PTO/SB/O5 (0301)
`Approved for use through 10/31/2002. OMB 0651-0032
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`111325-104
`Attorney Docket No.
`X" W
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`1.
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`"1 mg " “_
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`Flrstlnventor.
`Title
`Rights Offering And Granting
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`Express Mail Label No.
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`UTILITY
`PATENT APPLICATION
`TRANSMITTAL
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`(Onlyfor new nonprovisional applications under 37 CFR 1.53(b))
`ELEMENTS
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`See MPEP chapter 600 concerning utility patent application contents.
`1. El Fee Transmittal Form (e.g., PTO/SB/17)
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`(Submit an originaland a duplicatefirrfeeprocessing)
`2. El Applicant claims small entity status.
`See 37 CFR 1.27.
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`ADDRESS TO:
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`C0YI]I'l’]1-SSIVOIICI‘ f0l' Patents
`Box Patent Application
`Washington, DC 20231
`7. 1:] CD-ROM or CD-R in duplicate, large table or
`Computer Program (Appendix)
`8. Nucleotide and/or Amino Acid Sequence Submission
`(ifapplicable, all necessary)
`a. El Computer Readable Form (CRF)
`b. Specification Sequence Listing on:
`i. 1:] CD-ROM or CD-R (2 copies; or
`ii. El paper
`e. E1 Statements verifying identity of above copies
`ACCOMPANYING APPLICATION PARTS
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`3.
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`[Total Pages 34]
`Specification
`(preferred arrangement set forth below)
`- Descriptive title of the invention
`-
`Cross Reference to Related Applications (ifapplicable)
`—
`Statement Regarding Fed sponsored R & D (ifapplicable)
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`Reference to sequence listing, a table,
`or a computer program listing appendix (ifapplicable)
`Background of the Invention
`-
`- Brief Summary of the Invention
`— Brief Description _ofthe Drawings fiffiled)
`'
`Dehalled Dcsmptlon
`'
`ofthe Disclosure
`[Total Sheets 11]
`4. El Drawing(s) (35 USC. 113)
`[ Total Pages 0 ]
`5. Oath or Declaration
`a.
`E] Newly executed (original or copy)
`b.
`1:] Copy from a prior application (37 CFR 1.63 (d))
`(for continuation/divisional with Box 18 completed)
`i. E] DELETION OF INVENTOR1S[
`Signed statement attached deleting inventor(s)
`named in the prior application, see 37 CFR
`l.63(d)(2) and 1.33(b)
`U Application Data Sheet. See 37 CFR 1.76
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`9. El Assignment Papers (cover sheet & document(s))
`10. E] 37 CFR 3.73(b) Statement
`1:]
`Power of
`(when there is an assignee)
`Attorney
`11. El English Translation Document (zfapplicable)
`12. E]
`Information Disclosure
`El Copies of IDS
`Citations
`Statement (IDS)/PTO—1449
`13. El Preliminary Amendment
`14.
`IZI Return ReceiptPostcard (MPEP 503)
`(Should be speczfically itemized)
`15. El Certified Copy of Priority Document(s)
`(ifforeign priority is claimed)
`16. 1:1 Nonpublication request under 35 U.S.C.
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`l22(b)(2)(B)(i). Applicant must attach form
`PTO/SB/35 or its equivalent.
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`17. El Other:
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`If a CONTINUING APPLICATION, check appropriate box, and supply the requisite information below and in a preliminary amendment,
`or in an Application Data Sheet under 3 7 CFR I. 76:
`09/867 745of prior application No.:
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`D Divisional
`D Continuation
`Prior application information:
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`E Continuation-in-part (CIP)
`Examiner
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`Group / Art Unit‘ 2164
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` 18.
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`For CONTINUATION OR DIVISIONAL APPS only: The entire disclosure of the prior application, from which an oath or declaration is supplied under
`Box 5b, is considered a part of the disclosure of the accompanying continuation or divisional application and is hereby incorporated by reference. The
`incorporation can only be relied upon when a portion has been inadvertently omitted from the submitted application parts.
