Scanbuy Licenses NeoMedia's Patents

NeoMedia Technologies and Scanbuy, leaders in mobile barcode technology, recently announced they have settled all pending litigation between the companies and have granted non-exclusive patent licenses to each other.

NeoMedia and Scanbuy have agreed to terminate all pending litigation brought by NeoMedia against Scanbuy in 2004, and by Scanbuy and Marshall Feature Recognition against NeoMedia in 2008.

In addition, NeoMedia has granted Scanbuy a 10 year royalty bearing, non-exclusive license to a portion of its patent portfolio in the U.S. In turn, Scanbuy has granted NeoMedia a fully paid, irrevocable, non-exclusive license of Scanbuy patents and a fully paid, non-exclusive sub-license to all of the patents licensed by MFR to Scanbuy within the U.S.

This agreement will enable consumer brands, advertising agencies and mobile operators to confidently engage with either company to implement mobile barcode solutions in the U.S. The technology has enormous potential to become a viable and widely adopted communication channel.

"The agreement between NeoMedia and Scanbuy removes the final roadblock to rapid commercialization of mobile barcodes in the US,” commented Iain McCready, Chief Executive Officer of NeoMedia. “We are literally dropping the green flag for brands, retailers and mobile operators to join the race towards mobile barcodes becoming a fixture in every consumer’s daily routine."

"We are pleased that Scanbuy has reached a fair agreement with NeoMedia, and look forward to working with our partners to build a vibrant business in the United States," said Jonathan Bulkeley, Chief Executive Officer of Scanbuy. "Both companies have invested a great deal in our intellectual property and we will continue to bring these solutions to leading marketers, wireless operators, and handset manufacturers around the world."

Mobile Tag Licenses NeoMedia's Patents

NeoMedia Technologies and Mobile Tag, leaders in mobile barcode technology, announced a non-exclusive patent licensing agreement for machine readable mobile codes under NeoMedia’s patent portfolio. This is the first contract to be announced under NeoMedia’s recently launched licensing program.

NeoMedia’s objective is to create an open and interoperable 2D barcoding ecosystem which will create lucrative and compelling opportunities for all participants, including brands, advertising agencies and mobile operators. By licensing its technology, NeoMedia aims to foster innovation and competition to create exciting new applications and services that will appeal to consumers. This activity will unlock the potential of mobile barcoding to become an integral part of consumers’ daily lives.

This licensing deal enables Mobile Tag to engage consumer brands, advertising agencies, mobile operators and the OEMs that supply them with NeoMedia’s officially licensed U.S. patents. As a charter licensee, Mobile Tag, Inc. recognizes NeoMedia’s contributions to the industry and efforts to establish real world interoperability in the mobile barcode market. Both companies participated in the NeuStar sponsored interoperability pilot program at CTIA in March 2009, and this commercial licensing agreement shifts the marketplace from trial to practical reality.

NeoMedia and Mobile Tag, Inc. are committed to establishing an open operating environment. Licensing arrangements like this are the foundation needed to unify the marketplace and create the scale needed for consumer brands to invest in mobile barcoding as a key advertising channel. Mobile Tag, Inc. is the first company licensed to operate under NeoMedia’s Intellectual Property for indirect mobile barcoding solutions.

“This deal is a critical milestone for the industry and we’re grateful that Mobile Tag, Inc. stepped forward to work with us. It affirms that the market has realized the importance of creating a legitimate, licensed and open environment for all and I believe it marks the tipping point for rapid commercialization of mobile barcodes in the U.S.,” commented Iain McCready, CEO of NeoMedia.

“Mobile Tag, Inc. recognizes the innovation and capability enabled by the art captured in NeoMedia’s IP,” stated William J. Hoffman, CEO of Mobile Tag, Inc. “We are pleased to license with NeoMedia and believe it will spur innovation and adaptation of this technology on par with the explosion witnessed by SMS services earlier in this decade. Mobile machine readable codes will be mainstream in the U.S. just as they are in Japan, France and Poland where they are found on nearly 210 million phones. It is time to get on with it!”

“Mobile Tag focuses on delivery of carrier-grade client software and transaction infrastructure,” continued Hoffman, “while insuring brands, businesses and consumers who use that technology are pleased with the experience.”

Data Matrix Inventor Joins NeoMedia

NeoMedia Technologies, the global leader in camera-initiated barcode transactions for mobile devices, announced today that Dennis G. Priddy, inventor of the Data Matrix symbology, has been appointed to the position of Senior Vice President of Operations. As an innovator in the 2D barcode industry and a pioneer of 2D imaging, Dennis’ global business insights and technological acumen further solidify NeoMedia’s position as a thought leader in the burgeoning mobile barcode scanning industry.

In his new role, Dennis will oversee all technical operations of the business. Since joining NeoMedia in March 2008, he has been working closely with NeoMedia’s Chief Strategist, Dr. Frank Müller, to promote unified standards in mobile barcode reading technology and cooperate globally with the GSM Association (GSMA) and the Open Mobile Alliance (OMA), two of the mobile phone industry’s most influential representative bodies. Establishing unified standards to enable global interoperability is a critical milestone to driving worldwide adoption of mobile marketing utilizing 2D barcodes.

