DSS Wins Appeal; Federal Circuit Reverses PTAB Ruling Finding Patent Claims Invalid Allowing DSS Patent Infringement Claims Against Apple to Proceed in Court

ROCHESTER, N.Y., March 26, 2018 -- Document Security Systems, Inc. (NYSE American:DSS), (“DSS”), a leader in anti-counterfeit, authentication, and diversion protection technologies whose products and solutions are used by governments, corporations and financial institutions to defeat fraud and to help ensure authenticity, announced today that the Patent Trial and Appeal Board (“PTAB”) was wrong when it found that claims 1–4 and 9–10 of U.S. Patent No. 6,128,290 (“the ‘290 patent”), owned by DSS, were unpatentable.

The ‘290 patent is the subject of DSS’s patent infringement lawsuit against Apple, Inc. (“Apple”) accusing various Apple products utilizing wireless Bluetooth connections to a plurality of peripheral devices, such as a keyboard and a mouse, of infringing the ‘290 patent.  DSS’ lawsuit has been stayed pending the resolution of Apple’s claims asserted in the PTAB that the asserted claims of the ‘290 patent were invalid.  “We are pleased that the Federal Circuit recognized that Apple had not proven the claims of the ‘290 patent to be invalid and look forward to pursuing our claims for patent infringement against Apple in court,” stated Jeff Ronaldi, CEO of DSS.

DSS now intends to ask the court handling its patent infringement lawsuit to lift the stay that had been pending resolution of the proceedings initiated by Apple in the PTAB, which DSS expects the court to do, and resume prosecution of those claims against Apple.

ABOUT DOCUMENT SECURITY SYSTEMS, INC.
For over 15 years, Document Security Systems, Inc. ("DSS") has protected corporations, financial institutions, and governments from sophisticated and costly fraud. DSS' innovative anti-counterfeit, authentication, and brand protection solutions are deployed to prevent attacks which threaten products, digital presence, financial instruments, and identification. AuthentiGuard^®, the company's flagship product, provides authentication capability through a smartphone application so businesses can empower a wide range of employees, supply chain personnel, and consumers to track their brands and verify authenticity. For more information on DSS and its Plastics Group subsidiary, visit http://www.dsssecure.com and http://dssplasticsgroup.com.

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Contact Information:

Investor Relations
Document Security Systems, Inc.
Tel: (585) 232-5440
Email: [email protected]

FORWARD-LOOKING STATEMENTS
Forward-looking statements that may be contained in this press release, including, without limitation, statements related to the Company’s plans, strategies, objectives, expectations, potential value, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain words such as “believes,” “anticipates,” “expects,” “plans,” “intends” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, the ultimate outcome of our patent claims against Apple, our ability to continue the growth in sales of AuthentiGuard and manage our expenses, as well as those risks disclosed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed  with the Securities and Exchange Commission on March 6, 2018.  Forward-looking statements that may be contained in this press release are being made as of the date of its release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.