Digimarc Launches ID Validation Solution to Support Homeland Security Measures and Combat Identity Theft and Fraud

Business Wire, May 23, 2005

BEAVERTON, Ore. -- Digimarc ID Validation Suite System Aligns with Federal Security Legislation by Authenticating and Archiving Credentials Presented to Establish One's Identity

Digimarc Corporation (Nasdaq:DMRCE) today announced its Digimarc ID Validation Suite (IDVS) system, an authentication and archiving solution developed to help issuers of government IDs meet the goals of new federal ID security legislation and support efforts to fight identity theft and fraud.

The Digimarc IDVS system is a comprehensive solution for enabling detection of falsified identity credentials at critical points of inspection such as Department of Motor Vehicle (DMV) offices, in police cruisers, transportation access points, retail points of sale or any other environments where there is a need to ensure the authenticity of documents presented to establish one's identity.

"Given Digimarc's depth of experience with DMVs and document security, we are in a unique position to help our customers address the driver license security requirements of new federal legislation," said Bruce Davis, chairman and CEO, Digimarc. "The Digimarc IDVS system marks a new era in ID security. At Digimarc, we see a future where the IDVS offering can alert operators to validation issues based not only on alteration of a specific document, but also based on trends the system 'learns.' This is a major step forward in the fight against identity theft and in supporting homeland security measures."

Supporting DMV Secure Document Issuance

The Digimarc IDVS system is initially targeted to serve DMVs and other issuers of government IDs to aid them in meeting American Association of Motor Vehicle Administrators (AAMVA) Security Framework identification guidelines and support the authentication and archiving requirements of the REAL ID Act provisions of Public Law No: 109-13, an emergency supplemental appropriations bill signed into law on May 11. DMVs are crucial gateways to identity credentials, and are expected to continue to lead the charge in establishing and managing secure issuance processes.

"Illegitimate use of identity documents poses a threat to our personal, economic and national security. Ensuring that identity documents are issued only to legitimate holders is more important than ever in the security-conscious world we live in," said J. Scott Carr, divisional president, Digimarc. "Digmarc's solution is the first generation of combined technology, business rules and auditing that effectively addresses the issues outlined in the Real ID legislation."

Designed to improve the accuracy and efficiency of identification inspection at the DMV, the Digimarc IDVS offering provides authentication results in an easy-to-read format for operators, supervisors and inspectors. By presenting immediate feedback on the authenticity of the document, the Digimarc IDVS system speeds the document issuance process, and extends and enhances training in fraudulent document recognition. The system supports a customizable user interface, business rules and internal controls to ensure documents are correctly reviewed, verified and archived. The archive feature provides an audit trail for later investigation and enables DMVs to address the new requirement under the Real ID Act of retaining paper copies of source documents for a minimum of 7 years or images of source documents presented for a minimum of 10 years.

Modular System Integrates with Industry-Leading Hardware and Software Readers; Authenticates Multiple Features

The Digimarc IDVS system determines whether the ID is genuine, altered or counterfeit by reading and authenticating multiple, machine-readable security features found in driver licenses, passports and other credentials such as IDMarc(TM) digital watermarks, barcodes, magnetic stripes, and optical variable image devices such as Kinegrams. To further enhance the authentication process, the Digimarc IDVS software consolidates authentication results from multiple features and document designs into a simple form and allows for a more detailed view by authorized personnel.

Built upon Digimarc's modular software platform, the Digimarc IDVS system can be deployed stand-alone or integrated into new or existing document inspection and issuance systems. Because of its flexible architecture, the Digimarc IDVS solution enables agencies to choose from a range of Digimarc-certified hardware readers and configurable software modules to fit particular workflows and budgets. The Digimarc IDVS Certified Partner Program, which was also announced today, includes hardware and software reader products from AssureTec, Intelli-Check and Syscan.

Availability

Digimarc is making its solution available to all North American DMVs, issuers of government IDs and system integrators.

Digimarc also plans to make the Digimarc IDVS solution available to law enforcement agencies, retailers and financial institutions as a means to authenticate credentials presented to establish identity, access restricted areas, purchase controlled products such as alcohol, tobacco and firearms, or conduct financial transactions.