Aerial mapping imagery business Nearmap Ltd (ASX: NEA) yesterday announced to the market that it has been granted two patents for a new high-altitude, wide-area aerial imaging camera system known as HyperCamera and HyperCamera 2.
The advantage of higher altitude camera systems is that they can capture larger areas in a shorter period of time, while using more advanced technology. The company probably chose to release the information to the market not because the technology is game changing, but because it is now patented in the US.
The US is Nearmap's targeted market for big growth and the patents will provide it the sole exclusive rights to use the technology in that country for a set period of time.
In Australia, Nearmap has a start-up rival named SPOOKFISH FPO (ASX: SFI), which it has previously engaged in some legal muscle flexing with around several issues reported to be over the likes of patents and technology copyrights.
While Nearmap's patent success potentially supports its competitive position in the US, the bottom line is that the key driver for the company's future is its ability to win clients in the US market, whether it is supported by patents won on technologies or not.
Nearmap recently announced it has signed up its first commercial clients in the US and all eyes will be on the full year results (reportedly set to be released August 24) for further projections as to the likelihood of establishing a profitable business in the US. If it delivers encouraging signs on that front the stock is likely to receive support.
Overall, Nearmap's prospects for success in the US mean it remains an exciting opportunity and it has a big 12-18 months ahead of it.
