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`1. My name is James L. Olivier. I am over the age of twenty-one (21)
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`years, of sound mind and capable of making the statements set forth in this
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`Declaration. I am competent to testify to matters set forth herein. All the facts and
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`statements contained herein are within my personal knowledge and they are, in all
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`things, true and correct.
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`Education and Experience
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`2. My experience and education are detailed in my curriculum vitae,
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`which is attached as Appendix 1 to this declaration.
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`3.
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`I earned a Bachelor’s of Science Degree in Electrical Engineering, a
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`Master’s Degree in Electrical Engineering, and a Ph.D. degree in Electrical
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`Engineering, all from The Ohio State University. I received my Bachelor’s Degree
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`in Electrical Engineering from The Ohio State University in 1983. I received my
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`Master’s Degree in Electrical Engineering from The Ohio State University in 1985.
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`My main area of study was computer design and software engineering. I received
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`my Ph.D. in Electrical Engineering along with a minor in Computer Science,
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`Microelectronics, Semiconductor Fabrication, and Discrete Mathematics from The
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`Ohio State University in 1988.
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`UNITED SERVICES AUTOMOBILE ASSOCIATION
`Exhibit 1002
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`
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`4. My area of expertise is telecommunications and data communications.
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`5.
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`I have been working in the field of coding and encryption theory since
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`my academic career began. I have been associated and actively involved with the
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`coding and encryption theory and its application to data communications as a
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`developer and system designer for the last 25 years. A more detailed account of
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`my work experience and other qualifications is listed in my Curriculum Vitae
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`attached as Appendix 1 to this report. Cases in which I have testified as an expert
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`either at a trial, hearing, or deposition during the previous five years are listed in
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`Appendix 2 to this report
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`6.
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`I personally have studied, conducted research and worked in the field
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`of coding and encryption theory since my graduated school days at the Ohio State
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`University. My Ph.D. dissertation was based on coding theory and was titled
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`“Concurrent Error Detection in Arithmetic Processors using GAN Codes”, in
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`which I developed new codes for use in Arithmetic Processors such as
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`microprocessors. In order to pursue this research, I took a number of advanced
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`classes in both coding theory and in the advanced mathematics used in coding
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`theory which is known as Discrete Mathematics. I eventually received a minor in
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`Discrete Mathematics along with my Ph.D. studies. I have published papers on
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`coding theory and continued my work in coding theory for arithmetic processors
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`while at General Motor Research Laboratory.
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`7.
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`I have been in the development of communication equipment since
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`my work at AT&T Bell Laboratory. Later at DSC, I was the Senior Manager of
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`the ATM systems engineering group developing ATM packet switches for
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`Motorola’s Cellular Switches. At Samsung, I was a Principal Engineer for
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`wireless broadband services over UMTS. At Marconi I worked on a number of
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`systems for the access market, such as DSL modems, and DSLAMs. At Navini
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`Networks I was responsible for layer 2 and layers 3 network protocols for their
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`CDMA broadband modems. All of these systems make use of coding theory to
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`improve the reliability and security of data transfers.
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`8.
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`I am familiar with the knowledge and capabilities of one of ordinary
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`skill in the art in the area of secure transactions. Specifically, I am familiar with
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`the understandings of one of ordinary skill in the art prior to and during the period
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`in which U.S. Patent No. 6,105,013 (hereinafter “the ‘013 Patent was allegedly
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`invented, and my testimony herein when referring to one of ordinary skill, and
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`what was known in the art, refers to that period.
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`Materials Considered
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`9.
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`I considered the following materials when determining the opinions
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`expressed in this Declaration1:
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`U.S. Patent No. 6,105,013 (filed Mar. 10, 1998) (issued Aug. 15, 2000) (“‘013
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`Patent”)
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`PETER L. HAWKES ET AL., INTEGRATED CIRCUIT CARDS, TAGS AND TOKENS, NEW
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`TECHNOLOGY AND APPLICATIONS, (Peter L. Hawkes et al. eds., BSP Professional
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`Books 1990) (“Hawkes”)
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`European Pat. Pub. 0588339 A2 (“Ishiguro”)
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`U.S. Patent No. 4,575,621 (filed Mar. 7, 1984) (issued Mar. 11, 1986) (“Dreifus”)
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`U.S. Patent No. 4,906,828 (filed May 31, 1988) (issued Mar. 6, 1990)
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`(“Halpern”)
`
`Don Lancaster, BASIC Stamp Microcontroller, Hardware Hacker, Selected
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`Reprints, Vol. IV, (July 1993) (“Lancaster”)
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`Prosecution history for ‘013 Patent
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`Smart credit cards: the answer to cashless shopping IEEE Spectrum FEBRUARY
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`1984, S.B. Weinstein, pages 45 and 47
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`1 Documents not provided in connection with the IPR Petition are attached as
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`Appendix 2.
