US007725375B2
`
`(12) United States Patent
`Shepherd
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 7,725,375 B2
`*May 25, 2010
`
`(54) SYSTEMS AND COMPUTER PROGRAM
`PRODUCTS FOR EXCHANGING AN
`OBLIGATION
`
`(75)
`
`Inventor:
`
`Ian Kenneth Shepherd, Victoria (AU)
`
`(73) Assignee: Alice Corporation Pty Ltd (AU)
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 738 days.
`
`This patent is subject to a terminal dis-
`claimer.
`
`(21) Appl.No.: 11/166,387
`
`(22)
`
`Filed:
`
`Jun. 27, 2005
`
`(65)
`
`Prior Publication Data
`
`US 2005/0246197 A1
`
`Nov. 3, 2005
`
`Related U.S. Application Data
`
`(63) Continuation of application No. 09/567,507, filed on
`May 9, 2000, now Pat. No. 6,912,510, which is a
`continuation of application No. 08/870,691, filed on
`Jun. 6, 1997, now Pat. No. 6,134,536, which is a con-
`tinuation-in-part of application No. 08/070,136, filed
`on May 28, 1993, now Pat. No. 5,970,479, which is a
`continuation-in-part of application No. PCT/AU95/
`00827, filed on Dec. 7, 1995.
`
`(30)
`
`Foreign Application Priority Data
`
`May 29, 1992
`Jun. 30, 1992
`Dec. 7, 1994
`Jul. 7, 1995
`
`(AU)
`(AU)
`(AU)
`(AU)
`
`.................................... .. PL2677
`PL3216
`
`.................................. .. PM9922
`................................... .. PN4060
`
`(51)
`
`Int. Cl.
`(2006.01)
`G06Q 40/00
`(52) U.S. Cl.
`...................................................... .. 705/35
`(58) Field of Classification Search ................. .. 705/37,
`705/35
`
`(56)
`
`References Cited
`U.S. PATENT DOCUMENTS
`
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`
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`
`(Continued)
`FOREIGN PATENT DOCUMENTS
`
`EP
`
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`
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`
`(Continued)
`
`Primary Examiner—James A Kramer
`Assistant Examiner—Eric T Wong
`(74) Attorney, Agent, or Firm—Sterne, Kessler, Goldstein &
`Fox P.L.L.C.
`
`(57)
`
`ABSTRACT
`
`Methods and apparatus which deal with the management of
`risk relating to specified, yet unknown, future events are
`disclosed.
`
`‘Sponsor’ stakeholders specify a particular product relat-
`ing to an event or phenomenon for which there is a range
`of possible future outcomes.
`‘Ordering’ stakeholders then offer contracts relating to the
`predetermined phenomenon and corresponding range of
`outcomes. The offered contracts specify an entitlement
`or (pay-off) at the future time of maturity for each out-
`come, and a consideration (or premium) payable, in
`exchange, to a ‘counter-party’ stakeholder.
`Independently of the offered contracts, the ‘counter-party’
`stakeholders input data as to their view of the likelihood
`of occurrence of each outcome in the predetermined
`range into the future, or specifically at the predetermined
`date of maturity.
`Each offered contract is priced by the processing units by
`calculating counter-party premiums from the registered
`data, and a match attempted by a comparison of the
`offered premium with the calculated premiums.
`Matched contracts can be further traded until maturity, and
`at-maturity processing handles the exchange of entitle-
`ment as between the matched parties to the contract.
`
`47 Claims, 117 Drawing Sheets
`See application file for complete search history.
`5200
`
`Transfer Entities
`
`Stan ofday
`PAYACC
`management
`
`Consideration!
`Entitlement
`
`Apple Exhibit 1026
`
`Page 00001
`
`Apple Exhibit 1026
`Page 00001
`
`

`
`US 7,725,375 B2
`Page 2
`
`2003/0191707 A1
`
`10/2003 Shepherd
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`i1>>>>>l1>>>>>>>i>>>i>>i>>>i>>i>>>i>>i>>>i>>i>>>i>>>>>>>>>>D>FU>>>>>>>>>>>>>>>>>>D>>
`
`A1
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`

`
`US 7,725,375 B2
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`US 7,725,375 B2
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`US 7,725,375 B2
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