CZ20004475A3 - Digital cash and method of commerce - Google Patents

Abstract

An electronic commerce method that uses an optical disc as a means of exchange (10). The optical disc (10) contains data that represents monetary value. The monetary value is reduced by the operator who mediates the electronic exchange between the buyer (30) and the seller (20). Further, data representing a second monetary value, which may be either a discount or an incentive, may be stored on the optical disc (10). The optical disc (10) may also include a consumable product, such as music or software. PCrtTQftlI 1 WMMMHMTMLVlMWOUftTWMaj t MOOáMUtt WWW »QMMNWNt MCMMKV Uίβλ A UMM WU10WUI CD wmwt w * v ww * e <aMufcfco mm »mnM Standard whether or not ΜΜ <« ΜΜΤίθΜ | Ι * ΛΒΜΜΪΜ «10 HBUA MOB RNDEMijBeertenMMMKMtoAcadD MMaAMCkBHØ * »■ * QDJClMkVWMWFtMMxÚKJ Fourth OMMlTOft (MM Nice kwtaidCmqu HotteiuAeúnwMMwMCiotJUi vřoéhXi KUNUUHB VNM MlKÚwtf who L WPnWMWt Μ00ΙΑ V "JtfTAÍS BJRJjfc» KOJ mCfWMUCMJ and TMRDMW and DCIMUMk ARJ4LIWU AJlťlWIÍáfMMĎri fourth MttfttrtlMMdHOMUMmMUCtf riOA BMátMmnwnu hmmmci ftďu λ · jMDMM MA 6AMCCB R OrWraKMMD ηοηκΜμΜΑ <nW. TBRΜΟΗΟΜΜυ CA A ΪμΞΪimrta HAfltDT MBWmMC * wr «MDáTtMMeumoMMldhumwaMLa FuHM DVU MOMDBM. MnjJci VUEHŮfe RMWfWffMw wnáaaekúMT participate in MautHWitro Twwwna.

Description

Technical field

The invention relates to the field of electronic commerce. In particular, the invention relates to an e-commerce exchange device and to a method and an exchange device for conducting business transactions over the Internet.

BACKGROUND OF THE INVENTION

Much of the value of the current economy takes the form of electronic accounts, which are kept in the books of banking institutions and represent values corresponding to the names of users. Transfers of such economic values take place quite commonly by electronic means. Electronic accounts can be both debit and credit accounts. The physical representatives of such electronic accounts are, for example, bank checks, debit cards and credit cards. Debit and credit accounts have been in use for decades, but there are a number of shortcomings that appear to be very significant in attempting to realize the full potential of the digital economy.

Nowadays, a small but fast growing part of world trade is done via the Internet. Cash as a means of exchange for this part of world trade is impractical. While credit and debit accounts are used for the Web Store, the costs of opening, using, and maintaining such accounts limit their applicability to especially small transactions. Furthermore, for the safe use of credit and debit accounts, the user's confidential identity must be known, and therefore transactions using these accounts do not provide the users with the required level of privacy. Due to the inherent low level of security of Internet information on the market, there is also a general reluctance to provide credit and debit account information on-line. Trying to overcome these

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U.S. Pat. Nos. 5,590,197 issued December 31, 1996 to Chen et al., 5,753,899 issued May 19, 1998 to Gomm et al. and 5,857,079 issued January 5, 1999 disclose an alternative transaction system aimed at promoting the business of the digital age. All of these systems are based on the use of smart cards, such as debit or credit cards, which contain a small microprocessor and memory capacity. Although these new systems offer greater security and flexibility compared to conventional debit / credit card systems, they do not eliminate the disadvantages of high cost and low privacy and are less than suitable for the Web Store.

Similarly, U.S. Pat. and U.S. Pat. Nos. 5,748,737, issued May 5, 1998 to Daggar, and 5,815,657, issued September 29, 1998 to Williams et al., describe systems that operate on the principle of an electronic wallet. An electronic wallet is a portable device with multiple digital interfaces for organizing accounting information and electronically executing transactions. However, due to cost and low level of privacy, these systems are not very suitable for Internet transactions,

U.S. Pat. U.S. Patent 5,816,917, issued October 6, 1998 to Kelmer, discloses a gaming device utilizing a floppy disk or smart card that a player purchases from a merchant that includes a predetermined amount of credit for the gaming device. The device can only be used in applications predetermined by the merchant. Furthermore, such a device is associated with a high risk of misuse, since the economic value assigned to the device is encoded on the device itself held by the user.

