NeoMedia wins patent for indirect mobile barcode so what now?

NeoMedia hasn’t had an easy ride in the mobile space. The once mighty giant commanded a high price on the stock market but in the past few years the empire seems to have broken down. The impetus has changed to one of pure mobile technology where mobile barcodes become the main asset.
Why barcodes?Well to cut a long and interesting story very short NeoMedia had an early advantage in the image coding space and managed to secure a good few patents. The strategy then was to go forth and conquer and it bought a number of companies (nearly) such as Sponge and Mobot –but then ended the relationship.
Why?Well the strategy that was set in place was excellent. But it wasn’t robust enough and the market wasn’t ready. Inspiration or perhaps aspiration took over from reality. Handsets and services did not manage to keep up with ideas or the possibility. High data rates and confused tariffs also stopped the mobile barcode or data spacing growing to capacity.
So what was left?NeoMedia kept once significant accent and an armoury of patents. These patents were either created in-house or purchased considerable amounts. But what it did provide NeoMedia with is an asset portfolio that it could re-structure and work with again moving forward.
After law suit and law suit and patent examination and watching nearly every competitive mobile barcode provider impact or use the specific in-direct code patent that NeoMedia owned – the company has finally confirmed that the patent is legal and can be enforced.
What is the patent?Well. We all have mobile barcodes which is great and I believe that you shouldn’t pay to have or use barcodes (1D, 2D, QR etc.) But this specific patent is for doing more than just capturing an image with a phone it is (very very simply) for adding an action or interaction to that barcode.
Did NeoMedia deserve to win this?This might have been questioned but I think this was the right decision. Having followed the market and the industry in the mobile space in particularly - I believe that patents need to be recognised. Also this particular patent was fought for and the prices were increased as I think at the time Motorola or Google were also interested in purchasing the same barcode portfolio.
The fact that millions of dollars have been paid to secure the patents – I think that is extremely important as to their worth and value. Also, my God – if you have and own patents well then they have to be respected because if they aren’t – well then what is the point?
Sharks will steal business models and the market would become cut throat and irrelevant. Because there is a patent authority then – the right decision was made.
The above is my opinion only. The below is an interview with Iain McCready.
But what is the business model now for NeoMedia? I spoke to Iain McCready CEO of NeoMedia on the last day of Mobile World Congress and asked him what the plan was.


Bena: Iain. I am happy that you won the patent but now what. Lots of people are using your IP how are you going to curb this?
Iain: Bena, you know we are nice guys. A couple of competitors in the USA have already asked us for a free license but we can’t accept that. We are a business and so are they. In a reasonable manner at a fair price we want to move forward with this.
Bena: So you are saying that you are open to conversation but a license fee is required.
Iain:Yes. We have invested so much in this and have had battle after battle. But now we are going to power ahead and make this work. I am open to discussion and we want to be seen as fair. We want the whole mobile barcode market to succeed and the license fee model is tried and tested and it works. It can be as simple or as difficult as people want it to be and we aim to keep it simple.
We have been working very very closely with both the GSMA and the OMA by being connected the introduction of a license model can and will only succeed.
Bena:Iain. I love the fact you are relaxed about this and want it to be fair. I think I would have been worried if you turned into the old school NeoMedia and started shouting about “wining the war!”
Iain:Not at all. We are a lean business but we are a business. We can succeed but so can the whole industry. We have invested so much in this as we knew back in the 1990s that mobile barcodes would be huge and now it’s all coming together.
Bena: Iain. I am really glad to hear it. I also met 3G Vision (interview and pictures coming soon) and others here at the show and no one seemed totally adverse to a license model.
Iain: I think that the market was expecting this.
What we think?In all honesty, I think with this kind of attitude we are looking at a great mobile barcode market moving forward. Iain is an honest nice guy and I think he can make this work. I have been doing some digging into a whole new set of mobile patents owned by NeoMedia and have to say I do think that there might be more than one business opportunity here.

http://bluespotmedia.ning.com/