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`fJ fhe term of this patent
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`'r-.Ll The term of this patent shall
`not extend beyond the expiration
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`LJ The terminal _months of
`this patent have been disclaimed.
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`Continued on lssue Slip Inside File Jaoket
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`Print Claim for O.G,
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`FILED wtrH: florsx 1cnrl flrr+re ! co-nour
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`(Attached in pocket on right inslde flap)
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`Petitioner Apple Inc. - Exhibit 1026, p. 2
`
`

`
`Page I of I
`
`tor Patenls
`Commlselossr
`\A/ashl.rgrton. t>C 2o23 1
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`{.r$pr.) p()v
`M
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`CSNF1RMATION NO.5715
`
`CLASS
`705
`
`GROUP ART UNIT
`3621
`
`ATTORNEY
`DOCKET NO.
`1 1 1 325-66
`
`Il.srrurp Srarus
`P;tTfNr AND
`T:Rn-onrvr.e.ex Orrrcr
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`Bib Data Sheet
`
`SERIAL NUMBER
`09t867.745
`
`FILING DATE
`05131t2001
`
`RULE
`
`APPLICANTS
`Bijan Tadayon, Germantown, MD,
`Aram Nahidipour, MillCreek, WA;
`Xin Wang, Los Angeles, CA;
`'Michael C. Raley, Downey, CA;
`Guillermo Lao, Torrance, CA;
`Thanh T.1'a, Huntington Beach; CA;
`Charles P. Gilliam, Darien, GT;
`
`,* coNTINUING DATA *************************
`Afr W
`'* FOREIGN APPLICATIONS *****.***************
`ilo* qnp
`F REQUIRED, FOREIGN FILING LICENSE GMNTED
`'.0713112001
`:oreign Priority claimed E y* I%
`ls uSC 119 (a-d) conditionl A y""% E u"t.tt.,
`
`111,,"0,.0 f%
`
`\cknowledqed EE
`IDDRESS
`22204
`
`STATE OR
`COUNTRY
`MD
`
`SHEETS
`DRAWING
`4
`
`TOTAL
`CLAIMS
`to
`
`NDEPENDEh,I'I
`CLAIMS
`?
`
`rlTLE
`
`t/ethod and apparatus for dynamically assigning usage rights to digital works
`
`FILING FEE
`RECEIVED
`840
`
`:EES: Authority has been given in Pagr
`tlo.--
`to charge/credit DEP@IT AccouNT
`tlo.
`for following:
`
`U ntt Fees
`Ll t to Fees ( Fitins )
`I t.tz Fees ( Processing Ext. of
`time )
`E t.ta Fees (lssue )
`E otn"t
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`
`Petitioner Apple Inc. - Exhibit 1026, p. 3
`
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`PATENT APPLICATION
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`lonlyfor new nonprovisional applications under 37 CFR t.Sj(b)).
`
`to
`
`APPLICATIONELEMENTS
`
`]
`$ee MPEP chapter 600 concerning utilitv patent aonlication contents.
`1. LJ Fee Transmittal Form (e.g., PTO/SB/IZ)
`(Subnit aa oigirul and a duplicate for lee prc*sing)
`2. E Applicant claims small entity status.
`See 37 CFR 1.27.
`3. E Specification
`[Totalpagesl6 ]
`(prcfmcd arugmat sct fodh bclw)
`- Descriptive title ofthe invention
`- Cross Reference to Related Applications
`- Statement Regarding Fed sponsored R& D
`- Reference to sequence listing, a table,
`or a computer program listing appendix
`- Background ofthe Invention
`- Brief Summary of the Invention
`- Brief Description of the Drawtngs (ifJiled)
`- Detailed Description
`- Claim(s)
`- Absbact ofthe Disclosure
`4. E Drawing(s) (35 U.S.C. 113) [ Totdt Sheets 4 ]
`5. Oath or Declaration
`I Totat Sheeft E ]
`E Newly execukd (original or copy)
`E Copy from a prior application (37 CFR 1.63(d)
`(for continuatiory'divisional with Box I 8 complaed)
`i. tr DELETIoN oF I}.IVENToR(S).
