Slide 1: Lexington Technology Group & Document Security Systems Announce Merger
www.dsssecure.com Lexington Technology Group & Document Security Systems Announce Merger www.lex - tg.com
Slide 2: Cautionary Note Regarding Forward-Looking Statements
1 Cautionary Note Regarding Forward - Looking Statements Statements in this presentation regarding the proposed transaction between Document Security Systems, Inc . ("DSS") and Lexington Technology Group, Inc . ("Lexington Technology Group") ; the expected timetable for completing the transaction ;
Slide 3: Important Additional Information Will Be Filed with the SEC
2 Important Additional Information Will Be Filed with the SEC This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities of DSS or Lexington Technology Group or the solicitation of any vote or approval . In connection with the proposed transaction,
Slide 4: DSS's Merger with LTG Will Bring Strong Patent Monetization Management
3 DSS’s Merger with LTG Will Bring Strong Patent Monetization Management to a Technology Innovator with Aggressive IP Focus DSS in Brief ▪ A leader in the document anti - counterfeiting field with customers world - wide. ▪ R & D focus on technology – established industry standard (required on all U.
Slide 5: Document Security Systems, Inc. (DSS) Overview
4 Document Security Systems, Inc. (“DSS”) Overview DSS : A history of protecting famous brands from counterfeiting … …is moving to a future of protecting them in the “cloud.” Evolving its expertise in optical security technology, trusted for securing some of the world’s most important documents, to
Slide 6: LTG: A New Class of IP Investment Company
5 LTG: A New Class of IP Investment Company ▪ Our team comprises experienced managers and advisors who have demonstrated success in generating returns from patent monetization. ▪ We work with leading research institutions and innovators. ▪ We invest in “high stakes” patent litigation and broad indus
Slide 7: LTG Management & Experience
6 LTG Management & Experience 1. www.ipnav.com; interviews with company management (8/2012) Over $600 mm in patent monetization since 2004 via >700 settlements with >500 companies 1 Will Rosellini, Chief Executive Officer Will Rosellini , Chief Executive Officer Peter Hardigan , Chief Operating Offi
Slide 8: LTG – Independent Directors
7 LTG – Independent Directors ▪ In 2005, co - founded Altitude Capital Partners, a private investment fund focused on investing in, enforcing and protecting the rights of intellectual property (IP) assets ▪ Managed Altitude’s key investment portfolio companies, including Visto, Saxon, DeepNines, Mer
Slide 9: LTG Business Model: High-Stakes Litigation and Broad Licensing
8 ▪ High - Stakes Litigation: Each case designed to have high potential upside, but with risk of trial and appeal ▪ Broad Licensing: Often 25+ licensees in an effort, typical payment size <$ 1MM ▪ Build portfolio of >5 high - stakes claims & 5 ongoing licensing efforts to generate cash flow ▪ Partne
Slide 10: LTG Initial Investment: Bascom Research, LLC
9 LTG Initial Investment: Bascom Research, LLC ▪ Bascom Research is a wholly owned subsidiary of LTG , based in McLean, Va. ▪ On October 3rd, 2012, Bascom Research filed patent infringement lawsuits in the Eastern District of Virginia (EDVA) against five defendants: • Novell, Inc. • LinkedIn Corp. •
Slide 11: Bascom Research is the IP Licensing Company for Tom Bascom
10 Bascom Research is the IP Licensing Company for Tom Bascom, the founder of LinkSpace ▪ Tom is the Founder of LinkSpace , LLC (www.linkspace.net); founded in 2001 & located in Mclean, VA ▪ LinkSpace ® is a platform for efficient user sharing and collaboration via relationship linking A “found engi
Slide 12: Bascom Research – Management & Advisory Team
11 Bascom Research – Management & Advisory Team Litigation & Licensing Team Kramer Levin Naftalis & Frankel LLP Jonathan Caplan , Partner Paul Andre, Partner ▪ Kramer Levin, managing the EDVA case, has extensive experience in high - stakes patent litigation ▪ Relevant prior experience with Facebook
Slide 13: Bascom Research Patents Disclose Relationships with Attributes
12 Bascom Research Patents Disclose “Relationships with Attributes” ▪ Establishing a relationship between two or more objects (e.g., user profiles, documents, articles, data entries, etc.) ▪ With the ability to describe / customize and display the characteristics of the relationship Exemplary Use of
Slide 14: Portfolio Prosecution History
13 Portfolio Prosecution History ▪ Parent patent ’792 withstood a lengthy prosecution history: 64 U.S. patent documents and 10 non - patent references were considered by the USPTO . ▪ Presumption of validity: clear and convincing evidence is required to prove invalidity in court. “The prior art neit
Slide 15: Bascom Patent Portfolio
14 Bascom Patent Portfolio 3/10/01: ’520 Prov. 6/10/08: ’792 Patent 4/10/01: ’470 Prov. 1/18/02: ’515 App. ▪ 6 Issued patents, 4 pending applications ▪ Cited by over 25 patents, including prominent networking companies , such as: IBM, Oracle, Fujitsu, Microsoft Corporation, EMC Corporation, Juniper
Slide 16: Bascom Research Seeks a Reasonable Royalty from Each Defendant
15 = Damages claim (Potentially) License fee + Bascom Research Seeks a Reasonable Royalty from Each Defendant OCT 2006 2013 2022 The full past damages period, which begins up to six years prior to filing the complaint, (October 2006) through the conclusion of the trial (estimated to be in late 2013)
Slide 17: Bascom Research Case and Potential Timeline
16 Bascom Research Case and Potential Timeline • During the Markman hearing, the judge interprets the patent claims for the benefit of the jury • The jury is called upon to determine liability based on the accepted claim interpretation • Judgments may be appealed to the Court of Appeals for the Fede
Slide 18: LTG Planned Merger with DSS Advances Strategy on Both Sides
17 LTG Planned Merger with Document Security Systems ( NYSE MKT: DSS ) Advances Strategy on Both Sides ▪ DSS has continually “upped the ante” by becoming an IP company and sought to acquire strong IP management ▪ LTG sought to acquire or merge with public operating companies in cloud space to match
Slide 19: Combined Company – Management
18 Combined Company – Management ▪ Lexington Tech Group Management will lead new DSS ▪ Sharing of key resources ▪ Licensing team will also oversee existing litigation EXISTING OPERATIONS LICENSING Peter Hardigan CIO John Cronin Special Advisor Philip Jones CFO Jeff D’Angelo General Counsel David Wic
Slide 20: Combined Company – Board of Directors
19 Combined Company – Board of Directors Independent Directors Company Directors Peter Hardigan CIO Warren Hurwitz Jeff Ronaldi To Be Named Will Rosellini CEO Robert Bzdick COO David Klein Ira Greenstein Robert Fagenson Chairman, DSS LTG DSS
Slide 21: Contact Information
20 Contact Information Investors Media Website Jennifer Buckley Executive Director Lexington Technology Group jen@lex - tg.com Jamie Diafera Infinite Public Relations, LLC 212.687.0935 jdiaferia@infinitepr.com www.lex - tg.com Phil Jones Chief Financial Officer Document Security Systems pjones@dssse