Digimarc (DMRC) 10-Q 30 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 26, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	DMRC
Entity Registrant Name	Digimarc CORP
Entity Central Index Key	1,438,231
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		8,908,854

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 11,452	$ 6,122
Marketable securities	31,585	32,201
Trade accounts receivable, net	2,687	4,545
Other current assets	2,862	2,611
Total current assets	48,586	45,479
Marketable securities		749
Property and equipment, net	2,852	2,976
Intangibles, net	6,723	6,720
Goodwill	1,114	1,114
Other assets	312	378
Total assets	59,587	57,416
Current liabilities:
Accounts payable and other accrued liabilities	1,814	1,379
Deferred revenue	1,642	3,660
Total current liabilities	3,456	5,039
Deferred rent and other long-term liabilities	210	203
Total liabilities	$ 3,666	$ 5,242
Commitments and contingencies (Note 13)
Shareholders' equity:
Preferred stock (par value $0.001 per share, 2,500 authorized, 10 shares issued and outstanding at September 30, 2015 and December 31, 2014)	$ 50	$ 50
Common stock (par value $0.001 per share, 50,000 authorized, 8,906 and 8,427 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively)	9	8
Additional paid-in capital	76,599	60,222
Accumulated deficit	(20,737)	(8,106)
Total shareholders' equity	55,921	52,174
Total liabilities and shareholders' equity	$ 59,587	$ 57,416

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,500	2,500
Preferred stock, shares issued	10	10
Preferred stock, shares outstanding	10	10
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	8,906	8,427
Common stock, shares outstanding	8,906	8,427

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Service	$ 3,072	$ 3,155	$ 9,808	$ 8,859
Subscription	1,561	1,452	4,947	4,360
License	753	2,320	2,418	6,576
Total revenue	5,386	6,927	17,173	19,795
Cost of revenue:
Service	1,204	1,224	4,279	3,807
Subscription	808	812	2,428	2,160
License	86	84	256	250
Total cost of revenue	2,098	2,120	6,963	6,217
Gross profit	3,288	4,807	10,210	13,578
Operating expenses:
Sales and marketing	2,309	1,999	6,497	5,930
Research, development and engineering	3,236	3,499	9,345	10,449
General and administrative	1,847	2,183	6,033	6,929
Intellectual property	367	366	1,025	1,287
Total operating expenses	7,759	8,047	22,900	24,595
Operating loss	(4,471)	(3,240)	(12,690)	(11,017)
Other income, net	29	3	84	50
Loss before income taxes	(4,442)	(3,237)	(12,606)	(10,967)
(Provision) benefit for income taxes	(27)	1,252	(25)	4,316
Net loss	$ (4,469)	$ (1,985)	$ (12,631)	$ (6,651)
Earnings (loss) per common share:
Loss per common share-basic	$ (0.54)	$ (0.28)	$ (1.56)	$ (0.95)
Loss per common share-diluted	$ (0.54)	$ (0.28)	$ (1.56)	$ (0.95)
Weighted average common shares outstanding-basic	8,309	7,176	8,101	7,097
Weighted average common shares outstanding-diluted	8,309	7,176	8,101	7,097
Cash dividends declared per common share				$ 0.22

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]
Balance at Dec. 31, 2013	$ 50,923	$ 50	$ 7	$ 41,498	$ 9,368
Balance, shares at Dec. 31, 2013		10	7,401
Exercise of stock options	1,319		$ 1	1,318
Exercise of stock options, shares			185
Issuance of restricted common stock, shares			204
Forfeiture of restricted common stock, shares			(13)
Purchase and retirement of common stock	(1,931)			(1,931)
Purchase and retirement of common stock, shares			(88)
Stock-based compensation	4,218			4,218
Tax impact from stock-based awards	(1,347)			(1,347)
Net loss	(6,651)				(6,651)
Cash dividends declared	(1,654)				(1,654)
Balance at Sep. 30, 2014	44,877	$ 50	$ 8	43,756	1,063
Balance, shares at Sep. 30, 2014		10	7,689
Balance at Dec. 31, 2014	52,174	$ 50	$ 8	60,222	(8,106)
Balance, shares at Dec. 31, 2014		10	8,427
Issuance of common stock, net of issuance costs	12,896		$ 1	12,895
Issuance of common stock, net of issuance costs, shares			342
Exercise of stock options	$ 1,321			1,321
Exercise of stock options, shares	91		91
Issuance of restricted common stock, shares			132
Forfeiture of restricted common stock, shares			(29)
Purchase and retirement of common stock	$ (1,833)			(1,833)
Purchase and retirement of common stock, shares			(57)
Stock-based compensation	3,994			3,994
Net loss	(12,631)				(12,631)
Balance at Sep. 30, 2015	$ 55,921	$ 50	$ 9	$ 76,599	$ (20,737)
Balance, shares at Sep. 30, 2015		10	8,906

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (12,631)	$ (6,651)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and write-off of property and equipment	930	708
Amortization and write-off of intangibles	794	916
Changes in allowance for doubtful accounts	16	(13)
Stock-based compensation	3,857	4,085
Deferred income taxes		(2,874)
Changes in operating assets and liabilities:
Trade accounts receivable	1,842	2,000
Other current assets	(251)	(1,559)
Other assets	66	160
Accounts payable and other accrued liabilities	280	(340)
Deferred revenue	(1,929)	(2,338)
Net cash used in operating activities	(7,026)	(5,906)
Cash flows from investing activities:
Purchase of property and equipment	(747)	(1,010)
Capitalized patent costs	(646)	(922)
Maturity of marketable securities	79,985	47,961
Purchase of marketable securities	(78,620)	(38,840)
Net cash provided by (used in) investing activities	(28)	7,189
Cash flows from financing activities:
Issuance of common stock, net of issuance costs	12,896	(124)
Exercise of stock options	1,321	1,319
Purchase of common stock	(1,833)	(1,931)
Cash dividends paid		(1,654)
Net cash provided by (used in) financing activities	12,384	(2,390)
Net increase (decrease) in cash and cash equivalents	5,330	(1,107)
Cash and cash equivalents at beginning of period	6,122	3,811
Cash and cash equivalents at end of period	11,452	2,704
Supplemental disclosure of cash flow information:
Cash paid (received) for income taxes, net	22	(12)
Supplemental schedule of non-cash investing activities:
Property and equipment and patent costs included in accounts payable	73	194
Stock-based compensation capitalized to patent costs and software	$ 137	$ 133

