8-K

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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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                                    FORM 8-K

                                 CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

       Date of Report (Date of earliest event reported): FEBRUARY 7, 2006

                         DOCUMENT SECURITY SYSTEMS, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)



             NEW YORK                       0-14621              16-1229730
  (STATE OR OTHER JURISDICTION OF         (COMMISSION          (IRS EMPLOYER
          INCORPORATION)                  FILE NUMBER)       IDENTIFICATION NO.)



     FIRST FEDERAL PLAZA, SUITE 1525
           28 EAST MAIN STREET
              ROCHESTER, NY                                         14614
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                         (ZIP CODE)


       Registrant's telephone number, including area code: (585) 325-3610


                                 NOT APPLICABLE
         (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):


|_| Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))



ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On February 7, 2006, Document Security Systems, Inc. ("DSSI"), through its
wholly owned subsidiary P3 Acquisition Sub, Inc., entered into and consummated
an Asset Purchase Agreement and thereby acquired substantially all of the assets
of Plastic Printing Professionals, Inc. ("P3") from P3 for $1.25 million in
cash, 18,704 shares of the DSSI's common stock and the assumption of certain
liabilities. The cash portion of the purchase price was paid using DSSI's cash
on hand. Michael Caulley and Jaeson Caulley have each signed multi-year
agreements to remain in their management roles of President and V.P. Plastics
Technologies, respectively. P3 is a security printer specializing in plastic
cards containing security technologies. P3 has 25 employees and had sales of
approximately $2.6 million in 2005. The assets purchased generally include the
seller's right, title and interest in and to, substantially all of the assets of
P3 and specifically include the following assets of P3:

   o  Cash on hand or in the bank as well as cash equivalents;

   o  Trade and accounts receivable;

   o  Inventory;

   o  Tangible personal property including machinery and equipment;

   o  Customer lists;

   o  Leaseholds;

   o  Rights, title and interest in and to all contracts, agreements, purchase
      orders licenses, and leases to which P3 is a party;

   o  Rights, title and interest of P3 in and to copyrights, trademarks, service
      marks, trade names, logos, EPA Registrations;

   o  Know-how, trade secrets, technology, software and production;

   o  Approvals, consents, licenses, permits, waivers or other authorizations
      issued, granted, given or otherwise made available under the authority of
      any government or political subdivision thereof or any executive,
      judicial, legislative, regulatory or administrative agency, authority or
      office;

   o  Engineering and production reports, consulting reports, health and safety
      data (including data in support of EPA Registration) marketing data and
      reports, forecasts, DacEasy billing data, product catalogues, technical
      equipment information and specifications, mailing lists, vendor and
      supplier lists, customer lists and any other similar information in
      tangible and/or electronic form;

   o  Goodwill in and going concern value of the Business, including the right
      to use the name "Plastic Printing Professionals" and "P3" and any
      variations thereof, and any goodwill related thereto;

   o  All other rights, interests, assets and items of property, real or
      personal, tangible or intangible, owned, used by or accruing to the
      benefit of Seller or necessary or desirable to enable Buyer to continue
      the Business substantially as conducted by Seller immediately before the
      closing date;

   o  All rights of P3 in its Patent Application.

   o  P3's working capital as it existed on the closing date.

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A copy of the press release announcing the acquisition is attached as Exhibit
99.1 and is incorporated by reference into this Item 1.01.

ITEM 2.01.  COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS

The information required by this Item is contained in Item 1.01 herein, which is
incorporated herein by reference.




ITEM 9.01         FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits

Exhibit No.       Document
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99.1              Press Release of the Registrant dated February 8, 2006.







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                                    SIGNATURE

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated:  February 13, 2006
                                        DOCUMENT SECURITY SYSTEMS, INC.


                                        By:  /s/ Patrick A. White
                                             ----------------------------------
                                             Name:  Patrick A.White
                                             Title:   Chief Executive Officer



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                                  EXHIBIT INDEX


EXHIBIT
NUMBER             DESCRIPTION
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99.1               Press Release of the Registrant dated February 8, 2006.








