Ca383le—cv-01534-JST Document22 Filed06/25/12 Pagel 01‘5
`
`l\_)
`
`Christopher D. Banys (State Bar No. 230038)
`Richard C. Lin
`(State Bar NO. 209233)
`cdb@lanierlawfirm.com
`rcl@lanierlawfirm.com
`THE LANIER LAW FIRM) PC
`2200 Geng Road? Suite 200
`Palo Alto, California 94303
`
`Telephone: (650) 322—9l00
`Facsimile:
`(650) 322—9103
`
`Attorneys for Plaintiff,
`BENJAMIN GROBLER
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`BENJAMIN GROBLER,
`
`Case NO.
`
`3:12—cv—01534—RS
`
`V,
`
`Plaintiff,
`
`FIRST AMENDED COMPLAINT FOR
`PATENT INFRINGEMENT
`
`APPLE INC,
`
`DEMAND FOR JURY TRIAL
`
`Defendant.
`
`
`FIRST AMENDED COMPLAINT FOR PATENT
`INFRINGEMENT
`
`CASE NO.: 3:12-CV—01534-RS
`
`

`

`CaseB:lZ-cv-Ol534-JST Document22 FiledO6/25/12 Page-32 of5
`
`l
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`l\.)
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`Plaintiff, Benjamin Grobler, for his First Amended Complaint against Apple Inc, hereby
`
`alleges as follows:
`
`THE PARTIES
`
`1.
`
`Plaintiff Benjamin Grobler (“Grobler”) is an individual residing in Pretoria,
`
`South Africa. Grobler is a citizen of South Africa.
`
`2.
`
`On information and belief, Defendant Apple Inc, (“Apple”) is a corporation
`
`organized and existing under the laws of the State of California, having its principal place of
`
`business at 1 Infinite Loop, Cupertino, CA 95014.
`
`JURISDICTION AND VENUE
`
`3.
`
`This is an action for patent infringement arising under the Patent Act, 35 U.S.C.
`
`§§ l 0] et seq, This Court has jurisdiction over Plaintiffs federal law claims under 28 USC,
`
`§§l331 and 1338(a).
`
`4.
`
`This Court has specific and/or general personal jurisdiction over Defendant Apple
`
`because it has committed acts giving rise to this action within this judicial district and/or has
`
`established minimum contacts within California and within this judicial district such that the
`
`exercise of jurisdiction over Apple would not offend traditional notions of fair play and
`
`substantial justice.
`
`5,
`
`Venue is proper in this District pursuant to 28 U.S.C. §§l 39l(b)—(c) and 1400(b)
`
`because Defendant Apple has committed acts within this judicial district giving rise to this
`
`action, and continues to conduct business in this district, and/or has committed acts of patent
`
`infringement within this District giving rise to this action.
`
`BACKGROUND AND INFRINGEMENT OF US. PATENT 6,799,084 BY APPLE INC.
`
`6,
`
`Grobler re—alleges and incorporates by reference the allegations set forth in the
`
`preceding Paragraphs as if fully set forth herein.
`
`7.
`
`On September 28, 2004, the United States Patent and Trademark Office duly and
`
`lawfully issued United States Patent Number 6,799,084 (“the ’084 patent”) entitled “Data
`
`Vending System” to the inventor, Benjamin Grobler. A true and correct copy of the ’084 patent
`
`FIRST AMENDED COMPLAINT FOR PATENT
`INFRINGEMENT
`
`1
`
`CASE NO: 3:12—CV—01534-RS
`
`

