"The pen itself is a biometric authentication system, which means that inside the pen, we have a series of sensors that are able to register the way that people write."
It detects the angle of your writing, the pressure and such. Things that are nearly impossible to duplicate. The pen stores the information and sends it wirelessly to your computer. It can then be used to verify you are you before an online transaction is approved. A quick check can be run with your bank or credit card company...
"And on that network you have a reference signature, which basically is being matched with the signature that is being produced by the pen."
The pen is already being tested in Europe and should be here later this year. Mass production could bring the cost down to about forty dollars. You can find more information at smartpen.net.