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`
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`The very smart card: a plastic pocket bank; IEEE SPECTRUM OCTOBER 1988,
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`page 35, “To top things off, the card also serves as a clock, calculator, and
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`notepad”.
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`RANDALL HYDE, THE ART OF ASSEMBLY LANGUAGE PROGRAMMING, PAGE 241
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`(2001)
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`Compensation
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`10.
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`I am being compensated at a rate of 495.00 by the Petitioner for my
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`assistance with its Inter Partes Review (IPR) and, specifically, for my time spent
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`reviewing documents in association with the IPR and in preparing my testimony.
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`Additionally, I am not, and have never been, an employee of USAA Federal
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`Savings Bank, and my compensation is not dependent upon the outcome of this
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`proceeding.
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`Technology Background: Smartcard Technology in the 1980s
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`11. SmartCards have been used to generate secure transactions since at
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`least the mid-1980s. Smartcards are the size and shape of a typical credit card, and
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`contains a programmable microprocessor embedded within a plastic card along
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`with nonvolatile memory for securing transactions. Such transactions are point of
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`sale, ‘POS’, transactions at a merchant, or telephone related transactions. An
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`example Smart Card is shown below2.
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`2 Smart credit cards: the answer to cashless shopping IEEE Spectrum FEBRUARY
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`1984, S.B. Weinstein, page 45.
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`12. These smart cards with microprocessors executed security related
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`algorithms such as PIN comparison, message authentication and data encryption,
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`to generate a secure transaction3.
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`13. The French government was long been a proponent of the use of smart
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`cards and even mandated their use by service providers, for example, by ordering
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`pay telephones providers to accept smart card in pay telephones.4
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`14. Real time clocks were built in smart cards by at least the late 1980s as
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`Toshiba Supersmart Card contained a clock and a calendar.5 Shown below is the
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`clock and calendar circuitry for the Toshiba Supersmart Card, indicated by the
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`additional red arrow.
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`3 Smart credit cards: the answer to cashless shopping; IEEE Spectrum
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`FEBRUARY 1984, S.B. Weinstein, page 47.
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`4 Smart credit cards: the answer to cashless shopping; IEEE Spectrum
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`FEBRUARY 1984, S.B. Weinstein, page 45.
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`5 The very smart card: a plastic pocket bank; IEEE SPECTRUM OCTOBER 1988,
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`page 35, “To top things off, the card also serves as a clock, calculator, and
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`notepad”.
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`15. This smart card software structure allowed it to be programed for a
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`variety of applications, such as home shopping, department store purchases,
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`gasoline station purchases, insurance information inquires, property value analysis,
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`even biorhythm information.6
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`16.
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`In “Integrated Circuit Cards, Tags and Tokens”, the author P.L.
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`Hawkes teaches in 1990, the desirability of adding an RSA coprocessor to perform
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`RSA encryption/decryption calculations in a smartcard. The remaining functions
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`of the IC card are performed by programs executed by the control processor. See
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`6 The very smart card: a plastic pocket bank IEEE SPECTRUM OCTOBER 1988,
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`pages 37-38
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`
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`Hawkes, pages 86-88. This co-processor is shown along with the control processor
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`in Fig. 6.3, of “Integrated Circuit Cards, Tags and Tokens.”
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`
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`Overview of the ‘013 Patent
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`17.
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`I have reviewed the ‘013 Patent. The ‘013 Patent is directed to an
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`electronic module (e.g., a smartcard) capable of exchanging encrypted information
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`with a service provider’s equipment to facilitate secure transactions. See ‘013
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`Patent, Abstract. FIG. 1 of the ‘013 Patent, shown below, illustrates that the
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`electronic module includes a microprocessor, a clock, a math coprocessor, memory
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`circuitry, an input/output circuit, and an energy circuit. ‘013 Patent, 2:34-67, 3:1-
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`9, FIG. 1.