`Signed statement attached deleting invento(s)
`named in the prior application, see 37 CFR
`1.63(dX2) and 1.33O)
`Application Data Sheet. See 37 CFR 1.76
`
`a.
`b.
`
`tr
`
`r8i;;fi
`PTO/SB/0s
`t\ii#jP
`Approved for use throosh I 0/3 r /200;
`U.S. Pat€nt and Trademark Office; U.S. DEPARTMENT OF COMMERCE &tIr1
`numhs d'
`unless it
`toa
`uI
`Attomev DocketNo. I 111325'66
`First rnventor I Bijan Tadayon et al.
`;!
`EJEl
`METHOD AND APPARATUS FOR
`DYNAMICALLY AS SIGNING USAGE
`RIGHTS TO DIGITAL WORKS
`Express Mail Label No.
`
`Title
`
`G{
`
`Connnissioner for Patents
`ADDRESS TO: Box Patent Application
`Washinston. DC 20231
`7. E CD-ROM or CD-R in duplicate, large table or
`Computer Program (Appendix)
`8. Nucleotide and/or Amino Acid Sequence Submission
`(if applicable, all necessary)
`a. E Computer Readable Form (CRF)
`b. Specification Sequence Listing on:
`i. El CD-ROM or CD-R (2 copies; or
`ii. E paper
`c. E Statements verifyins identity ofabove cooies
`ACCOMPATIUNG APPLICATION PARTS
`9. E Assignment Papers (cover sheet & document(s))
`10. E 37 CFR 3.730) Stratement tr power of
`(when there is an assignee)
`Attorney
`I l. E English Translation Doasment (if applicable)
`12. E Information Disclosure
`tr Copies of IDS
`Statement (IDSyPTO-1449 Citations
`13. E keliminary Amendment
`14. E netum Receipt Postcard (MPEP 503)
`(Should be speciJically itemized)
`15. E Certified Copy of Priority Document(s)
`(dforeign priority is claimeQ
`16. E Request and Certification under 35 U.S.C. 122
`(bX2XBXD. Applicant must auach form PTO/SB/35
`or its equivalent.
`17. E other:
`
`18. If a CONTINUING APPLICATION, check appropriat" box, ood sfp
`or in an Application Data Sheet under 37 CFR L76:
`El Continuation E Oiuisiooat
`E Continuation-in-part(qP)
`ofpriorapplicationNo.:
`Examiner_
`Prior application information:
`Group / AdUnit:
`For CONTINUATION OR DMSIONAL APPS only: The endre disclosure of the prior application, from which an oath or declaration is supplled under
`Box 5b' is considered a part of the dfuclosure of the accompanylng continuadon or divisional appllcation and is hereby incorporated by referince. The
`incorporation gggly be relied upon when r portlon has b€en
`Inadvertently onrltted from thtsubmitted applicatlon parts.
`19. CORRESPONDENCE ADDRISS
`
`/
`
`,U,,1
`
`or @ Correspondence address below
`
`Name
`
`E Customer Numrr" r"ro" aor".r,
`NIXONPEABODYLLP
`8180 Greensboro Drive, Suite 800
`I sate I vA
`lTelephone l(703)790-9110
`
`Address
`City
`Country
`
`McLean
`uniredstates
`Name (Print/Type) v,{r*&)
`-(/'
`u
`Signature
`Mav 31. 2001
`Date
`burucn nour Dlarerpnt: tns ronn rs estlrnated to take 0.2 hours to complet€. Time will vary depending upon the needs of the individual
`Burden Hour statem€nt:
`this form is estimated to take 0.2 hours to completeJime will varv
`the needs of the individual
`case. Any cornments on tlrc amount of time you are required to complete this form should be sent to ttre Chief lnformation Officer, U.S.
`PAtCNt ANd TTAdEMATK OffiCC, WAShiNgtON, DC2O23I. DO NOT SEND FEES OR COMPLETED FORMS TO THIS ADDRESS. SEND
`TO: Commissioner for Patents, Box Patent Application, Washington ,DC 2023L.