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U.S. Pat. U.S. Patent 5,710,886, issued January 20, 1998 to Christensen et al., describes a coupon distribution system using diskette or CD-ROM software. The system requires the user to call a telemarketing company representative to activate software that will only allow a commercial value coupon to be printed. In a purely digital environment, such systems are of limited use.

U.S. Pat. No. 5,802,497, issued September 1, 1998

Manasse describes a method of conducting a trade over a computer network in which an intermediary and / or merchant issues electronic scripts. The network shift script is used to acquire goods or services to the consumer. Although designed for a purely digital environment, this method depends on the electronic script as a means of exchange. The electronic script must be stored on the consumer's computer and transmitted over the network, so there is a risk of erasure or incorrect reading.

SUMMARY OF THE INVENTION

The invention is an exchange means that comprises an optical disc and data encoded on the optical disc which represent monetary value.

The invention is further a method of executing a transaction, comprising the steps of: an operator assigning a first monetary value to an optical disc; the buyer obtains an optical disc; the buyer communicates the data corresponding to the optical disc and the price of the product to the operator; the operator provides the buyer with a confirmation; the buyer hands over the confirmation to the seller; the seller verifies the authenticity of the confirmation with the operator; and the seller provides the product to the buyer.

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Overview of pictures

Fig. 1 shows a compact disc, the exchange means according to the invention;

Figure 2 shows the trading steps of the invention;

Figures 3 to 9 are computer screens that appear to the buyer during the electronic transaction of the invention;

Figures 10 to 12 show computer screens that appear to the buyer during the value check of the compact disc of Figure 1.

Fig. 13 is a computer screen that appears to the buyer when displaying the change history of the CD value of Fig. 1.

DETAILED DESCRIPTION OF THE INVENTION

The invention provides a completely new way of conducting commercial transactions over the Internet. The method employs a unique exchange means, but is widely used and used in the digital environment. The exchange medium of the invention is shown in Fig. 1 as an optical storage medium 10 with data representing monetary value. A method for recording data on an optical disc 10 and a method for reading data from an optical disc 10 is well known to those skilled in the art. The optical disc 10 in FIG. 1 is called CD CASH, an unregistered mark that denotes certain features of the present invention.

The method of using the optical disc 10 of FIG. 1 to perform commercial network transactions is shown in FIG. 2. The network may be any public or private system for which it is used as an electronic method.

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OK-472 electronic communication, such as telephone system, satellite network or Internet. In Fig. 2, a number of communication links are provided between seller 20, buyer 30, and operator 40. Seller 20 may be any person or organization wishing to provide a product, such as a good or service. Buyer 30 can be any person or organization that wishes to obtain a product from the seller through a network transaction. Operator 40 acts as a third party intermediary transaction between seller 20 and buyer 30.

The first step of the method of trading according to the invention is to provide 1 optical disc 10 on which the data representing the monetary value is stored by the operator 40 to the buyer 30. The buyer 30 acquires the optical disc 10 in exchange for transferring 2 money to the operator 40. in the form of a cash transaction between buyer 30 and agent or agent's point of sale 40. Since this is a cash payment, the identity of the buyer may remain confidential.

Even before the operator 40 provides the optical disc 10 to the buyer 30, the operator 40 assigns a certain monetary value to the optical disc 10. The computer-readable data representing the monetary value and / or the identification code of the optical disc 10 is encoded on the optical disc 10. An operator 40 may insert server data, such as a computer 12, on which the relationship between data is stored on the optical disc 10. an optical disk 10 and a monetary value. The optical disc 10 is preferably labeled so that its initial monetary value is immediately apparent, for example $ 20 of FIG. 1. The optical disc 40 may also include a visible identification number 14. The identification number 14 may initially be hidden under the packaging of the optical disc 10 or under a scraping coating which is well known from lottery tickets. If the optical disc 10 • 99 9 »» 999 «• · 9

by providing a hidden identification number, the first buyer 30 of the optical disc 10 has the assurance that the value of the optical disc 10 corresponds to the initial value indicated on its surface. In such a case, if the identification number 14 is visible at the time of sale, the buyer 30 is advised of the possibility of reducing the true value of the optical disc 10 compared to the advertised value.