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`
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`18. The math coprocessor performs well-known mathematics operations
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`for RSA encryption and decryption (e.g., public/private key
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`encryption/decryption); the memory circuity includes volatile and non-volatile
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`memories; the input/output circuit enables bidirectional communication between
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`the electronic module and an external device; the energy circuit includes a battery
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`to maintain the memory circuitry and aid in powering other circuitry of the
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`electronic module. ‘013 Patent, 2:54-57, 2:58-63, 2:66-3:4, 3:5-9. The ‘013 Patent
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`discloses that the electronic module is programmed by a service provider to
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`operate as a digital cash dispenser or a cash reservoir that allows the end user to
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`participate in transactions. ‘013 Patent, 7:64-8:18. This allows the electronic
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`module to be used to make payments for goods and services. ‘013 Patent, 7:64-
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`8:18. The electronic module is incorporated into “an articulatable item,” such as a
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`credit card, a ring, a watch, a wallet, a purse, a necklace, jewelry, an ID badge, a
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`pen, a clipboard, a token, etc. ‘013 Patent, 29:59-64.
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`Analysis of the ‘013 Patent Prosecution History
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`19.
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`I have reviewed the prosecution history for the ‘013 Patent. The ‘013
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`Patent was filed on March 10, 1998 and assigned U.S. Patent Application No.
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`09/041,190 (hereinafter “the ‘190 Application”). Claim 1 of the ‘013 Patent
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`corresponds to claim 32 of the ‘190 Application, and claim 9 of the ‘013 Patent
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`corresponds to claim 41 of the ‘190 Application, both of which were introduced in
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`response to the Office Action mailed on August 3, 1998. Following withdrawal of
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`the Notice of Allowance mailed January 25, 1999, and in response to the Office
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`Action mailed on July 23, 1999, claim 32 of the ‘190 Application was amended to
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`recite “a real time clock, connected to said microcontroller core, for providing a
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`time measurement for time stamping a predetermined function,” and claim 41 of
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`the ‘190 Application was amended to recite “a clock circuit for measuring time and
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`providing time stamp information responsive to functions being performed by said
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`microcontroller core.” A Notice of Allowance was mailed on January 12, 2000,
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`and the ‘190 Application Issued as the ‘013 Patent on August 15, 2000.
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`20. Nowhere in the prosecution history of the ‘190 Application did the
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`Examiner appear to be aware that using a clock to generate time stamps was well
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`known to a person of ordinary skill in the art in the field of secure transactions and
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`smartcard technology at the time the ‘190 Application was filed. For example, as
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`early as 1990, Hawkes taught that it is necessary to include time stamps in
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`transaction messages to avoid “replays” of transactions. Hawkes, pages 85 and 86.
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`A Person of Ordinary Skill
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`21.
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`In my opinion, a person of ordinary skill in the art of the ‘013 Patent
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`at the time of the alleged invention would typically have had at least a B.S. degree
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`in electrical engineering or computer engineering with at least two years of
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`practical or postgraduate work in the areas of secure data processing/transactions
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`and real-time microcontroller programming, or, alternatively, an additional year (at
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`least three years) of postgraduate or professional experience in computer systems
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`engineering related to secure data transactions, or the equivalent.
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`Claim Construction
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`22.
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`I understand that, in an inter partes review, a claim term in an
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`unexpired patent is given the broadest reasonable interpretation in light of the
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`specification. I further understand that a claim term in an expired patent is given
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`its ordinary and customary meaning as understood by one of ordinary skill in the
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`art. I understand that the ‘013 Patent will expire during the pendency of this
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`proceeding. Because, in my analysis, the present claims are obvious under the
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`higher standard of ordinary and customary meaning, I have construed certain claim
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`terms provided below under that standard. Further, the constructions provided
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`herein would be the same under broadest reasonable interpretation standard.
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`23.
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` “coprocessor”: The claim term “coprocessor” would be understood
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`by one of ordinary skill in the art, at the time of the invention, as being a processor
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`that works with another processor.
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`24.
