enlighten wheelwright: 2012

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Friday, October 26, 2012

Waiting for A Document Security Windfall

Investing Daily Article of the Week

by John Persinos, Managing Director, Personal Finance and Investing Daily

The litigious nature of contemporary society can be a burden for some companies, but a potential pot of gold for others. What used to be a form of document-securitySMALL legal redress is now a business model.

This year among Internet companies, the jockeying has been heating up and shrewd investors are getting in line to profit. Case in point: Document Security Systems (NYSE MKT: DSS), a Rochester, NY-based company that specializes in digital security protection, is poised to reap a multi-billion dollar windfall from its pending lawsuit against the biggest names in social media.

Follow up:

The stock of this high-tech pioneer would likely soar if it prevails in its pending patent infringement case. However, the company?s strong products ensure long-term growth prospects, regardless of how the lawsuit turns out.

DSS creates and sells a host of security systems, including products that protect information from unauthorized scanning, copying, and digital imaging. The company signed a merger agreement in October with Bascom Research, a wholly owned subsidiary of Lexington Technology Group, a privately owned company that owns and manages intellectual property assets.

Shortly after the merger was announced this month, Bascom filed a lawsuit in the United States District Court for the Eastern District of Virginia, claiming that these five social media and business networking companies had infringed on Bascom?s patented technology: Facebook (NASDAQ: FB), LinkedIn (NYSE: LNKD), Novell (NASDAQ: NOVL), BroadVision (NASDAQ: BVSN), and Jive Software (NASDAQ: JIVE).

DSS expects to complete the merger by the first quarter of 2013, before any settlement payments are likely to be received. A court decision will probably be reached in the second half of next year.

The merged public entity would own the rights to the entire intellectual property portfolio under the unified umbrella of Lexington Technology Group, Bascom Research, and DSS.

The lawsuit claims that Bascom?s proprietary technology for online collaboration and document linking was patented as far back as 2001 (well in advance of the founding of Facebook and LinkedIn as companies). DSS? own technology already dovetails with that of Bascom?s and the two companies are on track to be integrated as a single organization. Shares of DSS jumped on the news of the lawsuit, as investors anticipated a legal win that would line DSS? coffers, but this fast-growing small-cap company has plenty of upside left.

There?s considerable precedent for this sort of litigation. Vringo (NYSE MKT: VRNG), a provider of software platforms for mobile social and mobile video services, is suing search behemoth Google (NASDAQ: GOOG) for infringing on its patented search technology. Sometimes pejoratively referred to as a ?patent troll,? Vringo is nonetheless betting that recently acquired intellectual property will drive revenue growth?and so far, that bet has been paying off.

Investors who have bid up DSS? stock clearly have in mind Vringo?s past successes, as well as Apple?s (NASDAQ: AAPL) historic legal victory in August against Samsung Electronics (OTC: SSNFL) for more than $1 billion, whereby Apple was able to convince a jury that Samsung had stolen basic smartphone designs from its highly popular iPhone.

DSS? stock is riding high, but some analysts expect the stock to perhaps triple in price if DSS wins. Although the exact amount of any possible award remains unknown, it would likely run into the billions of dollars.

The Wild, Digital West

Intellectual Property (IP) lawsuits resemble the Wild West, with huge sums at stake. According to a 2011 report from the World Intellectual Property Organization, the annual global IP licensing market has mushroomed from $2.8 billion in 1970 to $180 billion in 2009, the last year for which statistics are available.

The outright pirating of technology is rampant, reminiscent of the allegations made against Mark Zuckerberg by fellow Harvard students who were his early partners in creating a social media platform that eventually morphed into Facebook.

A cottage industry of so-called patent trolls has emerged, whereby companies legally lock up certain technologies with the intention of suing companies that purposely (or inadvertently) infringe on their patents. The phenomenon is giving rise to worries that quick-draw legal shootouts are impeding innovation. No one is accusing DSS of being a patent troll, but it certainly has good company when it comes to filing lawsuits.