After the buyer 30 has purchased the optical disc 10, it can obtain product information from the seller 20 over the network in step 3 of FIG. 2. The seller 20 can send a screen order form to the buyer 30 in step 4. The order form may indicate the product available for purchase and its price. In step 4, the software module (not shown) may also be transmitted by the operator 40 to the seller 20. This software module is used to perform the exchange process. Buyer 30 is prompted by another software module to insert the optical disc 10 into a CD drive connected to the buyer's computer and enter the identification number 14 from the optical disc 10. The software module on the buyer's computer 30 then performs a preliminary check to see if the optical disc 10 is an operator-supplied optical disc. 40 and whether the Identification Number 14 is in the correct format. The software module in the buyer's computer 30 may be preloaded onto the optical disc 10.

In step 5, the software module on the buyer's computer 30 sends to the operator 40 a unique encrypted identifier from the optical disc 10 along with the identification number 14 and the code number from the seller's order form 20. The operator 40 verifies that the optical disc 10 has sufficient money to buy product, and in step 6 returns the software module on the buyer's computer 30 an authorization code or other form of confirmation. The buyer 30 then confirms the price and sends a confirmation to the seller 20 in step 7.

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In order to prevent fraudulent transactions, the seller 20 may in step 8 send an acknowledgment and other encrypted information that is unique to the optical disc 10 to the operator 40 for final verification of the transaction. The operator 40 credits the seller's account 20 and debits the account associated with the optical disc 10 and sends a confirmation to the seller 20 in step 9. Finally, the seller 20 provides the product to the buyer 30 and the transaction is completed.

Each of the steps described above can be performed electronically via a network such as the Internet. Although the system of Fig. 2 is illustrated with three separate entities, the invention can only be realized with the seller and the buyer since the function of the operator 40 can be taken over by the seller 20. Such an embodiment may be particularly practical for a seller that achieves a large transaction volume. However, the seller 20 of FIG. 1 may also dispense his own optical discs 10 with data representing monetary value. In such a case, the seller 20 is able to exchange his products using both the operator's exchange means 40 and his own.

The described system of the invention can be used for both small and large value transactions. Due to credit write-off costs and credit application processing costs, the use of debit and credit cards for small transactions is economically disadvantageous. For example, selling a license to use one-page copyrighted material may have an economic value of a fraction of a cent. However, because the costs of known transaction methods are disproportionately high, this type of transaction is not yet used in the current digital economy. In the system and method of the invention, the buyer 30 subscribes to the monetary value of the CD 10 so that credit write-offs are not performed. The cost of processing credit applications and the unused rest of the compact value are also eliminated

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In fact, the OK-472 of the disc 10 represents the time value of the money available to the operator. This value further reduces the cost of deploying and using the method of the invention. The system of Fig. 2 can already be economical for transactions with a fraction of a dollar.

Another advantage of using an optical storage medium as a means of exchange is that it can be used to transmit additional data. For example, this data may be marketing information. The buyer 30 can view this information by inserting the optical disc 10 into the computer. For example, the incentive for the buyer 30 to view the marketing information may be to encode the data that represents the second monetary value that the buyer 30 can read by reading the marketing information onto the optical disc 10. Furthermore, in addition to obtaining the first product from the seller 20 using the optical disc 10 Buyer 30 may receive a second value or product after reviewing the marketing information. For example, a second monetary value in the form of a discount or rebate may be given to the buyer 30 if he executes a specific computer code on the optical disc 10. The data stored on the optical disc 10 may include a list of sponsors wishing to give the buyer 30 a discount or reward. The value of these promotions will help to promote this form of e-commerce in society.

