Nov 4 2009
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 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.