Saturday, July 19, 2008

U.S. Patent Office Rejects All Ninety Five NeoMedia Patent Claims

The U.S Patent Office strikes a serious blow to patent troll NeoMedia Technologies.

From Electronic Frontier Foundation (EFF) U.S. Patent Office Rejects All Ninety-Five NeoMedia Patent Claims

EFF's Patent Busting Project, continues to march forward, this time with more good news about the petition that EFF, in conjunction with Paul Grewal and James Czaja of Day Casebeer Madrid & Batchelder, filed last April seeking reexamination of the NeoMedia bar-code lookup patent.

We're happy to report that the United States Patent and Trademark Office (PTO) recently
rejected all ninety-five claims [5.3 MB PDF] of the patent.

The PTO agreed to take another look at the patent last October after EFF filed a petition for ex parte reexamination that called to the PTO's attention a wealth of prior art that the PTO had not previously considered and that showed that the NeoMedia patent claims were not novel.

After consideration of the prior art EFF submitted, the PTO found that none of the ninety-five claims in the NeoMedia patent should have been allowed.

NeoMedia Technologies, Inc., claimed to own rights to all systems that provide information over computer networks using database-like lookup procedures that rely on scanned inputs, such as a barcode. NeoMedia has used these claims not only to threaten and sue innovators in the mobile information space, but also to intimidate projects focused on increasing awareness among consumers about the social and environmental impact of the products they buy. (red print emphasis is mine)

On October 15, 2007, the day before the Patent Office ordered the re-examination, the Chairman and member of NeoMedia's Board resignation became effective.

More stories about NeoMedia and the EFF


CEO said...

Back on March of 2006 I wrote about Neomedia -- I didn't believe they had a strong case for the same patent and 12 or more different flavors of it:


Dean Collins said...

Hey StreetStylz,

when you read this post....think of me smiling :)

A great day for the EFF.

Dean Collins

No Name said...

Yes indeed a very good day for the Physical World Connection space.

Neomedia's only "asset", their IP, was pledged to Cornell Capital/Yorkville Advisers.

I guess the well is looking pretty dry about now for them.

bena roberts said...

Is this true? It seems as though this happens every six months or something and then no action takes place.

I am sorry if I am missing the plot but what exactly does this mean?

Anonymous said...

I hoped all the way that finally some right decisions would be made in this case!
Great job EFF!

Now let the good guys start bringing out a rich service environment!

Stan Wiechers said...

I would never want to wish something bad for anybody, but those patents claims were always such a straight jacket for the industry, glad that this a goner.

Anonymous said...

Were you aware that this ruling is a non-final action. Meaning that this is not a final rejection of NeoMedia's patent.

The USPTO has set aside claims 1-95 by marking them as rejected for reasons cited in the USPTO document. This is standard procedure. NeoMedia now has 60 days to formalize their response to the USPTO and demonstrate to the USPTO why the claims in their patent are valid.

Educate yourself on how the reexam process works:

NeoMedia's patent will withstand this reexamination process and be validated in the end.

Wait and see :)

Anonymous said...

Interesting well we all knew it would come back to haunt them for all the companies they bothered and threatened.All they had to do is do it the right way and be strategic like the others.

UpCode USA On Fox

No Name said...

I don't know why so many people refuse to read (or accept) this info.

We also have an accumulated deficit of $197.9 million and a working capital deficit of $80.0 million as of March 31, 2008.

As of March 31, 2008, we have a working capital deficiency of $80.0 million, of which $19.1 million relates to the fair value of derivative financial instruments, and $49.3 million relates to the carrying value of debentures and convertible preferred stock that are convertible into shares of our common stock

Pursuant to our secured convertible debentures issued to YA Global Investments, LP (fka Cornell Capital Partners LP and herewith “Yorkville”), in the principal amounts of $7.5 million, $5.0 million, $2.5 million and $1.8 million, dated March 27, 2007, August 24, 2006, December 29, 2006 and August 24, 2007, respectively, we were required to secure the convertible debentures’ repayment with substantially all of our assets. In the event we are unable to repay the secured convertible debentures, we could lose all of our assets and be forced to cease our operations.

Existing shareholders will experience significant dilution when certain investors convert their preferred stock to common stock, convert outstanding convertible debentures or when the investors exercise their warrants and receive common stock shares under the investment agreement with the investors

Anonymous said...

Wow Monkey Boy At least you finally posted something that got a few replys. It has been a long time since you had even one.

Anonymous said...

It's patently obvious that few reading this blog understand the actual patent review process. EFF's tactic may have been successful in a brief battle but NEOM's patent council slammed the door in EFF's face strategically. The war will be one by NEOM eventually-in the mean time, let's see what happens in the marketplace, shall we?

No Name said...

I think your time might be better spent connecting these 8.5 Billion dots

Gops said...

You have not answered my question about calling Neomedia a troll company, or about your vindictiveness towards Neomedia. Are you afraid to post my answer because you are tied into EFF and/or Scanbuy? Are you concerned you might encounter difficulties once the USPTO grants Neomedia the patents?

No Name said...

Please note I'm certainly not the only one that refers to NeoMedia as a patent troll

I forgot to note that this patent has also been referred to as "bogus" .

Spend some time reading this.

Anonymous said...

Well the truth is the battle will be between Upcode and Scanbuy they will battle for the market place who will win time will tell. But you all wanna here something funny why is the X CEO of NEO media calling to align with UpCode hmmmm he must think that his X comapny Neo will loose the battle.There is a right way and a wrong way and obviously they did it wrong.It's about Globalization and who succeeds to get that space will win in the end like how we are in 42 countries with 10 million users and counting.