The newly public Facebook is expected to earn about $5 billion in 2012; if the Virginia court rules that the company is generating its earnings by exploiting Bascom?s patented technology, it would prove a huge payday for DSS, either in the form of a one-time settlement or a continual licensing fee.

Odds are favorable that DSS will win. The company has retained a highly aggressive law firm with a proven track record of obtaining access to contested ?source codes? and prevailing in court.

However, DSS enjoys many inherent strengths and solid long-term prospects, regardless of how the legal battle turns out. For DSS, winning the lawsuit isn?t necessary to prosper; it would be icing on an already substantial cake.

DSS is a dominant player in the anti-counterfeiting market and holds over 50 patents and patents pending, most of which are extremely valuable. According to the technical publication Converting Quarterly, Internet fraud and counterfeiting is a worsening problem that results in an estimated $1 trillion in global losses. The magazine reports that companies spend more than $3 billion every year for online protection, an amount that?s expected to grow to over $79 billion by 2014.

The US government has mandated DSS technology to secure US Social Security cards; DSS? technology also is used to protect iconic consumer brands from counterfeiting, including those made by Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: CCE), Kellogg Company (NYSE: K), and Pfizer (NYSE: PFE).

This reliable roster of blue chip clients has helped DSS weather weak economic conditions. DSS reported second-quarter 2012 revenue of $3.7 million, a 27 percent increase over the same quarter a year ago. Revenue for the six months ended June 30, 2012 increased 35 percent from the first six months of 2011.

Gross profit for the second quarter was $1.3 million, a 65 percent increase from the year-ago quarter. Gross profit for the six months ended June 30, 2012 increased 48 percent from the first six months of 2011, largely because of higher sales and lower production costs.

The RFID Edge

DSS also plays a leadership role in radio frequency identification (RFID) tags, posing a significant long-term advantage for the company. Once considered the stuff of science fiction, RFID chips are now all around us. They?re used in tollbooths, at the gas pump, at airports, in retail stores ? even on the farm to keep track of animals.

RFID tags automatically identify a ?tagged? object or person by storing and remotely retrieving information from small transponders, or tags. Each tag features a built-in antenna that allows for the transmission and reception of radio waves from an RFID transceiver.

RFID is applicable anytime that a unique identification system is required. The tag can convey information as simple as the location of a product on a warehouse pallet, or as complex as instructions on how to assemble an automobile.

According to the consultancy IDTechEx, the value of the entire RFID market will be $7.46 billion by the end of 2012, up from $6.37 billion in 2011. In total, 3.98 billion tags will be sold in this year versus 2.93 billion in the previous year. DSS is in the vanguard of RFID development.

RFID chips have become a standard technology in the manufacturing and pharmaceutical industries. Even the US Defense Department mandates their use, for the provision and monitoring of spare parts and equipment in far-flung war zones.

Following the path of major retailers such as Wal-Mart Stores (NYSE: WMT), organizations in the public and private sectors are embracing RFID, a paradigm-shifting innovation that is generating operational efficiencies and enhancing corporate security. Now, RFID is the hottest trend in social media

As online marketers launch an increasing number of live events, the use of RFID tags in conjunction with Facebook is becoming more prevalent.

Online marketers staging live events use RFID to mesh the physical world of trade shows with the virtual world of social media. Combining RFID with social media enables users to interact at the time of an event.

The resulting RFID data stream gives social media marketing professionals a snapshot of a highly targeted group, with granular details that they couldn?t get any other way.

DSS also is making forays into electronic health records (EHR), providing RFID and digital security systems to hospitals to improve administrative efficiency and patient safety.

As part of the Obama administration?s American Recovery and Reinvestment Act of 2009, also known as the economic stimulus bill, the Health Information Technol?ogy for Economic and Clinical Health (HITECH) Act implemented substantial financial incen?tives for hospitals and physicians in the form of higher Medicare reimburse?ments to encourage the adoption of EHRs. The incentives total $19.2 billion and continue until 2014.

