Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On December 2, 2008, Document Security Systems, Inc. (the "Company") received notice ("Notice") from the NYSE Alternext Staff (the "Exchange") indicating that the Company is below certain of the Exchange's continued listing standards as set forth in the Exchange's Company Guide (the "Company Guide").

The Notice indicated that the Company had fallen below section 1003(a)(ii) of the Company Guide, which requires companies listed on the Exchange to maintain stockholders' equity of at least $4,000,000 if such company has sustained losses from continuing operations and/or net losses in three of its four most recent fiscal years, and section 1003(a)(iii) which requires that companies maintain stockholders' equity of at least $6,000,000 if such issuer has sustained losses from continuing operations and/or net losses in its five most recent fiscal years.

Pursuant to the Company Guide, the Company was afforded the opportunity to submit a plan of compliance (the "Plan") to the Exchange by January 2, 2009 that demonstrates the Company's ability to regain compliance with sections 1003(a)(ii) and (iii) of the Company Guide by June 2, 2010. If the Company does not submit a Plan to the Exchange, or if the Exchange does not accept the Plan, the Company will be subject to delisting procedures as mandated by the Company Guide. The Company intends to submit a Plan to the Exchange. If the Exchange accepts the Plan, it will review the Company periodically to ensure compliance with the Plan.

On December 8, 2008, the Registrant issued a press release regarding the Notice, a copy of which is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits Exhibit No. Document 99.1 Press Release of the Registrant dated December 8, 2008.

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