Initial Statement of Beneficial Ownership (3)

FORM 3	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES	OMB APPROVAL OMB Number: 3235-0104 Estimated average burden hours per response... 0.5
	Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940

1. Name and Address of Reporting Person ^*

Murale Daniel

2. Date of Event Requiring Statement (MM/DD/YYYY) 9/15/2016

3. Issuer Name and Ticker or Trading Symbol

FALCONSTOR SOFTWARE INC [FALC]

(Last) (First) (Middle)

C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01

4. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director _____ 10% Owner
___ X ___ Officer (give title below) _____ Other (specify below)
VP of Finance & Interim CFO /

(Street)

MELVILLE, NY 11747

(City) (State) (Zip)

5. If Amendment, Date Original Filed (MM/DD/YYYY)

6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	3315	D
Common Stock	6700 ⁽¹⁾	D

*Table II - Derivative Securities Beneficially Owned ( e.g.* , puts, calls, warrants, options, convertible securities)**
1. Title of Derivate Security (Instr. 4)	2. Date Exercisable and Expiration Date (MM/DD/YYYY)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivate Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security		6. Nature of Indirect Beneficial Ownership (Instr. 5)
Stock Option (right to buy)	⁽²⁾	7/3/2023	Common Stock	15000	$1.15	D
Stock Option (right to buy)	⁽³⁾	2/18/2026	Common Stock	50000	$1.49	D

Explanation of Responses:
( 1)	Represents shares of restricted stock granted on April 21, 2015 under the Company's 2006 Incentive Stock Plan, as amended, of which 3,300 vest on April 21, 2017 and 3,400 vest on April 21, 2018.
( 2)	These options were granted on July 3, 2013 under the Company's 2006 Incentive Stock Plan, as amended, 1/3 of which vested on each of the next three anniversaries of the grant date.
( 3)	These options were granted on February 18, 2016 under the Company's 2006 Incentive Stock Plan, as amended, 1/3 of which vest on each of the next three anniversaries of the grant date.

Reporting Owners
Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
Murale Daniel C/O FALCONSTOR SOFTWARE, INC. 2 HUNTINGTON QUADRANGLE, SUITE 2S01 MELVILLE, NY 11747			VP of Finance & Interim CFO

Signatures
/s/ Daniel Murale		9/26/2016
^** Signature of Reporting Person		Date

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note:	File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.