According to The Verge, the pen takes notes in special notebooks, and digitizes everything that is written or drawn and syncs the data through its own app called Livescribe+.
The Livescribe+ app recognizes everything that is written and sorts them as per their content. For example, if a phone number is written, one can add it to their smartphone's phone book with just a tap, while an address can be synced, tapped, and later viewed in Maps, and snippets or pages can be shared as PDFs or saved to other apps.
The pen connects via Bluetooth, and constantly sends data to iOS devices, because it is not compatible with Android OS yet, and even if the battery, touted to last 14 hours, goes dead, the pen can sync the data the next time it is connected.
The report added that for 149.95 dollars Livescribe 3 is just a pen but with a host of digital features in it.