Nearmap faces legal proceedings from US rival Eagleview

Nearmap faces legal proceedings from US rival Eagleview

Nearmap derives about 41 per cent of its North American sales from roof reports for the insurance sector which use them to assess damages claims caused by wild weather events and the like, according to JCap’s report. However, JCap reckoned Nearmap’s roof reports could be infringing on Eagleview patents and, if legally 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”. It seems that legal challenge has now landed. Nearmap requested its shares be halted until Friday. The company said the halt was to “allow the company to respond to the potential legal proceedings”. Nearmap’s trading halt came as its shares were on tear on Wednesday morning, up 14.6 per cent to $2.36 thanks to an after-market trading update on Tuesday afternoon. Nearmap upped its fiscal 2021 annual contract value guidance in that update, to between $128 million and $132 million, from $120 million to $128 million. The company said the improved guidance was due to “strong 1H21 …
More on: www.afr.com