ipCapital Group, Inc. Assesses Document Security Systems, Inc. Technology and IP
Licensing Market Potential at $245 Million
ROCHESTER, N.Y., May 15, 2012 /PRNewswire via COMTEX/ -- Document Security
Systems, Inc. (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:
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.
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.
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.
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.
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.
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 approximately 130 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.
Follow Document Security Systems, Inc. on LinkedIn, Facebook, Twitter and
WordPress.
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 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.
Safe Harbor Statement
The statements contained in this press release that are not purely historical are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934,
as amended, and are intended to be covered by the safe harbors created thereby.
These forward-looking statements include, but are not limited to, statements
regarding expectations for future financial performance, potential sales from new
and existing customers, expected benefits from the Company's cost cutting efforts
and/or statements preceded by, followed by or that include the words "believes,"
"could," "expects," "anticipates," "estimates," "intends," "plans," "projects,"
"seeks," or similar expressions, all of which involve uncertainty and risk. Many
of these risks and uncertainties are discussed in the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 2011 filed with the Securities
and Exchange Commission (the "SEC"), and in any subsequent reports filed with the
SEC, all of which are available at the SEC's website at sec.gov. It is
possible the company's future financial performance may differ from expectations
due to a variety of factors including, but not limited to, the risks referred to
above, and 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 it 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 more information:Investor Relations:Nicole Acton585-325-3610 Email:
ir@documentsecurity.com |