`
`I ZipCode
`| 22102
`Fax I 003) 883-0370
`
`Regisbation No. (Attomey/Agent)
`
`35.212
`
`N183680.1
`
`Petitioner Apple Inc. - Exhibit 1026, p. 4
`
`

`
`INVENTOR INFN' B,TION
`
`I
`I
`I
`
`90007
`: USA
`Name::
`
`One::
`
`CA
`
`90242
`: USA
`Name: :
`
`Invent,or One Given Name: : Bii an
`Family Name:: Tayadon
`Name Suffix:: Dr.
`Postal Address T,ine One: z 20920 Scott,sbury Drive
`CJ-ty:: Germantown
`State or Province:: MD
`Country:: USA
`Postal or Zip Code:: 20876
`Citizenship Country: : USA
`Inventor Two Given Name:: Aram
`Family Name: : Nahidipour
`Postal- Address Line One: : 3224 1-45th Place, S€
`Cit,y:: MilI Creek
`State or Province:: WA
`Country:: USA
`Postal or Zip Code:: 980L2
`Citizenship Count,ry: : USA
`Inventor Three Given Name:: Xin
`Family Name:: Wang
`Postal Address Line One:: 3005 Shrine Place
`City:: Los Angeles
`State or Province:: CA
`Country:: USA
`Postal- or Zip Code:
`Citizenship Country
`Inventor Four Given
`Family Name:: Raley
`Post,al- Address l,ine
`City:: Downey
`State or Province::
`Country:: USA
`Postal or Zip Code:
`CitizenshJ-p Country
`Invent,or Five Given
`Family Name:: Lao
`Postal Address Line
`City:: Torrance
`State or Province::
`Country:: USA
`Postal or Zip Code:
`90503
`: USA
`Citizenship Country
`Inventor Six Given
`ame:: Thanh T
`Fam1ly Name:: Ta
`Postal Address Line One: z 18694 Stratton Lane
`City: : Huntington Beach
`State or Province:: CA
`Country:: USA
`Postal or Zip Code:: 92648
`
`t2834 Verdura Avenue
`
`MichaeL C
`
`Guillermo
`
`One::
`
`553L Lorna Street,
`
`rr 7\
`\-l'\
`
`Petitioner Apple Inc. - Exhibit 1026, p. 5
`
`

`
`Cit,izenship, irntry: : Aust,ral-ia
`InvenLor Seven Given Name:: Charles P
`Family Name:: Gilliam
`Postal Address Line Onez: 27 Beach Drive
`City:: Darien
`State or Provi-nce: : CT
`Country:: USA
`Postal or Zip Code:: 06820
`Citizenship Country: : USA
`
`CORRESPONDENCE INFORMATION
`
`Correspondence Customer Number: : 22204
`Fax One:: (703) 883-0370
`
`APPLI CATION INFORMATION
`
`Tit,le Line One:: METHOD AND APPARATUS FOR DYNAMICALLY ASS
`Title Line Two:: IGNING USAGE RIGHTS TO DIGITAL WORKS
`Total Drawing Sheets:: 4
`Formal- Drawings?: : Yes
`Application Tlpe: : Utility
`Docket Number: : 11-t325-66
`Secrecy Order in Parent Appl. ?: : No
`
`,
`
`REPRESENTATIVE INFORMATION
`
`Representative Customer Number: : 22204
`Registration Number One: z 35212
`Source: : PrintEFS Version 1.0.1
`
`Petitioner Apple Inc. - Exhibit 1026, p. 6
`
`

`
`Docket No. 1 1 1325-000066
`
`-1-
`
`METHOD AND APPARATUS FOR DYNAMICALLY ASSIGNING
`USAGE RIGHTS TO DIGITAL WORKS
`
`RELATED APPLICATION DATA
`[00011 This application is related toApplicants' patent applications entitled
`METHOD AND APPARATUS FOR TRANSFERRING USAGE RIGHTS AND
`DlGlrAL woRK HAVING TMNSFERRABLE USAGE RIGHTS fArttorneSr
`_e.olBt",f;r+G
`-+1-{32ffi3), METHOD AND APPARATUS FOR ESTABLTSHTNG
`USAGE RIGHTS FOR DIGITAL CONTENT TO BE CREATED IN THE
`, DEMARCATED DIGITAL
`FUTURE
`CONTENT AND METHOD FO R CREATING AND PROCESSING
`DEMARCATED DtclTAL WORKS r
`METHOD AND APPARATUS FOR ASSIGNING CONDITIONAL OR
`CONSEQUENTIAL RIGHTS TO DOCUMENTS AND DOCUMENTS HAVING
`cr"rf gci,1,*l$g
`SUCH RIGHTS fffi34G64), and METHOD AND APPARATUS FOR
`HIERARCHICAL ASSIGNMENT OF RIGHTS TO DOCUMENTS AND
`DOCUMENTS HAVING SUCH RIGHTS (riH;3+6, which are beins fited
`concurrently herewith, and are incorporated herein by reference in their
`entirety.
