Document Security Systems Announces Ruling in Patent Validity Lawsuit by Belgium Court

Tue Nov 3, 2009 5:46pm EST
 
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Document Security Systems Announces Ruling in Patent Validity Lawsuit by
Belgium Court



ROCHESTER, N.Y., Nov. 3 /PRNewswire-FirstCall/ -- Document Security Systems,
Inc. (NYSE Amex: DMC) ("DSS"), a world leader in the development and
manufacturing of optical deterrent and authentication technologies that secure
electronic data and help prevent counterfeiting and brand fraud from the use
of desktop scanners and copiers in the market reported today that  the Belgium
court issued its decision in the patent invalidity lawsuit brought by the
European Central Bank (the "ECB") against Document Security Systems, Inc. The
Belgium Court has ruled that European Patent No 0455750B1 (the "Patent"), that
was awarded to DSS by the European Patent Office, has been deemed invalid in
Belgium due to "added matter". The judgment is the outcome of a hearing held
in Brussels, Belgium on September 4, 2009, and does not affect the validity of
the patent in other European countries. 

Patrick White, Chairman and CEO of DSS, commented, "This Belgian ruling does
not deter us from an aggressive stance in Germany and the Netherlands, where
the Patent has been declared valid.   Our victories in Germany (home of the
ECB) and the Netherlands are really all the 'wins' we need as it has given
Document Security Systems and our litigation partner, Trebuchet Capital
Partners LLC the ability to move forward on infringement lawsuits that seek
real monetary damages for the unauthorized use of our patent. In addition,
there is no monetary impact on DSS from this decision as a result of the cost
agreement we made with Trebuchet announced on August 21, 2008."  

Robert T. Girards, Managing Director of Trebuchet Capital Partners, LLC
("Trebuchet") also stated: "Trebuchet has vigorously defended challenges to
the validity of the patents and appealed invalidity determinations when
warranted or appropriate.  Trebuchet is methodically and aggressively
exploring how best to enforce the patents against infringers, including
litigation strategies to recover past damages for infringement and to obtain
royalties for future use of the technologies which are the subject of the
patents. "

On August 1, 2005, DSS filed a patent infringement suit in the European Court
of First Instance ("CFI") against the European Central Bank ("ECB") alleging
that the Euro banknotes produced by the ECB infringe DSS' In March 2006, the
ECB initiated proceedings to invalidate the European Patent. To date, the
Patent has been validated in Germany and the Netherlands and invalidated in
the United Kingdom and France. The determinations in Germany, The Netherlands
and France are subject to appeal. The CFI ruled on September 5,( )2007 that it
was not the correct venue for infringement proceedings, which allows for
country-by-country infringement litigation.

About Document Security Systems, Inc.

Document Security Systems is a world leader in the development of optical
deterrent technologies that help prevent counterfeiting and brand fraud from
the use of the most advanced scanners, copiers and imaging systems in the
market. The company's patented and patent-pending technologies protect
valuable documents and printed products from counterfeiters and identity
thieves. Document Security Systems' customers, which include international
governments, major corporations and world financial institutions, use its
covert and overt technologies to protect a number of applications including,
but not limited to, currency, vital records, brand protection, ID Cards,
internet commerce, passports and gift certificates. Document Security Systems'
strategy is to become the world's leading producer of cutting-edge security
technologies for paper, plastic and electronically generated printed assets.

More information about Document Security Systems, Inc. can be found at
www.documentsecurity.com and www.plasticprintingprofessionals.com,
www.protectedpaper.com, and www.dpirochester.com

Safe Harbor Statement

The statements contained in this press release that are not purely historical
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended, and are intended to be covered by the safe harbors
created thereby. These forward-looking statements include, but are not limited
to, statements regarding monetary damages for the unauthorized use of patent,
and/or statements preceded by, followed by or that include the words
"believes," "could," "expects," "anticipates," "estimates," "intends,"
"plans," "projects," "seeks," or similar expressions, all of which involve
uncertainty and risk. Many of these risks and uncertainties are discussed in
the Company's Annual Report on Form 10-K for the fiscal year ended December
31, 2008 filed with the Securities and Exchange Commission (the "SEC"), and in
any subsequent reports filed with the SEC, all of which are available at the
SEC's website at www.sec.gov. It is possible the Company's performance in
these matters may differ from expectations due to a variety of factors
including, but not limited to, changes in economic and business conditions in
the world, increased competitive activity, achieving sales levels to fulfill
revenue expectations, consolidation among its competitors and customers,
technology advancements, unexpected costs and charges, adequate funding for
plans, changes in interest and foreign exchange rates, regulatory and other
approvals and failure to implement all plans, for whatever reason. It is not
possible to foresee or identify all such factors. Any forward-looking
statements in this report are based on current conditions; expected future
developments and other factors it believes are appropriate in the
circumstances. Prospective investors are cautioned that such statements are
not a guarantee of future performance and actual results or developments may
differ materially from those projected. The Company makes no commitment to
update any forward-looking statement included herein, or disclose any facts,
events or circumstances that may affect the accuracy of any forward-looking
statement. 

    For information contact:
         Contact: Jody Jansen
         Company: Document Security Systems, Inc.
         Title: Shareholder Relations
         Voice: 585-232-5440



SOURCE  Document Security Systems, Inc.

Jody Jansen, Shareholder Relations of Document Security Systems, Inc.,
+1-585-232-5440

 

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