Who Will Be First To License NeoMedia's Patents

The mobile code ecosystem has been a buzz ever since NeoMedia Technologies announced last month that the United States Patent and Trademark Office had ruled in favor of NeoMedia in the reexamination of its U.S. Patent No. 6,199,048 -- System And Method For Automatic Access Of A Remote Computer Over A Network.

NeoMedia currently has 30 active patents spanning 13 countries, with 29 additional patents pending. These patents cover various linkage methods including: Barcodes, RFID, Mag Stripe, Voice, and other machine readable and keyed entry identifiers.

According to NeoMedia's CEO Iain McCready, "A couple of competitors in the USA have already asked us for a free license but we can’t accept that. We are a business and so are they. In a reasonable manner, and at a fair price, we want to move forward with this. I am open to discussion and we want to be seen as fair. We want the whole mobile barcode market to succeed and the license fee model is tried and tested and it works. It can be as simple or as difficult as people want it to be and we aim to keep it simple. We have been working very very closely with both the GSMA and the OMA, and by being connected, the introduction of a license model can and will only succeed."

With the Google backed ShopSavvy and CompareEverywhere barcode applications making strong headway, and the recently launched Microsoft Tag reader carving out its niche, the mobile code ecosystem is quickly attracting major industry players.

Last week France's Mobile Tag announced that former NeoMedia CEO William "Chip" Hoffman had joined the company to head up their US operations. Mobile Tag uses mobile barcode technology patented by NeoMedia, and makes for a very likely patent licensee. Likewise with Google, Microsoft, Scanbuy and Upcode.

In keeping with its vision and commitment to developing an interoperable global ecosystem, NeoMedia is licensing its technology to foster innovation in the creation of exciting new mobile barcode applications and services.

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.