Counterfeit Electronic Goods on the Rise

A few days ago we posted this picture of variety of fake video games found by consumers, and today we woke up to learn that the danger of electronic goods is on the rise.

According to an article found on WHEC, counterfeit electronic goods are the number one category of knock-off goods seized at Chicago’s O’Hare International Airport.

In order to combat counterfeiting, companies go through rigorous testing in order to certify their products with the coveted UL label. However, counterfeiters are determined to create knock-offs that are indistinguishable to originals, and have managed to forge the UL label. According to the same WHEC article (which you can read by clicking here) these fake labels were found on counterfeit smoke detectors up until last year.

Although these counterfeit products may be easier on the wallet than the original product, the make-up is entirely different and hardly ever safe for a consumer’s hands. These counterfeit products rarely perform as they should and have a high risk of defaulting, which could lead to life-threatening injuries or even death.

Counterfeiters tarnish brands, but companies don’t need to make it easy for them. In today’s world, 70% of counterfeiting is produced by a desktop scanner or color copier. DSS offers the patented Pantograph 4000, a security feature that combats duplications on the widest range of desktop scanners and copiers on the market.

Additionally, DSS has an array of patented on-the-spot authentication features which creates the ability for both companies and consumers alike to verify that a product is an original.

If this is not enough, we also have a unique consumer friendly, 4-step process to tracking your entire product life throughout its entire life-cycle; from manufacturing to final sale.

To learn more about how DSS can protect your brand, please visit www.DSSsecure.com

Protect. Verify. Track.

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ipCapital Group, Inc. Assesses Document Security Systems, Inc. Technology and IP Licensing Market Potential at $245 Million

ROCHESTER, N.Y., May 15, 2012 — Document Security Systems, Inc. (NYSE Amex: DSS; “DSS”), a leading developer and integrator of cloud computing data security, Radio Frequency Identification (“RFID”) systems and security printing technologies which prevent counterfeiting, product diversion and brand fraud, reported today that ipCapital Group, Inc. (“ipCG”) has completed a high-level assessment of DSS’ technology and intellectual property (“IP”) portfolio and has valued the licensing market potential at approximately $245 million.

ipCG, which is located in Williston, Vermont, is an intellectual property consulting firm that has been serving clients ranging  from early development stage to Fortune 500 status since 1998.  ipCG consultants use their strong foundations in business and IP strategy to develop models that address and estimate potential business, technology, and IP opportunities.

Chairman of the board, Robert Fagenson commented, “In response to continued requests from shareholders and the investment community, we asked John Cronin and his ipCapital Group, as part of their consulting agreement with DSS, to produce an early stage evaluation that we could share with the public of certain technologies of ours, as they apply to commercial uses that could become revenue drivers for DSS in the future.  Our investor base clearly has a continuing interest to see how the intellectual property of DSS can be utilized and monetized in commerce and industry and that was one of the principle reasons we engaged ipCapital and invited John to join the DSS Board earlier this year.”

ipCG’s high-level value assessment of DSS’ technology and IP licensing opportunity considers applications in the following key markets: security printing, cloud storage, cloud security services, and email security.  The $245 million value estimate represents the present value of potential future licensing revenue across these key markets over the next ten years, assuming a conservative market penetration forecast, industry average royalty rates applied to top-line market revenue, and availability of financial investment required to drive DSS’ continued technology and IP development and licensing efforts.

ipCG noted that its value assessment of DSS’ licensing opportunity considers only one of the several potential value drivers for technology and IP described below, the sum of which would be included in a full analysis of DSS’ potential technology and IP value:

