NeoMedia Technologies, Inc (NEOM)

[fracatowa]

Iain stated in his interview with Bena that Scanbuy paid a sum to NeoMedia for past infringement, the sum not publicly disclosed. NeoMedia was undoubtedly well compensated and their legal costs have not ended as a burden to NeoMedia.

The settlement agreement with Scanbuy was clearly more favorable to NeoMedia, fair to Scanbuy given what Scanbuy had put NeoMedia through. NeoMedia had the upper hand, was in the legal right.

Scanbuy has to pay NeoMedia $250,000 if any representation or warranty from Scanbuy is untrue; no such clause for NeoMedia.

Scanbuy pays triple royalty fees and pays for NeoMedia's legal fees as invoiced if Scanbuy itself or through a third party challenges any of NeoMedia's IP.

Scanbuy's clients must be operating the IP within Scanbuy's ecosystem; any operation outside of Scanbuy's ecosystem would require a license.

NeoMedia gets a piece of the revenue per US based click regardless of where Scanbuy's client resides.