`

`Case3212-cv-01534-JST Document22 Filed06/25/12 Page3 of5
`
`is attached hereto as Exhibit A.
`
`[\J
`
`8,
`
`Grobler is the owner and assignee of all right, title, and interest in and to the ’084
`
`patent, including the right to assert all causes of action arising under said patent and the right to
`
`any remedies for infringement of it.
`
`9.
`
`On information and belief, Apple has infringed and continues to infringe one or
`
`more claims of the ”084 patent in the State of California, in this judicial district, and elsewhere in
`
`the United States by, among other things, making, using, importing, offering to sell, and/or
`
`selling in the United States systems for data vending, including but not limited to the iTunes
`
`system.
`
`10.
`
`On information and belief, Apple indirectly infringes one or more claims of the
`
`’084 patent by inducing its customers’ infringement using such systems, On information and
`
`belief, Apple has had knowledge of the ’084 patent since at least March 27, 2012, the filing date
`
`of this action. Despite this knowledge of the ’084 patent, Apple has continued to engage in
`
`activities to encourage and assist its customers who use the iTunes system to directly infringe
`
`one or more claims of the ’084 patent. For example, through its website at
`
`http://wwwapplecom/ as well as through its iTunes Store, Apple advertises the feature in the
`
`iTunes system whereby a user can download and View for a limited period of time rental movies
`
`on a device running an iTunes player. Through its website as well as through the iTunes Store,
`
`Apple furthermore provides instructions on how to use the iTunes system to download and view
`
`such rental movies. On information and belief, by using this feature in the iTunes system to
`
`download and view rental movies, Apple’s customers have directly infringed and continue to
`
`directly infringe one or more claims of the ”084 patent. On information and belief, Apple knew
`
`or should have known its activities in encouraging and assisting customers in the use of the
`
`iTunes system, including but not limited to the activities set forth above, would induce its
`
`customers’ direct infringement of the ’084 patent.
`
`l 1.
`
`On information and belief, Apple will continue to infringe the ”084 patent unless
`
`enjoined by this Court.
`
`FIRST AMENDED COMPLAINT FOR PATENT
`INFRINGEMENT
`
`[\3
`
`CASE NO.: 3:12—CV—01534—RS
`
`

`

`Ca393112-cv—01534—JST Document22 Filed06/25/12 Page4 of5
`
`12.
`
`Apple’s acts of infringement have damaged Grobler in an amount to be proven at
`
`trial, but in no event less than a reasonable royalty. Apple’s infringement of Grobler’s rights
`
`under the ’084 patent will continue to damage Grobler causing irreparable harm, for which there
`
`is no adequate remedy at law, unless enjoined by this Court.
`
`PRAYER FOR RELIEF
`
`WHEREFORE, Grobler prays for relief as follows:
`
`a. For judgment that Apple has infringed and continues to infringe the claims of
`
`the ’084 patent;
`
`b. For a permanent injunction against Apple and its respective officers, directors,
`
`agents, servants, affiliates, employees, divisions, branches, subsidiaries,
`
`parents, and all others acting in active concert therewith from infringement of
`
`the ’084 patent;
`
`c. For an accounting of all damages caused by Apple’s acts of infringement;
`
`d. For ajudgment and order requiring Apple to pay Grobler7s damages, costs,
`
`expenses, and pre— and post—judgment interest for its infringement of the ’084
`
`patent as provided under 35 U.S.C. §284;
`
`e. For ajudgment and order finding this to be an exceptional case, and awarding
`
`Grobler attorney fees under 35 U.S.C. §285; and
`
`f. For such relief at law and in equity as the Court may deem just and proper,
`
`DEMAND FOR A JURY TRIAL
`
`l3.
`
`Grobler demands a trial by jury of all issues triable by a jury.
`
`1
`
`2
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`3
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`4
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`5
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`6
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`l 1
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`2]
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`22
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`23 Dated: June 25, 2012
`
`Respectfully submitted,
`
`24
`
`35
`26
`
`27
`
`By: /s/ Christopher D. Banks
`Christopher D. Banys (230038)
`Richard C Lin
`.
`(209233)
`The Lanier Law F 1rm, PC
`2200 Geng Road, Suite 200
`Palo Alto, CA 94303
`
`FLRST AMENDED COMPLAINT FOR PATENT
`INFRINGEMENT
`
`3
`
`CASE NO: 3:12—CV—Ol 534-RS
`
`

`

`Case3:12—cv-Ol534-JST DocumentZZ Filed06/25/12
`
`PageS of 5
`
`Tel: (650)332-9100
`Fax: (650) 322-9103
`
`Attorneys for Plaintiff,
`BENJAMIN GROBLER
`
`Ix)
`
`
`
`FIRST AMENDED COMPLAINT FOR PATENT
`INFRINGEMENT
`
`CASE NO.: 3:12-CV—01534-RS
`
`

