asked for comment, NeoMedia's CEO Iain McCready, NeoMedia's Board of Directors and Yorkville Advisors all declined to comment.

However Cynthia Artin, Managing Director at Auster Capital Partners, which shares an office suite with Yorkville in Jersey City was quick to counter, "This isn’t going to hold up in court."

Since the filing of the derivative suit last week, current and former NeoMedia employees (which have requested anonymity) have stepped forward offering their support with regards to the complaint.

As the author of this blog and a NeoMedia shareholder since 2006, I personally encourage Iain McCready to prove he is a man of honor & integrity by stepping up to the plate and publicly endorsing this derivative suit against Yorkville. Not only does he owe it to himself, but he owes it to all the shareholders who have stuck by and supported NeoMedia over the years.

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Tuesday, February 23, 2010

NeoMedia QR Code Campaign For Opel Astra

General Motors has kicked off an innovative QR code campaign with
NeoMedia for it's 2010 Opel Astra which is currently running in several Austrian magazines.

Readers of the magazines are encouraged to text "ASRTA" to an SMS short code which will link them to the
NeoReader download site.

From there, readers can scan the QR code and instantly connect to rich mobile content. Visitors of the mobile website can fill out the necessary information to schedule a test drive.

Through NeoMedia, traditional advertising is instantly transformed into a multi-media experience when advertisers incorporate 2D barcodes into their marketing mix. Any product, magazine/newspaper, retail display or billboard with a 2D code can provide access to real-time product or service information, downloadable content or mobile commerce transactions.

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Wednesday, February 17, 2010

Neustar & Visa Check Your Balance Contest

VISA "Check Your Balance" Contest at GSMA Mobile World Congress.

Visa, NeoMedia, and Neustar have joined forces to launch a promotional contest targeted to more than 30,000 attendees at Mobile World Congress in Barcelona during the week of February 15 to the 18.

The contest is targeted to a savvy crowd of telecommunications and mobile marketing professionals to illustrate how easy, simple, and fast barcodes can make financial transactions.

Anyone with a camera phone can scan a barcode on the back of a gift card, for example, that would allow them to check the balance of their card. The contest allows a user to quickly scan a barcode on a faux Visa card that links to a WAP entry form. This contest in itself illustrates the point that a person no longer has to type a long difficult string of characters to get to a web site or a WAP page.

Event attendees receive a mock Visa Gift Card at registration check-in. The card is printed with instructions on how to enter the contest. First, they need to download a free barcode reader application using your mobile browse. Once they have downloaded the barcode reader, they'll just scan the barcode on the back of the card using their mobile phone. To enter the contest, they must enter their mobile phone number and answer the question: "Where will you 'go' with VISA"?. Every 30 minutes a winner of a 50 euro Visa gift card will be selected based on the most creative answer. The winners will be notified by text message and will need to come to the Neustar booth to redeem their prize. Attendees may enter the contest once a day throughout the Mobile World Congress event.

"Establishing standards for the interoperability of barcode technology across global networks is a critical step in making large scale mobile services, like mobile offers, a reality," said Prakash Hariramani, senior business leader at Visa Inc. "As we work to integrate Visa and Neustar technology, this is but one example of the many mobile services we plan to deliver to financial institutions, merchants, consumers and network operators."

The campaign creates a compelling interaction with the Visa brand and quick gratification for the consumer, and illustrates how barcodes can make transactions simple and fast for consumers.

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Tuesday, February 16, 2010

Neustar Announces Mobile Code Interoperability

Live 2D Barcode Demonstrations at Mobile World Congress Illustrate Financial, Eco-Friendly and Charitable Applications.

At this week's GSMA Mobile World Congress, Neustar, a provider of innovative solutions and directory services enabling trusted communications across networks, applications, and enterprises around the world, announced the debut of its Mobile Barcode Clearinghouse Services. The services will help expand the reach and targeting capabilities of advertisers and enterprises using 2D Barcodes, drive adoption among consumers, and enable
interoperability among mobile operators, ad agencies, and application providers.

