KR20010078728A - Digital cash and method of commerce - Google Patents

Abstract

An electronic commerce method using the optical disc 10 as an exchange medium. The optical disc 10 is encoded with data representing monetary values. The monetary value is reduced by the operator involved in the electronic exchange between the buyer 30 and the seller 20. The optical disc 10 may also be encoded with data a second monetary value that represents a discount or incentive. The optical disc 10 may further include consumption product such as music or software.

Description

DIGITAL CASH AND METHOD OF COMMERCE}

The transaction was initially carried out in a barter system, and commodities of similar price were exchanged directly. Barter systems have limitations, and various exchange media have been developed long ago to streamline commerce. One of the exchange media used was tokens. The first tokens were intrinsic value, for example, rare stones or shells. Later, coins were made from rare metals such as gold or silver. In the end, tokens did not represent intrinsic value, but economic value. For example, a US coin is a token that represents a value greater than the value of the metal of the coin itself. Tokens are available in a limited number of names and are developed to be cumbersome when used in large numbers.

Recent currency, such as paper money or bank checks, may have a monetary value regardless of actual regional changes. The display currency was initially directly related to its own value, such as Fort Knox, which has supported the US dollar for many years. As the gold standard is extinguished, the latest display currency is given by the currency user to the currency issuer. Backed by credit and faith.

Much of the value in today's economy is in the form of an electronic balance that represents the value of an account opened in the user's name and is kept on record of authorities. This transfer of economic value is typically accomplished by electronic means. Electronic means include debit and credit accounts. Physical elements such as bank checks, debit cards, and credit cards sometimes represent electronic balances. Debit and credit accounts have functioned for centuries, but the disadvantage is that they become increasingly detrimental to the full development of the economic potential of the digital economy.

Small but rapidly expanding transactions are being carried out via the Internet. Currency and coins are not feasible as exchange media for this part of the economy as exchange media. Debit and credit accounts have been utilized as Internet transactions, but the costs of opening, using and maintaining these accounts have limited their use for digital transactions, especially small transactions. In addition, the user's identity must be clearly established to use a debit or credit account to avoid fraudulent transactions. Thus, it is generally hesitant to provide debit and credit account information to the online market due to the inherent uncertainty of internet communications. This limitation led to the inventors developing exchange media and alternative methods for online transactions.

US Patent No. 5,590,197, issued December 31, 1996, Chen et al., 5,753,899, issued May 19, 1998, and 5,857,079, issued January 5, 1999, support transactions in the digital age. Explain a cash alternative trading system. Such systems rely on the use of smart cards, ie, debit and credit cards with small microprocessors and memory capacities. While these systems improve standard debit / credit card systems by providing improved flexibility and security, the disadvantages of high cost and low consumer privacy still exist and are not optimal for Internet transactions.

Similarly, US Pat. No. 5,748,737, issued May 5, 1998 to Daggar, and US Pat. No. 5,815,657, issued September 29, 1998, to Williams et al. Describe a system that acts as an electronic wallet. An electronic wallet is a portable device with multiple digital data interfaces for organizing account information and conducting transactions electronically. However, such a system is not optimal for transactions performed over the Internet due to cost and privacy restrictions.

US Patent No. 5,816,917, issued October 6, 1998 to Kelmer, describes a gambling device utilizing a floppy disk or smart card purchased from a vendor and assigned a predetermined amount for use in the gambling game device. This device is limited to certain uses by the seller. In addition, since the economic value associated with a user-owned device is encoded in the device itself, such a device has a high fraud experience.

US Patent No. 5,710,886 to Christensen, issued January 20, 1998, describes a system for distributing coupons using diskette or CD-ROM software. The system requires the user to contact the telephone sales office to utilize the phone so that the software outputs a coupon with a transaction price. These systems have been limited in their application in all digital-to-digital environments.

US Pat. No. 5,802,497 to Manasse, issued September 1, 1998, describes how a broker and / or seller perform transactions through a computer network that issues electronic scripts. Scripts are used in network exchanges to provide goods or services to consumers. Although this method is designed for all digital environments, it relies on electronic scripts as the exchange medium. The electronic script must be stored on the viewer's computer and transmitted over the network, which risks the script being deleted or read.