`

`Case3le-CV-Ol534—JST DocumentZZ-l Filed06/25/12 Pagel 0f7
`
`EXHIBIT A
`
`

`

`08863=12-CV‘01534"ST Docunitillllillllllllllllilfiflllillllilllillllilillilllllllllllllllllllll
`U3006799084132
`C
`(12) United States Patent
`(10) Patent N0.:
`US 6,799,084 B2
`
`Grobler
`(45) Date of Patent:
`Sep. 28, 2004
`
`(54) DATAVENDINC SYSTENI
`
`(76)
`
`Inventor: Benjamin Filinaiter Grobler, 92
`Southpanslicrg Rd, Riviera, Pretoria
`0084 (ZA)
`.
`.
`.
`.
`.
`Subject. to any disclaimer, the term 01 thus
`my is attended 0‘ mil-15‘3“ under 33
`U.S-C- 154(1)) 1W“ days.
`
`.
`[ *' ) Notice:
`
`(21) Appl. No.: 09/773,170
`2
`4
`.
`‘
`( 2) Film m, 31’ 2001
`(65)
`Prior Publication Data
`US 2001/0027357 A1 Oct, 4, 2001
`
`Related U.S. Application Data
`
`(63) Conlinuation~in~parl 01' application No.
`filed on Jul, 29, 1999.
`
`l’CT/ZA99/00056,
`
`Foreign Application Priority Data
`(30)
`Jul. 31, 1998
`('/.A)
`.............................................. 98/6868
`
`
`int. Cl.7 ................................................ G07F 17/00
`(51)
`....................... 700/235; 700/237; 700/241;
`(52) U.S. Cl.
`700/234
`
`(58) Field of Search ................................. 700/237, 241,
`700/235, 234
`
`(56)
`
`References Cited
`U.S, PATENT DOCUMENTS
`
`7/1985 Frceny, Jr.
`4,528,643 A
`/1987 Ogaki ct at.
`4,674,055 A ‘1‘
`9/1987 Scrap
`4,695,903 A *
`2/1988 Izurni et at.
`4,725,977 A *
`4,787,050 A * 11/1988 Suzuki
`4,789,907 A * 12/1988 Fischctti ct al.
`5,418,654 A *
`5/1995 Schctllcr .......
`5,625,562 A *
`4/1997 Veenenmn
`5,757,908 A *
`5/1998 Cooper ct a1,
`5,758,069 A *
`5/1998 Olsen
`
`................ 364/479
`
`358/355
`
`364/900
`.364/479
`360/311
`
`360/13
`364/479.05
`
`. 380/4
`395/187.01
`
`8/1998 Kassatly ...................... 348/13
`5,790,177 A "‘
`9/1998 Schelberg,.lr, et a].
`.1 3379/9312
`5,812,643 A *
`1/1999 Smith ......
`101/494
`5,860,362 A *
`
`5/1999 Katayama
`434/307
`5,902,115 A *
`
`6/1999 Bernard et al
`..... 705/26
`5,918,213 A *
`5,993,216 A "‘ 11/1999 Stogner
`434/29
`
`. .................. 434/307
`(,f)86,380 A *
`7/2000 CI
`1
`I,
`“““““““““““ 379/155
`0,118,860 A ,
`9/2000 110111501); a1.
`
`6,134,593 A * 10/2000 Alexander et a]
`709/229
`............. 369/2006
`6,587,404 8']
`*
`7/2003 Keller et at.
`
`EP
`EP
`GB
`W0
`
`FOREIGN PAI'EN'I‘ DOCUMENTS
`0 649 121 A2
`4/1995
`852349 A2 *
`7/1998
`2 305 339 A
`4/1997
`W097/30425
`8/1997
`
`............. GosF/t/oo
`
`* cited by examiner
`
`Primary E'xarzzinei‘wonald P. Walsh
`Assistant EXanu’rzer—Michaei E. Butler
`(74) Attorney, Agent, or Firm—Akerman Senterfitt
`
`(57)
`
`ABSTRACT
`
`The invention provides a data vending system 10 including
`the storing data such as digitised music and/or video and/or
`computer programs on one or more main computer i.e. the
`data depot 12 and dispensing the data to a uniquely identi—
`fiable data carrier 30. The data on the data depot 12 includes
`a database which maintains owner and/or possessor records
`for each said data carrier 30, the data being selected from the
`group including ownership or possession history of the data
`carrier, personal details of the past and present owner and/or
`possessor of the data carrier, demographic data about the
`user/owner of the data carrier, data recorded onto the data
`carrier at an authorised data dispensing device (either cumu-
`latively or periodically, by title, by artist, etc), data rented
`and the rental period (either cumulatively or periodically, by
`title, by artist, etc),
`the user's normal requirements,
`the
`user’s payment records, royalties paid to the copyright
`owner by the user, and favourite data of the user,
`
`8 Claims, 1 Drawing Sheet
`
`
`
`

