Patent Law

The following is excerpted from a Document Security Systems February 18, 2010 PR Newswire press release published by bizjournals:

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.

...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.

Read the full release here.