NeoMedia Technologies, Inc (NEOM)

[Poptech]

street: Unfortunately, licensing is a strategy that NeoMedia cannot win. As happened with eBay, the licensing revenue will be immediately wired to YA, and NeoMedia will borrow it back. NeoMedia can't retain revenue because they owe the cash to YA to keep them out of default. There is no upside for NeoMedia to spend their time pursuing this and NeoMedia knows it.

Keep in mind Global IP has never won an IP infringement case so that is not why NeoMedia hired them. If that was the strategy, there are much better litigation choices.

NeoMedia has to grow through campaign management fees or they will fail. And if they continue as reported in the last 10-Q, they are doing so successfully.