`

`CaseB:12—cv~01534—JST DocumentZZ-l Filed06/25/12 PageB of 7
`
`US. Patent
`
`Sep. 28,2004
`
`US 6,799,084 B2
`
`L—n——————————-
`
`

`

`CaseB:12—ev—01534—JST Doeument22-1 Filed06/25/12 Page4 of?
`
`US 6,799,084 B2
`
`1
`DATA VENDING SYSTEM
`
`CROSS REFERENCE TO RELATED
`APPLICATIONS
`
`This application is a continuation—in—part of PCT/ZA99/
`00056. Filed Jul. 29, 1999.
`
`FIELD OF THE INVENTION
`
`This invention relates to a data vending system.
`BACKGROUND TO THE INVENTION
`
`The inventor is aware that presently copyright royalty
`losses are incurred due to unauthorised copying of data, such
`as music, videos, computer programs, and the like. This
`copying usually takes the form of one or more unauthorised
`copies being made from an original or authorised copy.
`One of the reasons for the unauthorised copying is that
`consumers are unable to purchase just the data they want,
`and are often olleretl either a bundle including the data they
`require or they must do without.
`A further reason for the copying is that recording media
`are freely available and that any person may record data on
`such media, without prior authorisation by the copyright
`owner or his licensee(s).
`Yet a further reason for the unauthorised copying is the
`availability of data of the type mentioned above over the
`internet, for example, from music sites which allow the
`downloading of particular tracks of music either for free or
`for payment. Once the music has been downloaded from the
`internet by a user neither the intcrnct site operator nor the
`owner of the copyright in such data has any control over its
`further copying.
`In addition to the above problems, the authorised end use-r
`is also limited by present data distribution systems in that if
`the data is lost or damaged the authorised user has to again
`purchase an authorised copy from the copyright owner or a
`licensed vendor. This problem is particularly acute with data
`carried on magnetic or optical media such as tapes, diskettes,
`compact disks (CD’s) and Digital Video Disks (DVD’s),
`which are prone to loss and/or damage.
`The inventor is aware of EP 0 649 121 A2 to international
`Business Machines Corporation. This system provides for
`distribution of remotely stored digitised information, which
`information may be previewed in real time, and product
`incorporating selected digitised information can be manu-
`factured on—site and within a short response time to :1
`customers request at a point of sale location. The system also
`provides management reporting and a marketing system
`collects and maintains data useful to the retailer and the
`content owners such as record companies. This system,
`however, does not address the end user's ownership of
`digitised data nor the license held by the end user of the
`digitised data as the system is supplier orientated and not end
`user orientated. There is thus little incentive for a user to
`accept the system as a sole unified information sales system.
`SUMMARY OF THE INVENTION
`
`Thus, according to a first aspect of the invention, there is
`provided a data vending system including:
`a data depot for storing one or more data type selected
`from the group comprising digitised or analogue music,
`video, games, information, and computer programs;
`a data dispensing device in communication with the data
`depot;
`
`5
`
`10
`
`'15
`
`20
`
`25
`
`4o
`
`45
`
`50
`
`60
`
`2
`a uniquely identifiable recordable data carrier configured
`for recording data from the data dispensing device; and
`a database For keeping a record of the data recorded by a
`user onto said data carrier, at
`least a part of which
`database is stored remotely from said data carrier.
`The database may also maintain owner and/or possessor
`records for each said data carrier selected from the group
`including ownership or possession history of the data carrier,
`personal details of the past and present owner and/or pos—
`sessor of the data carrier, demographic data about
`the
`user/owner of the data carrier, data recorded onto the data
`carrier at an authorised data dispensing device (either cumu—
`latively or periodically, by title, by artist, etc), data rented
`and the rental period (either cumulatively or periodically, by
`title, by artist, etc),
`the user’s normal requirements,
`the
`user’s payment records, royalties paid to the copyright
`owner by the user, and favourite data of the user.
`The database may link the record of the user to any
`number of said data carriers and to the data recorded onto
`said data carriers thereby to collate all data recorded by the
`user onto any number of data carriers.
`The database may be storedin whole or in part on the data
`depot, on the data dispenser, on the data carrier, or on a
`combination of any of the aforementioned i.e. a decentra—
`lised database.
`a
`The data depot may include a computer located at
`remote location on which data to be vended is stored or from
`which data to be vended is routed.
`The data depot may have the data stored thereon indexed.
`The indexing may be by index number, name of author,
`name of producer, title, content, cost, duration, theme, or the
`like.
`The index may be searchable from the data dispensing
`device and/or from the data carrier.
`The data depot may be a store of digitised or analogue
`music, video, games, information, or computer programs.
`The data dispensing device may be in the form of a
`computer terminal in data transfer communication with the
`depot. Conveniently such data transfer may be by dedicated
`data lines, optic fibre cables, telephone lines, satellite link-
`up, radio transmission, or the like.
`The computer terminal may be provided with localised
`data storage for storing an index of available data. The index
`may be a copy ofa portion ofthe data depot index at a given
`time.
`The index on the computer terminal may be updated
`periodically from the data depot,
`typically when data is
`transferred between the computer data depot and the com—
`puter terminal to complete a data vending transaction.
`The computer terminal may be provided with data writing
`means for writing data to a data carrier. The computer
`terminal may be configured to download data from the depot
`and transfer the data to the data carrier with or without
`storing it locally for later retrieval.
`The computer terminal may include payment means for
`processing payment of a transaction amount for the data
`vending transaction.
`A royalty payment to the copyright owner and/or licensee
`may be included in the transaction amount, which royalty
`payment may either be transferred automatically to the
`copyright owner and/or licensee, or credited to an account
`for later transfer, in either event accurate and rapid royalty
`accounting is made possible.
`The payment means may include a key pad configured to
`accept an identification code linked to an account to which
`the transaction may be debited.
`The computer terminal may include a card reader for
`accepting payment by banking cards, such as credit cards,
`debit cards, savings cards, and the like.
`
`