`
`,
`
`iH
`
`[0002] This invention relates generally to distribution of digital works and
`more particularly to digital works having dynamic usage rights.
`
`BACKGROUND
`
`[0003] One of the most important issues impeding the widespread
`distribution of digitai works or documents (i.e. documents in forms readable by
`computers), via electronic means, and the lnternet in particular, is the current
`lack of ability to enforce the intellectual property rights of content owners
`during the distribution and use of digital works. Efforts to resolve this problem
`have been termed "lntellectual Property Rights Management" ('IPRM'),
`"Digital Property Rights Managementl' ('DPRM"), "lntellectual Property
`Management" ('lPM"), "Rights Management" ("RM"), and "Electronic
`Copyright Management" ("ECM"), collectively referred to as "Digital rights
`
`Petitioner Apple Inc. - Exhibit 1026, p. 7
`
`

`
`Docket No. 1 1 1325-000066
`
`-2-
`
`management (DRM)" herein. There are a number of issues to be considered
`in digital rights management: authentication, authorization, accounting,
`payment and financial clearing, rights specification, rights verification, rights
`enforcement, and document protection for example. U.S. patents 5,530,235,
`5,634,012,5,715,403, 5,638,443, and 5,629,980, the disclosures of which are
`incorporated herein by reference, disclose DRM concepts addressing these
`issues.
`
`[00041 In the world of printed documents, a work created by an author is
`usually provided to a publisher, which formats and prints numerous copies of
`the work. The copies are then sent by a distributor to bookstores or other
`retail outlets, from which the copies are purchased by end users. While the
`low quality of copying and the high cost of distributing printed material have
`served as deterrents to unauthorized copying of most printed documents, it is
`far too easy to copy, modify, and redistribute unprotected digital works.
`Accordingly, some method of protecting digital works is necessary to make it
`more difficult to copy them without authorization.
`
`t00051 Unfortunately, it has been widely recognized that it is difficult to
`prevent, or even deter people from making unauthorized distributions of
`electronic works within current general-purpose computing and
`communications systems such as personal computers, workstations, and
`other devices connected over communications networks, such as local area
`networks (LANs), intranets, and the Internet. Many attempts to provide
`hardware-based solutions to prevent unauthorized copying have proven to be
`unsuccessful. The proliferation of high band-width "broadband"
`communications technologies will render it even more convenient to distribute
`large documents electronically, including video files such as full length motion
`pictures, and thus will remove any remaining deterrents to unauthorized
`distribution of digital works. Accordingly, DRM technologies are becoming a
`high priority.
