Intangible Assets

9 Months Ended

Sep. 30, 2014

4.	Intangible Assets

On May 23, 2014, the Company's subsidiary, DSS Technology Management, purchased 115 patents covering certain methods and processes in the semiconductor industry for $1,150,000. In addition, the Company has capitalized approximately $66,000 of patent application costs during the nine months ended September 30, 2014.

Intangible assets are comprised of the following:

				September 30, 2014						December 31, 2013
				Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
	Useful Life			Amount		Amortizaton		Amount		Amount		Amortizaton		Amount


Acquired intangibles- customer lists and non- compete agreements	5 -10 years			$	1,997,300	$	1,485,047	$	512,253	$	1,997,300	$	1,343,819	$	653,481
Acquired intangibles-patents and patent rights		Varied	(1)		31,506,567		5,301,745		26,204,822		30,356,164		2,042,083		28,314,081
Patent application costs		Varied	(2)		1,031,183		404,385		626,798		965,523		330,494		635,029
				$	34,535,050	$	7,191,177	$	27,343,873	$	33,318,987	$	3,716,396	$	29,602,591

(1)acquired patents and patent rights are amortized over their expected useful life which is generally the remaining legal life of the patent. As of September 30, 2014, the weighted average remaining useful life of these assets in service was approximately 6.1 years.

(2) patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of September 30, 2014, the weighted average remaining useful life of these assets in service was approximately 8.2 years.

Intangible asset amortization expense for the nine months ended September 30, 2014 amounted to $3,474,781 ($1,213,872 for the same period in 2013).

Approximate expected intangible asset amortization for the fourth quarter of 2014 and for each of the five succeeding fiscal years is as follows:

Fourth quarter of 2014	$	1,173,000
2015	$	4,603,000
2016	$	4,403,000
2017	$	4,384,000
2018	$	4,248,000
2019	$	3,975,000
Thereafter	$	4,558,000
Total	$	27,344,000

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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