Document Security Systems, Inc. Initiates Patent Infringement Proceedings before the District Court in The Hague, The Netherland
18 Februar 2010 - 3:15PM
PR Newswire (US)
ROCHESTER, N.Y., Feb. 18 /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 the use of desktop scanners and copiers in counterfeiting
and brand fraud in the market reported today that an infringement
suit has been filed in the Netherlands where the European Central
Bank ("ECB") failed in its attempt to invalidate a DSS European
Patent in an earlier court hearing. The suit is being lodged
against the ECB and two security printing entities with
manufacturing operations in the Netherlands, Joh. Enschede
Banknotes B.V.; and Koninklijke Joh. Enschede B.V. Patrick White,
CEO of DSS, commented, "It's unfortunate that it has come down to
this. We have reached out to settle the issue but we received no
substantive return overtures. People need to know that we do not
take pleasure in this process. Management really has no choice as
we have a fiduciary responsibility to our shareholders and
therefore we must do whatever it takes to protect the Company's
patent assets and the rights that are associated with our patents.
Patent assets are unique in that they only have value as long as
you are willing to defend and utilize the legal protection they
provide. With that said, this infringement suit represents the
first time in this litigation process that our claim of
infringement will be heard and decided in a court of law. If we are
successful in proving infringement in the Netherlands court then we
shall see the impact of the lost royalties. Our legal right to this
litigation stems from the fact the ECB failed in its attempt to
invalidate the patent in both Germany and the Netherlands which
allows us to legally seek real monetary damages against the ECB
(owner of the Euro) and the security printers who we believe have
printed the patented technology on billions of various banknotes in
the countries of the Netherlands and Germany." DSS's litigation
partner and co-owner of the patent, Trebuchet Capital Partners LLC
("Trebuchet") completed its extensive due diligence and filed the
action in the District Court of The Hague. The ECB's and the
security printers have been notified and the court hearing date is
tentatively scheduled for January 21, 2011. DSS will bear no
further legal expenses associated with this litigation On August 1,
2005, DSS originally 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 on DSS's patented technology. The CFI ruled on
September 5, 2007 that it was not the correct venue for
infringement proceedings, which allows for this current
country-by-country infringement litigation. In March 2006, the ECB
initiated proceedings to invalidate the European Patent in nine EU
countries. To date, the DSS Patent has been validated in Germany
and the Netherlands and invalidated in the United Kingdom, France,
Belgium and Austria and there are pending patent validity decisions
in Spain and Italy. The determinations in Germany, The Netherlands,
France and Austria are subject to appeal. The Moire inducing patent
in question expired in January, 2010. This expiration has no
bearing on the infringement legal process since there are billions
of alleged infringing banknotes still in circulation printed prior
to the patent's expiration. About Document Security Systems, Inc. A
rapidly growing security technology company, 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 can be found at its websites:
http://www.documentsecurity.com/, http://www.protectedpaper.com/
and http://www.plasticprintingprofessionals.com/. Safe Harbor
Statement This release contains forward-looking statements
regarding expectations for future financial performance, which
involve uncertainty and risk. It is possible the Company's future
financial performance 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
which the Company 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 Janson Company: Document Security Systems, Inc.
Title: Shareholder Relations Voice: (585) 232-5440 Email:
DATASOURCE: Document Security Systems, Inc. CONTACT: Jody Janson,
Shareholder Relations, Document Security Systems, Inc.,
+1-585-232-5440, Web Site: http://www.documentsecurity.com/
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