`
`N182273.1
`
`Petitioner Apple Inc. - Exhibit 1026, p. 8
`
`

`
`t-.:
`
`lL:
`
`Docket No. 1 11325-000066
`
`-3-
`
`[00061 Two basic DRM schemes have been employed to attempt to solve
`the document protection problem: secure containers and trusted systems. A
`"secure containe/' (or simply an encrypted document) offers a way to keep
`document contents encrypted until a.set of authorization conditions are met
`and some copyright terms are honored (e.9., payment for use). After the
`various conditions and terms are verified with the document provider, the
`document is released to the user in clear form. Commercial products such as
`IBM's CRYPTOLOPES and InterTrust's DIGIBOXES fall into this category.
`Clearly, the secure container approach provides a solution to protecting the
`document during delivery over insecure channels, but does not provide any
`mechanism to prevent legitimate users from obtaining the clear document and
`then using and redistributing it in violation of content owners' intellectual
`property.
`
`[00071 Cryptographic mechanisms are typically used to encrypt (or
`"encipher") documents that are then distributed and stoied publicly, and
`ultimately privately deciphered by authorized users. This provides a basic
`form of protection during document delivery from a document distributor to an
`intended user over a public network, as well as during document storage on
`an insecure medium.
`
`[00081 In the "trusted system" approach, the entire system is responsible
`for preventing unauthorized use and distribution of the document. Building a
`trusted system usually entails introducing new hardware such as a secure
`processor, secure storage and secure rendering devices. This also requires
`that all software applications that run on trusted systems be certified to be
`trusted. While building tamper-proof trusted systems is a real challenge to
`existing technologies, current market trends suggest that open and untrusted
`systems such as PC's and workstations using browsers to access the Web,
`will be the dominant systems used to access digital works. In this sense,
`existing computing environments such as PCs and workstations equipped
`with popular operating systems (e.g., WindowsrM, LinuxrM, and UNIX) and
`
`r{r
`
`Petitioner Apple Inc. - Exhibit 1026, p. 9
`
`

`
`Docket No. 1 1 1325-000066
`
`-4-
`
`rendering applications such as browsers are not trusted systems and cannot
`be made trusted without significantly altering their architectures. Of course,
`alteration of the architecture defeats a primary purpose of the web, i.e.
`fl exibility and compatibitity.
`
`[0009] u.s. patent s,634,012, the disclosure of which is incorporated
`herein by reference, 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 a protocol
`used by the repositories for carrying out usage rights associated with a
`document. Usage rights are encapsulated with the document content or
`otherwise associated with the document to travel with the document. The
`usage rights can permit various types of use such as, viewing only, use once,
`distribution, and the like. Rights can be granted based on payment or other
`conditions and are generally set prior to distribution to the user. For example
`the rights may grant the user certain privileges, such as the ability to view and
`print the content, in exchange for a specific fee. However, there are dynamic
`conditions that affect the cost or desirability of distributing a document.
`Conventional DRM techniques do not account for such dynamic cond1ions.
`
`SUMMARY OF THE INVENTION
`[00101 A first aspect of the invention is a method of dynamically assigning
`usage rights to digital content comprising storing the digital content on
`computer readable media, associating usage rights with the digital content,
`determining the status of one or more dynamic conditions, and adjusting the
`usage rights in a predetermined manner based on the status of the dynamic
`conditions.
`
`t00111 A second aspect of the invention is computer readable media
`having instructions for dynamically assigning usage rights to digital content
`including instructions for determining the status of one or more dynamic
`
`N182273.1
`
`Petitioner Apple Inc. - Exhibit 1026, p. 10
`
`

`
`Docket No. 1 1 1325-000066
`
`-5-
`
`conditions and instructions for adjusti:g.S" usage rights in a predetermined
`
`manner based on the status of dynamic conditions.
`
`BRIEF DESCRIPTION OF THE DRAWING
`
`10012] The invention is described through a preferred embodiment and the
`attached drawing in which:
`
`[0013] Fig. 1 is a schematic illustration of a digital content distribution
`system that can be used with the preferred embodiment;
`
`[00141 Fig.2 is a block diagram of a computer architecture in accordance
`with the preferred embodiment;
`
`10015] Fig. 3 is a lookup table illustrating the logic of the rights module of
`the preferred embodiment; and
`
`[00161 Fig. 4 is a block diagram illustrating how image resolution is varied
`in the preferred embodiment.