The clearinghouse is an important component of Neustar's mobile internet solutions strategy, which bridges network operators and enterprises and simplifies their delivery of value to customers. Several of these services have already seen uptake among leading mobile operators.

Neustar's barcode clearinghouse solution provides a method for companies that produce and distribute barcode readers to interoperate with other companies who create barcode campaigns. This cooperation helps establish barcode adoption, which is essential for brands and advertisers to deploy this new mobile marketing medium. A centralized, trusted clearinghouse empowers a scalable, competitive and innovative marketplace, and at the same time ensures that any
participating campaign enhances the overall ecosystem and educates consumers. This coordinated approach allows each of the participants to benefit from the efforts of the others, including participation from barcode leaders NeoMedia, 3GVision, Mobile Data Systems, and Mobile Discovery, who are using the Neustar clearinghouse. The clearinghouse is open to other industry players who wish to benefit from the mass market and scale that can be achieved through an open, interoperable approach.

"With our Mobile Barcode Clearinghouse, Neustar can provide both campaign managers and Mobile Network Operators with a rich new approach to accessing mobilized content and services," said Diane Strahan, vice president at Neustar. "Barcodes offer direct response accountability through measurable ROI and enable advertisers to adjust their content based on near real time tracking of each campaign's performance. For consumers, barcodes offer an exciting 'shortcut' to accessing rich content, helpful information and m-commerce."

"Neustar's initiatives and support of interoperability services are a
benefit to the mobile industry at large," said Jon Paisner, senior analyst at Yankee Group. 'As we have seen with common short codes and text messaging, ease of use and access across global networks is critical for mass market adoption. Neustar's technology provides marketers and content providers with a way to link physical media directly to mobile content."

Demonstrating its commitment to digital innovation and commerce even further, Neustar is collaborating with Visa at Mobile World Congress 2010 in Barcelona (February 15-18) to showcase the power of 2D barcodes. Using their camera phones, Mobile World Congress attendees will download a barcode reader application from using a mobile browser. As part of their Welcome Packets, attendees will receive a faux Visa gift card, and will be invited to scan the 2D barcode on the back each day to enter the "Check Your Balance" contest.

"Establishing standards for the interoperability of barcode technology across global networks is a critical step in making large scale mobile services, like mobile offers, a reality," said Prakash Hariramani, senior business leader at Visa Inc. "As we work to integrate Visa and Neustar technology, this is but one example of the many mobile services we plan to deliver to financial institutions, merchants, consumers and network operators."

Brands and operators interested in exploring the possible applications of 2D Barcodes are invited to participate in Neustar's upcoming commercial pilot program; more details are available at or from

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Monday, February 15, 2010

Sony Ericsson Preloads NeoReader On Xperia

Sony Ericsson brings the NeoReader to the Xperia™ platform by preloading the barcode scanning application on both the X10 mini and X10 mini pro.

Sony Ericsson announced at this week's Mobile World Congress the Xperia™ X10 mini and X10 mini pro, compact versions of Xperia™ X10, which will deliver powerful and application packed mobile phones to the industry.

By introducing mobile phones that are both compact and clever, Sony Ericsson is challenging the norm and defining a brand new offering that combines high specification features with a version of Sony Ericsson’s powerful UX platform specifically designed for smaller devices.

"There has been an enormous buzz around Xperia™ X10 so it is really exciting to be already unveiling compact versions of this powerful proposition." Said Rikko Sakaguchi, EVP and Chief Creation Officer, Sony Ericsson. "With the X10 mini and X10 mini pro we have pushed the boundaries of what is possible with smaller devices and are giving consumers exactly what they want; two high performance mobile phones with a fully customizable user experience platform and a stunning ultra-compact design."