The above patents are incorporated by reference. In view of the limitations of the prior art and the developmental requirements of the Internet alert, it is an object of the present invention to provide an exchange medium that can be utilized for transactions on the Internet. Another object of the present invention is to provide a method for performing commerce over the Internet. It is yet another object of the present invention to provide a method for conducting transactions over the Internet that provides security and anonymity to exchange media and users and is economical to use for very small value transactions.

Summary of the Invention

These objects of the present invention are achieved in an exchange medium comprising an optical disc and data encoded on an optical disc representing a monetary value. It is an object of the present invention to provide an operator for associating a first currency value with an optical disc, a buyer who purchases an optical disc, a buyer who obtains information about an item from a seller over the Internet, and a data and price indicative of the optical disc over the internet. Transactions that include buyers communicating with, operators providing confirmations to buyers over the Internet, buyers sending confirmations to sellers, sellers confirming the authenticity of confirmations over the Internet, and sellers providing items to buyers. It is also achieved by the method of performing.

BACKGROUND OF THE INVENTION 1. Field of the Invention The present invention relates generally to electronic commerce, and more particularly to the field of exchange media used for electronic commerce, and more particularly to an exchange medium and method used for conducting commerce over the Internet.

1 illustrates a compact disc used as an exchange medium according to the present invention.

2 illustrates the steps of an electronic commerce method in accordance with the present invention.

3-9 illustrate a computer screen of a buyer appearing during electronic commerce in accordance with the present invention.

10-12 show the buyer's computer screen appearing when the buyer checks the value of the compact disc of FIG.

13 shows the buyer's computer screen appearing when the buyer displays the list of values of the compact disc of FIG.

The inventors have developed a novel method of conducting commerce over the Internet by utilizing a unique and digital environment-friendly exchange medium. The exchange medium of the present invention is shown in FIG. 1 as an optical data storage medium such as a compact disc 10 encoded with data representing monetary values. Methods of recording data on optical disc 10 and methods of retrieving data from optical disc 10 are known in the art of optical disc storage media. Optical disc 10 is shown in FIG. 1 under the name CD CASH, which is an unregistered mark used by the assignee of the present invention to identify aspects of the present invention.

A method of using the optical disc 10 of FIG. 1 to perform commerce on a network is shown in FIG. The network may be any public or private system for electronic commerce, for example a telephone system, a satellite connection network, or the Internet. 2 shows a series of communications that can be achieved between seller 20, buyer 30, and operator 40. Seller 20 may be any person or organization that wants to provide an item, such as a product or service. Buyer 30 may be any person or institution that wants to obtain an item from a seller through a network transaction. The operator 40 acts as a third party to the transaction between the seller 20 and the buyer 30.

In the transaction of the method, the first step (1) is to replace the optical disc 10 encoded by the operator 40 with data representing a monetary value in the transfer of the amount transfer (2) from the purchaser 30 to the operator 40. To the buyer 30. This transaction can occur as a cash transaction, preferably performed between the buyer 30 and the agent / outlet of the operator 40 via the postal system. Since this is a cash transaction, the identity of the buyer does not need to be disclosed.

Prior to step (1) of providing the optical disc 10 to the purchaser 30, the operator 40 will assign a temporary currency value to the optical disc 10. The optical disc 10 is encoded with computer readable data representing a monetary value and / or an identification code for the optical disc 10. Operator 40 may include a data processor such as computer 12 in which information is stored that relates data encoded on optical disk 10 to monetary values. The optical disc 10 is preferably marked to include an indication of an initial monetary value, such as $ 20, for example as shown in FIG. The optical disc 10 may also include a visible identification number 14. The identification number 14 may initially be hidden under the package of the optical disc 10, or may be hidden by a removable coating that can be read by scratching as is known in the game of the art. By providing the identification number 14 hidden in the optical disc 10, the initial purchaser 30 of the optical disc 10 can determine that the value of the optical disc 10 is equal to the initial value indicated on the surface of the optical disc 10. You can be sure that If the identification number 14 should be visible at the time of sale, the buyer 30 is warned that the current value of the optical disc 10 is less than the initial value indicated on its surface.

