Covered Business Method Patent Review
`United States Patent No. 7,942,317
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`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
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`Petitioner: Apple Inc.
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`Attorney Docket No.:
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` 104677-5008-811
`Customer No. 28120
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`§
`Inventor: Hulst et al.
`United States Patent No.: 7,942,317 §
`Formerly Application No.: 12/014,558 §
`Issue Date: May 17, 2011
`§
`Filing Date: January 15, 2008
`§
`Former Group Art Unit: 2887
`§
`Former Examiner: Thien M. Le
`§
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`For: Data Storage and Access Systems
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`MAIL STOP PATENT BOARD
`Patent Trial and Appeal Board
`United States Patent and Trademark Office
`Post Office Box 1450
`Alexandria, Virginia 22313-1450
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`DECLARATION OF ANTHONY J. WECHSELBERGER IN SUPPORT OF
`APPLE INC.’S PETITION FOR COVERED BUSINESS METHOD
`PATENT REVIEW OF UNITED STATES PATENT NO. 7,942,317
`PURSUANT TO 35 U.S.C. § 321, 37 C.F.R. § 42.304
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`Apple Exhibit 1021 Page 00001
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`United States Patent No. 7,942,317
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`
`
`
`Petitioner: Apple Inc.
`
`Attorney Docket No.:
`
` 104677-5008-811
`Customer No. 28120
`
`§
`Inventor: Hulst et al.
`United States Patent No.: 7,942,317 §
`Formerly Application No.: 12/014,558 §
`Issue Date: May 17, 2011
`§
`Filing Date: January 15, 2008
`§
`Former Group Art Unit: 2887
`§
`Former Examiner: Thien M. Le
`§
`
`For: Data Storage and Access Systems
`
`MAIL STOP PATENT BOARD
`Patent Trial and Appeal Board
`United States Patent and Trademark Office
`Post Office Box 1450
`Alexandria, Virginia 22313-1450
`
`DECLARATION OF ANTHONY J. WECHSELBERGER IN SUPPORT OF
`APPLE INC.’S PETITION FOR COVERED BUSINESS METHOD
`PATENT REVIEW OF UNITED STATES PATENT NO. 7,942,317
`PURSUANT TO 35 U.S.C. § 321, 37 C.F.R. § 42.304
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`Apple Exhibit 1021 Page 00001
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`I, Anthony J. Wechselberger, declare as follows:
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` Covered Business Method Patent Review
`United States Patent No. 7,942,317
`
`I.
`INTRODUCTION
`1. My name is Anthony Wechselberger. I am the President of Entropy
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`Management Solutions (EMS), a consulting company I founded in 1999. I have been
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`retained by Apple Inc. to provide assistance regarding U.S. Patent No. 7,942,317 (“the
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`’317 patent”). Specifically, I have been asked to consider the validity of claims 1, 6, 7,
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`8, 12, 13, 14, 16, and 18 of the ’317 patent (“the challenged claims”). I have personal
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`knowledge of the facts and opinions set forth in this declaration, and, if called upon to
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`do so, I would testify competently thereto.
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`2. My areas of expertise include broadcast and broadband content
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`distribution networks and communications infrastructures (Internet, broadcast, cable,
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`satellite and wireless mediums) including one-way and two-way interactive
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`architectures, computer networks, communications systems technologies and
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`equipment, various content and information distribution and merchandizing channels,
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`digital television, digital cinema, interactive media/multimedia systems, Internet
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`technologies (including but not limited to delivering content via the Internet,
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`communications standards and protocols), digital rights management (DRM), physical
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`media and file based and streaming content delivery, and other areas of expertise
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`relevant to the technologies of this matter. Attached hereto as Appendix A is a true
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`and correct copy of my Curriculum Vitae describing my background and experience.
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`United States Patent No. 7,942,317
` I am currently the President of Entropy Management Solutions
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`3.
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`(“EMS”), a position I have held since I founded the company in 1999. In this
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`capacity I perform consulting services related to technology and business
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`development, content management, distribution and merchandizing, systems
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`engineering and product design in the areas of industrial and consumer broadband
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`and multimedia technologies and associated commercial systems.
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`4.