  1. 1. Support competitive advantage: A strong IP position surrounding a differentiated technology solution in the market can support first-mover advantage, higher margins, and market share.  ipCG’s current assessment does not include an analysis of how DSS’ IP could support competitive advantage for its products in a well-capitalized operation.
  2. 2. Define market boundaries: A strong IP position can allow a company to effectively assert its property rights against other market players.  ipCG’s current assessment does not include any analysis of the pending coupons.com litigation or any infringement, misappropriation, damages, or any other legal analysis.
  3. 3. Generate licensing revenue: A strong IP position that includes patents, pending patent applications, trade secrets, and technology know-how can support licensing transactions that drive technology adoption.  The going-forward technology and IP licensing opportunity for DSS is the focus of ipCG’s current assessment.
  4. 4. Gain transactional leverage: A strong IP position can allow a company to negotiate favorable business terms and ownership in partnership relationships including joint ventures, reseller relationships, spin-outs, etc.  ipCG’s current assessment does not include any such business opportunities for DSS.
  5. 5. Support brand: A strong IP position that includes trademarks and patent-protected technology and products can support a positive brand perception in the market that helps drive sales.  ipCG’s current assessment does not include this component of potential value for DSS.
  6. 6. Shareholder value: A well-capitalized company that has the opportunity to leverage its technology and IP strategically in the market using one or more of the value drivers described above ultimately creates strong shareholder value.  ipCG’s current assessment focuses on how DSS can support shareholder value through licensing.

John Cronin, a member of the DSS board of directors and Managing Director and Chairman of ipCG, commented: “DSS’s core security printing technologies combined with continued technology and IP development that transcends into the digital world is expanding the market opportunity for DSS.  ipCG’s recent assessment helps size the potential opportunity DSS is targeting through licensing relationships with key industry players that will drive technology commercialization and adoption of solutions to very important problems.”

CEO Patrick White stated, “It’s important to note that the ipCapital Group’s assessment is an indication of just one value driver [see 3 above] of DSS intellectual property, and supports our belief in the potential of our technologies to bolster long-term shareholder value.  As we have indicated, DSS has embarked on an aggressive IP development program in 2012, and has recently identified approximately130 concepts and ideas involving new and offshoot technologies, many of which may ultimately result in new patent applications.  IP development will continue to be a significant focus of DSS moving forward as we strive to position DSS at the forefront of security printing while also moving our technologies to cloud computing data security applications.”

ipCG’s Managing Director, Chairman, and part owner, John Cronin, was appointed as a member of the Board of Directors of DSS in February, 2012.

About DSS (Document Security Systems, Inc.):

DSS provides counterfeit prevention, RFID tracking and comprehensive brand and digital information protection solutions to corporations, governments, and financial institutions around the world.  DSS develops and manufactures secure printed products such as labels, packaging, ID Cards, RFID Cards and tags and documents using their AuthentiGuard line of patented optical deterrent and authentication technologies.  The company also provides cloud computing security services, provides disaster recovery backup, writes custom software solutions, and integrates track and trace technologies.

DSS is comprised of four operating units:

DSS Plastics Group – Custom RFID and Plastic ID Card Solutions (Brisbane, CA) PH: 1-415-585-9600

DSS Packaging Group – Commercial and Secure Packaging Manufacturing (Victor, NY) PH:  585-924-8760

DSS Printing Group – Commercial and Security Printing Manufacturing (Rochester, NY) PH: 585-341-3100

DSS Digital Group – Cloud Computing Services and Secure Digital/Internet Documents (Rochester, NY) PH: 585-746-6958

For more information on DSS and its subsidiaries, please visit DSSsecure.com.

About ipCapital Group

ipCG is an  IP strategy consulting practice helping clients develop, manage and use their IP effectively to support strategic business objectives. ipCG offers a range of services and proprietary methodologies to help companies throughout the full lifecycle of IP, from creation and strategic management to value extraction. Since 1998, ipCG has worked with numerous Fortune 500, mid-size, and early-stage companies in a wide variety of industries.

ipCG has been serving clients that range from early stage to Fortune 500 since 1998. Its interdisciplinary team trained in business, law, marketing, and product development provides a systematic and comprehensive view of the full lifecycle of IP, from creation to value extraction. ipCG maximizes business results for clients that seek to develop and execute IP strategies, strengthen and monetize IP portfolios, and establish and implement Intellectual Asset Management (IAM) practices. For more information, visit www.ipcg.com.