`
`DETAILED DESCRIPTION
`
`[00171 Fig. 1 is a block diagram of a system for the electronic distribution
`of digital works in accordance with a preferred embodiment. Such works may
`include correspondence, books, magazines, journals, newspapers, other
`papers, software, audio and video clips, other files or objects, and the like.
`The phrase "digital work" as used herein refers to any type of etement having
`content in computer readabte form. "Content" as used herein refers to the
`viewable or othenrise usable portion of a digital work. Author 110 creates
`original content 112 and passes it to a distributor 120 for distribution.
`Ordinarily, author 110 is the creator of the content. However, the term
`"autho/' as used herein can be the creator, owner, editor, or other entity
`controlling the content or an agent (e.9. a publisher) of one of those entities.
`Also author 110 may distribute documents directly, without involving another
`
`Petitioner Apple Inc. - Exhibit 1026, p. 11
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`Docket No. 1 1 1325-000066
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`party as distributor 120 and thus the author and distributor may be the same
`entity. However, the division of functions set forth in Fig. 1 is more efficient,
`as it allows author 110 to concentrate on content creation and not the
`administrative functions of distribution. Moreover, such a breakdown
`facilitates economies of scale by permitting distributor 120 to associate with a
`number of authors 110. Distributor 120 distributes digital works to user 130
`upon request. In a typical electronic distribution model, the work is distributed
`as a document containing the content and associated usage rights in
`encrypted form. Distributor 120 encrypts the works with a random key and
`then encrypts the random key with a public key corresponding to user 130.
`Thus the encrypted work is customized solely for the particular user 130.
`User 130 is then able to use their private key to unencrypt the random key
`and use it to unencrypt and view the content at the work.
`
`[0018J Payment for the work is passed from user 130 to distributor 120 by
`way of clearinghouse 150 which collects requests from user 130 and from
`other users who wish to sue a particular content. Clearinghouse 150 also
`collects payment information, such as debit transactions, credit card
`transactions, or other known electronic payment schemes, and fonrards the
`coflected payments as a payment batch to distributor 120. of course,
`clearinghouse 150 may retain a share of the payment as a fee for the above-
`noted services. Distributor 120 may retain a portion of the batch payment
`from clearinghouse 150 for distribution services and fonvard a payment (for
`exampf e royalties) to author 1 10. Distributor 120 may compile a bundle or
`batch of user requests for a single work before distributing the work. ln such
`a case, a single instance of the encrypted work can be generated for
`unencryption by all of the requesting users 130.
`
`[0019] Each time user 130 requests (or uses) content of a work, an
`accounting message is sent to audit server 140 which ensures that each
`request by user 130 matches with a document sent to user 130 by distributor
`120. Accounting information is received by audit server 140 directly from
`
`Petitioner Apple Inc. - Exhibit 1026, p. 12
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`Docket No. 1 1 1325-000066
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`distributor 120. Any inconsistencies are transmitted via a report to
`clearinghouse 150, which can then adjust the payment batches made to
`distributor 120 accordingly. This accounting scheme is operative to reduce
`the possibility of fraud in electronis distribution and to handle any time-
`dependent usage rights that may result in charges that vary, depending on the
`duration or other extent of use.
`
`[00201 Fig. 2 illustrates a computer architecture for downloading digital
`works from distributot 120 to user 130 in accordance with the preferred
`embodiment. The architecture utilizes a communications network, such as
`the Internet, for data transfer. User 130 uses client computer 230, such as a
`personal computer, a personal digital assistant (PDA), a data terminal, a
`kiosk, or the like,.to communicate with computer server 200 associated with
`distribution 120. Client 230 is coupled to Internet backbone 60, through a
`modem, phone line and Internet Service Provider (lSP) for example, in a
`known manner. Client can be running an operating system having a graphical
`user interface (GUl) such as Microsoft Windows 98rM or Microsoft Windows
`2000rM and an application program known as a "web browse/'that permits a
`graphical user interface to be used to control communications over the
`Internet through Hypertext Transfer Protocol (HTTP) and a standard page
`description language known as Hypertext Markup Language (HTML). The
`collection of Internet servers using HTTP is known as the "World Wide Web"
`or the "Web".
