There was a mistake in the article. The additional investment was from SV Angel and Yuri Milner, not Y Combinator. We apologize for the confusion, and the mistake has been corrected.
One way to combat the issue is to create a "designer code", which is an intricately designed QR code. You can check out examples at http://www.paperlinks.com/designercodes.php. It is much harder for wrongdoers to mimic one of these.
We at Paperlinks appreciate the support! With NFC and QR codes, I don't think it has to be either/or. NFC is a fantastic technology that truly makes real world hyperlinking even more seamless. We just need more phones with NFC readers on them. In the meantime, there's QR codes, and companies like Paperlinks are trying to make them as easy and effective to deploy as possible!
Thanks for the compliments, rdl! When it comes to designer codes, I believe that function trumps form. There is definitely no point to designing a code if it cannot be scanned quickly and easily. The code in the TechCrunch article should definitely scan easily across any QR reader on any smartphone. That said, it is nearly impossible for us to test every reader on every phone. Assuming a designer code can be scanned easily (which is a requirement on every designer code we create), the benefits of branding the code are tremendous. Scanthrough rates shoot up when you use a designer code, and they definitely have the ability to become the talk of the town. We will put up examples of designer codes on http://www.paperlinks.com in the very near future so you can decide for yourselves!
It's somewhat simpler than that. QR codes use error-correcting codes in order to deal with things like damaged codes, etc. The QR code reader treats the logo or art part of Paperlinks' codes as damage, and uses the error-correcting code to fill in the blanks. I did the same thing (only less artistic) with Groovebud's codes. https://chrome.google.com/webstore/detail/agpbffgdfhnhloelam...
Super duper post, Chad. What you've done so remarkably in this post is you've captured "truth." Looking forward to one-upping you in comparing sad founder stories over beers.