AT&T & Papa John's Team Up With NeoMedia

NeoMedia Technologies, the global leader in camera-initiated barcode transactions for mobile devices, has teamed up with AT&T and Papa John's to launch a commercial trial in the US using 2D barcodes and mobile code reading software from NeoMedia.

Building on its continued online success, Papa John’s, the world's third largest pizza company and the industry leader in online ordering, recently launched mobile web ordering, a system that enables pizza lovers to set-up an account or place an order right from their mobile phone.

For the commercial trial, 90,000 mailers were sent out to AT&T subscribers in selected markets inviting them to be among the first to use their AT&T phone in a brand new way. Those interested in participating could text PIZZA to 7316, which would deliver instructions on how to download and install the NeoReader onto their iPhone or other AT&T supported device.

Once installed, the 2D barcode could be scanned using the NeoReader, which would provide a link with a built-in promotion code to Papa John's mobile website. Users would then login with their existing Papa John's account information or create a new account to redeem the offer.

"Mobile web ordering is another major step in giving our customers convenient ways to experience the great taste of Papa John's," said Bob Ford, director of online marketing for Papa John's. "The addition of a 2D barcode promotion continues our tradition of industry firsts and creates a new way for customers to engage with Papa John's."

"We were delighted to work with an industry innovator like Papa John's to launch this program," said Iain McCready, CEO of NeoMedia. "They understand the consumer desire for convenience and mobile barcode scanning is a new way to provide a simple but compelling consumer experience via the mobile phone. NeoMedia makes sure those experiences are secure, fast and reliable. The NeoReader scanning application helps partners like Papa John's deliver an easy and accessible mobile internet experience to their customers."

As the US continues to embrace 2D barcodes, Papa John's looks forward to staying ahead of new and emerging technologies and positioning itself as a leader in the emerging mobile code ecosystem.

Is NeoMedia Technologies For Sale?

NeoMedia Technologies, the global leader in camera-initiated barcode transactions for mobile devices, released an 8-K SEC filing last Monday which alluded to the potential sale of the company.

The filing states that during the next 18 months NeoMedia's CEO Iain McCready can earn a commission of up to 2.5% of sales proceeds for selling the company if the sale price is not less than $45M, with a commission cap set at a $200M sale price.

However, that's not to say that Iain can't sell NeoMedia for more than $200M. He can. Especially with a favorable patent review by the USPTO anticipated later this year.

NeoMedia Technologies has a suite of twelve issued patents covering the core concepts behind linking the physical world to the electronic world dating back to 1995. These patents cover various linkage methods including: Barcodes, RFID, Mag Stripe, Voice, and Other machine readable and keyed entry identifiers.

These patents were first licensed by Digital Convergence for $100M in 2000 to facilitate the launch of the :CueCat.

In 2001, NeoMedia Technologies formed a strategic alliance with Symbol, now owned by Motorola, and signed a worldwide agreement which gave Symbol the right to grant licenses to itself and third parties under NeoMedia's intellectual property. Symbol would later offer to buy NeoMedia's valuable patent portfolio in 2002 for $150M. The offer was declined however in favor of further developing the IP and growing the patent portfolio as a core component of NeoMedia's long-term growth and market strategy.

In 2005, Virgin Entertainment and NeoMedia Technologies entered into an extended licensing agreement, which saw Virgin license NeoMedia's patents through 2016.

There were even strong rumors that Microsoft was interested in purchasing NeoMedia back in 2005.

Flash forward to today, mobile barcode reading is an everyday part of the popular culture in Japan and Korea. The technology is just now beginning to emerge in Europe with North America not too far behind. With so many companies entering the mobile code reading space, and looking to carve out their niche, NeoMedia has positioned itself well with it's extensive patent portfolio and barcode technology, and will bring tremendous value to anyone interested in acquiring the company.

NeoMedia Brings NeoReader To The iPhone