NeoMedia Technologies, Inc (NEOM)

[telligentbloke]

I recall reading in an earlier post that Neo had ceded ownership of all but two or three patents to YA as part of the financing they were providing. Is that true or not?

Would not YA be calling the shots on hiring these new patent attorneys? Neo depends upon those monthly YA cash infusions to keep breathing.

I doubt the new lawyers would work on a contingency basis and probably bill out services for at least $500-700/hr for just one partner's time plus a big five figure retainer. If they are successful in winning a suit, they may have negotiated a bonus into their fee structure.

How would any of this be paid for unless YA was behind the decision and financing to do it? Laura doesn't make a move without YA's approval, based upon previous poster's comments.

This looks like $300-500K in legal bills and four to six months before anyone is even sued. And outside of going after MSFT or Google (Good luck with that!), what are the possible outcomes? Sue all of these small players? If they win, how much could be recovered in damages? Marginal at best.

Before anyone goes to court there will be settlement conferences, assuming they nail someone cold. The big firms like MSFT have armies of lawyers and are sued 30x a day for patent infringement. They can bury Neo and these new lawyers in paperwork for the next five years. Neo has to establish 1. Infringement and 2. Damages. That is a very long and expensive legal road with no guaranteed outcome. The MSFT's have the time and money that Neo does not. Neo may be in the right but fighting sustained legal battles is impossible.

Lawyers care about just one thing: billable hours. If they win, great, if they don't, they still get paid and Neo is still on the hook for all those billable hours.

All this saber rattling from Neo sounds good but before anyone gets too excited, practicality must prevail. Simply put, how certain is it that infringement can be proven? 50%, 70%, 90%? Anything below 80% can become a crap shoot. If the odds are below 70%, they lawyers are just grinding the client for fees. How much money can Neo afford to pay the lawyers, for how long without any total certainty of winning?