`

`CaseB:12—cv—01534-JST DocumentZZ-l Filed06/25/12 Page5 of?
`
`US 6,799,084 B2
`
`3
`The data carrier may be a single or multiple use reeord~
`able data carrier.
`The data carrier may include key means, for example, a
`hardware or software key linked to a microprocessor. The
`data carrier may thus be activated and deactivated for
`receiving data and/or releasing data by means of the key
`means.
`
`The data dispensing device may be provider] with a
`verification mechanism for verifying the authenticity of the
`key means.
`The key means may be located on the data dispensing
`device and a code may be required to authenticate a user.
`The key means may be in the form of a code at a remote
`location,
`the data dispensing device being communicable
`with the remote location for verification of the code input by
`a user at the data dispensing device.
`Equally the verification mechanism and/or the key means
`may be at least partially located on the data depot.
`The recordable data carrier may be configured to receive
`data only from a data dispensing device authorised for a
`particular data carrier or a particular class of data carrier.
`The recordable data carrier may be configured to be read
`by a data carrier reader authorised for a particular data
`carrier or a particular class of data carrier.
`However, the recordable data carrier may be configured
`for receiving data from certain authorised data dispensing
`devices but to be read by any suitable reader, for example,
`a home entertainment centre.
`The recordable data carrier may be configurable, through
`the data recorded thereon or otherwise, to permit reading of
`the data stored thereon for a predetermined period of time
`only, whereal’ter the data is either marked as stale and later
`deleted, or deleted immediately.
`The above function may be controlled from a remote
`location by radio, satellite, data or telephone cable, or the
`like. This functionality will permit the so called renting of
`data, rather than purchasing the use thereof for an indefinite
`period, and is particularly suited to games, music and video
`data.
`According to a second aspect of the invention, there is
`provided a method of vending data, the method including:
`storing data to be vended;
`dispensing desired data packages from the depot;
`recording the dispensed data to a data carrier; and
`databasing details of the record carrier.
`According to a further aspect of the invention there is
`provided a vending booth including a data dispensing device
`in communication with a data depot, the data dispensing
`device being configured for dispensing data to a recordable
`data carrier configured for recording data from the data
`dispensing device and for exchanging data regarding the
`dispensed data with a database for storing user information
`for each recordable data carrier.
`The booth may include electronic payment means in the
`form ot‘a card or token reader configured to debit an account
`of a user responsive to the dispensing of data from the data
`dispensing device on the recordable data carrier.
`The booth may be in the form of a vending machine type
`apparatus, similar to those currently used for other transac—
`tions.
`
`The data dispensing device of the booth may be in the
`form of a computer terminal having a user interface, a data
`writer configured for use with the data carrier, and a com-
`munication device for permitting data transfer communica-
`tion with the data depot by means of one or more data
`transfer means selected from the group comprising of dedi—
`cated data lines, optic fibre cables, telephone lines, satellite
`link-up, radio transmission, or broadband cable.
`
`4
`DESCRIPTION OF THE DRAV‘IINGS
`
`The invention will now be described, by way of example
`only, with reference to the accompanying flow diagram.
`A data vending system 10, broadly in accordance wit the
`invention, includes the storing data, such as digitised music