`
` “modular exponentiation accelerator circuit”: The ‘013 Patent
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`describes a modular exponentiation accelerator circuit as a coprocessor that
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`performs mathematics of modular exponentiation. ‘013 Patent, 2:54-3:26. Thus,
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`the claim term “modular exponentiation accelerator circuit” would be understood
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`by one of ordinary skill in the art, at the time of the invention, as a processor that
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`works with another processor and performs mathematics of modular
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`exponentiation.
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`25.
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`“nonvolatile RAM”: The ‘013 Patent discloses that the electronic
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`module includes memory circuitry 20 that is connected to an energy circuit 34, and
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`teaches that the energy circuit 34 is necessary to maintain the memory circuitry 20.
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`‘013 Patent, 3:5-9. Therefore, the claim term “nonvolatile RAM” would be
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`understood by one of ordinary skill in the art, at the time of the invention, to at
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`least include RAM that is backed up by a battery or another power source.
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`26.
`
` “real time clock” and “clock circuit”: The ‘013 Patent describes a
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`continuously running real time clock and clock circuitry that provide information
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`to track time for generating timestamp information. Ex. 1001, FIG. 12, 3:21-63,
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`4:44. Thus, the claim terms “real time clock” and “clock circuit” would be
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`understood by one of ordinary skill in the art, at the time of the invention, to mean
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`continuously running clock circuitry that tracks time.
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`Analysis of Prior Art to the ‘013 Patent
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`HAWKES
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`27.
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`I have reviewed the Hawkes reference. Hawkes describes various
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`design aspects of integrated circuit (IC) smart cards, tags, and tokens, and
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`describes various applications for these devices. Hawkes, Preface, pages ix-xi,
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`pages 1-11, Table 1.4. For example, Hawkes teaches the tokens or smart cards are
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`operated as an electronic wallet capable of storing and dispensing data transferred
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`value (e.g., electronic money) in connection with the purchases (e.g., digital cash
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`transactions), where some of the information (e.g., data transferred value, etc.) is
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`encrypted to provide data security. Hawkes, Preface, page x, pages 7, 36, 37, 65,
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`69-70. One of ordinary skill in the art, at the time the alleged invention, would
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`readily recognize that encrypting data is a well-known technique for securing
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`information exchanged in a transaction. One of ordinary skill in the art would
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`further recognize that the smart cards and tokens of Hawkes are articulatable items
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`within the meaning of the ‘013 Patent, which describes and articulatable item as,
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`for example, a credit card or token.
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`28. An exemplary configuration of a smartcard or intelligent token is
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`shown in FIG. 6.3, reproduced below.
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`
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`29. The intelligent token of FIG. 6.3 includes a control processor that
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`executes applications to provide functionality to a user of the token. As shown in
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`FIG. 6.3, the control processor is connected to an input/output interface. Hawkes
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`discloses that the control processor may be implemented as the Intel 8085
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`microprocessor, for example. Hawkes, pages 86 and 87. One of ordinary skill in
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`the art would readily recognize that the Intel 8085 microprocessor is an example of
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`a microcontroller core.
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`30. The intelligent token of FIG. 6.3 includes a math coprocessor (e.g., an
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`RSA processor) that is connected to the microcontroller core (e.g., the control
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`processor). The ‘013 Patent describes a modular exponentiation accelerator circuit
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`as a coprocessor for performing mathematics of modular exponentiation and that
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`such mathematical calculations may include RSA encryption and decryption
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`calculations. ‘013 Patent, 2:54-57, 3:24-26. Therefore, a person of ordinary skill
`
`in the art, reading the ‘013 Patent, would understand that the modular
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`exponentiation accelerator circuit would be met by an RSA processor. Hawkes
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`teaches that the RSA processor is programmed to perform RSA encryption and
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`decryption calculations. Hawkes, page 87-89. Hawkes discloses an 8-bit
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`bidirectional bus buffer to facilitate communication between the control processor
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`and the RSA processor. Hawkes, page 87. Hawkes teaches that the RSA
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`processor may be implemented as a TMS32010 microprocessor. Hawkes, page 86.
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`In view of Hawkes teaching that: (1) the intelligent token includes an RSA
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`processor programmed to perform RSA encryption and decryption calculations;
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`and (2) an 8-bit bidirectional bus buffer to facilitate communication between the
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`control processor and the RSA processor, one of ordinary skill in the art would
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`readily recognize that the RSA processor of Hawkes teaches a math coprocessor
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`connected to a microcontroller core, as described by the ‘013 Patent. Further, one
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`of ordinary skill in the art would readily recognize that the TMS32010
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`microprocessor is an example of a coprocessor performing mathematics of
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`modular exponentiation when it is executing RSA calculations.