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`I have forty years of experience working with high technology systems
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`related to military, commercial, and consumer communication systems and networks.
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`I have held various design, leadership and executive positions in, for example,
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`engineering, operations, sales and marketing, and product management at leading
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`companies in those fields, such as TV/COM International, Inc. (TV/COM) and Oak
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`Communications, Inc. Over many years I have published and/or presented a number
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`of articles and papers related to content/information creation,
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`transmission/distribution and reception/consumption in various media sectors,
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`including cable, satellite, broadcast/wireless, Internet and digital cinema. Attached as
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`part of Appendix A is a list of my publications.
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`5.
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`I specialize in the areas of digital communications technologies, systems
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`and networks, including infrastructures, signal processing, network management and
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`command and control, and information security as used for content management,
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`merchandizing and delivery. My background includes much experience with
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`interactive and client-server technologies, such as those used in broadband and
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`United States Patent No. 7,942,317
`Internet networks. Network management and command and control refers to the
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`technical oversight and management of communication systems and equipment
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`within a distribution system to direct both the transmission equipment (e.g., network
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`infrastructures, servers, hubs, nodes, head ends and uplinks etc.) and receiving
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`equipment (e.g., personal computer, television, set top box, handset/mobile device or
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`other consumer appliance) as to communications, applications and set-up and
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`operation in order to perform required features and functions.
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`6.
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`As a Vice President at Oak Communications (1980s) and Chief
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`Technology Officer at TV/COM (1990s), I was involved in the development of
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`terrestrial broadcast, satellite uplink and cable head end industrial equipment for
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`television transmissions, as well as consumer appliance equipment such as STBs and
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`other home based or home networked devices. All of these architectures included
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`computer control systems for network and associated network device command and
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`control, and for management of content distribution and consumer appliance
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`functions.
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`7.
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`I was involved from the start with the development and evolution of
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`modern consumer digital audio and video communications systems and technologies.
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`In 1991, my employer, TV/COM, and I began to participate in the International
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`Organization for Standardization (ISO) MPEG-2 digital television standards
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`initiatives, and, in the following year, in both the both the European Digital Video
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`Broadcast (DVB) and U.S. Advanced Television Systems Committee (ATSC) forums
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`United States Patent No. 7,942,317
`(which were based upon MPEG-2). I was an active participant and contributor to the
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`first two standard-setting bodies, and was a voting member of the ATSC. As Chief
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`Technology Officer of TV/COM, I developed a business strategy based on
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`supporting open international standards for digital television (DTV). In the mid
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`1990s, as the technologies and standards in support of DTV moved towards
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`implementation, the dawn of the Internet age arrived. This had a dramatic impact on
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`the way broadband systems engineers like me began to plan for the future. This is
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`because the concept of convergence—the melding of traditional broadband
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`communications systems and equipment, computers and computer networks, and the
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`telecommunications worlds—was changing the communications infrastructure and
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`technology landscape. When television distribution went all-digital, the information
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`of television became simply “data”— and it became possible for the technologies of
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`digital television, computers and computer networks and the telephony industry
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`(which was in the midst of its transition to digital infrastructure that began in the
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`1970s) to coalesce. Support for on-line and Internet services demanded a high
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`performance two-way data transmission capability, and so broadband network
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`providers began to upgrade their distribution infrastructures accordingly.
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`8.
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`In conjunction with this convergence, as TV/COM’s Chief Technology
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`Officer I directed the expansion of our network products into broadband data
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`communications generally, from an initial focus on digital television. Networks
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`became more advanced in order to support real-time interaction between consumers
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`United States Patent No. 7,942,317
`and information sources within the network. Interactive and on-line applications led
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`to rapid adoption of client-server information access approaches (typical of the
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`computer industry) in the products and technologies I worked with for content
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`delivery and network command and control functions. Starting in the early 1990s the
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`ubiquitous set top box began to evolve from a minimalist appliance towards its
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`current status as a communications hub of the consumer’s media room. In this same
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`time period, the PC had also become a ubiquitous consumer appliance, and with the
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`Internet age came much innovation in electronic information distribution and
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`electronic merchandizing – that is, technology related to complementing physical
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`information media and brick and mortar institutions with all-electronic digital
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`alternatives. This was an explosive period of so called digital rights management
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`(“DRM”), which I will discuss in more detail below. I and TV/COM were part of
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`this evolution until TV/COM was purchased in 1999.