`and/or video and/or computer programs on one or more
`main computer i.e. the data depot 12. The data on the data
`depot 12 being indexed to be searchable in terms of index
`number, name of author, name of producer, title, content,
`cost, duration, theme, or the like.
`The data on the data depot 12 includes a database 40
`which maintains owner and/or possessor records for each
`said data carrier 30, the data being selected from the group
`including ownership or possession history of the data carrier,
`personal details of the past and present owner and/or pos—
`sessor of the data carrier, demographic data about
`the
`user/owner of the data carrier, data recorded onto the data
`carrier at an authorised data dispensing device (either cumu—
`latively or periodically, by title, by artist, etc), data rented
`and the rental period (either cumulatively or periodically, by
`title, by artist, etc),
`the user’s normal requirements,
`the
`user’s payment
`records, royalties paid to the copyright
`owner by the user, and favourite data of the user.
`One or more vendors 14, 16, 18, at locations remote to the
`main computer of the data depot 12, are provided with data
`dispensing devices 20, 22, 24, able to communicate with the
`main computer by satellite link-up, by telephone or data line,
`by radio, or the like 21. The dispensing devices will typically
`be in the form of a local file server having a number of server
`stations 20.1, 20,2, 20.3, 22.1, 22.2, 22.3, 24.1, 24.2, 24.3,
`or terminals where a customer can search the depot 12 index
`and select data of his or her choice. Each item selected will
`have a code and a price.
`In another version, the index of the depot 12 is searchable
`from the data carrier 30 by providing the data carrier 30 with
`a search engine which interfaces with the index of the depot
`'12.
`
`list of selections will have an overall price,
`Thus a
`including royalties, taxes, etc, which the user tenders.
`The terminal may include payment means such as a card
`reader 26 for accepting payment by banking cards, such as
`credit cards, debit cards, savings cards, and the like.
`The terminal 201, 20.2, 20.3, 22.1, 22.2, 22.3, 24.1, 24.2,
`24.3, is provided with data writing means 28 for writing data
`to a data carrier 30.
`The terminal 201, 20.2, 20.3, 22.1, 22.2, 22.3, 24.1, 24.2,
`24.3, is configured to download data from the depot 12 and
`transfer them to the data carrier 30 with or without storing
`it locally on the terminal 20.1, 20.2, 20.3, 22.1, 22.2, 22.3,
`24.1, 24.2, 24.3, for later retrieval.
`The data carrier 30 may be a single or multiple use
`recordable data carrier, such as a removable hard disk,
`at
`CD~ROM, a DVD, flash memory, an eeeprom, or the like.
`One envisaged embodiment is a cassette holding a num~
`her of (TD—ROMs and a controller for performing the other
`functions, and managing the data on the CD~ROMs.
`The data carrier 30 includes key means 32, for example,
`a hardware or software key linked to a microprocessor. The
`data carrier 30 is thus activated and deactivated for receiving
`data by means of the key means 32. Typically this function—
`ality will be performed with the use of PIN (Personal
`Identification Numbers) or passwords, or the like, cell-phone
`fashion.
`The data dispensing device 20, 22, 24 and/or the data
`depot 12 is provided with a verification mechanism for
`verifying the authenticity of the key 32.
`
`10
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`15
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`30
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`.35
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`4O
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`45
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`50
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`55
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`60
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`65
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`

