Document Security Systems expands in China

Anti-counterfeit company Document Security Systems has acquired a Chinese company to boosts its presence in Asia.

The acquisition – which comes alongside with the opening of a new technology development, customer support and product sales office in Guangzhou – gives DSS the licenses that are required and critical to operating within the Chinese marketplace, according to the Rochester, New York-based company.

DSS is best known in brand protection for its AuthentiGuard platform, a smartphone-based application that integrates traditional printed optical deterrent technologies with digital data security for anti-counterfeit, authentication and diversion protection.

DSS’s Asia subsidiary bought out software development company Guangzhou HotApp Technology for a $100,000, two-year unsecured promissory note.

The deal comes a few months after DSS walked away from a proposed $4.5m purchase agreement with Hong Kong-based Global eMacMall (GEMM), which would have given it a 51 per cent stage in the company, after a due diligence review.

The company started building its sales and marketing presence in Asia in January 2018 with the opening of a Hong Kong office, its first location outside the US.

“The Chinese market represents a $30trn opportunity for imported products over the next 15 years,” says Vincent Lum, President of DSS Asia (pictured). “Brand protection and anti-counterfeiting solutions have become imperative for multinational brands exporting products to China.”

China imported $1.84trn of goods in 2017, up 16 per cent on the prior year earlier, including $130bn of goods from the US.