Description of Business and Sig

Description of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Significant Accounting Policies	1. Description of Business and Significant Accounting Policies Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company has developed the Digimarc Discover® and Digimarc Barcode™ Intuitive Computing Platform that are designed to optimize the identification of all consumer brand impressions, wherever and whenever they may appear, facilitating modern mobile-centric shopping. The platform includes means to embed “Digimarc Barcodes,” invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into virtually all forms of media content, including consumer products packaging. Digimarc Barcodes have many applications, including facilitating remarkably faster scanning of products at retail checkout as well as improved engagement with smartphone-equipped consumers. The Digimarc Barcode is robust yet imperceptible by people in ordinary use, allowing for reliable, efficient, economical, globally scalable automatic identification of media without visible computer codes like traditional barcodes. Digimarc Discover is a multi-modal discovery software platform that facilitates automatic identification of items by smartphone users. The Company also supplies anti-counterfeiting solutions to Central Banks and anti-piracy solutions to rights-holders of ebooks and digital images. Interim Consolidated Financial Statements The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2014 in preparing the accompanying interim consolidated financial statements. The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 20, 2015. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented. Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to their carrying value. The Company operates as a single reporting unit. The Company estimated the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. In connection with the Company’s annual impairment test of goodwill as of June 30, 2015 and 2014, it was concluded that there was no impairment as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606)