Once the purchaser purchases the optical disc 10, the purchaser 30 of step (3) of FIG. 2 can obtain information about the item from the seller 20 by communicating over the network. Merchant 20 may send the screen order from step 4 to buyer 30. The order can identify the price associated with the item and the item available for purchase. Step 4 may include sending a software product (not shown) to the seller 20 by the operator 40. This software product is used to perform trade exchange procedures. The purchaser 30 is guided by the software product to insert the optical disc 10 into a CD drive connected to the purchaser's computer and to enter the identification number 14 from the optical disc 10. The software product on the computer of the purchaser 30 is then used to perform an initial check so that the optical disc 10 is supplied by the operator 40 and the identification number 14 entered by the purchaser 30 is correct. You can be sure it's a format. The software product on the computer of the purchaser 30 may be provided by the purchaser 30 on the optical disc 10.

In step (5), the software product on the purchaser's computer displays the operator 40 from the optical disc 10 with the uniquely encrypted identifier, together with the identification number 14 and the code number obtained from the order form supplied by the seller 20. To be sent). The operator 40 sends that the optical disc 10 has a monetary value sufficient to cover the price of the item being purchased and in step 6 sends an authorization code or other form of confirmation to the purchaser 30's software product on the computer. Verify. The buyer 30 then confirms the price and sends the confirmation to the seller 20 in step 7.

In order to avoid fraudulent transactions, in step 8 the seller 20 can send the confirmation and further encrypted information unique to the compact disc 10 to the operator 40 for final confirmation. The operator 40 then pays the seller 20 the account identified and bills the account associated with the compact disc 10 and sends a confirmation to the seller 20 in step 9. The seller 20 then sends the item to the buyer 30 to complete the transaction. Each of the above steps may be performed electrically through a network such as the Internet. Although three separate entities are shown in FIG. 1, the present invention may be realized with a seller 20 in which one buyer and one seller perform the function of the operator 40. This embodiment may be economically viable for mass sellers. Similarly, seller 20 of FIG. 1 may perform additional transactions in which seller 20 issues its own exchange medium in the form of an optical disc with data encoded to represent a monetary value. Seller 20 may then accept a transaction associated with the operator's exchange medium or his own exchange medium.

This system may be utilized for transactions with large or small values. Debit and credit transactions are uneconomical for small value transactions because of the cost of credit losses and the processing costs for credit applications. For example, selling a license to use one page of a copyrighted subject may have an economic value of a fraction of a cent. Because of the high cost of known trading methods, this type of trading has not been developed in the digital economy. The purchaser 30 prepares the monetary value of the compact disc 10 without any credit loss in the system of the present invention. In addition, there is no cost to process credit applications, and unused balance on the compact disc 10 represents substantially the time value of money available to the operator. This value also reduces the cost of realizing and using the method of the present invention. The system shown in FIG. 2 can be economical for transactions as small as a fraction of one dollar.

Another advantage of utilizing an optical storage medium as the exchange medium is that data can be further encoded onto the optical disc 10. For example, such data may represent marketing information. Buyer 30 may look at this marketing information when optical disc 10 is used in buyer 30's computer. As an incentive for buyer 30 to look at marketing information, optical disc 10 may be encoded with data representing a second monetary value that can be accessed by buyer 30. In addition to using the optical disc 10 to obtain the first item from the seller 20, as shown in FIG. 2, the second value or item is provided to the buyer 30 when the buyer accesses marketing information. May be For example, a second monetary value in the form of a discount or rebate may be provided to the purchaser 30 each time the purchaser 30 executes computer readable code on the optical disc 10. The data stored on the optical disc 10 may include a list of advertisers who wish to offer a discount or product to a buyer 30 utilizing the optical disc 10. This advertising value will facilitate the introduction of e-commerce into the market.

The purchaser 30 or other person holding the optical disc 10 can utilize the Internet to determine the current value of the optical disc 10. A software product encoded on the optical disc 10 may be utilized to communicate with the operator 40 via the Internet to display the current currency value of the optical disc 10 on the computer of the purchaser 30. This is an important process since the initial monetary value assigned on the optical disc 10 may be changed by the operator 40 as a result of a previous transaction. The operator 40 can assign the modified monetary value to the optical disc 10 in accordance with the commerce. The modified monetary value may be a function of the initial monetary value and the list of items purchased in the initial transaction. The second monetary value may simply be the first monetary value minus the price. Alternatively, the operator 40 may further reduce the monetary value to reflect the user cost required for the optical disc 10 value to cover the transaction cost. Conversely, the relationship between the initial money value and the second money value may be an additional function, that is, the second money value may be higher than the first money value as a result of the recharging of the optical disc 10 by the purchaser 30. Buyer 30, who provides credit card account information to operator 40, can perform this recharge over the Internet. Similarly, the value of the optical disc 10 can be increased as a result of the use of marketing information encoded on the optical disc 10 by the purchaser 30.