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`9.
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`In my consulting work I have continued to work with technologies and
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`network infrastructures for content distribution and management. My current work
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`involves both traditional and newly developing architectures and distribution
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`channels. As an example of the latter, I am the chief security systems architect on
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`behalf of the six major Hollywood studios for their “Digital Cinema Initiatives” (DCI)
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`consortium.1 DCI develops and evolves the specifications for transitioning first run
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`1 See: http://www.dcimovies.com
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`United States Patent No. 7,942,317
`theatrical movie releases from film to digital for distribution and exhibition display. I
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`am responsible for all elements of command and control and digital rights
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`management (DRM) for digital cinema system design and implementation. I also
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`represent DCI at the Society of Motion Picture and Television Engineers (SMPTE),
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`which is developing the set of internationally recognized standards for global adoption
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`of digital cinema. The migration to all-digital distribution impacts other content
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`distribution channels such as early window release for hospitality, airplane and
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`cable/satellite video-on-demand (VOD), as well as newer so-called “over-the-top”
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`distribution channels based on Internet distribution. I have also been a strategy and
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`technology consultant to content management and distribution entities in those areas.
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`10. The technologies of the ’317 patent and its family relate generally to
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`apparatus, systems and methods to download content over a network from a source
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`location to a data carrier storage device via an intermediary device called a data access
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`terminal, after which content on the data carrier can be consumed by a user via a
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`rendering device. This involves methods and technologies to collect (select or
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`source), distribute and deliver content to consumers, who interact with supplied
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`information and supporting network infrastructure in real time. My experience with
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`these types of technologies stretches from the late 1970s until today, inclusive of
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`similar network architectures, systems and equipment, and associated consumer
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`appliances.
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`United States Patent No. 7,942,317
`11. My consulting practice today includes a balance of technology and
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`systems engineering services and assistance to the legal community as a technology
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`consultant and/or expert witness. I have been accepted to provide, and have
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`provided expert testimony in the areas of multimedia technologies and associated
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`networks as used for content management and delivery on many occasions.
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`12.
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`I have a Bachelors degree and a Master’s degree in Electrical
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`Engineering, conferred by the University of Arizona in 1974 and San Diego State
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`University in 1979, respectively. I also completed the Executive Program for
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`Scientists and Engineers at the University of California at San Diego in 1984. I am a
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`named inventor on two,patents, U.S. Patent No. 4,531, 020, “Multi-layer Encryption
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`System for the Broadcast of Encrypted Information,” and U.S. Patent No. 5,113,440,
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`“Universal Decoder.”
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`13. A listing of testimony that I have provided in the last five years is
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`attached hereto as Appendix B. I am being compensated for my time spent in
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`connection with this case at a flat rate of $325 per hour (plus expenses). I am being
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`paid regardless of the facts I know or discover and/or the conclusions or opinions I
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`reach. I have no personal interest or financial stake in the outcome of this case.
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`14.
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`In preparing my opinions I have considered the materials itemized in
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`Appendix C.
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`United States Patent No. 7,942,317
`II. THE ’317 PATENT
`15. The ’317 patent, entitled “Data Storage and Access Systems,” issued on
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`May 17, 2011, to assignee Smartflash Technologies Limited and named inventors
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`Patrick Racz and Hermen-ard Hulst. The ’317 patent purports to cover “[d]ata
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`storage and access systems . . . for downloading and paying for data such as audio and
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`video data, text, software, games and other types of data.” See, e.g., Ex. 1001, the ’317
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`patent, at Abstract. The alleged invention applies classical client-server models in a
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`multi-stage architecture that revolves around appliances and methods for loading data
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`into a memory storage device generally referred to as a data carrier. The user can then
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`access the data subject to certain conditions.
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`16.
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`I have analyzed claims 1, 6, 7, 8, 12, 13, 14, 16, and 18 of the ’317 patent
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`and reviewed the File History of the ’317 patent (Ex. 1010).
