Document Security Systems Announces Formal Written Decision by German Federal Patent Court.Decision validates DSS (1) (Digital Signature Standard) A National Security Administration standard for authenticating an electronic message. See RSA and digital signature. (2) (Digital Satellite S patent; Enables infringement proceedings in Germany ROCHESTER, N.Y. -- Document Security Systems, Inc. (AMEX AMEX See: American Stock Exchange : DMC DMC Devil May Cry (video game) DMC Detroit Medical Center DMC Darryl McDaniels (rapper) DMC Destination Management Company DMC Del Mar College (Corpus Christi, TX) ) ("DSS"), a leader in proven, patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, announced today that it has received a formal written decision from the German Federal Patent Court, containing the court's interpretations and judgments in its March 27, 2007 ruling in which the court found DSS' European Patent No 0455750B1 (the "Patent") to be a valid patent in Germany. Key highlights include: * The German court dismissed the European Central Bank's (ECB See electronic code book. ) claim to invalidate in·val·i·date tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates To make invalid; nullify. in·val the Patent in Germany, and ordered the ECB to bear responsibility for court costs court costs n. fees for expenses that the courts pass on to attorneys, who then pass them on to their clients or, in some kinds of cases, to the losing party. . As a result of this decision, DSS will be able to proceed with the infringement phase of its lawsuit against the ECB, despite any decisions to the contrary regarding validity of the Patent in other national courts. On August 1, 2005, DSS filed a patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuit in the European Court European Court could mean:
abbr. cost, freight, and insurance ) against the ECB alleging that the Euro banknotes produced by the ECB infringe the Patent. On October 20, 2005, the ECB challenged the venue of the lawsuit to which DSS formally responded to the court in December 2005. The parties are awaiting the ruling from the CFI on venue. Management anticipates seeking damages in the CFI case in excess of $227 million, although it should be noted that the applicable court would determine the damages that DSS would be entitled to if DSS is successful in its action. * As a result of the German decision, DSS can now file infringement lawsuits in Germany against security printers that produce the Euro banknotes printed in Germany or used in Germany. Management believes that approximately 28% of Euro banknotes are either printed in Germany or used in Germany, which would enable DSS to seek an injunction and damages in excess of $63 million in such lawsuits against the applicable security printers. * This ruling also enables DSS to pursue infringement claims of the Patent against security printers and software developers of the various, non-Euro banknotes printed not only in Germany, but also those banknotes printed in other European countries that enter Germany. Management believes that there are more than 75 currencies that are either printed or used in Germany that infringe upon the Patent. * The German Court's decision will be distributed to the French Patent Court, which has asked to review the German decision prior to issuing its decision on patent validity in France, which is anticipated on September 12, 2007. * DSS' attorneys will utilize portions of the German decision, which supports its appeal of the ruling of the High Court of Justice, Chancery Division, Patents Court in London, England, which found the Patent to be invalid in the United Kingdom. Oral arguments for the U.K. appeal are expected to be heard in February of 2008. Patrick White Noun 1. Patrick White - Australian writer (1912-1990) Patrick Victor Martindale White, White , DSS Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "This written judgment, in its great detail, vindicates the moral and commercial path that DSS has taken in clearly defending our company and protecting our shareholders against those who infringe our patents. In addition to this being a clear cut win for DSS, this judgment, if we so choose, allows us an important platform from which to pursue infringement actions against worldwide security printers, the European Central Bank European Central Bank (ECB) Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and a major European graphics company who is selling software that enables the use of our technology. The European Central Bank is responsible for the printing of roughly 40 billion Euro notes since its inception, which are now eligible for infringement proceedings." He continued, "Our legal team communicated to the ECB that it was our desire to work with them to discuss a going forward agreement that would provide the ECB with even more advanced anti-counterfeiting technology for its currencies and other financial instruments. The ECB refused this overture embracing what it referred to as the legal, moral, and reputational standards of the institution. Given