“Most people know the name Dennis Priddy as the father of the Data Matrix symbology, but those in the auto-ID industry associate the name with strong operational leadership,” says Iain McCready, CEO of NeoMedia Technologies. “NeoMedia Technologies is proud to have a visionary like Dennis in the organization to help us develop compelling business solutions that leverage barcode scanning technology and navigate the complex global interoperability challenges that lie ahead. It’s great to have someone with his vast experience on board.”

Dennis is world renowned in industry circles for having introduced and led the adoption of the Data Matrix 2D symbology. As a result of Dennis’ efforts, Data Matrix has been established as a national and international identification standard in the aerospace, automotive, electronics, semiconductor, pharmaceutical, health care, and postal industries, as well as the US Department of Defense, NASA, and the FDA. He was a featured speaker at government and industry forums in the United States, Europe, Japan, and The People’s Republic of China.

He has developed and introduced new technology and established worldwide sales and distribution channels in China and Japan. While serving as Chairman of International Data Matrix, Inc., Dennis coordinated the corporate merger of I.D. Matrix with Robotic Vision Systems, Inc (RVSI) and became CEO of that industry-leading conglomerate. He also participated in the acquisition of Computer Identics Corporation and the subsequent consolidation of Computer Identics with I.D. Matrix to form CiMatrix.

Dennis has served more than 20 years contracting with the federal government with extensive expertise in government contract law and regulation, and is considered a subject matter expert in intellectual property law cases. He is the named inventor on 13 US patents and one patent pending.

NeoMedia's Patent Review Moves To Next Phase

NeoMedia Technologies, the global leader in mobile barcode scanning, announced today that it will respond to the Office Action recently issued by The United States Patent and Trademark Office (USPTO) by vigorously defending a patent that has been undergoing re-examination since July 26, 2007. NeoMedia believes the patent to be valid and will provide the USPTO with the necessary documentation to substantiate that validity.

The USPTO recently issued an Office Action regarding the re-examination of NeoMedia's U.S. Patent number 6,199,048. The re-examination procedure is a standard legal process that occurs in the natural course of business -- this is not an "out of the ordinary" event. It is not unusual for the USPTO to preliminarily reject claims during the re-examination process. This initial action is non-final and will be subject to a review process. The '048 patent is presumed to be valid, intact and enforceable during the re-examination process.

While NeoMedia respects the USPTO's finding, it will leverage the due process opportunity to respond to the ruling and defend the patent that it believes valid under patent law. The company has been requested to respond to the Office Action by providing clarification and comment on the cited prior art references by September 3, 2008. Based on prior successful patent defenses, NeoMedia is optimistic that the single patent in question will be confirmed and the re-examination effort will have served to verify the strength of the patent.

"This is a standard patent process and we simply have to let it run its course. We have successfully defended this type of allegation in the past; it's the challenge NeoMedia faces for being an innovator. Our focus is on enabling interoperability and a viable ecosystem of players needed to support a vibrant and growing mobile barcode scanning business," states Iain McCready, CEO of NeoMedia. "Our willingness to share our expertise and license our IP are important factors in helping the industry gain momentum right now. We have developed flexible and creative IP licensing models that respond to the varying needs in the marketplace. The opportunity is huge...we just need to get the ecosystem running."

NeoMedia has a strong and valuable patent portfolio in the arena of connecting barcodes to content over networks that has been successfully defended in the past. This re-examination was limited to only one of NeoMedia's many patents, and none of its other patents are affected by the re-examination.

NeoMedia Confident About Patent Reexamination

NeoMedia Technologies, the global leader in camera-initiated transactions for mobile devices, today announced that the United States Patent and Trademark Office (USPTO) granted the Ex-Parte Re-examination of U.S. Patent No. 6,199,048.

NeoMedia has a large portfolio consisting of U.S. and foreign patents and pending applications relating to various inventions surrounding the processing of "machine readable codes over wireless networks." NeoMedia expects the '048 patent will be confirmed by the USPTO in course of the re-examination. According to publicly available statistics, only about 10% of patents that are re-examined have all their claims declared invalid.

NeoMedia's CEO, William J. Hoffman, states, "Regardless of the outcome of the re-examination, NeoMedia's inventions and the patent portfolio that protects them will continue to effectively serve the creation of a global and interoperable infrastructure that enables large scale adoption of mobile codes as triggers of optically initiated transactions." He added, "NeoMedia's main motivation is to use its inventions to make this wireless ecosystem a reality and create advantages for the global value chain."

Additionally, in an effort to focus its energy on building a profitable ecosystem, and not to be distracted by time-consuming and costly patent litigation, NeoMedia has agreed to stay the current patent litigation against Scanbuy pending the re-examination's outcome.

NeoMedia's CEO affirms, "NeoMedia will use the 'stay period' to develop and to deploy our turn-key solutions for reading and processing a multitude of barcode formats that are ISO certified. Our patents have been reviewed and granted by appropriate government agencies, subsequently challenged, then licensed by numerous multinational companies deeply versed in Intellectual Property Rights. At the appropriate time, NeoMedia will move forward vigorously with the litigation and protect the rights we have been granted by patent offices worldwide."

