Replies to post #148883 on NeoMedia Technologies, Inc (NEOM)

[clawmann]

Anyway, Bena was on to something with her "cartel" remark. Any agreement or arrangement to restrain competition is almost certainly going to attract the unwanted attention of the Justice Department and the Federal Trade Commission (and probably the FCC). Did CTIA run that white paper past legal counsel? It doesn't look like it. Sometimes an arrangement or agreement with a modest anti-competitive effect can be justified on the basis that it substantially promotes consumer welfare, but I can't see how the proponents of the CTIA white paper could make that argument here.

Thankfully, a patent is one of the exceptions to the antitrust laws, because a patent is, in essnce, a legal grant to the patent holder of a monopoly over the concerned invention for the life of the patent.

[streetstylz]

jonesieatl, I believe there is good and bad with regards to the CTIA White Paper.


Understandably, Iain is concerned and displeased with CTIA's inclusion of the EZcode symbology. Because as the White Paper states, the client reader (NeoReader) must be able to read both Data Matrix and EZcodes.

Currently, Scanbuy is the exclusive worldwide licensee of EZcode technology developed by ETH Zurich. Under the guidelines of the White Paper NeoMedia would now be required to spend the extra time and money to adapt the NeoReader to be able to read and decipher EZcodes. This assumes NeoMedia would have to license the EZcode technology from ETH Zurich. And perhaps reach an agreement with Scanbuy under fair, reasonable and non discriminatory terms.

Then there's the dark horse -- the patents -- which obviously favor NeoMedia if/when they are ruled on favorably by the USPTO sometime within the next 60 days.

If/when the patent is upheld and NeoMedia is successful in their litigation with Scanbuy, NeoMedia could realistically seek a judgment enjoining Scanbuy from ever infringing on NeoMedia's patented indirect encoding and resolution process.

The question is, will NeoMedia seek a licensing agreement with Scanbuy, or seek to have them enjoined? If they choose the later, and if they are successful, Scanbuy will be out and no longer allowed to participate in the indirect ecosystem.

What I see positively for NeoMedia is what Iain stated, "It also fully supports the indirect code scanning approach which of course is covered by key NeoMedia patents in the US and for which presently, no one else is licensed to use."

This assumes that NeoMedia may be signing licensing agreements with CTIA, all 5 US carriers, and any other entity wanting to participate in the indirect ecosystem. These licensing agreements could provide NeoMedia with some much needed revenue.


Best,
Sean