`Exhibit 2
`
`Exhibit 2
`
`
`
`llllllllill|||||l|||il||||llllllllllllllllllllfllllllllll||ll|||||
`
`US005734823A
`
`United States Patent
`
`[19]
`
`{11] Patent Number:
`
`5,734,823
`
`[45] Date of Patent: Mar. 31, 1998
`Saigh et a].
`
`
`
`[54] SYSTEMS AND APPARATUS FOR
`ELECTRONIC COMMUNICATION AND
`STORAGE OF INFORMATION
`
`[75]
`
`Inventors: Michael M. Saigh. St. Louis. Mo.;
`Edward H. Chang. Huntington Beach.
`Calif.; Douglas B. Broekhouse.
`Kirkwood. Mo.; Hsiao-Shih Chang.
`Orange County. Calif.
`
`[73] Assignee: Microtome, Inc.. St. Louis. Mo.
`
`[21] Appl. No.: 687,292
`
`[22] Filed:
`
`Jul. 25, 1996
`
`Related US. Application Data
`
`[63] Continuation of Ser. No. 367,056, Dec. 30, 1994, aban—
`doned, which is a continuation—in-part of Ser. No. 296,120,
`Aug. 25, 1994, abandoned, which is a continuation—impart
`of Ser. No. 787,536. Nov. 4, 1991, abandoned.
`
`Int. Cl.6 ....................................................... G09G 1100
`[51]
`[52] US. Cl.
`.. 395300.06; 395/200.09
`
`[58] Field of Search ........................... 395/200.06. 200.09
`
`[56]
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`
`4,490,810 12/1984 Hon.
`4,779,080 10/1988 Coughlin et al. .
`4,855,725
`8/1989 Fernandez.
`4,399,292
`2/1990 Montagna et a].
`5,065,345
`11/1991 Knowles et a].
`.
`.
`5,121,492
`6/1992 Saville, III et al.
`5,221,838
`6/1993 Gutman et a].
`......................... 235/379
`5,388,196
`2/1995 Pajak et a].
`............................. 395/153
`
`.
`
`OTHER PUBLICATIONS
`
`Watanabe et 31. “Visual Interface for Retrieval of electronic
`formed Books"; IEEE Jul. 1993. pp. 692—695.
`Pobiak; “Adjustable Access Electronic Books”; IEEE Jan.
`1992; pp. 90—94.
`
`Dvorak et al; “A Methodology for User Centred Link
`Structure for Textbook to Hypertext Conversion" IEEE Jan.
`1992. pp. 619—628.
`
`Now. Data By Satellite (no date).
`
`This Little Computer Tries To Be A Book. St. Louis Post-
`—Dispatch -—Jan. 4. 1995.
`
`IBM to Unveil Plan To Skip Disks. Send Software by
`Satellite. The Wall Street Journal -Nov. 1. 1994.
`
`The Heller Report —Oct. 1993.
`
`Electronic Campus. The Wall Street Journal —Jun. 1. 1993.
`
`Making Book On Electronic Books. College Store Journal
`—Sep./Oct. 1992.
`
`Primary Examiner—Krisna Lim
`Anomey, Agent, or Firm—Armstrong. Teasdale. Schlafly &
`Davis
`
`[57]
`
`ABSTRACT
`
`An information distribution system in accordance with one
`form of the present invention. includes a central information
`bank and a central transactional data base coupled to point-
`of-sale delivery systems. Information flows between each
`point-of—sale delivery system and the central information
`bank and central transactional data base via a communica-
`
`tion network such as the telephone network. a satellite
`network. or any other network suitable for the transfer of
`information. The point-of-sale delivery systems may take
`one of many forms including a point of purchase delivery
`system. a point of rental delivery system. a “book bank"
`subsystem. a promotional delivery system. or any combina-
`tion of such systems.