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`19. CORRESPONDENCE ADDRESS
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`E Customer Number or Bar Code Label
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`or D Correspondence address below
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`—— Zip Code _
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`35,212
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`NVA228533.1
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`Petitioner Apple Inc. - Ex. 1025, p. 1
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`Petitioner Apple Inc. - Ex. 1025, p. 1
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`

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`Attorney Docket No. 1 1 1325-0001 04
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`RIGHTS OFFERING AND GRANTING
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`RELATED APPLICATION DATA
`
`[0001]
`
`This application claims benefit from U.S. provisional application Ser.
`
`No. 60/296,113, filed in June 7, 2001 the disclosure of which is incorporated
`
`herein by reference. This application also claims benefit from U.S. provisional
`
`application, Serial No. 60/331,625 filed in November 20, 2001, the disclosure
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`of which is also incorporated herein by reference. This application also claims
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`benefit
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`from U.S. provisional application Ser. No. 60/331,624 filed on
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`November 20, 2001, the disclosure of which is also incorporated herein by
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`reference.
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`This application is also a continuation-in-part of copending
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`application Ser. No. 09/867,745 filed on May 31, 2001, the disclosure of which
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`is incorporated herein by reference.
`
`COPYRIGHT NOTICE
`
`A portion of the disclosure of this patent document contains material
`[0002]
`which is subject to copyright protection. The copyright owner has no objection
`to the facsimile reproduction by anyone of the patent document or the patent
`disclosure, as it appears in the Patent and Trademark Office patent file or
`
`records, but otherwise reserves all copyright rights whatsoever.
`
`FIELD OF THE INVENTION
`
`[0003]
`
`The present invention relates to a method and system for digital
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`rights management and, more particularly,
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`to a method and system for
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`automatically offering and granting rights over a communications network or
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`other channels.
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`BACKGROUND OF THE INVENTION
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`[0004]
`
`The digital age has greatly increased concerns about ownership,
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`access, and control of copyrighted information,
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`restricted services and
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`T\IVA7’764fiR.’J.
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`1
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`5.-an‘?-i"..,.
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`Petitioner Apple Inc. - Ex. 1025, pg. 2
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`Petitioner Apple Inc. - Ex. 1025, p. 2
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`

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`Attorney Docket No. 1 1 1325-000104
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`valuable resources. Rapid evolution and wide deployment has occurred for
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`computers, and other electronic devices such as cellular phones, pagers,
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`PDAS, and e-book readers, and these devices are interconnected through
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`communication links including the Internet,
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`intranets and other networks.
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`These interconnected devices are especially conducive to publication of
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`content, offering of services and availability of resources electronically.
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`[0005]
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`One of
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`the most
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`important
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`issues impeding the widespread
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`distribution of digital works (i.e. documents or other content in forms readable
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`by computers), via electronic means, and the Internet
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`in particular,
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`is the
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`current lack of ability to enforce the intellectual property rights of content
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`owners during the distribution and use of digital works. Efforts to resolve this
`problem have been termed “lnte|lectual Property Rights Management”
`(“IPRM”),
`“Digital Property Rights Management” (“DPRM”),
`“lntel|ectual
`
`Property Management” (“lPM”), “Rights Management” (“RM”), and “Electronic
`
`Copyright Management” (“ECM”), collectively referred to as “Digital Rights
`
` Management (DRM)” herein. There are a number of issues to be considered
`
`1‘ V '-1
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`in effecting a DRM System.
`
`For example, authentication, authorization,
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`accounting, payment and financial clearing,
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`rights
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`specification,
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`rights
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` ....1
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`verification, rights enforcement, and document protection issues should be
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`addressed. U.S. patents 5,530,235, 5,634,012, 5,715,403, 5,638,443, and
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`5,629,980, the disclosures of which are incorporated herein by reference,
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`disclose DRM systems addressing these issues.
