WORLD INTELLECTUAL PROPERTY ORGANIZATION
`International Bureau
`
`INTERNATIONAL APPLICATION PUBLISHED UNDER THE PATENT COOPERATION TREATY (PCT)
`
`(51) International Patent Classification 5 :
`GMF gm’ W445
`
`W0 9534857
`(11) International Publication Number:
`21 December 1995 (2142.95)
`
`(43) International Publication Date:
`
`(21) International Application Number:
`
`PCl‘!US95!0’?53';‘
`
`(22) International Filing Date:
`
`14 June 1995 ( 14.06.95)
`
`(81) Designated States: AU, CA. JP. MX. European patent (AT,
`BE, CH, DE. DK, ES. FR. GB, GR, IE. I'T'. LU. MC. NL.
`PT. SE}.
`
`(30) Priority Data:
`£l3i'259,59D
`
`14 June 1994 ( 14.06.94)
`
`US
`
`Published
`With international search report.
`
`[US:’US};
`{’:'1)(72) Applicants and Inventors: SMITH, James. P.
`Apartment 137. 2330 Vehicle Drive, Rancho Cordova. CA
`95670 (US). SMI'I'l-I. Edward, A. [USIUS]; 25052 Wilkes
`Place. Laguna Hills. CA 92653 (US).
`
`(74) Agents: DIPPERT. William, H. et al.; Cowan. Liebowitz &
`Latman, P.C., 1133 Avenue of the Americas, New York,
`NY 20036-6799 (US).
`
`(54) Title: APPARATUS AND METHOD FOR CONTROLLING THE REGISTRATION, PAID LICENSING AND METERED USAGE
`OF SOFTWARE PRODUCTS
`
`(57) Abstract
`
`An apparatus and method for control-
`ling the registration of installation,
`licens-
`ing and metered usage of software products
`is provided (23). The invention, called the
`"Soft.Meter" system and process, requires the
`registration of a software product with the
`SoftMeter system clearinghouse prior to the
`installation of the software in the user’s per-
`sonal computing device and prior to any use
`by the user of that software (29). The in-
`vention further requires the purchase by the
`user of s specified amount of use according
`to predetermined units-of—use and requires the
`metering down to zero of the amount of the
`user's remaining use from the prepaid amount
`of use as the user uses the software (28). The
`SoftMeter system also has a device that no-
`tifies the user as his remaining prepaid use
`approaches or reaches zero. The registration
`and purchase processes are accomplished via
`a telephone transmission device, such as a
`data modern, and operate much like a stan-
`dard credit card purchase. The SoftMeter
`system consists of elements including an Ac-
`tuaiizing Device. Interchangeable Software. a
`tamperproof persistent Storage Device. an In-
`teriock Device and a Purchase Transmission
`Device. all of which must be in the control
`and possession of the user.
`
`:1.
`Rlslralinn Module II
`hill.
`
`Apple E xhibit 10
`
`Page 000
`
`Apple Exhibit 1027
` Page 00001
`
`

`
`FOR THE PURPOSES OF INFORMATION ONLY
`
`Codes used to identify States party In the PCT on the front pages of pamphlets publishing international
`applications under the PCT.
`
`AT
`AU
`
`Ausuia
`Australia
`Barbados
`Belgiurn
`Burkina Faso
`Bulguia
`Benin
`Brazil
`Belarus
`Canada
`Cenlral African Republic
`Cor-so
`Switzerland
`Cote d'Ivoiza
`Cameroon
`China
`Czechosiuvakia
`Czech Republic
`Germany
`Denmadc
`Spain
`Finland
`France
`Gabon
`
`Nlamitanin
`Malawi
`Niger
`Nelherlands
`Ncmay
`New mland
`Poland
`Portugal
`Romania
`Russian Fedeuatioa
`Sudan
`Sweden
`Slcwenia
`Slovakia
`Senegal
`Chad
`T030
`‘nijlkisten
`Trinidad and Tobago
`Ukraine
`United Sums of America
`Uzbekistan
`Vial Nam
`
`Democratic People's Republic
`cf Km-ea
`Republic of Korea
`Kazakhslan
`Llechlmxslein
`Sri Lanka
`Luxembmug
`Latvia
`Monaco
`Republic of Moldova
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:21)
`
`

`
`W0 9584857
`
`PCT.’US95.-‘E3758’?