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`Case3:12-cv-01534-JST DocumentZZ—l Filed06/25/12 Pagefi of7
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`US 6,799,084 B2
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`5
`The recordable data carrier 32 is configured to receive
`data only from a data dispensing device 20, 22, 24, autho-
`rised fora particular data carrier 32 i.e. at the premises of an
`authorised vendor 14, 16, 18, and to be read by any suitable
`reader, for example, a home entertainment centre 34.
`Once a selection has been paid for the data corresponding
`to that selection is downloaded from the main computer of
`the data depot 12, via the terminal 201, 20.2, 20.3, 22.1,
`22.2, 22.3, 24.1, 24.2, 24.3, onto the data carrier 30 and a
`royalty payment
`to the copyright owner and/or licensee,
`which is included in the transaction amount, is transferred to
`or credited to the account of said copyright owner and/or
`licensor either automatically at the time 01' the transaction or
`later.
`The vendor 14, 16, 18 thus does not require large data
`storage facilities, rtor as with conventional record bars, video
`shops and software outlets, large stock holding tying up floor
`space and capital. A vendor 16 may provide one or more
`vending booths 16.1, which may be in the form of a vending
`machine type apparatus, similar to those currently used for
`other transactions. The booth can include the data dispensing
`device and payment means.
`The recordable data carrier 30 is configurable, through the
`data recorded thereon or otherwise, to permit reading of the
`data stored thereon for a predetermined period of time only,
`whereafter the data is either marked as stale and later
`deleted, or deleted immediately. The above function is
`monitored from the dispensing terminal 20.1, 20.2, 20.3,
`22.1, 22.2, 22.3, 24.1, 24.2, 24.3, and requires periodic
`communication with a terminal 20.1, 20.2, 20.3, 22.1, 22 .2,
`22.3, 24.1, 24.2, 24.3,
`to keep the data carrier alive. This
`permits tight control to be exercised over the copyright in the
`data on the data carrier 30 as any unauthorised data on the
`data carrier 30 can be deleted by the terminal 20.1, 20.2,
`20.3, 22.1, 22.2, 22.3, 24.1, 24.2, 24.3, during the periodic
`communication.
`
`This functionality permits the so called renting of data,
`rather than purchasing the use thereof [or an indefinite
`period, and is particularly suited to music and video data as
`well as ensuring regular contact between the vendor and the
`user for sales purposes.
`Thus, a copyright owner 42 may access the database 40 to
`determine the royalties collected so far and due to him, the
`client base he has, changing trends, and the like.
`Likewise a user of the system who owns or is in autho-
`rised posession of one or more data carrier 30 may access the
`data base 40 determine which data he has paid for and is
`entitled to, how his preferences have changed with time, and
`the like. This is possible even if there are several data
`carriers 30 linked to the single user since the database 40
`links the data carriers of a user to that user. Furthermore, in
`the event of theft or loss of one or more data carrier, the
`system will allow the lost or stolen data carrier to be
`scrambled, deleted, disabled, or otherwise made inoperative
`from a remote location or when such a data carrier 30 is next
`presented for recording 01' l‘urther data at a terminal 20.1,
`20.2, 20.3, 22.1, 22.2, 22.3, 24.1, 24.2, 24.3, while the
`rightful owner or possessor is able to re-record the lost data
`at said terminal without further payment or at reduced cost.
`The database 40 may be stored on the data depot 12, on
`the data dispenser 20.1, 20.2, 20.3, 22.1, 22.2, 22.3, 24,1,
`24.2, 24.3, on the data carrier 30, or on a combination of any
`of the aforementioned i.e. a decentralised database.
`The inventor envisages that the system could be operated
`as a franchise operation with a main computer operator i.e.
`the wholesaler, and a number of vendors i.e.
`the retailer,
`much like present record bars and the like.
`
`‘10
`
`‘15
`
`25
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`30
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`35
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`40
`
`45
`
`50
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`55