`
`30 Claims, 11 Drawing Sheets
`
`PEHIHERAL INFURIIV IN
`DATA SINK
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`US. Patent
`
`Mar. 31, 1998
`
`Sheet 1 of. 11
`
`5,734,823
`
`
`
`PERIPHERAL INFORMATION
`DATA BANK
`
`
`
`
`'
`
`102‘
`‘
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`CENTRAL
`INFORMATION
`DATA BANK
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`
`US. Patent
`
`Mar. 31, 1998
`
`Sheet 2 of 11
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`5,734,823
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`Sheet 6 of 11
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`
`Sheet 7 of 11
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`5,734,823
`
`CUSTOMER ENTERS
`POP SITE
`
`390
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`392
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`FIRST TIME
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`
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`
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`Sheet 9 of 11
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`5,734,823
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`Sheet 10 of 11
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`Mar. 31, 1998
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`Sheet 11 of 11
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`l
`SYSTEMS AND APPARATUS FOR
`ELECTRONIC COMMUNICATION AND
`STORAGE OF INFORMATION
`
`This application is a conu'nuation of U.S. patent appli-
`cation Ser. No. 08/367056 filed Dec. 30. 1994. now
`abandoned. which is a continuation-in—part of the US.
`patent Ser. No. 08/296.120 filed Aug. 25. 1994. now
`abandoned. which is a continuation-in-part of Ser. No.
`07fl87.536 filed Nov. 4. 1991. now abandoned
`
`FIELD OF THE INVENTION
`
`The present invention relates to a system for distributing
`information in electronic form and more particularly. relates
`to a communication network for transmitting information
`between a central information bank and a user interface.
`
`BACKGROUND OF THE INVENTION
`
`With the current information publishing and distribution
`system. information usually is delivered as fixed printed
`images on paper or fixed in other media forms such as tapes.
`diskettes. cartridges. laser disk. or compact disk. Prior to and
`at various points in the delivery process. the informau‘on
`usually is warehoused. Eventually. the information is deliv—
`ered to retail outlets scattered throughout a distribuu'on
`territory. Upon receipt of the information. the retailers either
`store the information or display the materials for resale.
`The present publishing and distribution system has many
`disadvantages. One disadvantage is the amount of time and
`labor required for preparing. printing. producing and dis-
`tributing information. Another disadvantage of the current
`system is the lack of control over the production quantity of
`information. i.e.. the number of copies made and sold. The
`current distribution system is further disadvantaged by the
`time. work and costs required in publishing and distributing
`information updates.
`In an attempt to improve the disseminau'on of some types
`of information. bulletin board networks have been estab-
`lished. Networks. such as Internet. also have been or are
`being established. Known networks generally utilize a tele-
`phone network or some other network as a communication
`media and can be accessed using commercially available
`software and almost any type of computer. As presently
`operated. however. such networks are unsuitable for the
`distribution of proprietary information and information
`which is intended for limited copying. The free transfer of
`information using such networks provides little or no pro—
`tection for copyright and proprietary information owners.
`
`SUMMARY OF THE INVENTION
`
`The present invention. in one aspect. is an information
`distribution system which overcomes disadvantages and
`shortcomings of the current
`information publishing and
`distribution system. An information distribution system. in
`accordance with one form of the present invention. includes
`a central information bank and a central transactional data
`
`base coupled to point-of—sale delivery systems. The central
`information bank and central transactional data base do not
`necessarily have to be co-located and can be implemented
`on difierent. but coupled. computer systems. Information
`flows between each point-of-sale delivery system and the
`central information bank and central transactional data base
`via a communication network such as the telephone
`network. a satellite network. or any other network suitable
`for the transfer of information.
`
`2
`More specifically. information obtained from publishers is
`digitized.
`i.e.. convened to electronic form. to create a
`master copy in a uniform electronic format. Information
`obtained from publishers in digitized format simply is
`converted into the uniform electronic format. The master
`
`copies are stored in the central information bank
`The central transactional data base performs a record
`keeping function. Particularly. the transactional data base
`records and stores information related to each transaction
`
`the
`performed at each point-of—sale site. Upon request.
`transactional data base transmits sales data to a requesting
`publisher.
`The point-of-sale delivery systems may take one of many
`forms including a point of purchase delivery system. a point
`of rental delivery system. a “book bank” subsystem. a
`promotional delivery system. or any combination of such
`systems. In the point of purchase delivery system. informa—
`tion is downloaded. i.e.. copied. onto a user’s storage media
`for later access by the user. The point of rental delivery
`system is similar to the point of purchase system except that
`in addition to downloading information. an automatic era-
`sure time period designation is downloaded. As explained in
`more detail hereinafter. the time period designation is uti—
`lized so that upon expiration of the designated time. the
`downloaded information is automatically erased from the
`user’s storage media. The book bank subsystem is a sub-
`network established between authorized users. such as
`
`employees of a corporation. Each user within the sub—
`network can access designated information stored within the
`sub-network. Such a configuration enables sharing of infor—
`mation. In the promotional delivery system. promotional and
`other commercial information can be accessed for viewing
`and ordering of products.