`
`APPARATUS AND METHOD FOR CONTROLLING THE REGISTRATION,
`PAID LICENSING AND METERED USAGE OF SOFTWARE PRODUCTS
`
`Field of the gnvention
`
`This
`
`invention relates
`
`to the
`
`use
`
`of
`
`software
`
`products. More particularly,
`
`this invention relates to an
`
`apparatus and method for controlling the registration. paid
`
`licensing and metered usage of software products. Both the
`
`apparatus
`
`and method are generic in nature;
`
`there are
`
`several ways in which they can be implemented with novel
`
`and non-obvious combinations of existing technology.
`
`Bagkggound of the gnvgngion
`
`The
`
`technology of
`
`the compact disc
`
`(CD), used to
`
`distribute audio material to the consumer market. has been
`
`applied to the personal computer
`
`industry in the form of
`
`the CD-ROM, which is physically identical
`
`to its audio
`
`predecessor but contains data and software rather than
`
`music.
`
`The promise of
`
`this medium of distribution is
`
`overwhelming in its implications. One CD—ROM can hold 650
`
`million
`
`characters
`
`of
`
`information
`
`——
`
`about
`
`30,000
`
`typewritten pages -- and costs less than $5 to manufacture.
`
`However,
`
`the prices of these CD-ROMs are proportioned to
`
`suit the value placed on them only by their primary market.
`
`For example, a legal publisher may sell all the California
`
`legal
`
`forms
`
`for pleading and practice on a CD-ROM for
`
`$4000, and a medical publisher may sell a subscription of
`
`CD-ROMs
`
`containing copies
`
`of all
`
`cardiology journals
`
`printed since the beginning of modern medicine for $8000
`
`per year.
`
`These prices, however, are too steep for most
`
`junior colleges and are totally out of
`casual home or business users.
`
`the question for
`
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`W0 95334357
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`Thus,
`
`the problem is that publishers of CD-ROMs do not
`
`sell their products at prices proportional to the amount of
`
`use that their customers would make of them.
`
`For example,
`
`a lawyer would pay $4000 for his legal reference works on
`
`CD—ROM because he would use them every day of the week;
`
`however, a casual user would pay only $40 to use the CD—ROM
`
`five or six times a year. Then both users could have their
`
`own copies of
`needed.
`
`the CD-ROMs available for use whenever
`
`The same basic problem has existed in the PC software
`
`industry for years, and the solution was simple:
`
`illegal
`
`copying. A User who wanted to have a $400 software package
`
`available merely for occasional use simply borrowed a
`
`legally purchased copy from a friend or from a place of
`
`work,
`
`took it home and made an illegal copy onto 55 worth
`
`of
`
`floppy disks.
`
`The user then went to a bookstore and
`
`purchased an after-market “how—to-use“ book for $24 and,
`
`in
`
`total net effect, got his own copy of the $400 package for
`
`$29 -- a price that was
`level of
`intended use.
`
`to his
`reasonably proportional
`This “market solution," however,
`
`does not work for CD-ROMs simply because it would take some
`
`six-hundred floppy disks to copy one CD.
`
`Thus,
`
`it
`
`is desirable to enable consumers
`
`to pay
`
`software license fees that are reasonably proportional to
`
`the value of
`
`the beneficial use of the software,
`
`rather
`
`than the present approach of paying either “full price" or
`
`nothing at all.
`
`It
`
`is also desirable to enable the
`
`consumer
`
`to have possession and control of the software
`
`such that the user can access any of the software at his
`
`own demand and convenience while paying for only the
`
`portion actually used.
`
`Neither Pay-per-view Cable Television nor the much-
`
`discussed “data
`
`superhighway“
`
`fulfills the traditional
`
`consumer's need and desire for possession and control or
`
`provides
`
`the
`
`benefits
`
`of
`
`low—cost
`
`convenience
`
`and
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:23)
`
`

`
`WO 95134857
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`PCT:'US95!I}758"t'
`
`accessibility.