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`31. The intelligent token of FIG. 6.3 includes memory circuitry (e.g., data
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`memory and program memory) connected to the microprocessor circuit (e.g., the
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`control processor). Hawkes teaches that an active smartcard, such as a super
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`smartcard, can be used in applications such as metering use of gas, electricity,
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`water, television, or public transportation. Hawkes, page 4. Additionally, Hawkes
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`teaches that the intelligent token, including memory circuitry, is key to provide
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`services to the person carrying the token, and that the service provider can program
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`the memory circuitry of the card to provide the services (e.g., access control, point
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`of sale transactions, and signature of alphanumeric messages) to the person
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`carrying the token. See Hawkes, pages 4 and 87. In view of Hawkes teachings
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`that: 1) the intelligent token includes a program memory for storing programs; and
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`2) the super smartcard could be used in applications such as metering use of gas,
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`electricity, water, television, or public transportation, one of ordinary skill in the
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`art, at the time of the invention, would understand that the super smartcard, such as
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`the NPL intelligent token described in Chapter 6, could be programmed by a
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`service provider. Further, as shown in FIG. 6.3, the memory circuitry is connected
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`to the microcontroller core (e.g., the control processor).
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`32. The intelligent token of FIG. 6.3 includes an input/output circuit. This
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`input output circuit is connected to the microcontroller core (e.g., control
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`processor) and exchanges information with an external device. Hawkes, 87.
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`33. The intelligent token of FIG. 6.3 includes a timing circuit (e.g., clock)
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`connected to the microprocessor circuit (e.g., the control processor). This timing
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`circuit generates real time clock data that is provided in accordance with functions
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`for time measurement and time stamping. Hawkes, pages 7 and 83-84. Hawkes
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`teaches that “it is necessary to include a time and date field in the message[s]” to
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`avoid replays of transactions. Hawkes, page 85.
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`34. A side-by-side comparison of the token illustrated in FIG. 6.3 of
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`Hawkes (left) and the electronic module illustrated in FIG. 1 of the ‘013 Patent
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`(right) is shown below.
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`35. As can be seen in the side-by-side comparison above, the intelligent
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`token of Hawkes contains essentially the same basic hardware elements as the
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`electronic module disclosed in the ‘013 Patent (e.g. control processor, math
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`coprocessor/RSA processor, memory, I/O circuitry, clock circuitry).
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`36. Hawkes teaches that the token may be powered by a battery and/or via
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`power supplied by a terminal. Hawkes, pages 86 and 88. Hawkes teaches that
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`tokens or smart cards may be programmable. Hawkes, pages 86-87. For example,
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`Hawkes teaches that the RSA processor is programmed to perform RSA
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`encryption/decryption calculations, and the remaining functions of the IC card are
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`performed by programs executed by the control processor. Hawkes, pages 86-87.
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`Hawkes teaches that it is advantageous to use both a control processor and an RSA
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`processor. For example, use of different processors for applications and encryption
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`allows the two processors to work in parallel, which reduces and/or hides the
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`encryption calculation time. Hawkes, pages 86-87. The configuration disclosed in
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`Hawkes enables the control processor to be programmed using a high-level
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`programming language. Hawkes, pages 86-87.
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`37. Hawkes teaches that the integrity of transaction messages that control
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`the movement of funds between the intelligent token user and retailer accounts is
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`of significant importance, and teaches that the intelligent token may utilize
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`encryption techniques to generate signed transaction messages. Hawkes, pages 83,
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`84, 146-151. To further enhance the integrity of transactions, Hawkes indicates
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`that, during a transaction, a terminal may generate a random challenge number that
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`may be provided to the token, and, in response, the token may generate a signed
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`reply by signing the challenge number using an encryption technique, where the
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`signed reply is used for identity verification. Hawkes, page 84, FIG. 6.1. In view
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`of Hawkes teachings that: 1) the intelligent token transmits data to, and receives
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`data from, a terminal in connection with a transaction; and 2) the data transmitted
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`to, and the data received at, the intelligent token in connection with the transaction
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`is encrypted, one of ordinary skill in the art, at the time of the invention, would
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`have recognized that the intelligent token is an apparatus for receiving and
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`transmitting encrypted data.