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`[0006]
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`Two basic DRM schemes have been employed, secure containers
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`and trusted systems. A “secure container” (or simply an encrypted document)
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`offers a way to keep document contents encrypted until a set of authorization
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`conditions are met and some copyright terms are honored (e.g., payment for
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`use). After the various conditions and terms are verified with the document
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`provider, the document is released to the user in clear form. Commercial
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`products such as CryptolopesT"" and DigiboxesT"'
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`fall
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`into this category.
`
`Clearly, the secure container approach provides a solution to protecting the
`
`N'VA77.64fiR 7
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`Petitioner Apple Inc. - Ex. 1025, p. 3
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`Petitioner Apple Inc. - Ex. 1025, p. 3
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`

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`Attorney Docket No. 11 1325-000104
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`document during delivery over insecure channels, but does not provide any
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`mechanism to prevent legitimate users from obtaining the clear document and
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`then using and redistributing it
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`in violation of content owners’ intellectual
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`property.
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`[0007]
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`In the “trusted system” approach, the entire system is responsible
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`for preventing unauthorized use and distribution of the document. Building a
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`‘ trusted system usually entails introducing new hardware such as a secure
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`processor, secure storage and secure rendering devices. This also requires
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`that all software applications that run on trusted systems be certified to be
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`trusted. While building tamper-proof trusted systems is a real challenge to
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`existing technologies, current market trends suggest that open and untrusted
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`systems, such as PC’s and workstations using browsers to access the Web,
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`will be the dominant systems used to access digital works.
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`In this sense,
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`existing computing environments such as PC’ s and workstations equipped
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`with popular operating systems (e.g., WindowsT"", LinuxT"", and UNIX) and
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`rendering applications, such as browsers, are not trusted systems and cannot
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`be made trusted without significantly altering their architectures. Of course,
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`alteration of the architecture defeats a primary purpose of the Web,
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`i.e.
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`flexibility and compatibility.
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`[0008]
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`Some DRM systems allow content owners to specify usage rights
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`and conditions, and associate them with content. These usage rights control
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`how the recipient thereof can use the content. Usually after a content
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`distributor or consumer has completed selecting and ordering specific content,
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`the content is delivered either electronically from some content repository or
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`via a conventional distribution channel to the recipient, such as tangible media
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`sent via a common carrier. Corresponding DRM systems used by the
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`recipient, for example the distributor or consumer, will then interpret the rights
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`and conditions associated with the content, and use them to control how the
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`content is distributed and/or used. Examples of usage rights include view,
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`print and extract the content, and distribute, repackage and loan content.
`
`NVA77.fi4fiR.’7.
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`
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`Petitioner Apple Inc. - Ex. 1025, p. 4
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`Petitioner Apple Inc. - Ex. 1025, p. 4
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`

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`Attorney Docket No. 11 1325-000104
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`Associated conditions may include any term upon which the rights may be
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`contingent such as payment, identification, time period, or the like.
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`[0009]
`
`U.S. patent 5,634,012, discloses a system for controlling the
`
`distribution of digital documents. Each rendering device has a repository
`
`associated therewith. A predetermined set of usage transaction steps define
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`a protocol used by the repositories for enforcing usage rights associated with
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`a document. Usage rights persist with the document content. The usage
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`rights can permit various manners of use such as, viewing only, use once,
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`distribution, and the like. Usage rights can be contingent on payment or other
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`conditions.
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`[0010]
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`However, there are limitations associated with the above-mentioned
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`paradigms wherein only usage rights and conditions associated with content
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`are specified by content owners or other grantors of rights. Once purchased
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`by an end user, a consumer, or a distributor, of content along with its
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`associated usage rights and conditions has no means to be legally passed on
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`to a next recipient in a distribution chain. Further the associated usage rights
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`have no provision for specifying rights to derive other rights,
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`i.e. rights to
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`modify,
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`transfer, offer, grant, obtain,
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`transfer, delegate,
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`track, surrender,
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`exchange,
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`transport, exercise,
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`revoke, or
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`the like.