Last month, NeoMedia Technologies, the global leader in mobile barcode scanning solutions, announced that Sony Ericsson had selected NeoMedia as its strategic 2D barcode partner.

"Sony Ericsson is very happy to work with NeoMedia as our global provider of barcode scanning solutions. We see great potential in the 2D barcode market and support NeoMedia’s strategy to promote and drive the open 2D barcode standards. We are looking forward to working with NeoMedia to explore all the potential the technology enables," stated Robert Westin, Business Development Manager, with Sony Ericsson.

Iain McCready, CEO of NeoMedia Technologies commented, "The marketplace is ready for 2D barcodes – retailers and brands are already experimenting with them, and the technology has long been validated. The challenge is in creating a scalable pool of mobile users capable of scanning barcodes. This partnership with Sony Ericsson will make mobile barcode scanning a simple, out-of-the-box experience for consumers."

NeoReader is the premier universal barcode scanning application and has set the standard for all other apps like Microsoft Tag, RedLaser & ShopSavvy to follow. The NeoReader reads all standard 1D and 2D barcode symbologies – QR, Data Matrix, Aztec, UPC and EAN – so users won’t need multiple barcode readers installed on their phone.

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NeoMedia M-giving For Haiti At Mobile Congress

Mobile World Congress will witness the dawn of a new era of M-giving: innovative mobile barcode application allows delegates to give "simply" using Neustar's mobile barcode ecosystem.

Paris, France, Atlanta, Georgia, St. Petersberg, Florida and Geneva, Switzerland, In what is believed to be the world’s first M-giving campaign powered by 2D barcode technology, delegates at this week’s Mobile World Congress in Barcelona will be able to donate money to Haitian relief efforts by simply snapping a barcode with their mobile phones.

The campaign will provide citizens of the earthquake-devastated island with humanitarian relief information through radio such as accessibility to clean drinking water, food, health care and housing.

Haitians who otherwise would have limited access to life-changing information as part of campaign supported Internews relief effort.

Internews is an international not-for-profit media development organization whose mission is to empower local media worldwide to give people the news and information they need, the ability to connect, and the means to make their voices heard.

UNOCHA, the United Nations Humanitarian coordinator in Haiti, delegated authority to Internews to coordinate all international efforts to support these essential, on-the-ground communications efforts.

How does the campaign work?

MWC delegates will see a special mobile barcode located on posters at the show; displayed in the halls, at stands and on the lapels of all GSMA staff. Delegates simply need to scan the 2D barcode using their smart-phones, and technology provider NeoMedia will donate $1 to Internews to fund the radio program in Creole ""Enfomasyon nou dwe konnen" – News You Can Use".

Touted as "Everybody Wins," the campaign will also award a $500 US prize to a delegate each day based on a question about the future of m-giving. The best answer will be selected at the close of each day, and the winner will be sent a text message about where to pick up their gift card.

"We are thrilled by this opportunity to support the people of Haiti in their struggle for recovery after the recent earthquake. The mobile industry’s engagement in this campaign brings attention to this striking reality: Information saves lives and even a small donation can make a huge difference", said Mark Harvey, spokesperson and Development director for Paris, France based Internews in Europe.

"We never know where a catastrophic event will occur," said NeoMedia's CEO Iain McCready. "Our team is so pleased to make it possible to raise thousands of dollars to produce hours of quality radio programming, immediately improving the quality of life of the Haitian victims and helping them in the reconstruction process. It’s inspiring to see the world coming together in new ways to help fellow human beings particularly during times of crisis."

Unity Mobile, based in Florida, created the mobile campaign using NeoMedia’s mobile barcode scanning application, NeoReader and NeoSphere campaign manager (which is supported by Neustar’s global clearinghouse). "It is so encouraging to see people giving with 2D campaigns,” said the woman behind this concept for NeoMedia and Internews, Simone Schidlkofer, founder of Cause2Connect, a Geneva, Switzerland based strategy firm that brings together for-profit and non-profit organizations in the mobile technology world. “We’ve made it even easier to give – with a simple scan by a camera phone."