Increasing demand for DSS? proprietary technology in the booming EHR segment will be another long-term growth driver for the company. A high-tech pioneer that faces a potential legal windfall, Document Security Systems is a buy up to 7.

What do you think of this article? Please post your feedback in the ?comments? section below!

Related Article

Cyber Wars Escalating (GEI News, 24 October 2012)

Source: http://econintersect.com/b2evolution/blog3.php/2012/10/25/waiting-for-a-document-security-windfall

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Thursday, October 25, 2012

Ponting emphasizes importance of scoring runs against Victoria ...

Ponting emphasizes importance of scoring runs against Victoria ? Cricket News Update

After hitting a stellar first ton of the domestic season against a pace-driven Victorian side, Tasmanian and Australian veteran batsman, Ricky Ponting, has emphasized the importance of his knock in terms getting into the best shape as possible.

Punter geared up for the gruelling International home summer by helping his state side to a commanding first innings total of 439 against a potent Victorian pace attack, which included James Pattinson, Peter Siddle, Clint McKay and John Hastings.

Punter came to the crease following the loss of opener Ed Cowan, and aided Tasmania in ending the opening day one on 315 for 3. Resuming next morning from an individual 89, the 37-year-old brought his 78^th first class century off 144 balls and added 62 more before his side eventually declared shortly after lunch. His innings lasted almost six hours, where he took apart all the bowlers to hit 20 fours and a six.

His innings has given him much needed confidence ahead of the South African series where he is expected to face some of world?s best fast bowlers in Morne Morkel, Dale Steyn and Vernon Philander. All have been at the peak of their powers over the past 12 months, and recently played a pivotal part in ensuring that their side upstaged England as the no.1 ranked Test side.

While Punter has appreciated the quality of their upcoming opponents, he was not intimated over the prospect of facing Steyn and co, claiming that scoring runs against his countrymen in the domestic circuit has allowed him to get in the best shape for the coming weeks.

"Those guys are no quicker than (Peter) Siddle and (James) Pattinson that's for sure," he said."(But) they've got a very well-rounded attack so that's where this week for me was very important.

"I trained all week leading into the game knowing that I had to make the most of my opportunity against a very good Victorian attack to be in the best shape I could for the next few weeks."

He further was hopeful of Tasmania making the most of their dominance when they take the field on day 3. Victoria will commence from 4 for 132.

"Everything has fallen into place so far and we need to keep pushing the game forward tomorrow and see where it takes us."

Source: http://blogs.bettor.com/Ponting-emphasizes-importance-of-scoring-runs-against-Victoria-Cricket-News-Update-a197569

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Number of murdered Somali reporters grows to 16

In this photo taken Monday, July 11, 2011, journalist Ahmed Saakin Farah, a reporter for the Somali television station Universal, poses for a picture as he attends an annual meeting of the Somaliland Journalists Association in Hargeisa, Somaliland, a breakaway region of Somalia. Colleagues say the Somali journalist was shot to death by gunmen Tuesday, Oct. 23, 2012 in northern Somalia, bringing the number of journalists killed in Somalia this year to 16, most in targeted attacks by gunmen who know there is little chance they will be caught or jailed. (AP Photo/Barkhad Kaariye)

FILE - In this Friday, Sept. 21, 2012 file photo, friends and relatives attend the funeral of Abdisatar Daher Sabriye, a well known journalist with state-run television who died in a Thursday, Sept. 20, 2012 suicide bomb attack, during his funeral in Mogadishu, Somalia. The death of Somali television reporter Ahmed Saakin Farah on Tuesday, Oct. 23, 2012 brought the number of Somali journalists killed this year to 16, most in targeted attacks by gunmen who know there is little chance they will be caught or jailed, making Somalia the No. 2 country in the world, behind only Iraq, for unsolved journalist killings in recent years, according to the Committee to Protect Journalists. (AP Photo/Mohamed Sheikh Nor, File)