`A most important element of each point-of-sale delivery
`system is the user interface. sometimes referred to herein as
`the “Book Bank”. The term Book Bank. as used herein.
`refers to the interface between the network and the user.
`Although the term Book Bank may imply “book—type"
`material. such term is not so limited. The material may be of
`many types such as movies. music. video. audio. and com-
`puter software material.
`The Book Bank is a self-service. user interactive infor-
`mation vending device. Each Book Bank contains a high
`volume. local memory storage having a customized portfo-
`lio of the most demanded information products for the
`particular site at which the Book Bank is located. Other
`information is transferred. via commercial communication
`networks (i.e. telephone networks. cable systems. satellite or
`cellular system or other similar communication networks).
`to a Book Bank for supplemental. secondary and less
`demanded purposes. A central processing unit contained
`within the Book Bank and coupled to the Book Bank local
`memory storage controls downloading and dynamic encryp-
`tion of the information.
`
`Widespread use of the present invention should greatly
`simplify. and reduce the costs associated with. the publica-
`tion and distribution of information. Particularly. the present
`architecture reduces the amount of time and resources
`
`required for the distribution of information. Further. infor-
`mation updates can easily be made simply by updating the
`master copy stored in the central information bank and then
`either writing over the copies stored in each Book Bank with
`the updated master copy or downloading the updated master
`copy and storing both the old and updated versions in each
`Book Bank. Each Book Bank contains an electronic index of
`the various information titles accessible from the Book
`
`5
`
`10
`
`15
`
`20
`
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`
`30
`
`35
`
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`
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`
`55
`
`65
`
`
`
`5,734,823
`
`3
`Bank. In addition. the number of production quantities of a
`particular work can be readily controlled using the central
`transactional data base to track the number of copies made
`and sold. within the network. for each work.
`
`The present invention also readily enables controlling
`reproduction of information and greatly simplifies updating
`of text. and the dynamic encryption of text should provide
`copyright and proprietary information owners suflicient con-
`fidence in the present network to allow such informau'on to
`be transmitted on the network.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`These and other objects and advantages of the present
`invention.
`together with further features and advantages
`thereof. will become apparent from the following detailed
`specification when read together with the accompanying
`drawings. in which:
`FIG. 1 illustrates one embodiment of the present infor-
`mation distribution system architecture;
`FIG. 2 illustrates information flow in the system archi-
`tecture shown in FIG. 1;
`FIG. 3 is a block diagram illustration of a point of
`purchase delivery system;
`FIG. 4 is a more detailed block diagram illustration of the
`host fileserver shown in FIG. 3;
`FIG. 5 is a perspective view of a Book Bank embodiment;
`FIG. 6 is a block diagram illustration of the Book Bank
`circuitry;
`FIG. 7 is a block diagram illustration of an end user‘s
`storage media;
`FIG. 8 illustrates the information flow for the point of
`purchase configuration;
`FIG. 9 is a block diagram illustration of certain elements
`of a point of rental delivery system;
`FIG. 10 is a block diagram illustration of certain elements
`of a Book Bank subsystem;
`FIG. 11 is a block diagram illustration of certain elements
`of a promotional delivery system; and
`FIG. 12 is a flow chart illustrating the encryption process
`implemented in accordance with the present invention.
`
`DETAILED DESCRIPTION OF THE DRAWINGS
`
`The following sections provide a brief overview of the
`present system and a detailed description of the system
`architecture. Following the detailed architecture description
`is a detailed description of point of sale delivery configu-
`rations. A detailed description of the various levels of
`encryption which may be used in the present system is then
`provided.
`A. Brief Overview
`
`In accordance with one embodiment of the present
`invention. information is distributed from a central infor-
`mation bank to a user’s personalized storage medium Infor-
`mation to be so distributed by the present system is received
`from outside sources either electronically. over various
`communication networks (e.g..