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`17. The ’317 patent issued from application number 12/014,558 which was
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`filed on January 15, 2008. This application issued from a chain of applications
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`claiming priority to United Kingdom application no. 9925227.2, filed October 25,
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`1999.
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`18. Applicants filed a preliminary amendment on September 5, 2008 to
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`remove multiple dependencies. (Ex. 1010, 9/5/2008 Amend., at 16).
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`19. The Examiner considering the application leading to the ’317 patent
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`issued a Restriction Requirement on January 21, 2010. The Examiner stated that the
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`filed claims were drawn to four inventions that were “related as product and process
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`of use.” (Ex. 1010, 1/21/2010 OA, at 2). The Examiner defined Group I as “drawn
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`to a method of providing portable data,” Group II as “drawn to a portable data
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`carrier,” Group III as “drawn to a method and an apparatus of controlling access to
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`data,” and Group IV as “drawn to a system controlled by data bearing records.” (Ex.
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`1010, 1/21/2010 OA, at 2).
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`20. Applicants filed an amendment responsive to the Restriction
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`Requirement on June 18, 2010. Applicants elected to prosecute the claims designated
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`as Group IV in the Restriction Requirement (claims 24-34, 63-66, and 69-72) and
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`cancelled the remaining claims (1-23, 35-57, 59-62, and 67-68) without traverse. (Ex.
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`1010, 6/18/2010 Amend., at 7).
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`21. On July 27, 2010, Applicants filed a Request for Correction of Inventive
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`Entity under 37 CFR 1.48(b). Applicants removed named inventor Hermen-ard
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`Hulst, stating that he was “originally properly included as an inventor in the parent
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`application,” but his “contribution...is not being claimed in this application (Ex. 1010,
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`7/27/2010 Request, at 1).
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`22. The Examiner issued a non-final office action on September 1, 2010.
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`The Examiner rejected application claims 31, 33-34, 63, 65-66, and 71-72 on the
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`ground of nonstatutory obviousness-type double patenting over claims of U.S. Patent
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`7,334,720. (Ex. 1010, 9/1/2010 OA, at 3). The Examiner recited application claim 3
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`of the ’720 patent to reject pending claim 31, cited to claim 3 of the ’720 patent to
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`reject pending claims 33, 62, 65, and 72, and cited to claims 2-3 of the ’720 patent to
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`reject pending claims 34 and 66. (Ex. 1010, 9/1/2010 OA, at 3-4). The Examiner
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`allowed application claims 24-30 and 69-71 and objected to claims 32 and 64 as being
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`dependent upon a rejected base claim. (Ex. 1010, 9/1/2010 OA, at 6-7). In allowing
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`these claims, the Examiner stated that “The prior art fails to disclose a computer
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`system for providing data to a data requester comprising: (i) a computer interface, (ii)
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`a data access data store; (iii) a program store; (iv) a processor; (vi) a code to receive a
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`request; (vii) a code to receive payment data; (viii) a code to read data; (ix) a code to
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`transmit the read data; and having the functions and characteristics as recited in claim
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`24.” (Ex. 1010, 9/1/2010 OA, at 7).
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`23. On November 8, 2010, Applicants filed a reply to the office action along
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`with a terminal disclaimer to overcome the double patenting rejection. Applicants
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`also amended claims 63, 69, and 70 “to correct non-substantive typographical errors.”
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`(Ex. 1010, 11/8/2010 Amend., at 7).
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`24. On November 8, 2010, Applicants also filed a Petition to Change Order
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`of Names of Joint Inventors in the Heading of the Patent Application under 37 CFR
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`1.182. Applicants stated that “based on the pending claims” both Patrick S. Racz and
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`Hermen-ard Hulst “should be listed as inventors on the present application. Only the
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`order of inventors should be changed.” The order of the inventors was changed to
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`list Patrick S. Racz first, followed by Hermen-ard Hulst. (Ex. 1010, 11/8/2010
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`Petition, at 1-2). The Office of Petitions granted the petition to change the order of
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`United States Patent No. 7,942,317
`the names of the inventors on February 24, 2011. (Ex. 1010, 2/24/2011 Decision of
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`Petition).