`
`A user who desires a library of reference
`
`works,
`
`for
`
`example, movies
`
`on
`
`CD-ROM, would not
`
`be
`
`satisfied
`
`by
`
`using
`
`either
`
`Cable-TV or
`
`the
`
`data
`
`superhighway. Having a choice among 500 movies available
`
`for viewing between 8 and 10 p.m. Saturday night does not
`
`fulfill the desire to "watch any movie I want, whenever I
`
`want to watch it." In addition,
`
`the data superhighway will
`
`not allow the user to stop the movie at his convenience to
`
`allow for a food or rest room break. Pay-per-view also is
`
`not sufficient because the consumer does not have control
`
`and possession of all of the elements. He does not control
`
`and possess his own, personal copies of
`
`the reference
`
`He can access only the programs
`materials or software.
`piped into his
`home under
`the control of
`the cable
`
`those times of day when the cable
`operators and only at
`operators choose to offer them.
`
`Another device thought
`
`to solve this problem is a
`
`software key, which is a small device built inside a 25-pin
`
`connector shell and which contains an integrated circuit
`
`chip that will respond only when a special serial number is
`
`written to it by the software. This device is plugged into
`the back of a personal computer,
`into one of the connectors
`
`used for attaching a printer.
`
`When
`
`software that
`
`is
`
`"locked" is loaded,
`
`the software writes its special serial
`
`number to the device and checks for a response. Receipt of
`
`a response indicates the presence of the key, such that the
`
`software can proceed to operate.
`
`If the key is absent,
`
`the
`
`software will not operate. Although the software may be
`
`copied (legally or illegally), because the key cannot be
`
`duplicated and because the software remains locked without
`
`problem of
`the
`it,
`eliminated. However,
`
`effectively
`software piracy is
`this "key" approach is deficient in
`
`two major areas.
`
`First,
`
`the software key does not
`
`lend
`
`itself to universal use because a different key is required
`
`for each software product.
`
`If this method were applied to
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:24)
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`PCTJ'US95J'0758'.-'
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`all products installed on a typical user's machine,
`
`the
`
`"daisy chain" of software key devices would be long enough
`
`to wrap twice around a building. And second,
`
`the software
`
`key does not enable the cost of a software package to be
`
`proportional
`
`to its use.
`
`The user must still pay full
`
`price for the product even if he intends to use it on an
`
`infrequent basis. Thus,
`
`the software key serves primarily
`
`as a locking device but not much more.
`
`Software encryption has
`
`recently been used in two
`
`contexts in an attempt
`
`to solve the proportional pricing
`
`problem.
`
`one context offers a CD-ROM containing several
`
`hundred files of fonts (typefaces). when a user wants to
`
`purchase a new font, he calls an 800 number and exchanges
`
`his credit card number
`
`for
`
`a special
`
`"decryption key“
`
`number that can be used to decrypt only the desired file.
`
`From a “user convenience" standpoint, this method is quite
`
`effective in such a specific application.
`
`The "software"
`
`consists of specialized data files, not all of which are
`
`likely to be of
`
`interest
`
`to all purchasers.
`
`Thus,
`
`the
`
`distribution medium {CD—ROM)
`
`is purchased once at a small
`
`fee, and then additional fees are charged to acquire the
`
`unlimited use of each component stored on that disk, one at
`
`a time, only when such a component is really needed.
`
`The
`
`same technique would apply equally well
`
`to geographical
`
`data, demographic data and other types of data collections,
`
`of which any given user would make intensive use of only
`
`small
`data.
`
`segments and have no interest
`
`in the other stored
`
`inherent aspects of
`However, several
`method
`limit
`its usefulness
`to "data
`
`the encryption
`file" oriented
`
`products.
`
`Once a particular file has been decrypted,
`
`it
`
`may be accessed by all other software in an unrestricted
`
`way.
`
`In addition, once the file is “in the clear," it can
`
`be freely and illegally copied (this is an inherent aspect
`
`of "data" that
`
`is sold for use with a variety of other
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:25)
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`

`
`WO 95464857
`
`PCT.’US95!I}7587
`
`software}. Moreover, because the data can be accessed in
`
`a useful manner
`
`from so many other unrelated software
`
`products,
`
`there is no practical method for metering its
`
`use.
`
`Thus, because this method embodies no metering,
`
`the
`
`lock-out mechanism is a
`
`"one-time affair" and illegal
`
`copying is still enabled.
`
`Software encryption in this
`
`context does not solve the problems discussed above.
`
`Most recently,
`
`the software encryption method has also
`
`been used to implement a concept called “TryWare." Tryware
`
`offers several
`
`(ten to twenty} different complete software
`
`packages, all on one CD-ROM.
