<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>t301179.txt
<DESCRIPTION>SUPPLEMENT TO PROSP.
<TEXT>


                                                     424(b)(3) Supplement
                                                     Registration No. 333-116317


                 SUPPLEMENT TO PROSPECTUS DATED AUGUST 12, 2004
                                       OF
                         DOCUMENT SECURITY SYSTEMS, INC.

         Fordham Financial Management, Inc. has indicated to Document Security
Systems, Inc. its willingness to act as underwriter on behalf of certain of the
Selling Holders named in the Prospectus under "Securities Offered, the Selling
Holders and the Plan of Distribution," specifically Fordham intends to act on
behalf of those Selling Holders that purchased privately placed securities of
Document Security Systems, Inc. and has made the required filing under National
Association of Securities Dealers, Inc. Rule 2710. All shares sold on behalf of
Selling Holders by Fordham would be in transactions executed by Fordham on an
agency basis and commissions charged to its customers in connection with each
transaction shall not exceed a maximum of 2 % of the gross proceeds. Fordham
does not have an underwriting agreement with Document Security Systems, Inc.
and/or the Selling Holders and no Selling Holders are required to execute
transactions through Fordham.

         The Corporate Finance Department of the NASD has advised Fordham under
Notice to Members 88-101, that in the event a Selling Holder intends to sell any
of the shares registered for resale in this Prospectus through a member of the
NASD participating in a distribution of securities of Document Security Systems,
Inc., such member is responsible for insuring that a timely filing is first made
with the Corporate Finance Department of the NASD and disclosing to the
Corporate Finance Department of the NASD the following:

     o    it intends to take possession of the registered securities or to
          facilitate the transfer of such certificates;
     o    the complete details of how the Selling Holders shares are and will be
          held, including location of the particular accounts;
     o    whether the member firm or any direct or indirect affiliates thereof
          have entered into, will facilitate or otherwise participate in any
          type of payment transaction with the Selling Holders, including
          details regarding any such transactions; and
     o    in the event any of the securities offered by the Selling Holders are
          sold, transferred, assigned or hypothecated by any Selling Holder in a
          transaction that directly or indirectly involves a member firm of the
          NASD or any affiliates thereof, that prior to or at the time of said
          transaction the member firm will timely file all relevant documents
          with respect to such transaction(s) with the Corporate Finance
          Department of the NASD for review.

         No persons associated with Document Security Systems, Inc. or the
Selling Holders may participate in the distribution of the shares to be offered
by Selling Holders unless they meet the safe harbor provisions of the SEC Rule
3a4-1 promulgated under the Securities Exchange Act of 1934 with respect to
exemption from registration as a broker/dealer.

                 The date of this Supplement is August 13, 2004




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</DOCUMENT>
