Entry into a Material Definitive Agreement, Financial Statements and Ex
Item 1.01. Entry Into a Material Definitive Agreement
Entry into a License, Covenant Not to Sue and Release Agreement for Intellectual Property
On December 21, 2010, NeoMedia Technologies, Inc., a Delaware corporation (the "Company"), entered into a license, covenant not to sue and release agreement (the "Agreement"), a copy of which is attached hereto as Exhibit 10.1 and incorporated by reference herein, to grant a five year, non-exclusive, non-sublicensable license to eBay Inc. ("eBay"). The license grants freedom to operate to eBay, its affiliates and certain third parties, by providing a worldwide right to use the Company's U.S. Patent Nos. 7,383,209; 6,993,573;6,865,608; 6,542,933; 6,434,561; 6,199,048; 6,108,656; 5,978,773; 7,430,588, and 5,933,829 and related patents and applications, described therein as the Company's Barcode Technology (the "Barcode Technology"). The Company will receive a license fee from eBay for the initial term. The Agreement also provides mutual covenants not to sue and mutual releases to the parties.
The Agreement also grants to eBay a 60 day option to a similar license to the Company's U.S. Patent Nos. 6,766,363; 6,675,165; 6,651,053; and 6,430,554, and related patents and applications described therein as the Company's Search Technology (the "Search Technology"). Should eBay exercise its option, the Company will receive an additional license fee from eBay for the initial term.
The license to the Company's Barcode Technology and optional license to the Company's Search Technology may be extended for successive 3 year terms, for additional license fees, from eBay.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to such document, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.