`
`The user is invited to try
`
`all of
`
`the packages and to purchase only those that he
`
`finds useful.
`
`The purchase is handled the same way as for
`
`the data file CDs:
`
`in exchange for making a charge for the
`
`full retail price of
`
`the package,
`
`the user
`
`is given a
`
`decryption key that will allow the software to be decoded
`
`and transferred to his hard disk.
`
`The gimmick is that the
`
`software packages are all provided on the CD-ROM in
`
`"crippled"
`
`form --
`
`that
`
`is,
`
`crucial
`
`sections of
`
`the
`
`programs are encrypted, just enough to negate the real-life
`
`usefulness of
`
`the Tryware packages.
`
`For example,
`
`the
`
`ability of the package to save a file or to print a file
`
`may be restricted, or the largest document may be limited
`
`to just one page.
`
`To get full use of
`
`the package,
`
`the
`
`buyer
`
`{or
`
`"tryer"} must pay the
`
`full price for
`
`it.
`
`However,
`
`the Tryware approach provides nothing regarding
`
`proportional pricing or metering.
`
`Objects of the Invention
`
`This invention is intended to solve many problems and
`
`to provide many benefits to software end-users, publishers
`and retailers.
`
`It is one object of this invention to eliminate the
`
`economic incentive for making illegal copies of software
`
`products.
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:26)
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`It is another object of this invention to enable users
`
`to
`
`pay
`
`software
`
`license
`
`fees
`
`that
`
`are
`
`reasonably
`
`proportional to the value received from using the software,
`
`rather than the present approach of paying either full
`
`price or nothing.
`
`It is yet another object of this invention to provide
`
`publishers with an accurate, complete and up-to-date list
`
`of registered users of its software products.
`
`It is still another object of this invention to make
`
`it economically 'viable for users
`
`to acquire many' more
`
`software packages for experimental, evaluative, marginally
`
`justified,
`
`infrequent and/or non—mission~critical use.
`
`It is a further object of this invention to provide a
`
`continuing ¥evenue stream to software publishers.
`
`It
`
`is yet
`
`a
`
`further object of
`
`this invention to
`
`provide
`
`comprehensive
`
`tracking and
`
`accountability of
`
`software use and purchasing in a corporate environment.
`
`It
`
`is still a further object of
`
`this invention to
`
`dramatically reduce the unit
`
`inventory cost for software
`
`retailers,
`
`thereby encouraging them to stock more titles
`
`and, consequently,
`
`to generate greater foot traffic.
`
`It is also an object of this invention to enable the
`
`realization of the CD~ROM‘s promise of cheap and abundant
`access to information.
`
`Sum ar
`
`f
`
`v
`
`' n
`
`The
`
`above
`
`and other objects are accomplished in
`
`accordance with
`
`the principles
`
`of
`
`the
`
`invention by
`
`providing an apparatus
`and method for controlling the
`registration of installation,
`licensing and metered usage
`
`of
`
`software
`
`products.
`
`The
`
`invention,
`
`called
`
`the
`
`"SoftMeter" system and process,
`
`requires the registration
`
`of
`
`a
`
`software
`
`product with
`
`the
`
`Softmeter
`
`system
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:27)
`
`

`
`WO 95134857
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`PC'I'fUS95;'0'?587
`
`clearinghouse prior to the installation of the software in
`
`the user's personal computing device and prior to any use
`
`by the user of
`
`that
`
`software.
`
`The
`
`invention further
`
`requires the purchase by the user of a specified amount of
`
`use according to predetermined units-of—use and requires
`
`the metering down to zero of
`
`the amount of
`
`the user's
`
`remaining use from the prepaid amount of use as the user
`
`uses the software.
`
`The Softmeter system also has a device
`
`that notifies
`
`the user as his
`
`remaining prepaid use
`
`approaches or reaches zero.
`
`The registration and purchase
`
`processes are accomplished via a telephone transmission
`
`device,
`
`such as a data modem,
`
`and operate much like a
`
`standard credit
`
`card purchase.
`
`The SoftMeter
`
`system
`
`consists of
`
`elements
`
`including an Actualizing Device,
`
`Interchangeable Software, a tamperproof persistent Storage
`
`Device,
`
`an Interlock Device and a Purchase Transmission
`
`Device, all of which must be in the control and possession
`of the user.
