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

ROCHESTER, N.Y.,, Nov 03, 2009 /PRNewswire-FirstCall via COMTEX/ -- DMC | Quote | Chart | News | PowerRating -- Document Security Systems, Inc. (NYSE Amex: DMC | Quote | Chart | News | PowerRating) ("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.

http://www.documentsecurity.com

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