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`38. To avoid “replays” of transactions, Hawkes teaches that a time and
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`date field must be included in messages (e.g., transaction messages) exchanged
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`between the token and the terminal. Hawkes, page 85, FIG. 6.2. Additionally,
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`Hawkes teaches that sequence numbers are applied to transaction messages to deter
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`message reuse, and that details of transactions which the token participates in are
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`stored in the data memory of the token. Hawkes, pages 70, 86, 153.
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`39. Hawkes teaches that the card or token facilitates digital cash
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`transactions by dispensing and recording “data transferred value (equals money).”
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`Hawkes, Preface, page x. Hawkes indicates that the intelligent token utilizes
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`encryption to prevent eavesdroppers from abstracting, delaying, altering or
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`inserting messages exchanged between the token and a terminal during a
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`transaction, such as a data transferred value transaction (i.e., a digital cash
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`transaction). Hawkes, Preface, page x, pages 7 and 83-84, FIG. 6.2. One of
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`ordinary skill in the art would readily recognize that the intelligent token of
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`Hawkes is programmed to provide encrypted digital cash transactions and
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`encrypted data transactions.
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`40. Hawkes teaches that “the token generates a public key pair and holds
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`its secret key protected inside it. Any host wishing to use this token for
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`authentication is given the public key.” Hawkes, page 161. One of ordinary skill
`
`in the art would readily recognize that Hawkes discloses a card that has “the ability
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`to create encryption key pairs.”
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`41. Hawkes teaches that the intelligent token uses battery backed RAM
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`(random access memory), and further teaches that the card includes a power supply
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`generation circuit. Hawkes, pages 3, 14, 31, 32, 86, and FIG. 3.2. One or ordinary
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`skill in the art would recognize that Hawkes disclosure of powering RAM via a
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`battery requires the energy circuitry to be connected to the battery to the RAM.
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`One of ordinary skill in the art would further understand that battery backed up
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`RAM is a type of nonvolatile RAM.
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`42. Hawkes teaches that the card is programmed to act as a credit card
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`account, or to provide functions to facilitate digital cash transactions and other
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`functionality, and further teaches that several different applications (e.g., credit
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`card account, an electronic checking (debit) account, and an appointment calendar
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`or address file, etc.) are stored on a single card, where the data for each application
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`can be protected from the others. Hawkes, Preface, x, pages 4, 17, 20-22, 69-70,
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`161, and Table 1.2. Hawkes teaches that allowing multiple service providers to
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`include application programs on the card or token would reduce the cost of
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`manufacturing the card or token. Hawkes, Preface, page x, and Table 1.2.
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`Hawkes teaches that the intelligent token could be used for transaction control and
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`payment for a wide range of services in many environments, such as in the home,
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`in public utilities (telephone, etc.), the office, and in shopping. Hawkes, page 90.
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`43. A “script” programming language is a high level programming
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`language that was well-known and commonly used for programming applications
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`before the ‘013 Patent was filed. One of ordinary skill in the art would find it
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`obvious to use a script programming language, such as BASIC, as the “high-level
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`language” of Hawkes. For example, Intel 8085 microprocessors (e.g., the
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`exemplary control processor of Hawkes) have been programmed to execute script
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`based programs, such as BASIC, since the 1980’s. IBM introduced the Intel 8085-
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`equipped System/23 DataMaster in 1981, which contained a built in BASIC
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`interpreter. In fact, the majority of the world’s Intel 8085’s were executing
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`Microsoft BASIC in Microsoft’s early years. RANDALL HYDE, THE ART OF
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`ASSEMBLY LANGUAGE PROGRAMMING, PAGE 231 (2001), available electronically at
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`http://portal.aauj.edu/portal_resources/downloads/programming/assembly_languag
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`e32bit_edition.pdf. Further, at the time the ‘013 Patent was filed, BASIC was
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`widely available and was a well-known programming language that would have
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`been seen as advantageous to use as the “high-level language.”
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`LANCASTER
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`44.