`
`Common content
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`distribution models often include a multi-tier distribution and usage chain.
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`Known DRM systems do not facilitate the ability to prescribe rights and
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`conditions for all participants along a content distribution and usage chain.
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`Therefore,
`
`it
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`is difficult for a content owner to commercially exploit content
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`unless the owner has a relationship with each party in the distribution chain.
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`SUMMARY OF THE INVENTION
`
`A first aspect of the invention is a method for transferring usage rights
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`adapted to be associated with items. The method comprises generating, by a
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`supplier, at least one first offer containing usage rights and meta-rights for the
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`item, said usage rights defining a manner of use for the items, said meta-
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`l\TVA77fi4fiR.7.
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`Petitioner Apple Inc. - Ex. 1025, p. 5
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`Petitioner Apple Inc. - Ex. 1025, p. 5
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`

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`Attorney Docket No. 111325-000104
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`rights specifying rights to derive usage rights or other meta-rights, presenting
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`said offer to a first consumer, receiving a selection from the first consumer
`
`indicating desired usage rights and meta-rights, and generating a first license
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`granting the desired usage rights and meta-rights to the first consumer.
`
`A second aspect of the invention is a system for transferring usage
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`rights adapted to be associated with an item to be licensed in multi-tier
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`channels of distribution with downstream rights and conditions assigned at
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`least one level. The system comprises a supplier component, comprising a
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`supplier user interface module, an offer generator module for generating an
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`offer containing at least usage rights and of meta-rights, a rights composer
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`module for composing a draft license, and a repository for suppliers rights, a
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`supplier management database. The system further comprises a consumer
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`component
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`comprising a consumer user
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`interface module,
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`an offer-
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`consideration module configured to analyze the offers generated by the
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`supplier component and select offers based on the analysis, and a repository
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`for consumer’s rights, a consumer management database.
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`A third aspect of the invention is a method for generating a license to
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`digital content to be used within a system for at least one of managing use
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`
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`W::a5,.;3I"
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`
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`and distribution of the digital content. The method comprises presenting a
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`consumer with an offer including meta-rights, receiving a selection by the
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`consumer of at least one meta-right in the offer, generating a license based
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`on the selection, wherein the license permits the consumer to exercise the at
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`least one meta-right and permits the consumer to offer at least one derived
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`right derived from the at least one meta-right and generate a license including
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`the at least one derived right.
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`BRIEF DESCRIPTION OF THE DRAWING
`
`[0011]
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`Exemplary embodiments of this invention will be described in detail,
`
`with reference to the attached drawing in which:
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`NVA7764fiR.7
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`Petitioner Apple Inc. - Ex. 1025, p. 6
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`Petitioner Apple Inc. - Ex. 1025, p. 6
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`

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`Attorney Docket No. 111325-000104
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`[0012]
`
`Fig.
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`1
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`is a schematic diagram of a three-tier model for content
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`distribution;
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`[0013]
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`Fig. 2 is a schematic diagram illustrating rights offering and granting
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`processes in the model of Fig. 1;
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`[0014]
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`Fig. 3(a) is a schematic diagram of a simple supplier-consumer
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`push model for rights generating, issuing and exercising;
`
`[0015]
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`Fig. 3(b) is a schematic diagram of a simple supplier-consumer pull
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`model for rights generating, issuing and exercising;
`
`[0016]
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`Fig. 4 is a block diagram of a rights offering-granting architecture in
`
`
`
`accordance with the preferred embodiment;
`
`[0017]
`
`Figs. 5a and 5b are workflow diagrams for examples of offering and
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`granting rights between a rights supplier and a rights consumer with a push
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`and pull model respectively;
`
`[0018]
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`Fig. 6 is a flow chart of a rights offer generation process in
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`accordance with the preferred embodiment;
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`[0019]
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`Fig. 7 is a flow chart of a rights offer consideration process in
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`accordance with the preferred embodiment;
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`[0020]
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`Fig. 8 is a flow chart of a rights offer customization process in
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`accordance with the preferred embodiment;
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`[0021]
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`Fig. 9 is block diagram of a DRM system that may be utilized in
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`connection with the preferred embodiment;
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`[0022]
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`Fig. 10 is a block diagram of an exemplary structure of a license
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`containing usage rights and meta-rights of the preferred embodiment; and
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`NVA9.7.64fiR,7
`
`Petitioner Apple Inc. - Ex. 1025, p. 7
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`Petitioner Apple Inc. - Ex. 1025, p. 7
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`

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`Attorney Docket No. 111325-000104
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`[0023]
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`Fig. 11 is a schematic illustration of a rights label of the preferred
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`embodiment.
