FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person *   Murale Daniel 2. Date of Event Requiring Statement (Month/Day/Year) 09/15/2016 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 5. If Amendment, Date Original Filed(Month/Day/Year) (Street) MELVILLE, NY 11747 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) 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 3,315 D   Common Stock 6,700 (1) D Â

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		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)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	  (2)	07/03/2023	Common Stock	15,000	$ 1.15	D	Â
Stock Option (right to buy)	  (3)	02/18/2026	Common Stock	50,000	$ 1.49	D	Â

Reporting Owners

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

Signatures

/s/ Daniel Murale		09/26/2016
**Signature of Reporting Person		Date

Explanation of Responses:

*	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).
(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.

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