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`(:0
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`65
`
`6
`The inventor believes that the invention is advantageous
`in that it will permit a user who has once purchased some
`data, and has subsequently lost the data carrier or who has
`deleted the relevant data,
`to re—record the data without
`rcpurehasing it.
`Furthermore, the inventor believes that it is an advantage
`of the invention that a user can purchase or rent the data eg.
`music, Video etc. for a predetermined period of time, and pay
`therefor accordingly with the copyright owner being cred—
`ited with royalties accordingly.
`What is claimed is:
`1. A data vending system including:
`a data depot for storing one or more data types selected
`from the group consisting of digitized music, analog
`music, video, games, information, and computer pro»
`grams;
`a data dispensing device in communication with the data
`depot;
`a uniquely identifiable recordable data carrier configured
`for recording data from the data dispensing device;
`a database for keeping a record of the data recorded by a
`user onto said data carrier, at
`least a part of which
`database is stored remotely from said data carrier,
`wherein the database also maintains at least one of owner
`and possessor records for each said data carrier selected
`from the group consisting of ownership history of the
`data carrier, possession history of the data carrier,
`personal details of the past and present owner and
`possessor of the data carrier, demographic data about
`the user and owner of the data carrier, data recorded
`onto the data carrier at an authorized data dispensing
`device, data rented and the rental period, the user’s
`normal requirements, the user’s payment records, roy—
`alties paid to the copyright owner by the user, and
`favorite data of the user;
`wherein the data carrier is a multiple use recordable data
`carrier which includes key means for at
`least one
`function selected from activating the data carrier for
`receiving data, deactivating the data carrier [or receiv-
`ing data, activating the data carrier for releasing data,
`and deactivating the data carrier for releasing data,
`wherein the key means includes at
`least one of a
`hardware key and a software key linked to a micro‘
`processor operativcly associated with a data carrier;
`and
`
`wherein the data dispensing device is provided with a
`verification mechanism for verifying the authenticity of
`the key means.
`2. A data vending system including:
`a data depot for storing one or more data types selected
`from the group consisting of digitized music, analog
`music, video, games, information, and computer pro—
`grams;
`a data dispensing device in communication with the data
`depot;
`a uniquely identifiable recordable data carrier configured
`for recording data from the data dispensing device;
`a database [or keeping a record of the data recorded by a
`user onto said data carrier, at
`least a part of which
`database is stored remotely from said data carrier,
`wherein the database also maintains at least one of owner
`and possessor records for each said data carrier selected
`from the group consisting of ownership history of the
`data carrier, possession history of the data carrier,
`personal details of the past and present owuer and
`
`

`

`Case3:12—cv—01534~JST DocumentZZ-l Filed06/25/12 Page? of7
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`US 6,799,084 B2
`
`7
`possessor of the data carrier, demographic data about
`the user and owner of the data carrier, data recorded
`onto the data carrier at an authorized data dispensing
`device, data rented and the rental period, the user’s
`normal requirements, the user’s payment records, roy-
`alties paid to the copyright owner by the user, and
`favorite data of the user;
`wherein the recordable data carrier is configured to be
`read only by a data carrier reader authorized for a
`particular data carrier or a particular class of data
`carrier.
`3. A data vending system including:
`a data depot for storing one or more data types selected
`from the group consisting of digitized music, analog
`music, video, games, information, and computer pro-
`grams;
`a data dispensing device in communication with the data
`depot;
`a uniquely identifiable recordable dat