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`DETAILED DESCRIPTION
`
`[0024]
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`Prior to providing detailed description of the apparatus and method
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`for offering and granting rights, a description of a DRM system that can be
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`utilized to specify and enforce usage rights and meta-rights for specific
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`content, services, or other items is first described below.
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`[0025]
`
`Fig. 9 illustrates DRM System 10 that includes a user activation
`
`component, in the form of activation server 20, that issues public and private
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`key pairs, or other identification mechanisms, to content users in a protected
`
`fashion, as is well known. Typically, when a user uses DRM system 10 for
`
`the first
`
`time,
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`the user installs software that works with, or includes, a
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` 30. Client component 60 preferably is tamper resistant and contains the set
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`rendering application for a particular content format. The software is installed
`
`in client environment 30, a computer associated with the content recipient, for
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`example. The software is part of DRM 10 system and is used to enforce
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`usage rights for protected content. During the activation process, some
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`information is exchanged between activation server 20 and client environment
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`.51an 2
`§'—..~§
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`of public and private keys issued by activation server 20 as well as other
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`components, such as rendering components for example.
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`[0026]
`
`Rights label 40 is associated with content 42 and specifies usage
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`L rights and meta-rights that are available to a recipient,
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`i.e. a consumer of
`
`rights, when corresponding conditions are satisfied.
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`License Server 50
`
`manages the encryption keys and issues licenses 52 for protected content 42.
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`Licenses 52 embody the actual granting of rights, including usage rights and
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`meta-rights, to an end user. For example, rights offer 40 may permit a user to
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`view content for a fee of five dollars and print content for a fee of ten dollars,
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`or it may permit a user to offer rights to another user, for example, by utilizing
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`the concept of meta-rights described below. License 52 can be issued for the
`
`NVA?’).fiAfiR.’),
`
`Petitioner Apple Inc. - Ex. 1025, p. 8
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`Petitioner Apple Inc. - Ex. 1025, p. 8
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`

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`talc’
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`4.;.1;‘.13‘$1,
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`Attorney Docket No. 11 1325-000104
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`view right when the five dollar fee has been paid. Client component 60
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`interprets and enforces the rights, including usage rights and meta—rights, that
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`have been specified in the license. Rights label 40 and license 52 are
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`described in detail below.
`
`[0027]
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`Fig. 11 illustrates rights label 40 in accordance with the preferred
`
`embodiment. Rights label 40 includes plural rights options 44. Each rights
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`option 44 includes usage rights 44a, conditions 44b, and content specification
`
`44c. Content specification 44c can include any mechanism for referencing,
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`calling,
`
`locating, or otherwise specifying content 42 associated with rights
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`offer 44.
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`[0028]
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`As shown in Fig. 10, license 52 includes license 52a, grant 52b, and
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`digital signature 52c. Grant 52b includes granted usage rights and/or meta-
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`rights selected from label. The structure of the grant also includes one or
`
`more principals, to whom the specified usage rights and/or meta-rights are
`
`granted, a list of conditions, and state variables required to enforce the
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`license. Like usage rights, access and exercise of the granted meta-rights are
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`controlled by the condition list and state variables as described below.