EFF Denied 2nd Request For Reexamination

U.S. Patent Office again upholds NeoMedia's mobile patents.

NeoMedia Technologies, the global leader in camera-initiated transactions for mobile devices, announced today that the U.S. Patent and Trademark Office has rejected an application to invalidate its patents and intellectual property on how camera phones read, translate, and process images and codes.

The challenge by the Electronic Freedom Foundation (EFF) was its second unsuccessful attempt to dislodge NeoMedia's patents which cover how camera phones read and process symbols, images, UPC codes, and RFID signatures through wireless networks. NeoMedia's patented process allows wireless operators to leverage camera phones to further monetize their networks as they provide new methods for consumers, businesses, advertisers and brands to use wireless technology.

"NeoMedia is once again very pleased with the decision of the U.S. Patent Office, and will continue to drive for use of mobile code technology that achieves mass global adoption of optically initiated wireless transactions on wireless networks," said William J. Hoffman Jr., the company's CEO.

"NeoMedia," he said, "is continuing to work with any and all participants in the wireless ecosystem in an effort to create a standardized global infrastructure that enables the broadest possible acceptance of mobile codes in all forms of commerce. By focusing on infrastructure that processes the transactions that drive this form of m-commerce," Mr. Hoffman said, "NeoMedia believes it can best monetize and propagate the technology embodied in our IP to the benefit of the entire global wireless value chain."

NeoMedia Technologies, is the global leader in camera initiated transactions for mobile devices. From RFID and optically initiated wireless transactions to the digital processing of mobile financial transactions, NeoMedia provides reliable high-volume solutions for the processing of universal optical codes and related information for mobile devices. To learn more about qode® and NeoMedia Technologies, please visit their home pages.

Click here to view the rejected patent reexamination request.

EFF Denied Request For Patent Reexamination

Ever since 2004, when the Electronic Frontier Foundation (EFF) went public with their Patent Busting Project, they have had their sights set on technology innovator NeoMedia Technologies.

The primary goal of the EFF was to bust NeoMedia's patent #6,199,048.

According to the United States Patent office, the abstract of NeoMedia's patent states:

"A system and method for using identification codes found on ordinary articles of commerce to access remote computers on a network. In accordance with one embodiment of the invention, a computer is provided having a database that relates Uniform Product Code ("UPC") numbers to Internet network addresses (or "URLs"). To access an Internet resource relating to a particular product, a user enters the product's UPC symbol manually, by swiping a bar code reader over the UPC symbol, or via other suitable input means. The database retrieves the URL corresponding to the UPC code. This location information is then used to access the desired resource."

After 3 years of gathering data, and asking for help to debunk NeoMedia's patent, The EFF issued a press release on April 24, 2007 libelously titled, "EFF Challenges Bogus Patent Threatening Consumer Awareness Products."

In their boisterous press release, the EFF stated, "NeoMedia Technologies claims to own rights to all systems that provide information over computer networks using database-like lookup procedures that rely on scanned inputs, such as a barcode. NeoMedia has used these claims to threaten and sue innovators in the mobile information space."

While litigation is not the preferred choice of patent owner NeoMedia Technologies, who would much rather license their intellectual property portfolio, the company has successfully won legal battles against industry giant Virgin Entertainment, AirClic, and LScan. NeoMedia is currently engaged in a Markman Hearing with current patent infringer Scanbuy.

In a statement from NeoMedia Technologies regarding the Electronic Frontier Foundation’s request for patent reexamination by the United States Patent and Trademark Office, the company stated, "NeoMedia has reviewed the reexamination request from the Electronic Frontier Foundation and finds it to be without merit. We firmly believe that the patent is valid and will be upheld by the U.S. Patent Office, and that the reexamination request will be denied. We respect the justice system and prefer to see this played out in a court of law, as opposed to in the press."

In addition to the EFF, Scott Shaffer, who is the author of the Pondering Primate blog, has also been leading the charge against global leader and technology innovator NeoMedia, and their extensive patent portfolio.

According to Scott Shaffer, "The EFF patent review could even further change the picture. What happens if the US Patent office agrees to review their patents? Do you think any judge will try a case knowing a higher court is reviewing these patents?"

What is painfully clear in all of this, is the fact that Scott Shaffer and the EFF have ulterior motives. I have never seen a respectable lawyer use the word “bogus” in a press release. That type of language is libelous. The EFF’s whole agenda is inflammatory and attempts to distort their true motives. Truth be told, they have intentionally left out Virgin Entertainment consistently since 2004, because it is clear that a multi-billion dollar company (that ended up settling and licensing NeoMedia's patents) doesn’t fit the story they are fabricating about NeoMedia only going after small companies.

On July 6, 2007 vindication was rightfully awarded to NeoMedia as the United States Patent and Trademark Office justifiably denied the EFF's patent reexamination request, further strengthening and re-confirming the validity of NeoMedia Technologies' patents.

Click here to view the rejected patent reexamination request.