FILE - In this Thursday Oct, 14, 2010 file photo, veteran reporter Yusuf Ali Osman who had been serving as a director in Somalia's Ministry of Information, speaks during a meeting by Somali journalists in Mogadishu, Somalia, where he was shot dead by a man dressed as a high school student on Sunday, Aug. 12, 2012. The death of Somali television reporter Ahmed Saakin Farah on Tuesday, Oct. 23, 2012 brought the number of Somali journalists killed this year to 16, most in targeted attacks by gunmen who know there is little chance they will be caught or jailed, making Somalia the No. 2 country in the world, behind only Iraq, for unsolved journalist killings in recent years, according to the Committee to Protect Journalists. (AP Photo/Farah Abdi Warsameh, File)

FILE - In this 2010 file photo, the director of Shabelle radio station Hassan Osman Abdi, right, popularly known as Hassan Fantastic, presents a programme on social issues in the radio station's studio in Mogadishu, Somalia, where he was shot dead by gunmen on Saturday, Jan. 28, 2012. The death of Somali television reporter Ahmed Saakin Farah on Tuesday, Oct. 23, 2012 brought the number of Somali journalists killed this year to 16, most in targeted attacks by gunmen who know there is little chance they will be caught or jailed, making Somalia the No. 2 country in the world, behind only Iraq, for unsolved journalist killings in recent years, according to the Committee to Protect Journalists. (AP Photo/Mohamed Sheikh Nor, File)

FILE - In this Sunday, Jan, 29, 2012 file photo, Somali journalist Ahmed Addow Anshur is seen in Mogadishu, Somalia, where he was shot dead by gunmen on his way home on Wednesday, May 23, 2012. The death of Somali television reporter Ahmed Saakin Farah on Tuesday, Oct. 23, 2012 brought the number of Somali journalists killed this year to 16, most in targeted attacks by gunmen who know there is little chance they will be caught or jailed, making Somalia the No. 2 country in the world, behind only Iraq, for unsolved journalist killings in recent years, according to the Committee to Protect Journalists. (AP Photo/Farah Abdi Warsameh, File)

MOGADISHU, Somalia (AP) ? The list of murdered Somali journalists keeps growing longer, and no one seems able to stop it.

The death of Ahmed Saakin Farah brought the number to 16 Somali journalists killed this year, most in targeted attacks by gunmen who know there is little chance they will be caught or jailed.

Assailants shot Farah, a 25-year- old reporter for the London-based Universal TV, three times in the head around 9 p.m. Tuesday in the northern region of Somaliland.

"It's a shocking murder, and part of the anti-media campaign," Abdullahi Ahmed Nor, a fellow journalist, said Wednesday. "It was a big loss for us, his friends and family."

Somalia has been one of the most dangerous places to operate as a journalist this year. The irony for journalists is that Mogadishu, on the whole, is far safer than it was when the Islamist extremists, al-Shabab, controlled most of the city from 2007-2011. African Union troops forced al-Shabab out in August 2011, leading to less violence and a general revival of business, the arts and sports.

But a campaign targeting journalists has accelerated this year, and one sad fact seems likely to be fueling the murders: No suspects have been arrested for any of the crimes. Most of the killings have taken place in Mogadishu, but the latest murder, in the northern, semi-independent territory of Somaliland, could be a sign that the scourge of media deaths is spreading.

Killings of journalists during the Mogadishu conflict years was most certainly carried out by al-Shabab in retaliation for stories the group saw as negative, said Tom Rhodes, of the Committee to Protect Journalists. But since 2012, the list of potential killers has come to include business leaders and politicians, he said.

"Everyone knows in Somalia that you can kill a journalist and there will be no repercussions," he said, adding: "The other problem is that some of the perpetrators of these murders may very well be those in authority so they can hide behind their positions."