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`[0029]
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`Clear
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`(unprotected) content can be prepared with document
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`preparation application 72 installed on computer 70 associated with a content
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`publisher, a content distributor, a content service provider, or any other party.
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`Preparation of content consists of specifying the usage rights, meta-rights,
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`and conditions under which content 42 can be used and distributed,
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`associating rights label 40 with content 42 and protecting content 42 with
`
`some crypto algorithm. A rights language such as XrMLT"" can be used to
`
`specify the rights and conditions. However, the usage rights and meta-rights
`
`can be specified in any manner. Also, the rights can be in the form of a pre-
`
`defined specification or template that is merely associated with the content.
`
`Accordingly,
`
`the process of specifying rights refers to any process for
`
`associating rights with content. Rights label 40 associated with content 42
`
`T\TVA’),’)646R.’)
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`Petitioner Apple Inc. - Ex. 1025, p. 9
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`Petitioner Apple Inc. - Ex. 1025, p. 9
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`

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`Attorney Docket No. 111325-000104
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`and the encryption key used to encrypt the content can be transmitted to
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`license server 50.
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`[0030]
`
`Rights can specify transfer rights, such as distribution rights, and
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`can permit granting of rights to others or the derivation of rights. Such rights
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`are referred to as “meta-rights”. Meta-rights are the rights that one has to
`manipulate, modify, or otherwise derive other meta-rights or usage rights.
`
`Meta-rights can be thought of as usage rights to usage rights. Meta-rights
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`can include rights to offer, grant, obtain, transfer, delegate, track, surrender,
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`exchange, and revoke usage rights to/from others. Meta-rights can include the
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`rights to modify any of the conditions associated with other rights. For
`
`example, a meta-right may be the right to extend or reduce the scope of a
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`particular right. A meta-right may also be the right to extend or reduce the
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`validation period of a right.
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`[0031]
`
`Often, conditions must be satisfied in order to exercise the manner
`
`of use in a specified right. For, example a condition may be the payment of a
`
`fee, submission of personal data, or any other requirement desired before
`
`permitting exercise of a manner of use. Conditions can also be “access
`
`conditions” for example, access conditions can apply to a particular group of
`
`users, say students in a university, or members of a book club.
`
`in other
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`words, the condition is that the user is a particular person or member of a
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`particular group. Rights and conditions can exist as separate entities or can
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`be combined.
`
`[0032]
`
`State variables track potentially dynamic states conditions. State
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`variables are variables having values that represent status of an item, usage
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`rights, license or other dynamic conditions. State variables can be tracked,
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`by clearinghouse 90 license or server 30 another device, based on
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`identification mechanisms in license 52. Further, the value of state variables
`
`can be used in a condition. For example, a usage right can be the right to
`
`print content 42 three times. Each time the usage right is exercised, the value
`
`of the state variable “number of prints” is incremented.
`
`In this example, when
`
`the value of the state variable is three, the condition is not longer satisfied and
`
`NTVAJ’/"646R.7
`
`
`
`Petitioner Apple Inc. - Ex. 1025, p. 10
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`Petitioner Apple Inc. - Ex. 1025, p. 10
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`

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`Attorney Docket No. 1 1 1325-000104
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`content 42 cannot be printed. Another example of a state variable is time. A
`
`condition of license 52 may require that content 42 is printed within thirty
`
`days. A state variable can be used to track the expiration of thirty days.
`
`Further, the state of a right can be tracked as a collection of state variables.
`
`The collection of the change is the state of a usage right represents the usage
`
`history of that right.
`
`[0033]
`
`A typical workflow for DRM system 10 is described below. A
`
`recipient, such as a user, operating within client environment 30 is activated
`
`for receiving content by activation server 20. This results in a public-private
`
`key pair (and some user/machine specific information) being downloaded to
`
`client environment 30 in the form of client software component 60 in a known
`
`manner. This activation process can be accomplished at any time prior to the
`
`issuing of a license.
