NeoMedia Technologies, Inc (NEOM)

[Poptech]

jcg: I think some analysts are missing the big "why" in these recent shifts in patent control. It is not because IP is increasing in value - I wish. Google is doing this so that small companies like NeoMedia, and patent trolls, have a much harder time suing them. If NeoMedia initiates suit, the first course is to review their own massive Google portfolio for any "possible" infringement and fire back an infringement suit against NeoMedia. You now have patent attorneys taking a hard look at success-based fees. The resources required to go against Google would now take a large team of partners, associates, agents, assistants and paralegals.

Considering Google controls, or has an ownership stake, in 100s of thousands of patents, they virtually eliminate their vulnerability from players like NeoMedia. Like you have seen in the last several big patent sales, the option is to sell the portfolio and exit.

Future patent fights will be among titans and the well-financed. The rest are now out classed. Therefore, these sales decrease portfolio value unless you are sitting on 1,000+ patents. Ultimately, they hurt entrepreneurship because a handful of patents doesn't produce investment valuation.

I don't believe Google was ever in NeoMedia's sights so I don't believe this particular sale affects NEOM. However, NeoMedia's patents have been for sale for 3 quarters without success. It may be because these smaller portfolios are defensive instead of offensive.