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	2. Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying values due to the short-term nature of these instruments. The Company records marketable securities at amortized cost, which approximates fair value. The Company’s fair value hierarchy for its cash equivalents and marketable securities as of September 30, 2015 and December 31, 2014, respectively, was as follows: September 30, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 3,423 $ — $ — $ 3,423 Corporate notes — 17,220 — 17,220 Federal agency notes — 6,591 — 6,591 Commercial paper — 6,304 — 6,304 Pre-refunded municipal bonds (1) — 5,928 — 5,928 Certificates of deposits — 2,038 — 2,038 Total $ 3,423 $ 38,081 $ — $ 41,504 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries. The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Cash equivalents and marketable securities $ 41,504 $ 41,504 $ — $ — $ — The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include money market funds and certificates of deposit totaling $9,919 and $5,344 at September 30, 2015 and December 31, 2014, respectively. Cash equivalents are carried at cost or amortized cost, which approximates fair value.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2015
Text Block [Abstract]
Revenue Recognition	3. Revenue Recognition The Company derives its revenue primarily from development services, subscriptions and licensing of its intellectual property: • Service revenue consists primarily of software development and consulting services. The majority of service revenue arrangements are structured as time and materials consulting agreements. • Subscription revenue includes Digimarc Discover, Barcode and Guardian products and services, is generally recurring, paid in advance and recognized over the term of the subscription. • License revenue originates primarily from licensing the Company’s intellectual property where the Company receives license fees and/or royalties as its income stream. Revenue is recognized in accordance with ASC 605 “ Revenue Recognition Software (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collection is reasonably assured. Some customer arrangements encompass multiple deliverables, such as patent licenses, professional services, software licenses, and maintenance and support fees. For arrangements that include multiple deliverables, the Company identifies separate units of accounting at inception based on the consensus reached under ASC 605-25 “ Multiple-Element Arrangements The relative selling price method allocates the consideration based on the Company’s specific assumptions rather than assumptions of a marketplace participant, and any discount in the arrangement proportionally to each deliverable on the basis of each deliverable’s selling price. Applicable revenue recognition criteria is considered separately for each separate unit of accounting as follows: • Service revenue is generally determined based on time and materials. Revenue for development and consulting services is recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. • Subscription revenue, which includes Digimarc Discover, Barcode and Guardian products and services, is generally paid in advance and recognized over the term of the subscription, which is generally one to three years. • License revenue is recognized when amounts owed to the Company have been earned, are fixed or determinable (within the Company’s normal 30 to 60 day payment terms), and collection is reasonably assured. If the payment terms extend beyond the normal 30 to 60 days, the fee may not be considered to be fixed or determinable, and the revenue would then be recognized when installments are due. • The Company records revenue from certain license agreements upon cash receipt as a result of collectability not being reasonably assured. • The Company’s standard payment terms for license arrangements are 30 to 60 days. Extended payment terms on patent license arrangements are not considered to be fixed or determinable if payments are due beyond the Company’s standard payment terms, primarily because of the risk of substantial modification present in the Company’s patent licensing business. As such, revenue on license arrangements with extended payment terms are recognized as fees become fixed or determinable. Deferred revenue consists of billings in advance for service, subscription and license contracts for which revenue has not been earned.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	4. Segment Information Geographic Information The Company derives its revenue from a single reporting segment: media management solutions. Revenue is generated in this segment through development services, subscriptions and licensing of intellectual property. The Company markets its products in the U.S. and in non-U.S. countries through its sales and licensing personnel. Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Domestic $ 1,733 $ 3,046 $ 5,178 $ 7,946 International (1) 3,653 3,881 11,995 11,849 Total $ 5,386 $ 6,927 $ 17,173 $ 19,795 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable. Major Customers Customers who accounted for 10% or more of the Company’s revenue are as follows: Three Three Nine Nine Central Banks 53 % 43 % 56 % 47 % Verance Corporation — 23 % — 14 % In the third quarter of 2014, the Company extended the patent license agreement with Verance through 2023, in effect waiving any future royalties and license fees, in exchange for a $1.0 million license fee payment.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation Stock-based compensation includes expense charges for all stock-based awards to employees and directors. These awards include stock option grants and restricted stock awards. Stock-based compensation expense related to internal labor is capitalized to patent costs and software based on direct labor hours charged to capitalized patent costs and software. Determining Fair Value Stock Options Valuation and Amortization Method. Expected Life. Expected Volatility. Risk-Free Interest Rate. Expected Dividend Yield. There were no stock options granted during the three- and nine-month periods ended September 30, 2015 and 2014. The Company records stock-based compensation expense for stock option awards only for those awards that are expected to vest. Restricted Stock The fair value of restricted stock awarded is based on the fair market value of the Company’s common stock on the date of the grant, and is recognized over the vesting period using the straight-line method. The Company records stock-based compensation expense for restricted stock awards only for those awards that are expected to vest. Stock-based Compensation Three Three Nine Nine Stock-based compensation: Cost of revenue $ 171 $ 131 $ 569 $ 402 Sales and marketing 251 187 585 504 Research, development and engineering 396 363 1,011 1,083 General and administrative 485 688 1,487 1,844 Intellectual property 74 85 205 252 Stock-based compensation expense 1,377 1,454 3,857 4,085 Capitalized to patent costs and software 46 46 137 133 Total stock-based compensation expense $ 1,423 $ 1,500 $ 3,994 $ 4,218 The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including stock options and restricted stock: As of As of Total unrecognized compensation costs $ 10,380 $ 11,206 Total unrecognized compensation costs will be adjusted for any future changes in estimated forfeitures. The Company expects to recognize the unrecognized compensation costs as of September 30, 2015 for stock options and restricted stock over weighted average periods through September 2019 as follows: Stock Restricted Weighted average period 0.0 years 1.4 years As of September 30, 2015, under all of the Company’s stock-based compensation plans, equity awards to purchase an additional 1,434 shares were authorized for future grants under the plans. The Company issues new shares upon option exercises. Stock Option Activity The following table reconciles the outstanding balance of stock options: Three-months ended September 30, 2015: Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at June 30, 2015 530 $ 17.12 $ 8.51 Options granted — — — Options exercised (20 ) 9.64 6.30 Options forfeited or expired — — — Outstanding at September 30, 2015 510 $ 17.41 $ 8.59 $ 6,699 Nine-months ended September 30, 2015: Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2014 601 $ 16.97 $ 8.42 Options granted — — — Options exercised (91 ) 14.47 7.46 Options forfeited or expired — — — Outstanding at September 30, 2015 510 $ 17.41 $ 8.59 $ 6,699 Exercisable at September 30, 2015 510 $ 17.41 $ 6,699 The aggregate intrinsic value is based on the closing price of $30.55 per share of Digimarc common stock on September 30, 2015, which would have been received by the optionees had all of the options with exercise prices less than $30.55 per share been exercised on that date. Restricted Stock Activity The following table reconciles the unvested balance of restricted stock: Three-months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Unvested balance, June 30, 2015 489 $ 23.98 Granted 13 $ 37.60 Vested (52 ) $ 24.53 Forfeited (1 ) $ 24.43 Unvested balance, September 30, 2015 449 $ 24.30 Nine-months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Unvested balance, December 31, 2014 502 $ 23.09 Granted 132 $ 29.37 Vested (156 ) $ 24.80 Forfeited (29 ) $ 23.68 Unvested balance, September 30, 2015 449 $ 24.30 The following table indicates the fair value of all restricted stock awards that vested during the three- and nine-months ended September 30, 2015 and 2014: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, Nine Months Ended Fair value of restricted stock awards vested $ 1,961 $ 1,206 $ 4,840 $ 4,417

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	6. Earnings (Loss) Per Common Share The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share Basic earnings per common share excludes dilution and is calculated by dividing earnings to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing earnings to common shares by the weighted-average number of common shares, as adjusted for the potentially dilutive effect of stock options. The following table reconciles earnings (loss) per common share for the three- and nine-month periods ended September 30, 2015 and 2014: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,651 ) Distributed earnings to common shares — — — 1,553 Distributed earnings to participating securities — — — 101 Total distributed earnings — — — 1,654 Undistributed loss allocable to common shares (4,469 ) (1,985 ) (12,631 ) (8,305 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (4,469 ) (1,985 ) (12,631 ) (8,305 ) Loss to common shares—basic $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,752 ) Denominator Weighted average common shares outstanding—basic 8,309 7,176 8,101 7,097 Basic earnings (loss) per common share $ (0.54 ) $ (0.28 ) $ (1.56 ) $ (0.95 ) Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,752 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares—diluted $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,752 ) Denominator Weighted average common shares outstanding—basic 8,309 7,176 8,101 7,097 Dilutive effect of stock options — — — — Weighted average common shares outstanding—dilutive 8,309 7,176 8,101 7,097 Diluted earnings (loss) per common share $ (0.54 ) $ (0.28 ) $ (1.56 ) $ (0.95 ) There were 272 and 234 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three- and nine-month periods ended September 30, 2015, respectively, as the Company incurred a net loss during the periods. There were 218 and 226 common stock equivalents related to stock options that were anti-dilutive and excluded from diluted earnings per common share calculations for the three- and nine-month periods ended September 30, 2014, respectively, as the Company incurred a net loss during the periods.