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`25. On December 8, 2010, the previously-filed Terminal Disclaimer was
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`disapproved because the individual who signed the terminal disclaimer did not have
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`power of attorney. Applicants filed a second terminal disclaimer, along with a Power
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`of Attorney and Statement under 37 C.F.R. § 3.73(b), on January 14, 2011.
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`26. The Examiner issued a Notice of Allowance on March 29, 2011. The
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`Examiner provided the same reasons for allowance as provided in the non-final office
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`action (Ex. 1010, 3/29/2011 Notice, at 2).
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`III. ONE OF ORDINARY SKILL
`I understand that the factors considered in determining the ordinary
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`27.
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`level of skill in the art include the level of education and experience of persons
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`working in the field; the types of problems encountered in the field; and the
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`sophistication of the technology.
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`28.
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`In my opinion, a person of ordinary skill in the art relating to the
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`technology of the asserted patents at the time at which the patents were filed —the
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`field of “data storage and access systems,” including the use of a “portable data carrier
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`for storing and paying for data and to computer systems for providing access to data
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`to be stored” (see, e.g.¸Ex.1001 (’317 patent) at col. 1, lns. 18-21)—would have had at
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`least a Bachelor of Science degree in electrical engineering, computer science or a
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`telecommunications related field, and at least three years of industry experience that
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`included client-server data/information distribution and management architectures.
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`29. As I described in the discussion of my background beginning at
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`paragraph 3 above, I have had decades of experience with computer based content/
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`information distribution networks, which included mixtures of consumer and
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`industrial equipment. As of October 25, 1999, I would have qualified as one of skill
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`in art according to the above definition.
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`IV. CLAIM CONSTRUCTION
`For the purposes of this declaration, I have been asked to assume
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`30.
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`constructions for certain claim terms as presented in the following table. For all
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`remaining claim terms, I have assumed their plain and ordinary meaning.
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`Claim term
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`Claim Construction
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`“payment data”
`(claims 2, 11, 14, and 32)
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`“data representing payment made for
`requested content data” and is distinct
`from “access control data”
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`V.
`STATE OF THE ART
`31. By Smartflash’s claimed priority date of October 25, 1999, the elements
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`of the challenged claims were all well-known in the art, and their combination as
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`claimed was also well-known or at minimum obvious to a person of ordinary skill.2.
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`2 At various points in this declaration I refer to my opinions about the knowledge or
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`understanding of a person of ordinary skill in the art. All of these opinions should be
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`32. Years before the October 25, 1999 priority date claimed by Smartflash,
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`the sale and distribution of digital products and content protection for digital products
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`were well-known. Further, the concept of providing access to data in exchange for
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`payment as well known.
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`33.
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`For example, U.S. Patent No. 4,999,806, entitled “Software Distribution
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`System,” filed on September 4, 1987 and issued on March 12, 1991, to Fred Chernow
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`and Randy J. Peterson (“the Chernow patent”), discloses a system and method for the
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`sale and distribution of digital data by telephone, including content protection for the
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`purchased content. See, e.g., Ex. 1006, the Chernow patent, at Abstract “A central
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`station distributes software by telephone. The central station accepts credit card
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`information, transmits an acceptance code to a caller and then terminates the call.
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`After verifying the credit card information, the station calls the purchaser back and
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`continues with the transaction only after receiving the acceptance code.”); col. 1, ln.
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`67-col. 2, ln. 9 (“It is an object of this invention to provide a means for selling and
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`distributing protected software using standard telephone lines for transferring the
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`software from the seller to the purchaser. Another object of this invention is to
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`permit the purchaser to rent the protected software for a period of time after which it
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`will self destruct. Another object of this invention is to permit the purchaser to rent
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`understood to refer to the knowledge or understanding of a person of ordinary skill in
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`the art as of October 25, 1999, unless specifically noted otherwise.
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`the protected software for a specific number of runs which would be useful, e.g., if the
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`software were a game.”).
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`34. U.S. Patent No. 4, 878, 245, entitled “Control and Metering System for
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`Pay Television Over a Cable Network,” filed January 22, 1987 and issued October 31,
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`1989, to Graham C. Bradley et al. (“the Bradley patent”), discloses a system for pay
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`television. See, e.g., Ex. 1007, the Bradley patent, at Abstract, col. 4 lns. 27-35 (“This
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`apparatus can permit programming to be sold to the subscriber by the month, by the
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`program, and by the hour of any portion thereof. Payment by the month is known as
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`Subscription Television. Payment by the program is known as Pay-per-View.