`
`10021] Server ZOO is associated with distributor 120 and can be a personal
`computer, a server, a minicomputer, a collection of computers, a computer
`network, or the like. Server 200 has storage devices 202 (such as magnetic
`hard discs) for storing information including central program 710 and digital
`works 203. Central processing unit (CPU) 204 for controlling the flow of
`information in accordance with control program 210, and random access
`memory (RAM) 206 used as a workspace for CPU 204. Server 200 is coupled
`to lnternet backbone 60 through high speed communications link 62. of
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`N182273.1
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`Petitioner Apple Inc. - Exhibit 1026, p. 13
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`Docket No. 1 1 1325-000066
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`course, server 200 can be coupled to Internet backbone OO through a modem
`and an lsP in a manner similar to client 230, or in any other manner.
`
`100221 Control program 210 is stored in one of storage devices 202 and
`incfudes dynamic conditions module 2l2whichtracks a plurality of dynamic
`conditions. Control program 210 also includes rights module 214 which sets
`usage rights for content in accordance with the dynamic conditions monitored
`by dynamic conditions module 212. One such dynamic condition can be the
`time of day. For example, a user can access a popular web site to obtain
`content during off-peak hours, in terms of web site traffic , at a reduced fee.
`To encourage content distribution during off-peak hours (and more uniform
`distribution of traffic to server 2Oo) distributor 120 cancharge lower fees for
`the same content during off-peak hours by monitoring time with dynamic
`conditions module 212 (which can reference the real time clock of server 200)
`and setting usage rights in a dynamic manner with rights module 214 based
`on the conditions, i.e. the time. The usage rights can be assigned in any
`known manner, such as through techniques disclosed in the patents cited
`above and incorporated by reference.
`
`t0023] Fig. 3 illustrates a simple example of the logic of rights module 214
`in the form of a lookup table. Conditions values 216 are listed in the left
`cofumn and corresponding usage rights 218 are listed in the right column. As
`an example, assume that condition value A corresponds to 9am to Spm in the
`United states Eastern standard rime, condition value B corresponds to 5pm
`to 1 1pm in the United States Pacific Standard Time, and condition value C
`corresponds to 1 1pm to 9am in the United States Eastern Standard Time. ln
`this case, the corresponding usage rights 218 can be fees or discounts off of
`standard fees. Assuming that server 200 tends to be most busy during time A
`and least busy during time c, price X can be higher than price y, which is
`higher than price z- Of course, if X, Y, and Zare expressed as discounts, the
`inverse relationship can be true, i.e. zcan be higher than y, which is higher
`
`Petitioner Apple Inc. - Exhibit 1026, p. 14
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`than X. Usage rights 218 can be assigned to one or more of digital works 203
`on a periodic basis, just prior to distribution, or in any manner.
`
`100241 The fee schedule, or other usage rights can be dynamically
`adjusted based on the status of the network in general or server in particular,
`by obtaining various known load parameters from the network. Of course, in
`such a case, rights module 214 may have a more complex lookup table or
`other logic that combines the various conditions to ascertain corresponding
`usage rights 218 for content. Also, dynamic conditions module 212 can
`include known software tools for monitoring servers load such as WEB
`PERFORMANCE TRAINERTM, a commercially available software package for
`monitoring server load.
`
`t00251 The concept of dynamic usage rights can apply to fees or any other
`rights. In other words, any usage rights that can be specified for a digital work
`can be changed based on dynamic conditions. For example, the ability to
`print or distribute the content, the number of times the content can be used,
`the resolution of an image in the content, and the like can all be set and
`changed based on dynamic conditions. The list of usage rights can include all
`rights that can be specified by the known XTMLTM usage rights language or
`other grammars for digital rights management. The logic of usage rights
`module 214 can be based on curves, formulas, tables, databases or any other
`algorithm using predetermined, or dynamic schemes.