The buyer 30 or other person acquiring the optical disc 10 may use the Internet to determine the current value of the optical disc 10. The software module on the optical disc 10 may be used to communicate with the operator 40 over the Internet so that the current monetary value of the optical disc 10 appears on the computer screen of the buyer 30. This is important because the initial monetary value varies according to already executed transactions. The operator 40 may assign a new monetary value to the optical disk 10 after ^{: &} quot ^; TC &quot; 472 • 9 · 9

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3? 9 «·· ·· business transaction. The new monetary value may be a function of the initial monetary value and the price of the product purchased in the previous 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 by a user fee to cover transaction costs and thereby further reduce the instantaneous value of the optical disc 10. In some cases, the second monetary value may be greater than the initial monetary value. The buyer 30 can recharge his optical disc 10, for example, by providing his credit card information to the operator 40 over the Internet. Similarly, the value of the optical disc 10 may increase as a result of use on the disc 10 of the encoded marketing information by the buyer 30.

The operator may set up a website to provide additional services to seller 20 and buyer 30. In addition to confirming the current value of the optical disc 10, the operator 40 may also provide a transaction history associated with a particular optical disc 10. Alternatively, this information may be stored locally on the buyer's computer 30. If the disc is used from more than one computer, the locally stored information may not be correct and the buyer will be notified. The operator's website 40 may include links to other sellers who receive payments through this e-commerce method.

The optical disc 10 may include data of other kinds of information, such as software or music. By combining the data representing monetary value with the data representing another consumer product, the introduction of the e-commerce method of the invention can be achieved with less initial cost. The monetary value included on the optical disc 10 together with another consumer product may also represent a discount on the price of the consumer product. Then it is the electronic equivalent of a consumer product discount coupon.

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Encrypted information may appear on the optical disc 10 several times at different locations, thus reducing the risk of loss of disc value by physical damage. .If the information cannot be read from the primary location, the software module that controls the approval process attempts to read the data from another part of the disk. To prevent the user from guessing passwords, the number of attempts to enter a password can be limited in a certain period of time. Other protective measures against the misuse of the system according to Fig. 2 can be devised, however, the best protection against potential fraudsters remains the low initial value of the optical disc.

10. Since the initial value of an optical disc can be as little as $ 20 or less, it is assumed that such an amount will not be worth the potential fraudsters to embark on the development of unlawful alternatives to the invention. Because of the inherent security of the system and also because the buyer 30 has subscribed to the optical disc 10, the seller 20 should not be afraid of this form of payment. Many types of information are currently provided via the Internet free of charge, because the economic value of this information is very small relative to the transaction. The composition of the present invention is inherently safe and is exceptionally suitable for performing such microtransactions. The enormous market sector, which has so far been uneconomic, can be cultivated by the invention.

As with cash, lost or unused optical discs 10 will not be replaced. The optical disc 10 may have a limited validity, for example for six months, to facilitate record keeping on the side of the operator 40 as well as, for example, to ensure the validity of the advertising information on the disc. The buyer 30 may also further restrict the use of the optical disc 10. For example, the buyer 30 may, in cooperation with the operator 40, lock a particular optical disc 10 with a password. Similarly, the buyer 30 of the operator 40 may request class restrictions

Websites to which payments can be made. For example

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this can prevent children from buying goods or services from adult-oriented sites.

The cost of operating the Internet trading system of FIG. 2 is preferably borne by the seller 20. The operator 40 may, for example, deduct a mediation fee from each amount of payment received to the seller's account. Because the optical disc 10 is prepaid and has the economic benefits described above, it is likely that the mediation fee will be much lower than the cost of current credit card transactions. Also, the time value of money for unused or lost optical discs 10 available to the operator 40 further reduces the amount that the operator should receive from the seller.

Figures 3 to 9 show screens that may appear on the monitor of the buyer's computer 30 during an Internet transaction according to the method of Figure 2. 3 shows a web site to which, as indicated by the CD-CASH logo, can be paid by the method of the invention.

Part of the website is a list of products, in our case computer games, that the buyer 30 can buy from the seller 20 via the Internet (see Figure 4).