The operator 40 can provide a website to the buyer 30 and the seller 20 to provide other services. In addition to confirming the present value of the optical disc 10 as described above, the purchaser 30 can obtain a consumption list for the specific optical disc 10. Alternatively, this information can be stored locally on the computer of the buyer 30. The purchaser 30 will be informed that the locally stored information may not be accurate when the optical disc 10 has been utilized in one or more computers. The operator 40's website may include a link to another seller 20 who accepts payment using a form of electronic commerce.

Optical disc 10 may include data representing other forms of information, for example, music or software. By combining data representing monetary values with data representing other consumer goods, the realization of this type of electronic commerce can be achieved at a reduced initial cost. In addition, the monetary value included in the optical disc 10 together with the consumer goods may represent a rebate on the consumer goods price. This is the electronic equivalent of a rebate coupon for consumer goods.

The optical disc 10 may include encrypted information replicated in many parts of the disc to reduce the possibility of the disc becoming obsolete by physical damage. If this information cannot be read from the primary location of the optical disc, the software product controlling the approval procedure will attempt to read data from other segments of the disc. A limited number of attempts may be allowed in certain time periods to prevent users from guessing passwords. Other protection techniques may be utilized to prevent misuse of the system shown in FIG. 2, but the maximum incentive for potential thieves is limited to the initial value of the optical disc 10. Since the initial value of the optical disc 10 can be as small as $ 20 or less, there is little incentive for potential thieves to develop fraudulent derivatives with improved procedures. Because of the inherent security of the system, and because the purchaser 30 has prepared the optical disc 10, the seller 20 can accept this type of payment. The economic value of information is so small from a commerce point of view that many forms of information are now available for free on the Internet. The above-mentioned exchange mediums can be used by themselves for efficient and small-scale transactions, thereby cultivating large markets that have been uneconomical up to now.

Like real cash, there will be no compensation for lost or unused optical disc 10. The optical disc 10 may be valid for a limited period of time, for example six months, to simplify the bookkeeping required by the operator 40 and to ensure that the advertisement information encoded on the optical disc 10 remains current. have. The purchaser 30 may also restrict the use of the optical disc 10. For example, the purchaser 30 may communicate with the operator 40 to realize password restrictions on a particular optical disc 10. Similarly, the buyer 30 uses, for example, a child to purchase goods or services from an adult internet site with an optical disk 10 given to him to limit the site qualification of the Internet site where payment is sent to the operator 40. Can be ordered to prevent

The cost of operating the internet trading system shown in FIG. 2 is preferably generated by the seller 20. This can be accomplished by the operator 40 deducting a fee or royalties from any payment paid to the merchant 20's account. Since the compact disc 10 is prepared and has the above-described economic advantages, any fees or royalties will be less for sellers than transactions with current credit cards. In addition, the time value of the money available to the operator 40 from the unused and lost optical disc 10 also reduces the amount of consumption that must be filled from the seller 20.

3-9 illustrate the computer screen of the purchaser 30 during an internet transaction according to the method of FIG. 2. 3 shows a purchaser 30 visiting a webpage where payment is accepted as indicated by the CD-CASH logo displayed on the screen in accordance with the present invention. As part of this website, the seller 20 makes the screen shown in FIG. 4 available to the seller 20, where it displays a list of games that can be purchased over the Internet. This screen allows the buyer 30 to select a game, a play count, and a payment method including CD-CASH. Once the order is entered, the software product purchased from the seller 20 confirms the purchaser 30 with the payment method and price as shown in FIG. 5. After such confirmation is received, the purchaser 30 is led to enter the identification code 14 from the optical disc 10 and insert the optical disc 10 into the computer as shown in FIG. The identification code 14 and other data from the optical disc 10 are sent to the operator 40. The operator 40 confirms that the current value of the optical disc 10 is greater than the price identified for the item to be purchased, and the buyer 30 is required to confirm the purchase as shown in FIG. By approving the payment as shown in FIG. 7, the buyer 30 sends a confirmation provided by the operator 40 to the seller 20 as described in connection with step 7 of FIG. 2. Once the transaction is completed as shown in FIG. 8, the buyer 30 is authorized to play the purchased game as shown in FIG. 9.