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`I have reviewed the Lancaster reference. Lancaster is a book
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`comprised of a collection of columns reprinted from Electronics Now magazine,
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`and was published in 1994. Lancaster, Introduction, page iii. In an article dated
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`July, 1993, Lancaster describes a microcontroller that includes an electronically
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`erasable programmable read only memory (EEPROM) for storing instructions
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`written in the BASIC programming language, and a BASIC interpreter. Lancaster,
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`page 66.1, FIG. 1. Lancaster illustrates that, at the time the ‘013 Patent was filed,
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`the BASIC programming language was commonly known to a person of ordinary
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`skill in the art as a script programming language utilized to write applications.
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`Additionally, Lancaster teaches that macros are available to allow a programmer to
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`create sophisticated programs that may be executed by the microcontroller using
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`the BASIC programming language, and that microcontrollers, such as the
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`programmable microcontroller described in Lancaster, enable a user to design and
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`implement custom programmed devices at low cost. Lancaster, pages 66.1 and
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`66.2. One of ordinary skill in the art would recognize that the card or intelligent
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`token of Hawkes could be programmed using a script programming language, such
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`as BASIC, and would be motivated to use a script programming language to create
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`programs for the card or token of Hawkes because using widely available and well
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`known script programming languages reduces application development costs.
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`DREIFUS
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`45.
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` I have reviewed the Dreifus reference. Dreifus discloses a transaction
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`system that includes a portable electronic transaction device and a terminal.
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`Dreifus, Abstract, 3:18-36. As illustrated in FIG. 5 of Dreifus, the transaction
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`device is embodied as a card that includes an integrated circuit including: a CPU, a
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`clock, a ROM, a RAM, direct memory access (DMA) circuitry, an interrupt control
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`unit circuit, a communications buffer, a time/date clock, a battery, and a liquid
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`crystal display (LCD). Dreifus, 8:16-49, FIG. 5. Dreifus indicates that the
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`transaction device is used to store financial information and purchase information,
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`and is used to facilitate retail transactions. Dreifus, 4: 21-28, 7:7-32. During use
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`of the transaction device, Dreifus indicates that information provided to or
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`transmitted from the transaction device is encrypted, and that crypto-keys used for
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`encryption purposes are dynamically altered “by changing the sequence of reading
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`the information from ROM 56 (via changing RAM pointers) or reading
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`information from different locations in ROM 46 (via changing RAM pointers) the
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`CPU can vary the crypto-key used to encrypt messages.” Dreifus, 5:15-30, 8:56-
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`58, 13:29-59. Dreifus indicates that the transaction device is embedded in various
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`objects and form factors, such as a card, gambling chip, or token. Dreifus, 18:4-
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`57. Additionally, Dreifus teaches that the card that could be programmed for many
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`purposes, such as credit card transactions, location user access, automatic bank
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`tellering, facility user access, guard keying, telephone access and billings, casino
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`tokens, etc. Dreifus, 18:4-11.
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`46. Dreifus teaches that the encryption/decryption unit 86 utilizes a public
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`key system (e.g., RSA encryption), and further states:
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`data stored in RAM 58 is used to modify the operation of the
`CPU. Thus, the data stored is used . . . to vary the encryption
`keys and/or the user identification 20 code stored in the ROM,
`depending upon the application for the system. . . . The
`encoding and encryption keys or format may be varied
`according to a predetermined protocol either stored in the
`memory of the card or received from the terminal.
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`Dreifus, 9:17-33, 13:3-59. Dreifus further teaches that “a frequently alterable
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`security key can provide greater security against unforeseen intrusion than a fixed
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`key.” Dreifus, 5:20-25. One or ordinary skill in the art, reading Dreifus, would
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`have recognized that devices can be programmed to create encryption key pairs,
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`and would have been motivated to program the card or token of Hawkes to create
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`encryption key pairs because it would increase the security of transactions and
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`messages for which the card or token is utilized.
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`HALPERN
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`47.
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`I have reviewed the Halpern reference. Halpern describes a system
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`for electronically transferring confidential data between a card device and a
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`terminal. Halpern, 1:7-9. Halpern discloses, with reference to FIG. 2, a portion of
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`which is reproduced below, a data carrier token or card that includes a
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`cipher/decipher circuit 21c, an arithmetic circuit 22c, and chip inputs l1 and l2 to
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`carry encrypted input and output data. Halpern, 3:1-34, FIG. 2.
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`48. Halpern teaches that the “arithmetic portion of the card chip . . . may .
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`. . be replaced by a microprocessor.” See Halpern, 6:47-53, FIGs. 2, 5,