Trade Accounts Receivable

Trade Accounts Receivable	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Trade Accounts Receivable	7. Trade Accounts Receivable Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount. September 30, 2015 December 31, 2014 Trade accounts receivable $ 2,725 $ 4,567 Allowance for doubtful accounts (38 ) (22 ) Trade accounts receivable, net $ 2,687 $ 4,545 Unpaid deferred revenue included in trade accounts receivable $ 639 $ 1,974 Allowance for doubtful accounts The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing trade accounts receivable. The Company determines the allowance based on historical write-off experience and current information. The Company reviews its allowance for doubtful accounts each reporting period. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Unpaid deferred revenue The unpaid deferred revenue that is included in trade accounts receivable is billed in accordance with the provisions of the contracts with the Company’s customers. Unpaid deferred revenue from the Company’s cash-basis customers is not included in trade accounts receivable nor deferred revenue. Major customers Customers who accounted for 10% or more of trade accounts receivable, net are as follows: September 30, 2015 December 31, Central Banks 35 % 61 % Intellectual Ventures 18 % * Civolution * 13 % * Less than 10%

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	8. Property and Equipment Property and equipment are stated at cost. Repairs and maintenance are charged to expense when incurred. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally ranging from two to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. September 30, 2015 December 31, 2014 Office furniture and fixtures $ 927 $ 845 Software 1,640 1,312 Equipment 3,275 3,072 Leasehold improvements 1,237 1,198 Gross property and equipment 7,079 6,427 Less accumulated depreciation and amortization (4,227 ) (3,451 ) Property and equipment, net $ 2,852 $ 2,976

Intangibles

Intangibles	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangibles	9. Intangibles Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Amortization of capitalized patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, generally approximating seventeen years. Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets, generally ranging from one to seven years. September 30, December 31, Capitalized patent costs $ 6,722 $ 6,183 Intangible assets acquired: Purchased patents and intellectual property 250 250 Existing technology 1,560 1,560 Customer relationships 290 290 Backlog 760 760 Tradenames 290 290 Non-solicitation agreements 120 120 Gross intangible assets 9,992 9,453 Accumulated amortization (3,269 ) (2,733 ) Intangibles, net $ 6,723 $ 6,720

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Shareholders' Equity	10. Shareholders’ Equity In August 2014, the Company entered into an Equity Distribution Agreement, whereby the Company may sell from time to time through Wells Fargo Securities, LLC, as sales agent, the Company’s common stock having an aggregate offering price of up to $30 million. For the three- and nine-month periods ended September 30, 2015, the Company sold 342 common shares at a weighted average price of $38.83 per share under this Equity Distribution Agreement totaling $12,978 of cash proceeds, net of sales commissions of $299, and paid $82 in stock issuance costs. As of September 30, 2015, the Company has sold 1,026 shares under the Equity Distribution Agreement at an average price of $29.24 resulting in $29,300 of cash proceeds, net of sales commissions of $700, and paid $415 in stock issuance costs. There are no shares remaining to be sold under the Equity Distribution Agreement.

Joint Ventures and Related Part

Joint Ventures and Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Joint Ventures and Related Party Transactions	11. Joint Ventures and Related Party Transactions On July 1, 2009, Digimarc and Nielsen commenced operation of two joint ventures with Nielsen, TVaura LLC (in which Digimarc holds a 51% ownership interest) and TVaura Mobile LLC (in which Digimarc holds a 49% ownership interest). In March 2012, Digimarc and Nielsen decided to reduce the investments in both two joint ventures to minimal levels while assessing alternative approaches to achieving each of their goals in media asset management and the emerging market opportunity of synchronized second screen television. Payment of all expenses incurred after the suspension of operations of each joint venture was unconditionally the responsibility of the majority owner, which expenses for TVaura LLC, if any, will be paid by Digimarc. In October 2015, Digimarc and Nielsen reactivated the TVaura Mobile LLC joint venture to allow it to provide solutions to programmers and advertisers for engaging with consumers on second screens and otherwise provide enhanced flexibility to brand strategies targeting modern consumers. The enhanced cooperation represents another building block in developing the market for Digimarc Discover and Digimarc Barcode. Initially, neither Digimarc nor Nielsen will be contributing any capital to the joint venture upon reactivation. Summarized financial information for the joint ventures has not been provided as the disclosures are immaterial to the Company’s filing given the operations of the joint ventures were suspended through September 30, 2015. The joint ventures had no revenue or expenses for the three- and nine-month periods ended September 30, 2015 and 2014. The Company’s investment in each joint venture was $0 as of September 30, 2015 and December 31, 2014.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The (provision) benefit for income taxes reflects current taxes, deferred taxes, and withholding taxes in certain foreign jurisdictions. The effective tax rate for the nine-months ended September 30, 2015 and 2014 was 0% and 40%, respectively. The valuation allowance against net deferred tax assets as of September 30, 2015 was $12,092, an increase of $4,804 from $7,288 as of December 31, 2014.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies.” The Company is subject from time to time to other legal proceedings and claims arising in the ordinary course of business.