Billboards and Pictures in Philippines:

No Name said...


why is the X CEO of NEO media calling to align with UpCode hmmmm he must think that his X comapny Neo will loose the battle

Which ex CEO is that? They have had 2 in the last year.

Anonymous said...


Anonymous said...

Scott I can't tell you that but flip a coin 50/50 you pick.This game is almost ready for the leaders to emerge like I said there is two that are doing a good and you know who they are Scott.But I want to thank you Scott for this place and for all support you have gave all of us in this space.

Anonymous said...

Eveeryone - The only facts in these notes are that the USPTO gave the 1-95 to NeoMEdia and told them to support them. I wonder if Scott will place a copy of the final result when it comes out in NEoMedia's favor. The comment around the industry - obviously not near this group - is that the patent(s) will be supported.
Also, I do not see anything about any of the new NeMedia customers here. I always see Scanbuy info, a stock that Scott holds.

No Name said...


You might want to check your facts before making statements.

Why won't anyone accept the facts?

Anonymous said...

I run a dynamic QR code site in the UK which is based on a URL lookup via QR code. Luckily, Neomedias European patent was watered down so this patent didn't affect my site at all (no licencing or royalties worries) but i'm glad to hear the US mobile market has had this threat to m-commerce removed.

Well done EFF. Great job.


Anonymous said...


I posted this info on Bena's blog back on the 10th July I believe, but it never was considered news worthy enough to warrant a topic outside the comment section. But let someone at Neomedia sneeze in the right direction and it's top line news billing.

As you see in the above character attacks, by the IHUB mob, you are not dealing with people that can look at the facts objectively when it comes to Neomedia, because they invested in the company, were proven wrong over and over again, with their pump and dump schemes over there, and now have to stand behind their crap, because they convinced so many others to invest in their pipe dream. So their mission now is to simply attack anyone or anything, that suggests they were wrong, whether its legitimate or not.

This non final action, whether its the beginning or the end, does not matter a bit at this time. The fact is it is a rejection of all 95 claims at this point and time, regardless of what may or may not happen as the process goes forward. And at this time that is significant to the industry, regardless of what these anonymous posters(we know who they are, because the same post is appearing on many blogs with the other names) would like to suggest, to prop up their investment.

Anonymous said...

Scott is this true that you are a shareholder in ScanBuy?I hope not I trust that your not but if you are all I can say is wow.

Anonymous said...

Scott - from one business person to another - we all have seen your link to the "facts" every time you reference NeoMedia. This is always a link to the a SEC filing that shows how much money the VC's have sunk into NeoMedia. These are investment facts! Has nothing to do with patents other than to show investor's belief in the patents. Why not include facts about the big boys who have signed to use the NeoMedia patents. The big picture is what users are looking at - like me. I provide cellular services around the world, mainly in Asia. I DO NOT USE NeoMedia bar code programs. However, the business world sides with NeoMedia. The individuals who do not are bar code makers, small industry bar code companies, NeoMedia competitors, ScanBuy stockholders, and EFF - whose sole job is to wreck standard business regulations. They have the right to do what they do, but they are like the ACLU - a necessary pain in the everyday life.
Scott - step back and look at the big picture. The fact that the 95 were rejected certainly does not mean the end result will be the complete rejection of these 95. It only puts the ball back in NeoMedia's court. Remember, NeoMedia has already been to court with these patents with a couple big companies - and won. The easy bet is on NeoMedia to come out with their Patent in their hands, possibly a little watered down. At that time, you can bet the stock value of ScanBuy and NeoMedia will move in opposite directions.

No Name said...

"the VC's have sunk into NeoMedia."...Are you actually calling Cornell Capital a VC? (sunk...interesting word choice)

"Scott - step back and look at the big picture"... this is the big picture AND it's in black and white. Take some time and read it.

brewskih said...

Rick May,

You use comments you can not back up. You say the business world is backing Neomedia. What business world? Small business' like yours that you admit do not use the technology?

The real business world, has had access to Neomedias technology, and after trialing it, turned it down for the competition. Companies like Sprint, Case Western University, Murdochs empire with News of the World and The Sun etc., etc.

The only support I have seen for Neomedias product thus far, is in thrid world countries, or islands in the ocean.

You by the way are the same individual who once claimed you researched this patent thoroughly and it was rock solid, the same patent that the USPTO has rejected all 95 claims on. You chose as you stated to license the technology, after your research. Maybe you should of waited.

By the way, for the record, even major business partners of Neomedia, after looking at their product have backed out of those partnerships over the years, and they were not competitors, they were working in tandem with Neomedia to promote both companies products. I wonder if Announce Mobile is the latest casualty, as their new site is up and running as well as their blog, and I do not see mention of Neomedia anywhere on either site.

Anonymous said...

Everyone- specifically, Scott, Brewskih, Bena Roberts, Streetstylz, etc.... Lets all meet at the next CTIA. It would be good to sit around a table and let the curtains be drawn back. I expect that the NeoMedia/USTPO challenge will be over by then. I will be very happy to share a few of my companies at that time - and more important, discuss what is best for the industry.

Anonymous said...

Where did everyone go- you all got wiped out! Go Neomedia!

Anonymous said...

Jerald cavitt is a deadbeat,he is a fake and a liar. How are you a ceo of a company but are $20,000 dollars in debt for child support and have 10 kids. HMMM!!