our fiduciary responsibility to our shareholders we will not compromise our rights to legal action without a commitment to real discussions." White added, "In summary, our patent has been ruled valid by the German court, the European Patent Office and its Technical Board of Appeals and we are reviewing our options regarding our next steps. We firmly believe we will win our appeal in the U.K. and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op the courts in France, Italy, Spain, Belgium, the Netherlands and Austria will rule in our favor." Larry Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. of the law firm McDermott Will & Emery UK LLP LLP - Lower Layer Protocol , representing DSS in the lawsuit, said, "We are very pleased with the findings in the German decision. We believe that the German Court made the effort to fully understand the patent and came to the correct conclusion on its validity. We are confident that the various other patent courts will do the same." Cohen continued, "At the same time, we remain frustrated with the European Court of First Instance, which has not ruled on its determination of the venue for our infringement case against the ECB after more than two years. If the European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. intends to offer comprehensive patents across its jurisdiction, then we'd expect a central court to resolve disagreements. Nevertheless, this clear victory has allowed DSS to gain the high moral ground in its patents defense, not only in Germany but throughout Europe and we hope will also lead the way towards a successful appeal in the U.K." DSS has added the law firm of DLA Piper DLA Piper (known until 4 September 2006 as DLA Piper Rudnick Gray Cary) is the third largest law firm in the world by number of attorneys after Clifford Chance and Baker & McKenzie. to help direct much of its strategic work in this matter throughout Europe. The DLA Piper team will be led by Lord Tim Clement-Jones, who heads the firm's Global Government Relations practice. DLA Piper will be working closely in this action with DSS' attorneys of record, the law firm McDermott Will & Emery UK LLP. Teleconference to discuss German ruling and next steps Patrick White, CEO of DSS, Peter Ettinger, President of DSS, and Larry Cohen of the law firm McDermott Will & Emery UK LLP, will discuss the suit and the recently published German Federal Patent Court's decision which confirmed the DSS' European Patent's validity in Germany in March, 2007. The teleconference and webcast will occur on Thursday, September 6, 2007 at 4:30 p.m. Eastern Time. To access the call you may dial, toll free 1.888.406.9446 and toll/international 1.480.293.1744. It is recommended that you dial in approximately 10 to 15 minutes prior to the scheduled start time. Alternatively, you may listen to a live webcast of the call on the Company's website: www.documentsecurity.com. A replay of the call will be available until October 6, 2007 at midnight Eastern Time by dialing, toll free 1.800.406.7325, and toll/international 1.303.590.3030 and typing in the pin number 3775758. The archive will be made available on the DSS website for approximately 60 days. The Company will answer as many questions as time allows. In lieu of calling in questions, your inquiries can be submitted via email at IR@DocumentSecurity.com prior to, as well as during the call. Management and Mr. Cohen will endeavor to retrieve questions during the live teleconference. Because of the ongoing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , management may not be able to address all of the questions posed on the call. 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: www.documentsecurity.com and www.plasticprintingprofessionals.com. About McDermott Will & Emery UK LLP McDermott Will & Emery is a premier international law firm with a diversified business practice. Numbering more than 1100 lawyers, we have offices in Boston, Brussels, Chicago, Dusseldorf, London, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Miami, Munich, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Orange County, Rome, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Silicon Valley and Washington, D.C. More information about McDermott Will & Emery UK LLP can be found at www.MWE MWE Megawatts Electric MWE Microwave Workshops and Exhibition (IEEE-MTT) MWE Mobile Work Equipment (UK) MWE Managed Work Environment (EDS) MWE Men, Weapons and Equipment .com. About DLA Piper DLA Piper has 3,400 lawyers in 25 countries and 64 offices throughout the U.S., U.K., Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , Middle East and Asia. It has leading practices in corporate, finance, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , litigation, real estate, regulatory and legislative, tax, and technology, media and communications. More information about DLA Piper can be found at www.DLAPiper.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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. |
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