The screen shown in Fig. 4 allows the buyer 30 to select a game, the number of plays and the method of payment including CD-CASH. After the order has been started, the software module from the seller 20 asks the buyer 30 to confirm the payment method and the price (see Fig.

5). Upon receipt of the confirmation, the buyer 30 is prompted to enter the identification code 14 from the optical disc (see FIG. 6) and insert the optical disc into the computer drive. The identification code 14 and other data from the optical disc 10 are then transmitted to the operator 40. The operator 40 confirms that the current value of the optical disc 10 is greater than the price corresponding to the product that the buyer 30 wants to buy and the screen of FIG. 0 • ··· · 9

0 · 0 0 0 · «· • 0 0000 •“ 0K4472 prompts buyer 30 to confirm purchase. By approving the payment of FIG. 7, the buyer 30 sends to the seller 20 a confirmation provided by the operator 40 (see step 7 of FIG. 2). Once the transaction is completed (Fig. 8), Buyer 30 has the right to play the purchased game (Fig. 9).

Giant. 10 shows how the buyer 30 can determine the current monetary value of the optical disc 10. FIG. 10 is an operator's website 40 that allows the buyer to choose from several options including checking the value of the optical disc 10, recharging the optical disc 10, requesting additional information, and Links to other websites of sellers who accept this form of payment. Fig. 11 shows the screen for checking the value of the optical disc 10. The buyer must enter the identification number 14 corresponding to the optical disc 10 and insert the disc into the CD drive of the computer. Fig. 12 shows the response from the operator 40 with the current value of the optical disc 10.

In Fig. 13, it is possible to display a list of transactions associated with the optical disc 10 as it appears on the buyer's computer 30.

Claims (14)

PATENT CLAIMS A method of executing a transaction between a seller (20) wishing to provide a product in exchange for a monetary value, and Method according to claim 1, characterized in that an electronic network is used to communicate between the buyer, the seller and the operator. The method of claim 1, further characterized 25 includes the steps of: the operator stores advertising information on the optical disc; the buyer reads the advertising information on the optical disc; and the operator assigns a third monetary value to the optical disc 30 in response to the use of advertising information by the buyer. Method according to claim 1, characterized in that the buyer obtains (1) the optical disc anonymously by means of a cash transaction. ****** · · a * * * * 14 · .. · .. · \ © ku? 2 5 hiding the identification number until the optical disc is obtained by the buyer. The method of claim 1, further comprising the steps of: marking the optical disc with a unique identification number (14); A buyer (30) wishing to obtain a product in exchange for a monetary value, comprising the steps of: the operator (40) assigns a first monetary value to the optical disc (10); the buyer (30) obtains an optical disc; The method of claim 2, further comprising the steps of: The method of claim 1, wherein the seller assumes operator functions. The method of claim 1, wherein data representing music is encoded on the optical disc. 20. The method of claim 1, further comprising the step of communicating the buyer with the operator to determine the current monetary value assigned to the optical disc. 9 9 9 99 9999 The method of claim 1, further characterized 25 includes the steps of: the buyer communicates the credit card information to the operator; and the operator assigns a third monetary value to the optical disc in response to communicating the credit card information to the buyer. • « 999 9 9 9 9 9 9 9 10 providing a software module on an optical disc; use of software module for communication between buyer and seller and between buyer and operator, 10, the buyer (30) communicating (5) the data representing the optical disc and the price associated with the product to the operator; the operator provides (6) a confirmation to the buyer; the Buyer provides (7) a confirmation to the Seller; the seller provides (8) a confirmation to the operator; 15 the seller provides the product to the buyer; and the operator assigns (9) to the optical disc a second monetary value, the second monetary value being a function of the first monetary value and the price. 20 May An exchange means, comprising: an optical disc (10); data encoded on the optical disc; a first data processing machine (12); and information stored in the first data processing machine that assigns a monetary value to the data encoded on the optical disc. The exchange means of claim 11, wherein the data encoded on the optical disc is marketing information. The exchange means of claim 11, wherein the data encoded on the optical disc is music. 14. The exchange agent of claim 11, further comprising: an identification number (14) marked on the optical disc; and the element hiding the identification number.