Description of Business and S20

Description of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Digimarc Corporation (“Digimarc” or the “Company”), an Oregon corporation, enables governments and enterprises around the world to give digital identities to media and objects that computers can sense and recognize and to which they can react. The Company has developed the Digimarc Discover® and Digimarc Barcode™ Intuitive Computing Platform that are designed to optimize the identification of all consumer brand impressions, wherever and whenever they may appear, facilitating modern mobile-centric shopping. The platform includes means to embed “Digimarc Barcodes,” invisible and inaudible barcode-like information that is recognizable by smartphones, industrial scanners, and other computer interfaces into virtually all forms of media content, including consumer products packaging. Digimarc Barcodes have many applications, including facilitating remarkably faster scanning of products at retail checkout as well as improved engagement with smartphone-equipped consumers. The Digimarc Barcode is robust yet imperceptible by people in ordinary use, allowing for reliable, efficient, economical, globally scalable automatic identification of media without visible computer codes like traditional barcodes. Digimarc Discover is a multi-modal discovery software platform that facilitates automatic identification of items by smartphone users. The Company also supplies anti-counterfeiting solutions to Central Banks and anti-piracy solutions to rights-holders of ebooks and digital images.
Interim Consolidated Financial Statements	Interim Consolidated Financial Statements The Company has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2014 in preparing the accompanying interim consolidated financial statements. The accompanying interim consolidated financial statements have been prepared from the Company’s records without audit and, in management’s opinion, include all adjustments (consisting of only normal recurring adjustments) necessary to fairly reflect the financial condition and the results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 20, 2015. The results of operations for the interim periods presented in these consolidated financial statements are not necessarily indicative of the results for the full year.
Reclassifications	Reclassifications Certain prior period amounts in the accompanying consolidated financial statements and notes thereto have been reclassified to conform to current period presentation. These reclassifications had no material effect on the results of operations or financial position for any period presented.
Goodwill	Goodwill The Company tests goodwill for impairment annually in June and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Such reviews assess the fair value of the Company’s assets compared to their carrying value. The Company operates as a single reporting unit. The Company estimated the fair value of its single reporting unit using a market approach, which takes into account the Company’s market capitalization plus an estimated control premium. In connection with the Company’s annual impairment test of goodwill as of June 30, 2015 and 2014, it was concluded that there was no impairment as the estimated fair value of the Company’s reporting unit substantially exceeded the carrying value.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606)
Earnings Per Share	The Company calculates basic and diluted earnings per common share in accordance with ASC 260 “ Earnings Per Share
Contingencies	Certain of the Company’s product license and services agreements include an indemnification provision for claims from third parties relating to the Company’s intellectual property. Such indemnification provisions are accounted for in accordance with ASC 450 “ Contingencies.”

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Financial Assets	The Company’s fair value hierarchy for its cash equivalents and marketable securities as of September 30, 2015 and December 31, 2014, respectively, was as follows: September 30, 2015 Level 1 Level 2 Level 3 Total Money market securities $ 3,423 $ — $ — $ 3,423 Corporate notes — 17,220 — 17,220 Federal agency notes — 6,591 — 6,591 Commercial paper — 6,304 — 6,304 Pre-refunded municipal bonds (1) — 5,928 — 5,928 Certificates of deposits — 2,038 — 2,038 Total $ 3,423 $ 38,081 $ — $ 41,504 December 31, 2014 Level 1 Level 2 Level 3 Total Money market securities $ 3,556 $ — $ — $ 3,556 Corporate notes — 19,245 — 19,245 Pre-refunded municipal bonds (1) — 13,317 — 13,317 Certificates of deposits — 2,176 — 2,176 Total $ 3,556 $ 34,738 $ — $ 38,294 (1) Pre-refunded municipal bonds are collateralized by U.S. treasuries.
Summary of Fair Value Maturities for Financial Asset	The fair value maturities of the Company’s cash equivalents and marketable securities as of September 30, 2015 are as follows: Maturities by Period Total Less than 1-5 years 5-10 years More than Cash equivalents and marketable securities $ 41,504 $ 41,504 $ — $ — $ —

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Geographical Segment Revenue	Revenue by geographic area, based upon the “bill-to” location, was as follows: Three Three Nine Nine Domestic $ 1,733 $ 3,046 $ 5,178 $ 7,946 International (1) 3,653 3,881 11,995 11,849 Total $ 5,386 $ 6,927 $ 17,173 $ 19,795 (1) Revenue from the Central Banks, consisting of a consortium of central banks around the world, is classified as international revenue. Reporting revenue by country for this customer is not practicable.
Customers Who Accounted for 10% or More of Company's Revenue	Customers who accounted for 10% or more of the Company’s revenue are as follows: Three Three Nine Nine Central Banks 53 % 43 % 56 % 47 % Verance Corporation — 23 % — 14 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Allocation of Stock-Based Compensation	Stock-based Compensation Three Three Nine Nine Stock-based compensation: Cost of revenue $ 171 $ 131 $ 569 $ 402 Sales and marketing 251 187 585 504 Research, development and engineering 396 363 1,011 1,083 General and administrative 485 688 1,487 1,844 Intellectual property 74 85 205 252 Stock-based compensation expense 1,377 1,454 3,857 4,085 Capitalized to patent costs and software 46 46 137 133 Total stock-based compensation expense $ 1,423 $ 1,500 $ 3,994 $ 4,218
Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted	The following table sets forth total unrecognized compensation cost related to non-vested stock-based awards granted under all equity compensation plans, including stock options and restricted stock: As of As of Total unrecognized compensation costs $ 10,380 $ 11,206
Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock	The Company expects to recognize the unrecognized compensation costs as of September 30, 2015 for stock options and restricted stock over weighted average periods through September 2019 as follows: Stock Restricted Weighted average period 0.0 years 1.4 years
Reconciliation of Outstanding Balance of Stock Options	The following table reconciles the outstanding balance of stock options: Three-months ended September 30, 2015: Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at June 30, 2015 530 $ 17.12 $ 8.51 Options granted — — — Options exercised (20 ) 9.64 6.30 Options forfeited or expired — — — Outstanding at September 30, 2015 510 $ 17.41 $ 8.59 $ 6,699 Nine-months ended September 30, 2015: Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2014 601 $ 16.97 $ 8.42 Options granted — — — Options exercised (91 ) 14.47 7.46 Options forfeited or expired — — — Outstanding at September 30, 2015 510 $ 17.41 $ 8.59 $ 6,699 Exercisable at September 30, 2015 510 $ 17.41 $ 6,699
Reconciliation of Unvested Balance of Restricted Stock	The following table reconciles the unvested balance of restricted stock: Three-months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Unvested balance, June 30, 2015 489 $ 23.98 Granted 13 $ 37.60 Vested (52 ) $ 24.53 Forfeited (1 ) $ 24.43 Unvested balance, September 30, 2015 449 $ 24.30 Nine-months ended September 30, 2015: Number of Shares Weighted Average Grant Date Fair Value Unvested balance, December 31, 2014 502 $ 23.09 Granted 132 $ 29.37 Vested (156 ) $ 24.80 Forfeited (29 ) $ 23.68 Unvested balance, September 30, 2015 449 $ 24.30
Fair Value of Restricted Stock Awards Vested	The following table indicates the fair value of all restricted stock awards that vested during the three- and nine-months ended September 30, 2015 and 2014: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Fair value of restricted stock awards vested $ 1,961 $ 1,206 $ 4,840 $ 4,417