`
`Brief Description of the Drawings
`
`The above and other objects and advantages of
`
`the
`
`invention will be
`
`apparent upon consideration of
`
`the
`
`following detailed description,
`
`taken in conjunction with
`
`the
`
`accompanying
`
`drawings,
`
`in which
`
`the
`
`reference
`
`characters refer to like parts throughout and in which:
`
`FIG. 1 is a schematic representation of one embodiment
`
`of a SoftMeter device according to the present invention;
`
`FIG. 2 is a schematic representation of the method for
`
`making a product compatible with the Softmeter system;
`
`FIG.
`
`3 is a diagram of a registration process;
`
`FIG.
`
`4 is a diagram of a metering process;
`
`FIG.
`
`5 is a diagram of a purchase process;
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:19)(cid:28)
`
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`WO 95134857
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`PCTJ"US95)‘0'?53":'
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`FIG.
`
`6 is a plan View of a new software distribution
`
`media, called a CD-Ring; and
`
`FIG.
`
`7 is a plan view of an embodiment of a structure
`
`to enable a CD player to read and write the CD-Ring.
`
`Detailed Description of the Invention
`
`A first embodiment of
`
`the invention,
`
`known as the
`
`SoftMeter system and process, is a plug-in accessory board
`
`device for a personal computer, which device contains a
`
`small
`
`amount of
`
`random access memory
`
`(RAM)
`
`that
`
`is
`
`protected from tampering and from power outages. When the
`
`SoftMeter device is first installed, software provided with
`
`it will ask the user for his name, address, charge card
`
`number and password.
`
`This information will be stored in
`
`the SoftMeter device memory. Because the SoftMeter process
`
`requires that data be communicated over the telephone,
`
`the
`
`installation process will also confirm the existence of a
`data modem either on the Softmeter board or elsewhere in
`
`the computer.
`
`Software products
`
`that
`
`are
`
`compatible with
`
`the
`
`Softmeter system will sell not for the usual retail price
`
`of software products, for example $200 to $400, but rather
`
`much more inexpensively,
`
`for example $29 to $39.
`
`These
`
`software products will
`
`include,
`
`buried inside
`
`their
`
`programs, special software modules that will "speak" to the
`SoftMeter board.
`
`When
`
`a newly purchased software package
`
`is first
`
`installed on a user's computer,
`
`the software will write its
`
`publisher number and product number
`
`into the Softmeter
`
`memory.
`
`The SoftMeter device will use the modem to dial
`
`the 800 number for a central Softmeter clearinghouse and
`
`will
`
`send a data message indicating that
`
`"Mr/Ms XXXXX,
`
`residing at YYYYY,
`
`is now a registered user of software
`
`product number NNN produced by publisher number MM." As
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:19)
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`PCT!US95:'0'fS87
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`an additional installation step,
`
`the Softmeter device will
`
`be informed of the initial amount of metered use that the
`
`user will be allowed by virtue of purchasing the package.
`
`For example,
`
`for an original $29 purchase price,
`
`a word
`
`processing program might allow the user 40 hours of use --
`
`enough time to learn the program and get some useful work
`
`done but not enough to accommodate intensive daily use.
`
`the
`the user uses the software package,
`Then, whenever
`software will first check with the SoftMeter device to
`
`ensure that the product has already been registered for use
`
`on that computer.
`
`If so {i.e., if the product number is
`
`found in the Softmeter memory},
`
`the software package will
`
`proceed to operate normally.
`
`If not,
`
`a new registration
`
`process will be performed.
`
`As
`
`the software is being used,
`
`it will periodically
`
`tally the amount of use (hours, pages, keystrokes, etc.) by
`
`writing an electronic "message"
`
`to the SoftMeter board.
`
`The particular choice for the "units-of-use" will be a
`
`matter for the software publisher to determine, based on
`
`the publisher's own usage studies. Time, by itself, is not
`
`really appropriate, since many programs,
`
`though loaded into
`
`active memory and appearing on the display screen, actually
`
`lie idle for long periods of time while users tend to other
`
`business tasks, such as answering the phone.
`
`In practice,
`
`the units-of-use will more likely be related to the end-
`
`product of the software, such as pages printed by a word
`
`processing program or some measure of actual activity, such
`
`as the number of records retrieved by a database program.