The high-level assessment performed by ipCG is not a legal or financial valuation of DSS. The intention of the assessment was to support DSS’ decision-making relative to various business strategies. The conclusions, estimates, and observations contained in this press release are solely statements of opinion and not statements of fact or recommendations to purchase, hold or sell any securities or make any investment decision. ipCG and its affiliates do not guarantee the accuracy, adequacy or completeness of any information herein and shall not be responsible for any errors or omissions.  Actual results will differ due to factors such as shifts in market demand, DSS’s success in completing technology and IP licensing transactions, technological shifts, changes in the IP environment, DSS’s ability to continue IP development, and other variables.

Investor Relations:
Nicole Acton
585-325-3610
Email: ir@documentsecurity.com

How ‘Safe’ is Your Brand?

As of late, pictures have been flooding the internet of knock-off video game products and counsels that consumers have found throughout the world. 

Below are just a few examples:

Image

The packaging, despite a few easily overlooked name changes, is identical to the original product. However, what lies in the packaging is not only poorly made, but potentially dangerous to the consumers.

Have you seen any counterfeit products like this? If so, tell us in the comments!

DSS is a worldwide leader in brand protection. To find out how we could help protect your brand, please visit our website: http://www.DSSsecure.com

DSS Receives Initial Orders from Con Agra Foods, Kraft Foods and Hershey Food Corporation for Anti-Counterfeiting Printing Projects

ROCHESTER, N.Y., May 14, 2012 — Document Security Systems, Inc. (NYSE Amex: DSS; “DSS”), a leading developer and integrator of cloud computing data security, Radio Frequency Identification (“RFID”) systems and security printing technologies which prevent counterfeiting, product diversion and brand fraud, reported today that its DSS Printing Group has received initial orders for counterfeit prevention printing projects from ConAgra Foods, Hershey Food Corporation and Kraft Foods.

The DSS Printing Group is a wholly owned subsidiary of DSS and is located in Rochester, NY.  This division is now printing security for fortune 500 companies, governments, schools and universities as well as other printers. 

This division specializes in printing DSS’s patented security technologies onto products such as coupons, vital records, permits, prescription forms, shipping manifests, parts labels, voter ballots, receipts, tickets and anything requiring authentication and counterfeit prevention.  They also print secure labels and packaging sold by the DSS Packaging Division.

CEO Patrick White stated, “The problem of counterfeiting continues to increase worldwide.    The counterfeiting problem is no longer just a nuisance, its reaching critical mass.  We are pleased that DSS technology was selected to be utilized by these brands, which are some of the most recognized in the world.   We anticipate growth in these relationships through scheduled meetings to discuss their issues concerning brand protection, product diversion, authentication and counterfeit prevention. These orders and others continue to validate DSS as a best of breed solution against counterfeiting and brand protection.  DSS is positioned to become the industry leader in this space.”  

About DSS (Document Security Systems, Inc.):
DSS provides counterfeit prevention, RFID tracking and comprehensive brand and digital information protection solutions to corporations, governments, and financial institutions around the world.  DSS develops and manufactures secure printed products such as labels, packaging, ID Cards, RFID Cards and tags and documents using their AuthentiGuard line of patented optical deterrent and authentication technologies.  The company also provides cloud computing security services, provides disaster recovery backup, writes custom software solutions, and integrates track and trace technologies.

DSS is comprised of four operating units:
DSS Plastics Group: Custom RFID and Plastic ID Card Solutions (Brisbane, CA) PH: 1-415-585-9600 
DSS Packaging Group: Commercial and Secure Packaging Manufacturing (Victor, NY) PH:  585-924-8760 DSS Printing Group: Commercial and Security Printing Manufacturing (Rochester, NY) PH: 585-341-3100 DSS Digital Group: Cloud Computing Services and Secure Digital/Internet Documents (Rochester, NY) PH: 585-746-6958 

For more information on DSS and its subsidiaries, please visit our website.

Investor Relations:
Nicole Acton
585-325-3610                 
Email: ir@documentsecurity.com