Earnings (Loss) Per Common Sh24

Earnings (Loss) Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Summary of Reconciliation of Earnings (Loss) Per Common Share	The following table reconciles earnings (loss) per common share for the three- and nine-month periods ended September 30, 2015 and 2014: Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Basic Earnings (Loss) per Common Share: Numerator: Net loss $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,651 ) Distributed earnings to common shares — — — 1,553 Distributed earnings to participating securities — — — 101 Total distributed earnings — — — 1,654 Undistributed loss allocable to common shares (4,469 ) (1,985 ) (12,631 ) (8,305 ) Undistributed earnings allocable to participating securities — — — — Total undistributed loss (4,469 ) (1,985 ) (12,631 ) (8,305 ) Loss to common shares—basic $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,752 ) Denominator Weighted average common shares outstanding—basic 8,309 7,176 8,101 7,097 Basic earnings (loss) per common share $ (0.54 ) $ (0.28 ) $ (1.56 ) $ (0.95 ) Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Diluted Earnings (Loss) per Common Share: Numerator: Loss to common shares—basic $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,752 ) Undistributed earnings allocated to participating securities — — — — Undistributed earnings reallocated to participating securities — — — — Loss to common shares—diluted $ (4,469 ) $ (1,985 ) $ (12,631 ) $ (6,752 ) Denominator Weighted average common shares outstanding—basic 8,309 7,176 8,101 7,097 Dilutive effect of stock options — — — — Weighted average common shares outstanding—dilutive 8,309 7,176 8,101 7,097 Diluted earnings (loss) per common share $ (0.54 ) $ (0.28 ) $ (1.56 ) $ (0.95 )

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Summary of Trade Accounts Receivable	Trade accounts receivable are recorded at the invoiced amount. September 30, 2015 December 31, 2014 Trade accounts receivable $ 2,725 $ 4,567 Allowance for doubtful accounts (38 ) (22 ) Trade accounts receivable, net $ 2,687 $ 4,545 Unpaid deferred revenue included in trade accounts receivable $ 639 $ 1,974
Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net	Customers who accounted for 10% or more of trade accounts receivable, net are as follows: September 30, 2015 December 31, Central Banks 35 % 61 % Intellectual Ventures 18 % * Civolution * 13 % * Less than 10%

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation and Amortization on Property and Equipment Using the Straight-Line Method	Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, generally ranging from two to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life or the lease term. September 30, 2015 December 31, 2014 Office furniture and fixtures $ 927 $ 845 Software 1,640 1,312 Equipment 3,275 3,072 Leasehold improvements 1,237 1,198 Gross property and equipment 7,079 6,427 Less accumulated depreciation and amortization (4,227 ) (3,451 ) Property and equipment, net $ 2,852 $ 2,976

Intangibles (Tables)

Intangibles (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets Acquired	Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets, generally ranging from one to seven years. September 30, December 31, Capitalized patent costs $ 6,722 $ 6,183 Intangible assets acquired: Purchased patents and intellectual property 250 250 Existing technology 1,560 1,560 Customer relationships 290 290 Backlog 760 760 Tradenames 290 290 Non-solicitation agreements 120 120 Gross intangible assets 9,992 9,453 Accumulated amortization (3,269 ) (2,733 ) Intangibles, net $ 6,723 $ 6,720

Description of Business and S28

Description of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Impairment of goodwill	$ 0	$ 0

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 41,504
Fair value, measurements, recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	41,504	$ 38,294
Fair value, measurements, recurring [Member] | Pre-refunded municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,928	13,317
Fair value, measurements, recurring [Member] | Money market securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,423	3,556
Fair value, measurements, recurring [Member] | Corporate notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	17,220	19,245
Fair value, measurements, recurring [Member] | Federal agency notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,591
Fair value, measurements, recurring [Member] | Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,304
Fair value, measurements, recurring [Member] | Certificates of deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,038	2,176
Fair value, measurements, recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,423	3,556
Fair value, measurements, recurring [Member] | Level 1 [Member] | Money market securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,423	3,556
Fair value, measurements, recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	38,081	34,738
Fair value, measurements, recurring [Member] | Level 2 [Member] | Pre-refunded municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,928	13,317
Fair value, measurements, recurring [Member] | Level 2 [Member] | Corporate notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	17,220	19,245
Fair value, measurements, recurring [Member] | Level 2 [Member] | Federal agency notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,591
Fair value, measurements, recurring [Member] | Level 2 [Member] | Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	6,304
Fair value, measurements, recurring [Member] | Level 2 [Member] | Certificates of deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 2,038	$ 2,176