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`Payment by viewing time is known as Pay-for-Use (PFU) television. It also permits
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`the Cable Operator to share revenues with independent programming suppliers
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`sharing some portion of the cable TV distribution system.”).
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`35. U.S. Patent No. 5,675,734, entitled “Method for Transmitting a Desired
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`Digital Video or Audio Signal,” filed September 18, 1990 and issued March 2, 1993, to
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`Arthur R. Hair (“the Hair patent”), discloses a method for electronic sales of digital
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`audio and digital video. See, e.g., Ex. 1005, the Hair patent, at Abstract (“A method for
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`transferring desired digital video of digital audio signals”), col. 1, lns. 15-20 (“The
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`present invention is related to a system and associated method for the electronic sales
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`and distribution of digital audio or digital video signals, and more particularly, to a
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`system and method which a user may purchase and receive digital audio or digital
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`video signals from any location which the user has access to telecommunications
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`lines.”).
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`36.
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`In addition, U.S. Patent No. 5,103,392, entitled “System for Storing
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`History of Use of Programs Including User Credit Data and Having Access by the
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`Proprietor,” filed on December 5, 1990 and issued on April 7, 1991, to Ryoichi Mori
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`and assigned to Fujitsu Limited (“the Mori patent”), discloses a method for storing
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`information about customer use so that a customer can be charged according to that
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`use and in accordance with that customer’s credit. See, e.g., Ex. 1012, the Mori Patent,
`
`at col. 1, ln. 64-col. 2, ln. 17 (“In accordance with a fundamental aspect of the present
`
`invention, there is provided a system for storing data on the history of use of
`
`programs, including a data processing apparatus used by a user and program storage
`
`means for storing a program acquired from a proprietor and program-specific data.
`
`The data processing apparatus includes user-specific credit data storage means for
`
`storing data identifying the user of the data processing apparatus and indicating credit
`
`for payment capacity, use time length, or the like of the user of the data processing
`
`apparatus. Also included is use decision means for determining permission to use the
`
`program on the data processing apparatus on the basis of program-specific data
`
`supplied from the program storage means or user-specific credit data supplied from
`
`the user-specific credit data storage means, the use decision means delivering either an
`
`affirmative or negative signal corresponding to results of the decision. Also included
`
`is program use history storage means connected to the use decision means for storing
`
`
`
`
`15
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`United States Patent No. 7,942,317
`program use history data derived from the program-specific data or the user-specific
`
`credit data.”).
`
`37.
`
`Further, European Patent Application, Publication No. EP0809221A2,
`
`entitled “Virtual vending system and method for managing the distribution, licensing
`
`and rental of electronic data,” listing applicant Sun Microsystems, Inc. and inventors
`
`Andrew A. Poggio and Leo A. Hejza, and published on November 26, 1997 (“the
`
`Poggio patent application”), likewise discloses a content distribution system that
`
`provides for secure transactions and content protection. See, e.g., Ex. 1016, the Poggio
`
`patent application, at Abstract (“A virtual vending machine manages a comprehensive
`
`vending service for the distribution of licensed electronic data (i.e., products) over a
`
`distributed computer system. . . . The virtual vending machine distributes licenses for
`
`the electronic data for the complete product or for components thereof and for a
`
`variety of time frames, including permanent licenses and rental period licenses. The
`
`virtual vending machine provides client computers with the capability to obtain
`
`information regarding the available products and the associated license fees and rental
`
`periods, to receive the product upon receipt of a corresponding electronic payment,
`
`and to reload the product during the term of the license.”). The Poggio patent
`
`application will be discussed in more detail below and in Appendix D, and that
`
`discussion is incorporated here by reference.
`
`38.
