NeoMedia Technologies, Inc (NEOM)

[Poptech]

lesn: Marshall did not give NeoMedia free access to their portfolio. Why would anyone do that?

NeoMedia cancelled the Settlement Agreement and now Marshall wants royalties for Wendy's use of NeoSphere. They began filing lawsuits against NeoMedia's clients after the agreement was terminated.

19. Defendant’s infringement of Plaintiff’s exclusive rights under the ‘750 patent will continue to damage Plaintiff, causing irreparable harm for which there is no adequate remedy at law, unless enjoined by this Court.

The implication for NeoMedia investors is Marshall is taking a page out of NeoMedia's lawsuit strategy and suing the clients instead of the campaign manager. The objective is to get the campaign manager to take a license.

The '750 patent predates any of NeoMedia's patents and is perhaps the broadest patent in the industry covering both barcodes and image recognition. One tactic NeoMedia can take is file suit, or take administrative action, to challenge the validity of the patent. There is little doubt NeoMedia can have the '750 patent narrowed. They can only take those steps if the license agreement was terminated. Given the quote above, Marshall believes it has been.

The implication to investors is an impact to the COGS or a cash outlay for pursuing a narrowing of the patent.

One last thought: It might help prospective investors in NeoMedia if we could spell the competition's name correctly. It is tough to research the likes of "Scumbyebye."