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Summary of Fair Value Maturities for Financial Asset (Detail) $ in Thousands	Sep. 30, 2015USD ($)
Fair Value Disclosures [Abstract]
Maturities, Total	$ 41,504
Maturities, Less than 1 year	41,504
Maturities, 1-5 years	0
Maturities, 5-10 years	0
Maturities, More than 10 years	$ 0

Fair Value of Financial Instr31

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Highly liquid marketable securities with original maturities	90 days or less
Cash equivalents include money market funds and certificates of deposit	$ 9,919	$ 5,344

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015
Revenue Recognition [Abstract]
Period of revenue from services	1 month
Subscription revenue term, minimum	1 year
Subscription revenue term, maximum	3 years
License revenue recognized payment terms, maximum	60 days
License revenue recognized payment terms, minimum	30 days

Segment Information - Additiona

Segment Information - Additional Information (Detail) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2014USD ($)	Sep. 30, 2015Segment	Sep. 30, 2014
Revenue, Major Customer [Line Items]
Number of reporting segment | Segment		1
Verance Corporation [Member]
Revenue, Major Customer [Line Items]
Patent license agreement expiration, year	2,023
License fee	$ 1
Sales [Member] | Verance Corporation [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Revenue from segment	23.00%		14.00%
Sales [Member] | Minimum [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Revenue from segment		10.00%

Segment Information - Geographi

Segment Information - Geographical Segment Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 5,386	$ 6,927	$ 17,173	$ 19,795
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	1,733	3,046	5,178	7,946
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 3,653	$ 3,881	$ 11,995	$ 11,849

Segment Information - Customers

Segment Information - Customers Who Accounted for 10% or More of Company's Revenue (Detail) - Customer Concentration Risk [Member] - Sales [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Central Banks [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage	53.00%	43.00%	56.00%	47.00%
Verance Corporation [Member]
Revenue, Major Customer [Line Items]
Entity wide revenue major customers percentage		23.00%		14.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual terms			10 years
Stock options granted	0	0	0	0
Options with exercise prices less than per share	$ 17.41		$ 17.41		$ 17.12	$ 16.97
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation plans, shares authorized for future grants			1,434,000
Intrinsic value is based on closing price of per share of Digimarc common stock	30.55		$ 30.55
Options with exercise prices less than per share	$ 30.55		$ 30.55
Minimum [Member] | Employee [Member] | Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock			3 years
Minimum [Member] | Director [Member] | Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock			1 year
Maximum [Member] | Employee [Member] | Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock			4 years
Maximum [Member] | Director [Member] | Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock options and restricted stock			2 years

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,377	$ 1,454	$ 3,857	$ 4,085
Capitalized to patent costs and software	46	46	137	133
Total stock-based compensation expense	1,423	1,500	3,994	4,218
Cost of revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	171	131	569	402
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	251	187	585	504
Research, development and engineering [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	396	363	1,011	1,083
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	485	688	1,487	1,844
Intellectual property [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 74	$ 85	$ 205	$ 252

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost Related to Non-Vested Stock-Based Awards Granted (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total unrecognized compensation costs	$ 10,380	$ 11,206

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Period for Recognition of Unrecognized Compensation Cost for Stock Options and Restricted Stock (Detail)	9 Months Ended
	Sep. 30, 2015
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	0 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period	1 year 4 months 24 days

Stock-Based Compensation - Reco

Stock-Based Compensation - Reconciliation of Outstanding Balance of Stock Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at beginning	530		601
Options granted	0	0	0	0
Options exercised	(20)		(91)
Options forfeited or expired	0		0
Outstanding at ending	510		510
Exercisable at ending	510		510
Weighted Average Exercise Price at beginning	$ 17.12		$ 16.97
Weighted Average Exercise Price, Options granted	0		0
Weighted Average Exercise Price, Options exercised	9.64		14.47
Weighted Average Exercise Price, Options forfeited or expired	0		0
Weighted Average Exercise Price at ending	17.41		17.41
Weighted Average Exercise Price, Exercisable at ending	17.41		17.41
Weighted Average Grant Date Fair Value at beginning	8.51		8.42
Weighted Average Grant Date Fair Value, Options granted	0		0
Weighted Average Grant Date Fair Value, Options exercised	6.30		7.46
Weighted Average Grant Date Fair Value, Options forfeited or expired	0		0
Weighted Average Grant Date Fair Value at ending	8.59		8.59
Weighted Average Grant Date Fair Value, Exercisable at ending	$ 0		$ 0
Aggregate Intrinsic Value Outstanding at ending	$ 6,699		$ 6,699
Aggregate Intrinsic Value, Exercisable at ending	$ 6,699		$ 6,699

Stock-Based Compensation - Re41

Stock-Based Compensation - Reconciliation of Unvested Balance of Restricted Stock (Detail) - Restricted Stock [Member] - $ / shares shares in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Number of Shares
Unvested, beginning balance	489	502
Granted	13	132
Vested	(52)	(156)
Forfeited	(1)	(29)
Unvested, ending balance	449	449
Weighted Average Grant Date Fair Value
Unvested, beginning balance	$ 23.98	$ 23.09
Granted	37.60	29.37
Vested	24.53	24.80
Forfeited	24.43	23.68
Unvested, ending balance	$ 24.30	$ 24.30

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Restricted Stock Awards Vested (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted stock awards vested	$ 1,961	$ 1,206	$ 4,840	$ 4,417