`telephone lines. cable
`systems. cellular systems or other similar commercial com~
`munication networks) or from various storage mediums
`(e.g.. magnetic or electronic disks. cartridges. or tape reels
`or compact disks. laser disks. tape cassettes. etc). or in hard
`copy format. If information is received in a hard copy
`format. it is initially converted to a standard digital format
`(e.g.. ASCII text. DOS text or other similar standard com-
`mercially available text format) by scanning or direct tran-
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`scription. Then the information is digitized. formatted. com-
`pressed and inin‘ally encrypted to form an electronic master
`copy which is stored in the central information bank. The
`master copy is duplicated electronically and dispatched
`electronically through a communication network. such as a
`telephone or satellite network. to a point-of-sale delivery
`system. Book Banks form a part of such a delivery system.
`and the electronic copies are retained in the Book Banks for
`downloading into user' 5 personalized storage medium. Prior
`to and dining downloading of the copy on the user’s storage
`medium.
`the information is dynamically encrypted. A
`“dynamic" encryption process is utilized so that only the
`electronic reader associated with the user card used to access
`the information from the Book Bank and download the
`
`information to the user storage cartridge can be utilized to
`display the information in an understandable text format.
`B. System Architecture
`FIG. 1 illustrates one embodiment of the present infor-
`mation distribution system. The system is shown. for illus-
`tration purposes only. as being implemented across the
`USA. Referring to FIG. 1. a central information bank 100
`is the central “library”. or storage location. for information.
`Peripheral information banks 102A—F. coupled to central
`information bank 100. are libraries. or storage locan'ons. for
`community oriented information. For example. the infoma—
`tion stored in central information bank 100 accessed most
`often from the San Francisco bay area peripheral informa-
`tion bank 102A may not be accessed often from the periph-
`eral information bank for Memphis. Tenn. 102E. In any
`event. central
`information bank 100 is coupled to each
`peripheral information bank 102A—F to enable sharing of
`information. As explained in more detail hereinafter with
`respect to peripheral information bank 102E each peripheral
`information bank 102A—F is coupled to one or more point-
`of—sale sites.
`A central transactional data base 104. coupled to the
`central information bank 100 and the peripheral information
`banks 102A—F. serves a central record keeping function for
`central information bank 100 and peripheral information
`banks 102A—F. Central information bank 100 and central
`
`transactional data base 104 preferably are commercially
`available main frame computers. such as an IBM main frame
`computer. The particular main frame model selected
`depends on the amount of information to be centrally stored
`in the network. the extent of record keeping functions to be
`performed. and the speed at which transfer and processing of
`information is to occur. Importantly. the present invention is
`not limited to any one particular computer to serve as the
`central information bank and/or the central transactional
`data base.
`
`As shown in FIG. 1 is an exploded View of the various
`couplings between central information bank 100 and trans-
`actional data base 104. peripheral information bank 102F
`and various point—of-sale delivery sites. particularly. point of
`purchase sites l08A—C. point of rental sites 110A—D. pro-
`motional sites 112A—D. and Book Bank subsystem sites
`ll4A—C. Each point of purchase site 108 includes a point of
`purchase transactional database, represented by a box. and a
`user interface. represented by a circle. As explained above.
`the user interface is sometimes referred to herein as the
`“Book Bank”. Specifically. point of purchase site 108A
`contains Book Bank 116A and transactional data base 118A.
`site 108B contains Book Bank 116B and transactional data
`base 118B. and site 108C contains Book Bank 116C and
`transactional data base 118C. Since the central information
`bank 100 and peripheral informau'on bank 102F. and spe-
`cifically peripheral information bank memory storage unit
`
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`5
`106A. also could serve as Book Banks. such units are
`illustrated as circles. Further details regarding Book Banks
`and transactional data bases are provided below in Section
`C.
`
`As illustrated in FIG. 1. each point-of-sale delivery
`system. such as systems 112A. 108A—B. 110A. and 114A—B.
