Pages 22 and 23: "Nearmap’s 2019 $4.8 mln acquisition of Pushpin was designed to capture a technology for roof measurements that could make Nearmap more competitive in insurance claims. That technology may infringe on Eagleview patents. According to a former senior manager at Eagleview, lawyers have issued warning letters to insurers. Should Nearmap be challenged, it may be required to pay a royalty to Eagleview, find a different way to do a map, or stop producing roof measurements and roof reports altogether in the US. This would shut Nearmap out of the $120 mln roof-measurement market.37 We believe Nearmap is required to indemnify insurance customers to make any sales. Not only does Nearmap stand to lose revenue, but it has substantial legal risk from the customers it has indemnified. Nearmap admitted that it could not provide roof reports without infringing Eagleview’s technology, according to a former salesperson. That salesperson told us that Nearmap could not put in a tender for a U.S. federal government project called “Blue Roof”38 for post-disaster roofing because of this legal case. The RFP specifically requested roof reports, but the legal team at Nearmap said they could not do that as it infringed Eagleview’s patents"
NEA Price at posting:
$2.36 Sentiment: Sell Disclosure: Not Held