Earnings (Loss) Per Common Sh43

Earnings (Loss) Per Common Share - Summary of Reconciliation of Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic Earnings (Loss) per Common Share:
Net loss	$ (4,469)	$ (1,985)	$ (12,631)	$ (6,651)
Distributed earnings to common shares				1,553
Distributed earnings to participating securities				101
Total distributed earnings				1,654
Undistributed loss allocable to common shares	(4,469)	(1,985)	(12,631)	(8,305)
Undistributed earnings allocable to participating securities	0	0	0	0
Total undistributed loss	(4,469)	(1,985)	(12,631)	(8,305)
Loss to common shares-basic	$ (4,469)	$ (1,985)	$ (12,631)	$ (6,752)
Weighted average common shares outstanding-basic	8,309	7,176	8,101	7,097
Basic earnings (loss) per common share	$ (0.54)	$ (0.28)	$ (1.56)	$ (0.95)
Diluted Earnings (Loss) per Common Share:
Loss to common shares-basic	$ (4,469)	$ (1,985)	$ (12,631)	$ (6,752)
Undistributed earnings allocated to participating securities	0	0	0	0
Undistributed earnings reallocated to participating securities	0	0	0	0
Loss to common shares-diluted	$ (4,469)	$ (1,985)	$ (12,631)	$ (6,752)
Weighted average common shares outstanding-basic	8,309	7,176	8,101	7,097
Dilutive effect of stock options	0	0	0	0
Weighted average common shares outstanding-dilutive	8,309	7,176	8,101	7,097
Diluted earnings (loss) per common share	$ (0.54)	$ (0.28)	$ (1.56)	$ (0.95)

Earnings (Loss) Per Common Sh44

Earnings (Loss) Per Common Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Common stock equivalents related to stock options that were anti-dilutive and excluded from diluted net income per share	272	218	234	226

Trade Accounts Receivable - Sum

Trade Accounts Receivable - Summary of Trade Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts Receivable, Net, Current [Abstract]
Trade accounts receivable	$ 2,725	$ 4,567
Allowance for doubtful accounts	(38)	(22)
Trade accounts receivable, net	2,687	4,545
Unpaid deferred revenue included in trade accounts receivable	$ 639	$ 1,974

Trade Accounts Receivable - Add

Trade Accounts Receivable - Additional Information (Detail)	Sep. 30, 2015
Accounts receivable [Member] | Minimum [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	10.00%

Trade Accounts Receivable - Cus

Trade Accounts Receivable - Customers Who Accounted for 10% or More of Trade Accounts Receivable, Net (Detail) - Accounts receivable [Member] - Credit Concentration Risk [Member]	Sep. 30, 2015	Dec. 31, 2014
Central Banks [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	35.00%	61.00%
Intellectual Ventures [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers	18.00%
Civolution [Member]
Concentration Risk [Line Items]
Percentage of trade accounts receivable of major customers		13.00%

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	2 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives of the assets	7 years

Property and Equipment - Deprec

Property and Equipment - Depreciation and Amortization on Property and Equipment Using the Straight-Line Method (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Office furniture and fixtures	$ 927	$ 845
Software	1,640	1,312
Equipment	3,275	3,072
Leasehold improvements	1,237	1,198
Gross property and equipment	7,079	6,427
Less accumulated depreciation and amortization	(4,227)	(3,451)
Property and equipment, net	$ 2,852	$ 2,976

Intangibles - Additional Inform

Intangibles - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years
Capitalized patent costs [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years

Intangibles - Amortization of I

Intangibles - Amortization of Intangible Assets Acquired (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs	$ 6,722	$ 6,183
Intangible assets acquired:
Gross intangible assets	9,992	9,453
Accumulated amortization	(3,269)	(2,733)
Intangibles, net	6,723	6,720
Purchased patents and intellectual property [Member]
Intangible assets acquired:
Intangible assets amount	250	250
Existing technology [Member]
Intangible assets acquired:
Intangible assets amount	1,560	1,560
Customer relationships [Member]
Intangible assets acquired:
Intangible assets amount	290	290
Backlog [Member]
Intangible assets acquired:
Intangible assets amount	760	760
Tradenames [Member]
Intangible assets acquired:
Intangible assets amount	290	290
Non-solicitation agreements [Member]
Intangible assets acquired:
Intangible assets amount	$ 120	$ 120

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Aug. 31, 2014	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2015
Equity Distribution Agreement [Member]
Shareholders Equity [Line Items]
Net sales commissions			$ 299,000	$ 299,000	$ 700,000
Stock issuance cost			$ 82,000	$ 82,000	$ 415,000
Shares sold under equity distribution agreement	0
Common Stock [Member]
Shareholders Equity [Line Items]
Issuance of common stock				342,000
Common Stock [Member] | Equity Distribution Agreement [Member]
Shareholders Equity [Line Items]
Issuance of common stock			342,000	342,000	1,026,000
Weighted average price per share			$ 38.83	$ 38.83	$ 29.24
Cash proceeds from shares sold			$ 12,978,000	$ 12,978,000	$ 29,300,000
Maximum [Member]
Shareholders Equity [Line Items]
Aggregate offering price for common stock		$ 30,000,000

Joint Ventures and Related Pa53

Joint Ventures and Related Party Transactions - Additional Information (Detail) - USD ($)	Jul. 01, 2009	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
TVaura LLC [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	51.00%
Investment in joint venture		$ 0		$ 0		$ 0
Joint ventures revenue or expenses		0	$ 0	0	$ 0
TVaura Mobile LLC [Member]
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	49.00%
Investment in joint venture		0		0		$ 0
Joint ventures revenue or expenses		$ 0	$ 0	$ 0	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	0.00%	40.00%
Deferred tax assets, valuation allowance	$ 12,092		$ 7,288
Change in valuation allowance	$ 4,804