`
`when the initial period of use is nearing expiration,
`
`the Softmeter device will so inform the user and ask if the
`
`user wishes to purchase additional units of use.
`
`If so,
`
`and confirmed with the user's password,
`
`the Softmeter
`
`device will use the data modem to dial the 800 number for
`
`one of
`
`the many charge card service agencies and will
`
`charge the user, for example, $25 for another 100 hours use
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:20)
`
`

`
`WO 95334857
`
`PCT:’US95J'0758'T
`
`of
`
`the program.
`
`The terms by which the user purchases
`
`additional units-of-use,
`
`i.e.
`
`the choice of units-of-use,
`
`the per-unit
`
`licensing
`
`fee,
`
`the minimum amount
`
`of
`
`purchasable units-of-use, are predetermined by the software
`
`publisher or
`
`licensing agent.
`
`when
`
`the
`
`charge
`
`is
`
`electronically approved,
`
`the additional amount of metered
`
`use is added to the use remaining in the Softmeter device.
`
`This financial transaction occurs in exactly the same way
`
`(and uses
`
`the same existing 800
`
`numbers
`
`and service
`
`providers} as does
`
`a retail purchase in which a "clerk
`
`swipes
`
`a purchaser's
`
`charge
`
`card through a
`
`terminal
`
`adjacent
`
`to the cash register.
`
`In this case, however,
`
`the
`
`“merchant number" will be that of the software publisher
`
`(the “publisher's number“ stored in the SoftMeter memory
`when the software was first installed}.
`
`In the most generic terms,
`
`the SoftMeter device
`
`consists of the following tangible elements, all of which
`
`must
`
`be
`
`in the control
`
`and possession of
`
`the user:
`
`Actualizing Device;
`
`Interchangeable
`
`Software;
`
`Non-
`
`tamperable, Persistent storage Device;
`and Purchase Transmission Device.
`
`Interlock Device;
`
`The Actualizing Device is a device that enables the
`
`consumer to manifest
`
`the beneficial use of the software.
`
`In the case of personal computer software, a computer with
`a Softmeter device
`installed in it
`constitutes
`the
`
`actualizing device. For electronic books,
`
`the actualizing
`
`device
`
`is
`
`the viewing machine
`
`(e.g.,
`
`the
`
`Sony Data
`
`DiscMan).
`
`For movies on video cassette,
`
`the actualizing
`
`device is the VCR. For video games,
`
`the actualizing device
`
`is the video game machine itself.
`
`An actualizing device
`
`without
`
`software provides
`
`no beneficial
`
`use
`
`to the
`
`consumer. Likewise, software without an actualizing device
`is of no beneficial use to the consumer.
`
`The Interchangeable Software that is to be registered,
`
`licensed and metered in the Softmeter system may take many
`
`10
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:21)
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`

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`W0 95.'3-1857
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`PCT.I'US95."0758'J'
`
`forms beyond the
`
`"computerese" meaning‘ of
`
`"software."
`
`Naturally, computer programs are one kind of software, as
`
`are electronically, magnetically or optically recorded
`
`books.
`
`Software also includes recorded music, video game
`
`cartridges
`
`and
`
`recorded video tapes.
`
`The
`
`"computer
`
`software“ that is inside appliances such as microwave ovens
`
`and VCR’s
`
`is not
`
`the "software" that
`
`is metered by the
`
`SoftMeter system because it is not
`
`interchangeable.
`
`For
`
`example,
`
`interchangeable video game cartridges that give
`
`the game character fifteen different levels of gaming skill
`
`are "interchangeable software“ but the software that gives
`
`a washing machine fifteen different wash cycles is not.
`
`In addition,
`
`software whose use
`
`is purchased and
`
`metered by the Softmeter system need not be distributed on
`
`tangible media {like floppy disks or CD-Rings}. There may
`
`come a day when many kinds of software will be distributed
`
`over the phone [as Shareware is today) or over cable TV's
`
`coaxial cable.
`
`This simply brings the software into the
`
`consumer's possession and control.
`
`The Softmeter system
`
`deals with paying for
`software.
`
`and metering the use of
`
`that
`
`Another essential requirement for the Softmeter device
`
`is a non-tamperable, non-volatile storage device, usually
`
`in the form of Random-Access Memory ("RAM"). That is,
`
`the
`
`Softmeter accessory board must contain some electronic
`
`memory that cannot be altered by casual "hackers" and that
`
`will "remember" its contents even when the computer's power
`is turned off
`for weeks or months.