`
`t0026] Further, the percentage of the commission or fee of distributor 120
`can be a usage right that is varied dynamically. For example, depending on
`the network conditions or parameters (such as number of the visitors to the
`web site or corresponding downloads at that moment), to encourage more
`uniform distribution of content throughout all hours, distributor 120 can charge
`a lower percentage during times of lower use of server 200. This permits
`distributor 120 to reduce the number of servers in the server farm that
`constitutes server 200 and thus reduce operating costs.
`
`Petitioner Apple Inc. - Exhibit 1026, p. 15
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`100271 Further, the quality or other characteristics of content can be
`adjusted as usage rights based on dynamic conditions. For example, at peak
`hours, user 130 may only be able to download a low resolution image of
`content, or may be charged a premiury for a high resolution image. In such a
`case, it is desirable to make content available in plurality of resolutions.
`However, storing multiple resolution images (at each desired resolution) for
`each piece of content can be very cumbersome and can take up a large
`amount of memory in memory devices 2Q2 and other resources. Applicant
`has discovered that application of known wavelet decomposition or other
`subband decomposition technologies can be used to provide flexibility of
`resolution while reducing resource overhead.
`
`100281 The phrase "wavelet decomposition" refers to a method of signal
`processing in which the signal is divided, i.e. decomposed, intogomponents
`of various frequency bandwidths. Wavelet decomposition and related
`transformations are well known generally and described in Wavelets and
`Subband Coding, M. Veterrli and J. Kovacevic, Prentice Hall, 1995 the
`disclosure of which is incorporated herein by reference. Wavelet
`decomposition has been applied to analyzing the time-frequency domain of
`various signals and to digital compression technologies. Fig.4 illustrates one
`of digital works 203 adapted for providing variable resolution images in
`accordance with the preferred embodiment. Content of work 203, in the form
`of an image, is divided into sub-images2071-207s. Each sub-image
`corresponds to a wavelet, i.e. a frequency component of the image. In the
`preferred embodiment, sub-im age 2O71is a Tz resolution image, sub-image
`2O7zis a % resolution image, sub{mage207sis a 1/8 resolution image, sub-
`image 207 a, is a 1116 resolution image and sub-im age 207 5 is a 1132 resolution
`image. Each of sub-ima ges 207 r207s can be superposed and downloaded to
`provide a plurality of possible resolutions. For example, downloading only
`sub-image 2071 provides a % resolution image. However, superposing sub-
`image 207twith sub-image 2072provides a higher resolution image 209.
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`N182273.1
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`Petitioner Apple Inc. - Exhibit 1026, p. 16
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`Docket Nn 1 1 1325-000066
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`Accordingly, usage rights X, Y, and Z of Fig.3 can correspond to the right to
`
`download various sub-images or combinations thereof.
`
`[0029J The parameters used in sub-sampling (or filtering) of content
`determine the quality of the resultant sub-image and can be varied in a known
`manner to make any number of sub-images having any resolution. Further,
`while the sub-images 2071-207s are all illustrated in Fig.4, all sub-images
`need not be decomposed and stored but can be decomposed "on the fly"
`using known mathematical techniques in control program 210 to provide only
`sub-images needed for the desired resolution download. The content owner
`may grant only the right to view, print, or copy a wavelet decomposition low
`resolution sub-image for trial or inspection purposes, for example. All the
`sub-images can be attached to the corresponding content for usage rights
`assignment or can be generated on the fly. ln the preferred embodiment, all
`of the components of the image are in the same package, and the resolutions
`or the combination of resolutions are readily obtainable using wavelet
`decomposition. The various rights and the associated content can be stored
`at the same location or at different locations.
`
`[00301 The invention can be applied to any type of distribution system for
`digital works. For example any number of computers or other devices can be
`used. Any dynamic conditions can be monitored and used to change usage
`rights assigned to content in any manner. Usage rights can be any privileges
`or restrictions on use and/or distribution of the digital work or content thereof.
`The dynamic conditions can be monitored, and