`may be networked directly to peripheral information bank
`102E or the point-of-sale delivery system. such as systems
`108C. 110B—D. 112B. 112D and 114B—C. may be networked
`to the point of purchase site 108B. which is networked to the
`peripheral
`information bank 102E Point-of-sale delivery
`system configurations are explained in more detail below in
`Section C. At the level illustrated in FIG. 1. however. it is
`important to understand that the delivery systems may be
`integrated into various combinations. such as a promotional
`point of rental system as shown by 110B and 112B. or a
`promotional point of purchase system as shown by 108B and
`112C. or a combination of a promotional. point of purchase.
`and point of rental systems as shown by 108C. 110D and
`112D.
`Communication network links between the central infor-
`mation bank 100. central transactional data base 104. periph-
`eral information banks l02A—F. and point of sale sites can
`be made utilizing one or a combination of many commer-
`cially available networks such as telephone. satellite or cable
`networks or any ‘ other medium suitable for transmitting
`information in digitized format. Many well-known protocols
`could be used in connection with the present system. For
`example. if the InterNet is used as the “backbone” network.
`the well-known TCP/IP protocol could be used.
`FIG. 2 illustrates the flow of information in accordance
`with the embodiment of the system architecture illustrated in
`FIG. 1. For ease of illustration only. peripheral memory
`storage unit 106A is consolidated into central information
`bank 100. and peripheral transactional data base 106B is
`consolidated into central transactional data base 104. It
`should be understood. of course. that communication links
`between the peripheral information bank 102F and central
`information bank 100 and central transactional data base 104
`are provided.
`As illustrated by the inputs provided to block 202. a
`publisher will receive inventory reports from the central
`information bank 100 and sales data from central transac-
`tional data base 104. Based on this and other information.
`the publisher can determine whether to place additional
`information on the network. For ease of reference. such
`information is sometimes referred to herein as “information
`titles”. as shown in block 204. If the information is not
`present in an electronic format. then the information is
`digitized 206. disposed in an electronic format 208 and then
`undagoes electronic authoring 210. The digitized informa—
`tion is then transmitted to a data converter 212 for convert-
`ing the digitized information into a uniform format. For
`example. if the central information bank 104 and central
`transactional database 104 are DOS-based systems. the data
`converter will convert the information into a DOS format. If
`the information titles are in a digitized format. the informa-
`tion titles are transmitted directly to data converter 212 for
`direct conversion into the uniform format as illustrated by
`line 214.
`
`Once the data is in a uniform. digitized format. it under-
`goes an initial encryption mad compression to both reduce
`the amount of storage space required to store the data and to
`make the data ready for being transmitted with less risk of
`unauthorized use while being transmitted through a com-
`munications network. The compression is accomplished
`through the use of one of the commercially available com-
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`pression protocalls. The initial encryption is performed
`using one of the standard available encryption protocalls as
`discussed below in Section D.
`Once in uniform. encrypted and digitized form. the infor-
`mation titles are stored in central information bank 100. An
`
`electronic index. listing all titles available and accessible by
`author. title. subject or ISBN codes is prepared. As new
`information titles are added. the electronic index is updated
`to include the new titles. The information titles may then be
`downloaded to Book Bank 116A. The information titles and
`corresponding electronic index information may. in addition
`to or rather than being stored in central information bank
`100. be disposed on laser disk masters as illustrated at block
`216. Laser disk masters 216 can then be installed directly
`into Book Bank 116A.
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`Prior to downloading desired information titles. the user
`may access an electronic index which contains all
`the
`information titles available for downloading from Book
`Bank 116A. Through the electronic index. the user obtains
`the listing for available information titles by author’s name.
`by specific title of the work. by ISBN code or by subject
`matter. Once compiled. a listing of the available information
`titles included in the index category selected and the other
`necessary information to allow the user to purchase or rent
`any information title contained in the index category listed
`is displayed on the video screen. Using the video listing. the
`user selects any title listed thereon and obtains a printout of '
`the relevant information through the printer slot 342. Upon
`proper access by a user. the information titles may then be
`downloaded from Book Bank 116A onto a user’s storage
`media 218.
`
`After downloading of information and corresponding
`electronic index information from central information bank
`100 or installation of laser masters 216 to Book Bank 116A.