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EX-99.1

NEWS RELEASE                                                  [DOCUMENT SECURITY
                                                              SYSTEMS INC. LOGO]
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================================================================================
DOCUMENT SECURITY SYSTEMS INC.            For information contact:
First Federal Plaza                       Deborah K. Pawlowski, Kei Advisors LLC
28 East Main Street                       Phone: 716.843.3908
Rochester, NY 14614                       Fax: 716.856.0432
                                          Email: dpawlowski@keiadvisors.com

FOR IMMEDIATE RELEASE

             DOCUMENT SECURITY SYSTEMS INC. ANNOUNCES ACQUISITION OF
                      PLASTIC PRINTING PROFESSIONALS, INC.

ROCHESTER, NY, February 8, 2006 - Document Security Systems, Inc. (AMEX: DMC)
("DSSI"), a leader in proven, patented protection against counterfeiting and
unauthorized copying, scanning and photo imaging, today announced that it has
acquired San Francisco-based Plastic Printing Professionals, Inc. ("P3"), a
privately held, security printer specializing in plastic cards containing
security technologies. DSSI said that it expects the transaction to be accretive
to DSSI's financial results. DSSI acquired the business for $1.25 million in
cash and 18,704 shares of DSSI restricted stock.

P3 has 25 employees and sales of approximately $2.6 million in 2005. P3 brings
to DSSI its ability to combine innovative security and anti-counterfeiting
technology with unique manufacturing techniques to produce plastic cards such as
ID cards and drivers licenses; phone, bank and gift cards; and other plastic
documents that will incorporate DSSI anti-counterfeiting technologies.

P3's primary focus is manufacturing composite, laminated and surface printed
cards which can include mag stripes, bar codes, holograms, signature panels,
invisible ink, microfine printing, guilloche patterns, DNA and a patent pending
watermark technology. P3's products are marketed through an extensive broker
network that covers North America, Europe and South America. Its product and
client list includes the Grammy Awards, the Country Music Association awards,
Superbowl media cards, ID cards for major airports and Latin American drivers'
licenses.

Patrick White, Chairman, President and CEO of DSSI comments, "Our overall
strategic plan is to develop certified in-house manufacturing capabilities for
the production of a broad variety of highly secure products, and the acquisition
of P3 represents our debut into manufacturing. This acquisition gives us
manufacturing and research facilities to better serve our customers on the West
Coast. In addition to expanding and diversifying our base of North American and
international clients, through P3 we have access to a large distributor network
covering North America, Europe and South America."

P3's owners, Michael Caulley and Jaeson Caulley have each signed multi-year
agreements to remain in their management roles of President and V.P. Plastics
Technologies, respectively.




ABOUT DOCUMENT SECURITY SYSTEMS, INC.
Document Security Systems, Inc. (AMEX:DMC) is a leader in proven patented
protection against counterfeiting and unauthorized copying, scanning and photo
imaging. The company offers a broad portfolio of anti-counterfeiting
technologies, processes and products, and provides consulting for customized
document security printing solutions. Its various anti-scanning technologies and
products are used for currency, vital records, packaging, labels, tickets, ID
Cards, passports and gift certificates. Document Security Systems' products,
such as its new AuthentiGuard(TM) safety paper, protect original documents from
copying or duplication. Its strategy is to become the world's leading producer
of cutting-edge security technologies for printed products. More information
about Document Security Systems can be found at its website:
www.documentsecurity.com.

                                    - MORE -


DOCUMENT SECURITY SYSTEMS INC. ANNOUNCES ACQUISITION OF PLASTIC PRINTING
PROFESSIONALS, INC.
February 8, 2006


SAFE HARBOR STATEMENT
This release contains forward-looking statements regarding expectations for
future financial performance, which involve uncertainty and risk. It is possible
the Company's future financial performance may differ from expectations due to a
variety of factors including, but not limited to, changes in economic and
business conditions in the world, increased competitive activity, achieving
sales levels to fulfill revenue expectations, consolidation among its
competitors and customers, technology advancements, unexpected costs and
charges, adequate funding for plans, changes in interest and foreign exchange
rates, regulatory and other approvals and failure to implement all plans, for
whatever reason. It is not possible to foresee or identify all such factors. Any
forward-looking statements in this report are based on current conditions;
expected future developments and other factors it believes are appropriate in
the circumstances. Prospective investors are cautioned that such statements are
not a guarantee of future performance and actual results or developments may
differ materially from those projected. The Company makes no commitment to
update any forward-looking statement included herein, or disclose any facts,
events or circumstances that may affect the accuracy of any forward-looking
statement.


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