`
`[0034] When a user wishes to use protected content 42, the user makes a
`
`request for the content 42. For example, a user might browse a Web site
`
`running on Web server 80 associated with a grantor of rights such as a
`
`content distributor, using a browser installed in client environment 30, and
`attempt to download protected content 42. During this process, the user may
`
`go through a series of steps possibly including a fee transaction (as in the
`
`sale of content) or other transactions (such as collection of information).
`
`When the appropriate conditions and other prerequisites, such as the
`
`collection of a fee and verification that the user has been activated, are
`
`satisfied, Web server 80 contacts license server 50 through a secure
`
`communications channel, such as a channel using a Secure Sockets Layer
`
`(SSL). License server 50 then generates license 52 for the content and Web
`
`server 80 causes both protected content 42 and license 52 to be downloaded.
`
`License 52 can be downloaded from license server 50 or an associated
`
`device. Content 42 can be downloaded from computer 70 associated with a
`
`publisher, distributor, or other party.
`
`N'VA77646R.7
`
`10
`
`
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`Petitioner Apple Inc. - Ex. 1025, p. 11
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`Petitioner Apple Inc. - Ex. 1025, p. 11
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`

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`Attorney Docket No. 1 1 1325-000104
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`[0035]
`
`Client component 60 in client environment 30 will then proceed to
`
`interpret license 52 and allow use of content 42 based on the rights and
`
`conditions specified in license 52. The interpretation and enforcement of
`
`usage rights are well known generally. The steps above may take place
`
`sequentially or approximately simultaneously or in various order.
`
`[0036]
`
`DRM system 10 addresses security aspects of protecting content
`
`42.
`
`In particular, DRM system 10 may authenticate license 52 that has been
`
`issued by license server 50. One way to accomplish such authentication is for
`
`application 60 to determine if the licenses can be trusted.
`
`In other words,
`
`application 60 has the capability to verify and validate the cryptographic
`
`signature of digital signature 52c, or other identifying characteristic of the
`
`license. During the activation step described above, both client environment
`
`30 and license server 50 receive a set of keys in a tamper-resistant software
`
`“package" that also includes other components, such as the necessary
`
`components for activated client environment 30 to verify signature 52 of
`
`license 52 in a known manner. Of course, the example above is merely one
`
`way to effect a DRM system. For example, the license and content can be
`
`
`
`distributed from different entities. Also, rights offer 40 can be associated with
`
` clearinghouse 90 can be used to process payment transactions and verify
`
`content by a party other than the party preparing the content.
`
`Also,
`
`payment prior to issuing a license.
`
`[0037]
`
`For any set of rights, there are two kinds of entities involved, the
`
`”supplier” and the “consumer”. The function of the supplier is to offer , and
`
`possibly grant, the rights, and the function of the consumer is to select, and
`
`possibly exercise the rights. Both the supplier and consumer may actually
`
`represent two or more entities.
`
`in general, multiple entities may collectively
`
`make an offer and grant rights to multiple entities. The supplier and consumer
`
`represent any two entities in the content value chain that have a direct
`
`relationship with each other regarding the granting of rights. At the beginning
`
`of the value chain, the supplier and consumer may be author and publisher.
`
`NVA77fi4fiR.7
`
`11
`
`Petitioner Apple Inc. - Ex. 1025, p. 12
`
`Petitioner Apple Inc. - Ex. 1025, p. 12
`
`

`
`
`
`Attorney Docket No. 111325-000104
`
`Going down along the value chain,
`
`the‘ supplier and consumer may be a
`
`publisher and another publisher (for content aggregation), a publisher and
`
`distributor (for content distribution), a distributor and another distributor (for
`
`multi—tier content distribution), a distributor and a retailer (for content retailing),
`
`a retailer and a consumer (for content consumption), and a consumer and
`
`another consumer (for content supper-distribution or personal lending).
`
`[0038]
`
`An “offer of rights” or “rights offer” expresses how a consumer (e.g.