Though Mogadishu is safer than in years past, and though the government is slowly gaining some strength, the time that a skilled police force and competent judicial system are in operation is far off. The media landscape is blooming, but the killings make clear that some sectors of Somali society do not want a free media. The international community has increased its calls for government officials to stop the attacks and to punish those responsible for previous killings, but no progress has been made.

Mohamed Ibrahim, the secretary of a journalists union in Somalia, believes that most killings are carried out by al-Shabab militants. "And the rest are either politically motivated assassinations or by independent criminals whose aim are all about disrupting the increasing media landscape in Somalia," he said.

The British Ambassador to Somalia, Matt Baugh, and the U.N. representative to Somalia, Augustine Mahiga, were among the voices Wednesday pleading with the government to halt the killings.

"Trying to silence the media will have a devastating effect on the nation's vibrant media community. These attacks must stop and the crimes must be fully investigated by the Somali and Somaliland authorities," Mahiga said. "I call on the authorities to bolster their criminal investigation capacity and bring the perpetrators to justice."

Rhodes said the Somali government is too weak to carry out adequate investigations. Members of the government, he said, have admitted as much to him. "Furthermore it's a war situation where many sources are afraid to speak," Rhodes said.

In addition to the 16 deaths, Mahiga said reports indicate that 20 other journalists have been injured in attacks, including Mohamud Tuuryare, a journalist for the Shabelle media network who was shot Sunday and left in critical condition.

Somalia is the No. 2 country in the world, behind only Iraq, for unsolved journalist killings in recent years, according to the Committee to Protect Journalists. The following is a list of Somali deaths in 2012:

? Jan. 28: Gunmen kill Hassan Osman Abdi, the director of Shabelle radio in Mogadishu.

? Feb. 28: Gunmen kill Abukar Hassan Mohamoud, the director of Somaliweyn Radio in Mogadishu.

? March 4: Ali Ahmed Abdi, a reporter for Radio Galkayo, was killed in Galkayo in central Somalia

? April 5: Mahad Salad Aden, a reporter with Shabelle radio, was killed in Beledweyne, central Somalia.

? May 2: Farhan Jeemis Abdulle, a reporter with Radio Daljir, was killed in Galkayo.

? May 23: Ahmed Addow Anshur, a producer with Shabelle radio, was killed in Mogadishu.

? July 31: Abdi Jeylani Malaq, a Somali comedian and TV producer, was killed in Mogadishu.

? Aug. 12: Yusuf Ali Osman, a veteran reporter who had been serving as the director of Somalia's Information Ministry. Journalist Mohamud Ali Yare, killed in crossfire after government troops open fire on each other at a sports stadium.

? Sept. 20: Liban Ali Nur, an editor at Somali National TV; Abdisatar Daher Sabriye, a reporter with Radio Mogadishu; and Abdirahman Yasin Ali, the director of Radio Hamar. All three were killed when suicide bombers blew themselves up inside a popular caf? in Mogadishu.

? Sept. 21: Hassan Yusuf Absuge, Radio Maanta was killed in Mogadishu.

? Sept. 27: The decapitated body of Abdirahman Mohamed Ali, a sportswriter was found north of Mogadishu.

? Sept. 28: Ahmed Abdullahi Fanah, a reporter with the Yemeni news agency SABA, was killed in Mogadishu.

? Oct. 23: Ahmed Saakin Farah killed by gunmen in Somaliland.

___

Straziuso contributed from Nairobi, Kenya.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-10-24-Somalia-Journalist%20Killed/id-e5b069204e7746e6838cbd2d90db084c

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Wednesday, October 24, 2012

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No anti-trust concerns over TNK-BP deal: Russia government

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Friday, November 9, 2012

Chubby Kid Covers "We Are Young," Puts X Factor on Notice

Wednesday, October 31, 2012

New York Harbor "unlikely" to fully reopen Wednesday: U.S. Coast Guard