Within the first ten days following the earthquake in Haiti, Americans used their mobile phones to pledge over $30 million for Haitian relief efforts via text message, according to figures released by the Mobile Giving Foundation. According to the PEW Foundation, 14% of all donations to Haiti relief efforts were made by text message.

In the case of the Internews campaign, corporate sponsor NeoMedia is making the donation based on the number of successful scans.

"In the future, we will be developing applications where people can donate individually," Schmidlkofer said. "Our goal is to make it increasingly easy for people to respond to a crisis, with a simple see – scan – donate process, as millions of small donations can add up to significant funding from around the world quickly, simply and efficiently. In the very near future, a person anywhere in the world will be able to scan a 2D barcode and donate to help a fellow human anywhere in the world. It’s a new way to rally support using our mobile phones and networks from wherever we live."

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Tuesday, February 02, 2010

NeoMedia & Neustar Expand Patent Licensing

NeoMedia and Neustar announced last month that they have expanded their agreement to license NeoMedia’s patented technologies beyond the US into Mexico.

On October 6, 2009, the companies
announced that they were working together to provide a “one stop shop” for consumer brands to simply and affordably use the barcode ecosystem to deliver new applications, services and compelling content to mobile consumers.

The addition of Neustar’s central registry and clearinghouse services to NeoMedia’s patented barcode ecosystem technology means that brands can now implement interoperable barcode campaigns for consumers who use any barcode scanner participating in this ecosystem regardless of the mobile service provider. The Neustar/NeoMedia collaboration enables brands to offer more targeted and dynamic communication options to mobile consumers, beyond simply taking them to the company’s website or to special micro-sites developed for specific campaigns.

"With the rapid growth of mobile Internet use in Mexico, and innovation among operators and mobile marketing agencies and the brands they serve, we are excited to bring this reliable solution to this important region," said Diane Strahan, Vice President of Mobile Services at Neustar.

Mexico remains one of the most attractive communications markets in Latin America, according to Pyramid Research. By year-end 2008, it was the second-largest market in the region at $27.1 billion, noted Cesar Jimenez, Senior Analyst at Pyramid Research. "Over the next five years, Pyramid Research expects Mexico's total market revenue to reach $29.9 billion, with mobile services revenue to account for 61 percent of the total market."

"We’ve enjoyed working with the team at Neustar to develop a reliable and scalable barcode ecosystem with all players in the market,” said Iain McCready, CEO, NeoMedia. “Mexico is an exciting market, and we look forward to enabling the mobile operators to create new revenue streams, and enabling mobile marketing firms and their brand clients to attract and serve customers using their camera equipped mobile devices for comparison shopping, to download coupons and special deals, and to take advantage of digital ticketing and other creative applications."

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Monday, February 01, 2010

NeoMedia Extends Iain McCready's Contract

NeoMedia Technologies, the global leader in mobile barcode scanning solutions, filed a Form 8-K with the U.S. Securities and Exchange Commission last month, disclosing that it has extended the employment agreement with its Chief Executive Officer, Iain A. McCready for two years. The amended agreement will expire on May 29, 2012.

Iain McCready, who joined the company as its Chief Executive Officer in spring of 2008, has over two decades experience successfully building both software applications and telecommunications technology companies, will continue to lead NeoMedia as the market for mobile barcode solutions continues to evolve.

"I am proud of what we have accomplished in possibly the most challenging global economic climate in our time, and am committed to supporting our talented team, to seeing our many initiatives through, and to communicating with our shareholders and the general market our progress in this new year and beyond."

Prior to joining NeoMedia, Iain McCready was the CEO of Mobiqa, where he led the business from a start-up to the world leader in mobile ticketing and couponing solutions based on the creation, optimization, delivery and redemption of barcodes to mobile phones.

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