`
`a content distributor or user) can acquire a particular instance of content
`
`together with its associated usage rights and/or meta-rights. An offer may or
`
`may not contain financial terms. An offer is an expression of mere willingness
`
`to commerce negotiation and also an expression of willingness to grant on
`
`terms stated. An offer may be expressed in the form of a rights label. A
`
`“consideration of rights” is a process as part of the rights granting in which the
`
`rights consumer has examined the rights being offered and possibly
`
`bargained them and associated terms and conditions. A “choice of rights” is a
`
`selection of rights and their associated terms and conditions from a rights
`
`offer.
`
`It indicates the intent of the consumer to accept these rights and the
`
`corresponding terms and conditions. For example, selection can comprise
`
`selecting one option 44 from label 40. “Customization of rights” is a process
`as part of the rights granting in which the rights supplier assembles rights and
`
`terms and conditions based on a choice of the rights consumer. The output of
`
`this process can be a draft license to be accepted by the rights consumer. A
`
`“license of rights” is an expression of rights and possibly conditions accepted
`
`and agreed upon by the rights supplier and consumer.
`
`It is the output of the
`
`rights offering and granting process. A license is a grant to exercise the rights
`
`that govern the usage (possibly including further distribution) of content or
`
`other items.
`
`[0039]
`
`As described above, a rights label, such as rights label 40, may
`
`contain a number of options 44 allowing the consumer to make a selection
`
`and conduct negotiation (if permitted), while license 52 contains rights the
`
`NVA2’2646R.9.
`
`12
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`Petitioner Apple Inc. - Ex. 1025, p. 13
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`Petitioner Apple Inc. - Ex. 1025, p. 13
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`

`
`Attorney Docket No. 1 1 1325-000104
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`consumer has selected and accepted. Note that the accepted rights may
`
`include a right to present offers to others or make selections of offers.
`
`[0040]
`
`An example of a distribution chain model is illustrated in Fig. 1. The
`
`distribution chain includes a content provider 100, distributor 110, and end
`
`user 120. Of course content may be prepared in the manner described
`
`above.
`
`it is assumed that the content has already been prepared in the model
`
`of Fig. 1. Fig.
`
`1
`
`is directed to the transfer of content and shows that, in this
`
`example, provider 100 may publish content to distributor 110 or receive
`
`content for reuse from distributor 110. Distributor 110 may in turn distribute
`
`content to user 120 or receive returned content form user 120. User 100 can
`
`use content.
`
`To further illustrate the potential complexities of multi-tier
`
`distribution chains provider 100 can aggregate content from others, distributor
`
`110, can receive content from other distributors for redistribution, and user
`
`120 can share content with the other users.
`
`It is clear that there are plural
`
`stages in the content life cycle and plural relationships between the various
`
`parties. A precise and consistent specification of rights at the different stages
`
`of the life cycle and relationships is
`
`important and crucial
`
`to persistent
`
`protection of content in multi-tier distribution and usage.
`
`[0041]
`
`Fig. 2 illustrates the flow of rights in the same model,
`
`including
`
`rights generating, aggregating,
`
`issuing,
`
`relinquishing, driving, granting,
`
`surrendering, delegating and exercising. The model of Fig. 2 includes the
`
`same entities, provider 100, distributor 110, and user 120.
`
`It can be seen
`
`that, with respect to the flow of rights. each party can grant and accept rights.
`
`User 120 can grant and accept rights from other users, a process called
`
`“delegation”, in this example.
`
`[0042]
`
`The model of Fig. 2 covers many specific content publishing,
`
`distribution and use relationships. Other models can be derived from on this
`
`model by a different consolidation or segregation of the parties. For example,
`
`every provider can be a distributor. This is “direct publishing”, which allows
`
`NVA 726468.’)
`
`13
`
`Petitioner Apple Inc. - Ex. 1025, p. 14
`
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`'‘iiji
`
`Petitioner Apple Inc. - Ex. 1025, p. 14
`
`

`
`Attorney Docket No. 11 1325