`There are several
`
`technologies that would meet
`
`these needs,
`
`the simplest
`
`being the use of a very low power RAM chip encapsulated in
`
`epoxy, along with a very long life lithium battery.
`
`A non-tamperable, persistent storage device holds the
`
`identity and current amount of paid-for metered use for a‘
`
`large
`
`number
`
`of
`
`separate pieces
`
`of
`
`interchangeable
`
`software.
`
`In the PC accessory embodiment of the Softmeter
`
`ll
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:22)
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`

`
`W0 95.93485’?
`
`PCT!'US95.’07587
`
`system, this element is embodied in the RAM chips.
`
`In the
`
`CD—Ring embodiment discussed below, it is the magnetic ring
`laminated to the CD. This element is re-writable without
`
`practical limits. The storage device is persistent because
`the latest information written to this element is retained
`
`in the absence of external power. The information may not
`
`be retained literally "forever" but for at least an order
`
`of magnitude of time longer than the typical metered units-
`
`of-use
`
`recorded
`
`and
`
`tracked
`
`therein.
`
`Also,
`
`non-
`
`tamperability means that
`
`the average,
`
`technically astute
`
`consumer cannot employ commonly available means to alter
`
`the metering
`
`information.
`
`Physical
`
`or
`
`electrical
`
`inaccessibility, or clever encoding or encrypting may be
`
`used to achieve non-tamperability. For simplicity, we may
`
`refer to the storage device as "secure."
`
`The Interlock Device enables the actualizing device to
`
`manifest the beneficial use of the software to the consumer
`
`after he has paid for such use and prevents such beneficial
`use when the metered amount of use has been exhausted. The
`
`interlock device must be capable of switching back and
`
`forth between enabled and disabled states. Thus, existing
`
`encryption-based distribution media and processes do not
`
`qualify as interlock devices because they use an encrypted
`
`CD-ROM plus
`
`a purchased decryption key to unlock the
`
`software permanently, not just temporarily.
`
`The Purchase Transmission Device transmits a binding
`
`financial purchase transaction in "computer-to—computer"
`
`form (that is, non-voice, non-graphic} from the consumer's
`
`location of beneficial use to the software copyright owner
`
`or owner's agent before the interlock device will permit
`the use of
`the software.
`In both embodiments of
`the
`
`Softmeter
`
`system,
`
`a data modem embodies
`
`the purchase
`
`transmission device.
`
`Because software registration and
`
`metered purchase
`
`transactions
`
`are
`
`conducted over
`
`the
`
`telephone network,
`
`the Softmeter device must be used in
`
`12
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:23)
`
`

`
`W0 9534357
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`Pcrrusssmssv
`
`conjunction with a data modem. Modems are a very popular
`
`personal computer accessory {particularly since the advent
`
`of FAX modems}, and it is likely that the purchaser of a
`
`Softndeter device would already have a modem.
`
`If not,
`
`however.
`
`the Softmeter device
`
`could be
`
`sold with an
`
`optional built-in modem.
`
`The purchase transmission device must also operate on
`
`a pre-paid basis.
`
`In interactive, pay-per-view cable TV,
`
`the
`
`"cable
`
`box"
`
`that
`
`can transmit
`
`a movie purchase
`
`transaction back over
`
`the cable to the cable operator's
`
`office qualifies
`
`as
`
`a purchase
`
`transmission device.
`
`However,
`
`the frequently proposed system whereby residential
`
`electricity meters
`
`can be
`
`"read"
`
`through a
`
`telephone
`
`connection between the meter and the electric utility is
`
`not a purchase transmission device because it tallies the
`amount of
`the sale after
`the beneficial use of
`the
`
`commodity has already been consumed. Purchasing something
`
`in a scenario in which "operators are waiting for your
`
`call" does not qualify because the purchase transaction is
`
`transmitted in voice form. Similarly, faxing an order form
`
`to a company also does not qualify because the transaction
`
`appears in an intermediate graphic form.
`
`The
`
`invention can
`
`be better understood through
`
`reference to the drawings.
`
`FIG.
`
`1
`
`shows
`
`a
`
`schematic
`
`representation of
`
`a
`
`simple embodiment of
`
`the Softmeter
`
`device. The softmeter device 11 plugs into the actualizing
`
`device personal computer 12 containing the interchangeable
`software (not shown) by way of connectors 13.