`inventory reports are generated by Book Bank 116A and
`transmitted to central information bank 100. These inven-
`
`tory reports reflect the information titles presently stored in
`Book Bank 116A. These reports are then are sent to pub-
`lisher 202. Also. a download completion report is sent from
`Book Bank 116A to transactional data base 118A. some-
`times referred to herein as a host fileserver. which in turn
`generates a status sales report. The sales report is transmitted
`to central transactional data base 104. Transactional data
`base 104 sends the necessary action instruction back to host
`fileserver 118A and a transaction report to publisher 202 for
`uses such as accounting and auditing.
`For publishers who wish to allow a user to be able to
`produce a hard printed copy of a portion of a information
`title for study purposes. when the information titles are being
`downloaded into the master file. special authorization codes
`are included in the data. The codes accompany the infor—
`mation title to the cartridge of the user. The codes limit the
`particular amount of the information title which the user
`may produce in hard copy. With such coding in place. the
`user may print. from the cartridge. the allowable amount of
`text as a hard copy. The cartridge retains information relat-
`ing to such printing and restricts further printing once the
`limits have been reached. The user determines the portion of
`the text to be produced as a hard copy by using the high
`fighting features of the reader programming to make a
`selection.
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`C. Point-of—Sale Delivery System Configurations
`The point-of— sale delivery systems. as previously
`discussed. are classified by function. The functions include
`one or more of the following: (1) point of purchase delivery
`system. (2) point of rental delivery system. (3) book bank
`subsystem. and (4) promotional delivery system. The con-
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`figurations for each of these functions are separately dis-
`cussed in detail below.
`
`1. Point of Purchase Delivery System
`A point of purchase system is illustrated in block form in
`FIG. 3. The point of purchase system is described herein for
`illustration purposes only as a system from which books can
`be purchased. As pointed out above. however. the system is
`not limited to books and other media capable of being
`expressed in electronic form such as computer software.
`music and video could be purchased utilizing the present
`system.
`The point of purchase system illustrated in FIG. 3
`includes a Book Bank 302 coupled to host fileserver 304.
`Server 304 is coupled to a customer service terminal 306 (of
`course.
`there could be more than one terminal) and a
`cashier’s station 308A which is further interconnected to
`other cashier stations 308B—D. Server 304 also is coupled to
`an institution network 310 which in turn connects to insti-
`tution terminals 312A—E. Service terminal 306. cashier
`stations 308A—D and institution network 310 are connected
`
`to server 304 via a computer communication link such as a
`commercially available computer networking system such
`as CompuServe or InterNet. Book Bank 302 and server 304
`are connected to central information bank 100 and central
`
`transactional database 104 as hereinbefore explained with
`reference to FIGS. 1 and 2.
`Cashier stations 308A—D are in serial. linear networking
`connections which allows the addition and removal of a
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`number of cashier stations at any time. This configuration
`accommodates extra cashier stations required during rush
`seasons or rush hours and the desire to remove cashier
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`stations for better utilization of space after the rush seasons.
`Customer service terminal 306 has local processing capa-
`bility that provides customer services such as personal
`identification initiation. personal
`identification number
`changes. processing of complimentary books. book refunds.
`customer information entries and updates. The customer
`services terminal 306 can also provide the retail outlet with
`internal administration and the management functions. such
`as the book inventory cards management.
`the book list
`management. book requests. book reports. financial reports.
`and E-Mail and Bulletin Board management
`Referring now to FIG. 4. point of purchase fileserver 304
`is shown in more detail. Particularly. server 304 includes a
`central processing unit (CPU) 316. a primary power supply
`318. an uninterrupted power supply 320 to assure continu-
`ous operation during power failure. and a high density
`storage 322 that holds all the programs and the data bases
`required for server 304 operation.
`Server 304 has four (4) interfaces. i.e.. a network interface
`324. a maintenance interface 326. a customer service station
`interface 328 and a cashier station interface 330. CPU 316
`transmits instructions to Book Bank 302. creates transaction
`data bases and reports. and processes orders from cashier
`stations 308A—D and customer service terminals 306A—D.
`From network interface 324. server 304 communicates
`with central transaction data base 104 for electronic filing of
`transaction reports. communicates with Book Bank 302 to
`give Book Bank 302 downloading instruction orders and to
`receive the status reports and the inventory reports from
`Book Bank 302. Server 304 also is coupled. through net—
`work interface 324. to a Book Bank subsystem to receive
`subsystem reports in order to give instructions and orders
`whenever necessary. as hereinafter discussed. External net-
`work syste