Document Security Systems' Intellectual Property Enforcement Continues to Advance with Five Active Cases

ROCHESTER, N.Y., Nov. 10, 2014 /PRNewswire/ -- Document Security Systems, Inc. (DSS) (NYSE MKT: DSS), a leading developer of anti-counterfeiting and authentication solutions and licensor of innovative technologies, provided an update on the status of its intellectual property legal cases.

"Over the last two years, we have amassed a diversified patent portfolio that aligns with our technology roadmaps and supports our operating divisions, product innovations and licensing programs," noted DSS CEO Jeff Ronaldi. "Our patent portfolio now includes more than 120 U.S. patents and 30 patents pending. Protecting and monetizing these patents remains a key focus around which we will always endeavor to keep our stakeholders informed and engaged."

The company's patent asset composition is broad and diversified. Approximately 74% of its portfolio is comprised of hardware patents, 17% is software and Internet related patents, and 9% involve brand protection technologies. DSS is currently pursuing five active legal cases, which are discussed below, and continues to anticipate initiating an additional five cases by year-end.

• DSS Technology Management, Inc. (DSSTM) v. Apple, Inc. (TXED-6-13-cv-00919)

On November 29, 2013, DSSTM initiated litigation against Apple, Inc. in the US District Court for the Eastern District of Texas. DSSTM's complaint alleges infringement by Apple of DSS patents that relate to systems and methods of using low power wireless peripheral devices.

A Markman hearing in DSS's litigation with Apple in the Eastern District of Texas had been scheduled for November 6, 2014. On October 28, the case was stayed pending a determination of Apple's motion to transfer the case to the Northern District of California, which had been submitted on March 3, 2014. On November 7, 2014, DSS learned that the motion to transfer was granted. DSS anticipates that this hearing will now take place following the completion of the transfer of the case to the Northern District of California.

"We will continue to pursue our investment in this important technology vigorously in California," said DSS CEO Jeff Ronaldi.

• Document Security Systems, Inc. v. Coupons.com Incorporated (6:11-cv-06528-CJS-MWP)

In October 2011, DSS initiated litigation against Coupons.com alleging, among other things, that Coupons.com misused DSS's proprietary Block-Out™ technology in violation of the terms of a nondisclosure agreement between the parties. On July 10, 2014 the US District Court for the Western District of New York heard oral arguments in connection with Coupons.com's motion for Summary Judgment, and on October 28, 2014, Coupons.com's motion was granted and the case was dismissed. DSS may appeal the decision. 

• Bascom Research, LLC v. Facebook, Inc., LinkedIn Corporation et al (CAND-3-12-cv-06293; CAND-3-12-cv-06294)

In October 2012, Bascom Research, a subsidiary of Lexington Technology Group, Inc. (LTG), which was acquired by DSS in July 2013, initiated litigation with Facebook, Inc., LinkedIn Corporation and three other defendants in the US District Court for the Eastern District of Virginia. The complaint alleged infringement by the defendants of four patents that are instrumental to social and business networking technology and related to the manner in which users and application developers on the Facebook and LinkedIn platforms make connections between "objects" such as photos, people, events and pages. In January 2013, all five cases were transferred to the US District Court for the Northern District of California. In April and May of 2013, LTG announced that Bascom Research had reached settlements with two of the named defendants. Currently, Facebook and LinkedIn remain as defendants in the litigation.

On May 22, 2014, Facebook, Inc. filed a Petition for Covered Business Method (CBM) Patent Review with the USPTO's Patent Trial and Appeal Board (PTAB). On September 3, 2014, Bascom Research filed a preliminary response to the CBM petition, and a decision by the PTAB on whether or not to institute the CBM proceeding should be delivered within 90 days following the petition, or about December 2, 2014.    

On August 30, 2014, the parties held a case management conference that set dates for a hearing to address Facebook's motion for summary judgment, which alleges that the Bascom Research patents are invalid under the patent-eligibility (section 101) standard established in Alice Corp v. CLS Bank International, and for the claims construction (Markman) hearing. The Summary Judgment hearing will take place on November 21, 2014, and the Markman hearing is scheduled for February 26, 2015. 

• DSS Technology Management, Inc. (DSSTM) v. Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) et al (TXED-2-14-cv-00199)

On March 10, 2014, DSSTM initiated litigation with TSMC, Samsung Electronics Co. Inc., and NEC Corporation of America in the US District Court for the Eastern District of Texas. DSSTM's complaint against these companies alleges infringement of DSS patents relating to a semiconductor manufacturing process called "double-patterning."

On June 24, 2014, TSMC filed a petition for Inter Partes Review (IPR) with the USPTO Patent Trial and Appeal Board, and DSSTM filed its preliminary response on October 17, 2014.

On November 3, 2014, TSMC filed a motion to transfer its case to the Northern District of California.

• DSS Technology Management, Inc. (DSSTM) v. Lenovo (United States), Inc. (TXED-6-14-cv-00525)

On May 30, 2014, DSSTM initiated litigation against Lenovo (United States), Inc. in the US District Court for the Eastern District of Texas. DSSTM's complaint alleges infringement by Lenovo of DSS patents that relate to systems and methods of using low power wireless peripheral devices. The case is currently in the pleadings stage.

These active disputes are also listed on the company's website here. Further information regarding patent litigation involving DSS investments is available to the public via the PACER Service here.  

Third Quarter 2014 Conference Call
Management will hold a conference call on Thursday, November 13, 2014 to discuss its financial and operational results for the third quarter ended September 30, 2014, including additional details around its intellectual property enforcement activities. DSS CEO Jeff Ronaldi, CFO Phil Jones, and COO Peter Hardigan will host the presentation, followed by a question and answer period.

Date: Thursday, November 13, 2014
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in: (877) 407-8031
International dial-in: (201) 689-8031

The conference call will be broadcast simultaneously and available for replay via the investor section of the company's website at www.dsssecure.com.

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at (949) 574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through November 27, 2014.

U.S. replay dial-in: (877) 660-6853
International replay dial-in: (201) 612-7415
Replay ID: 13594068

About Document Security Systems
Document Security Systems, Inc.'s (NYSE MKT: DSS) products and solutions are used by governments, corporations and financial institutions to defeat fraud and to protect brands and digital information from the expanding world-wide counterfeiting problem. DSS technologies help ensure the authenticity of both digital and physical financial instruments, identification documents, sensitive publications, brand packaging and websites.

DSS continually invests in research and development to meet the ever-changing security needs of its clients and offers licensing of its patented technologies through its subsidiary, DSS Technology Management, Inc.

For more information on the AuthentiGuard Suite, please visit www.AuthentiGuard.com. For more information on DSS and its subsidiaries, please visit www.DSSsecure.com. To follow DSS on Facebook, click here.

Forward-Looking Statements
Forward-looking statements that may be contained in this press release, including, without limitation, statements related to the Company's plans, strategies, objectives, expectations, potential value, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain words such as "believes," "anticipates," "expects," "plans," "intends" and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those disclosed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission. Forward-looking statements that may be contained in this press release are being made as of the date of its release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Contact Information
Investor Relations
Document Security Systems
(585) 325-3610
[email protected]

SOURCE Document Security Systems, Inc.

Related Links

http://www.DSSsecure.com