10 shows how the purchaser 30 checks the current monetary value of the optical disc 10. FIG. 10 shows an operator 40 that allows the purchaser 30 to select various options, including checking the value of the optical disc 10, recharging the optical disc 10, and requesting more information. A web page provided by the user, and another web page provided by the seller 20 that accepts the form of payment. 11 shows a screen available to buyer 30 for checking the value of optical disc 10. This screen requires the purchaser 30 to enter an identification number 14 associated with the optical disc 10 and insert the optical disc 10 into the disc drive of the computer. 12 shows a response screen by the operator 40 showing the current value of the optical disc 10.

FIG. 13 shows the manner in which the operator 40 displays consumption data for a particular optical disc 10 on the computer of the purchaser 30.

The above-described embodiments of the present invention are shown only by way of example and not by way of limitation. Accordingly, the scope of the applicant's invention is not limited, but only by the appended claims.

Claims (22)

As exchange medium, Optical disks; And And data indicative of a monetary value encoded on said optical disc. 2. The exchange medium of claim 1, further comprising data representing marketing information encoded on the optical disc. 2. The exchange medium of claim 1, further comprising data representing a second monetary value encoded on the optical disc. 2. The medium of claim 1, further comprising data representing music encoded on the optical disc. 2. The exchange medium of claim 1, further comprising data representing software on the optical disc. 2. The system of claim 1, further comprising: a first data processor; And And information stored in the first data processor associated with data and currency values encoded on the optical disc. 7. The system of claim 6, further comprising: a second data processor in communication with the first data processor; And Means for displaying a monetary value on said second data processor. 2. The apparatus of claim 1, further comprising: an identification number displayed on the optical disk; And And a removable layer concealing said identification number. 2. The apparatus of claim 1, further comprising: a package associated with the optical disk; And Further comprising an identification number associated with the optical disc included with the package. As a manufactured product, Optical data storage media; And And computer readable data stored on the optical data storage medium and corresponding to a monetary value. 11. The article of manufacture of claim 10, further comprising computer readable data corresponding to advertisement information on the optical data storage medium. 11. The article of manufacture of claim 10, further comprising data representing music on the optical data storage medium. 11. The article of manufacture of claim 10, further comprising data representing software on the optical data storage medium. 12. The apparatus of claim 10, further comprising: an identification number displayed on the optical data storage medium; And Further comprising a removable layer concealing said identification number. 11. The system of claim 10, further comprising: a package associated with the optical data storage medium; And The article of manufacture further comprising an identification number associated with the optical data storage medium included with the package. 11. The article of manufacture of claim 10, wherein the optical data storage medium comprises a compact disc. As a way to conduct a transaction, The operator associating the first currency value with the optical disk; A purchaser purchases the optical disc; Said purchaser communicating with an operator data and prices indicative of said optical disc; The operator providing confirmation to the buyer; The buyer sending a confirmation to the seller; And The seller confirms with the operator the certainty of the confirmation. 18. The method of claim 17, wherein the price is associated with an item and the seller further comprises providing the item to the buyer. 18. The method of claim 17, further comprising the step of an operator associating a second monetary value with the optical disk that is a function of a first monetary value and a price. As a way of conducting transactions over the Internet, The operator associating the first currency value with the optical disk; A purchaser purchases the optical disc; The buyer obtaining information indicative of the item from the seller via the internet; The purchaser communicating data and an optical disc representing an price with an operator via the internet; The operator providing a confirmation to the buyer via the internet; The buyer sending a confirmation to the seller via the internet; The seller confirms the certainty of the confirmation with the operator via the Internet; And The seller providing the item to the buyer. 21. The method of claim 20, further comprising the step of an operator associating a second monetary value with the optical disk that is a function of a first monetary value and a price. As an advertising method, Storing data associated with the first monetary value in a computer readable storage medium; Storing second data related to advertisement information on the storage medium; Providing the storage medium to a purchaser; Providing the buyer with a first article or service related to a first monetary value; And Providing the buyer with a second article or service associated with a second monetary value in response to the buyer's use of the second data.