`
`Similarly, a 1997 IEEE article, “The Secure Distribution of Digital
`
`Contents,” by Eberhard von Faber, Robert Hammelrath, and Franz-Peter Heider
`
`
`
`
`16
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` Covered Business Method Patent Review
`United States Patent No. 7,942,317
`(“the von Faber article”), recognized in its Introduction that “Electronic commerce
`
`systems dealing with the distribution of digital contents like software or multimedia
`
`data have to couple the use of the provided digital goods with a prior payment for the
`
`goods in a way which cannot be bypassed.” See Ex. 1020, the von Faber article, at 1.
`
`The von Faber article sets forth a proposal for a system in which encrypted contents
`
`are distributed and customers purchase keys required to utilize that encrypted content.
`
`See, e.g., Ex. 1020, the von Faber article, at 1 (“The basic idea of one possible solution
`
`is to distribute the contents in encrypted form, and to have the customer pay for the
`
`key which he needs to transform the encrypted content in an usable form. The
`
`security problem can in this way be transformed into a problem of key distribution.”);
`
`(“The Content Provider provides digital contents in encrypted form being distributed
`
`by the Content Distributor. The Key Management System holds the keys for the
`
`contents to be decrypted. The Authorisation System permits the distribution of the
`
`appropriate key after settling of the fees payable by the Customer, who will enjoy the
`
`decrypted digital contents. The role of the Content Distributor is not essential for the
`
`subsequent discussion but, of course, for the business to take place.”); see also Ex.
`
`1020, the von Faber article, Fig. 1.
`
`39. The von Faber article recognizes that its system could be used for
`
`different content distribution methods and different payment methods known in the
`
`art. See, e.g., Ex. 1020, the von Faber article, at 22 (“The outlined system has the
`
`following characteristics: Different methods can be used to distribute the encrypted
`
`
`
`
`17
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`Page 00018
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`United States Patent No. 7,942,317
`contents (standard techniques). This includes broadcasting, point-to-point
`
`networking, as well as offering disks. Different electronic payment methods can be
`
`integrated independent from the number of protocol steps needed. This includes
`
`credit card based systems as well as electronic purses. This flexibility leads to the fact
`
`that totally different authorisation methods can be integrated.”).
`
`40.
`
`Further, the von Faber article recognized that the issue of payment
`
`distribution to content providers, such as royalties, would also need to be addressed.
`
`See, e.g., Ex. 1020, the von Faber article, at 22 (“The system will support re-selling in a
`
`simple way. Re-sellers can integrate other manufacturer’s products into own packages
`
`without the need of signing any extra contract. The system automatically divides the
`
`package price (payments) and guarantees that the money is transferred to each
`
`Content Provider whose product has been integrated into the package.”).
`
`41.
`
`In addition, U.S. Patent No. 5,915,019 (“the Ginter patent”), entitled
`
`“Systems and Methods for Secure Transaction Management and Electronic Rights
`
`Protection,” filed on January 8, 1997 and issued on June 22, 1999, discloses “systems
`
`and methods for secure transaction management and electronic rights protection.”
`
`See, e.g., Ex. 1015, the Ginter patent, at Abstract. The Ginter patent describes a
`
`“virtual distribution environment” (which it terms a “VDE”) to “control and/or
`
`meter or otherwise monitor use of electronically stored or disseminated information.”
`
`See, e.g., Ex. 1015, the Ginter patent, at Abstract. The Ginter patent’s system “help[s]
`
`to ensure that information is accessed and used only in authorized ways, and
`
`
`
`
`18
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`Page 00019
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`United States Patent No. 7,942,317
`maintain[s] the integrity, availability, and/or confidentiality of the information.” See,
`
`e.g., Ex. 1015, the Ginter patent, at Abstract. Further, the Ginter patent’s “techniques
`
`may be used to support an all-electronic information distribution, for example,
`
`utilizing the ‘electronic highway.’” See, e.g., Ex. 1015, the Ginter patent, at Abstract.
`
`42.
`
`In addition, the Ginter patent discloses that the various entities that
`
`comprise the VDE architecture 100 of FIG. 1 can flexibly take on any of the roles
`
`taught in conjunction with the operation and functions of the VDE systems and
`
`methods. See, e.g., Ex. 1015, the Ginter patent, at col. 61, lns. 22-43 (“All participants
`
`of VDE 100 have the innate ability to participate in any role. For example, u
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