`RAM chips 14
`
`covered with epoxy provide the storage device powered by
`
`dual lithium batteries 15.
`
`A purchase transmission device
`
`data modem (not
`
`shown)
`
`connects via socket 16.
`
`Many
`
`variations of the device are possible,
`
`including a portable
`
`version for use between computers
`
`and a miniaturized
`
`version for use with notebook computers.
`
`The accessory
`
`board embodiment, provided as a factory-installed component
`
`13
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:24)
`
`

`
`W0 9584857
`
`PCT!US95fB7587
`
`of VCR's, could also be applied to the pre-recorded video-
`
`cassette (movie)
`
`industry.
`
`The SoftMeter device needs specialized software that
`
`"talks" to it in a very specific and controlled manner. No
`
`matter how well specified,
`
`interaction with the SoftMeter
`
`device cannot be left to the publisher's engineering staff
`
`to implement.
`
`Therefore, while the SoftMeter' hardware
`
`device will be sold to the end-user at retail,
`
`there are
`
`also several software components that will be licensed to
`
`participating software publishers for inclusion into their
`
`software
`
`products.
`
`These
`
`software
`
`components
`
`(or
`
`“modules") present to their enclosing software products a
`standardized and controlled interface to the SoftMeter
`
`device. These modules will constitute the “SoftMeter API“
`
`(Application Programming Interface} and implement the three
`
`Softmeter system processes of Registration, Metering and
`Purchase.
`
`when a software publisher agrees to participate in the
`
`Softmeter system,
`
`the publisher will modify its existing
`
`products
`
`to physically incorporate
`
`the Softmeter API
`
`modules and to "call"
`
`("request
`
`the services of")
`
`these
`
`modules at appropriate points in the operation of
`
`the
`
`software.
`
`The incorporation of the SoftMeter API
`
`into an
`
`existing product
`
`is represented schematically in FIG. 2.
`
`An existing software product
`
`20,
`
`having installation
`
`program code 11 and normal operating program code 22, can
`
`be modified by one with normal skill in the art of computer
`
`programming to incorporate the Softmeter‘ API 26.
`
`The
`
`modified software product 23 has installation program code
`
`24
`
`that
`
`incorporates
`
`the
`
`registration module
`
`29
`
`of
`
`Softmeter API 26 and has normal operating code 25 that
`
`incorporates the purchase module 27 and the metering module
`
`28 of SoftMeter API 26.
`
`The Softmeter
`
`registration,
`
`purchase and metering modules are preprogrammed to interact
`
`(cid:51)(cid:68)(cid:74)(cid:72)(cid:3)(cid:19)(cid:19)(cid:19)(cid:20)(cid:25)
`
`

`
`W0 95.54857
`
`PCTlUS95fl}'}'58':'
`
`with the SoftMeter device and with the data modem as
`
`described below.
`
`The overall SoftMeter process consists of
`
`the three
`
`distinct operations of Registration, Metering and Purchase.
`
`These operations are described in detail below.
`
`Registration of a newly installed software product
`
`uses the data modem to call
`
`the central clearinghouse,
`
`enters a new product
`
`into the SoftMeter device's RAM and
`
`sets the initial count
`
`for
`
`the amount of metered use.
`
`Registration
`
`does
`
`not
`
`require
`
`financial
`
`transaction
`
`integrity control and takes only about one minute of real
`
`time to complete. The steps of the registration portion of
`
`the Softmeter process are described below and are shown
`
`schematically FIG. 3.
`
`1.
`
`The
`
`first part of
`
`a new software package
`
`20
`
`is
`
`transferred from a floppy disk 17 to the main memory
`
`18 {CPU and RAM} of personal computer 12.
`
`Part of
`
`the registration program checks with the
`
`SoftMeter device 11 as to whether
`
`the new software
`
`product has already been registered {whether
`
`the
`
`software product’s number is already present
`
`in the
`
`memory of the SoftMeter device 11}.
`
`When the SoftMeter device 11 reports that it doesn't
`
`"know" about
`
`this software product 20, Softmeter 11
`
`provides its own serial number, plus the name and
`
`address of
`
`the user,
`
`to the CPU 18 to be used to
`
`register the software.
`
`The re