peT
`INTERNATIONAL APPLICATION PUBLISHED UNDER THE PATENT COOPERATION TREATY (PCT)
`WO 99/24892
`
`WORLD INTELLECTUAL PROPERTY ORGANIZATION
`International Bureau
`
`(51) International Patent Classification 6 :
`G06F
`
`(11) International Publication Number:
`
`A2
`
`(43) International Publication Date:
`
`20 May 1999 (20.05.99)
`
`(21) International Application Number:
`
`PCT/uS98/24092
`
`(74) Agents: MARCOU, George, T. et al.; Kilpatrick Stockton LLP,
`Suite 800, 700 13th Street, Washington, DC 20005 (US).
`
`(22) International Filing Date:
`
`12 November 1998 (12.11.98)
`
`(30) Priority Data:
`60/065,291
`60/081,748
`
`11 November 1997 (11.11.97)
`14 April 1998 (14.04.98)
`
`US
`US
`
`(71) Applicant (for all designated States except US): CITICORP
`DEVELOPMENT CENTER, INC. [USIUS]; 12731 W.
`Jefferson Boulevard, Los Angeles, CA 90066 (US).
`
`(72) Inventors; and
`(75) Inventors/Applicants (for US only): PALTENGHE, Cris, T.
`[US/US]; 11718 Entrada Avenue, Northridge, CA 91326
`(US). MAMDANI, Alnoor, B. [US/US]; 2030 Penmar Av(cid:173)
`enue, Venice, CA 90291 (US). GOLVIN, Charles [US/US];
`2762 McConnell Drive, Los Angeles, CA 90064 (US).
`LICHSTEIN, Henry [USIUS]; 544 Dryad Road, Santa Mon(cid:173)
`ica, CA 90402 (US). SOLO, David [US/US]; Apartment 7B,
`300 E. 75th Street, New York, NY 10021 (US). PAN, Jack
`[US/uS]; 3651 South Norwich Place, Rowland Heights, CA
`91748 (US). TAKATA, Melvin, M. [US/US]; 855 Paseo del
`Robledo, Thousand Oaks, CA 91360 (US).
`
`(54) Title: VIRTUAL WALLET SYSTEM
`
`(57) Abstract
`
`The present invention provides apparatus, meth(cid:173)
`ods and systems for information and financial banking.
`Apparatus of the present invention include virtual wal(cid:173)
`lets which allow for information and financial banking
`including payment mechanisms; identity authentica(cid:173)
`tion mechanisms; personal information; and electronic
`artifacts. Methods and systems of the present inven(cid:173)
`tion include information and financial banking meth(cid:173)
`ods utilizing virtual wallets. A preferred virtual wal(cid:173)
`let comprises a locally residing portion and a server
`residing portion. An interface is provided for commu(cid:173)
`nication between the two portions of the wallet.
`
`(81) Designated States: AL, AM, AT, AU, AZ, BA, BB, BG, BR,
`BY, CA, CH, CN, CU, CZ, DE, DK, EE, ES, FI, GB, GE,
`GH, GM, HR, HU, ID, IL, IS, JP, KE, KG, KP, KR, KZ,
`LC, LK, LR, LS, LT, LU, LV, MD, MG, MK, MN, MW,
`MX, NO, NZ, PL, PT, RO, RU, SD, SE, SG, SI, SK, SL,
`TJ, TM, TR, 11, UA, UG, US, UZ, VN, YU, ZW, ARIPO
`patent (GH, GM, KE, LS, MW, SD, SZ, UG, ZW), Eurasian
`patent (AM, AZ, BY, KG, KZ, MD, RU, n, TM), European
`patent (AT, BE, CH, CY, DE, DK, ES, FI, FR, GB, GR,
`IE, IT, LU, MC, NL, PT, SE), OAPI patent (BF, BJ, CF,
`CG, CI, CM, GA, GN, GW, ML, MR, NE, SN, TD, TG).
`
`Published
`Without international search report and to be republished
`upon receipt of that report.
`
`HYBRID WALLET
`VVlo
`,
`
`Inlerface
`
`Server
`
`Contents
`
`Smarr Card
`(or chip device
`or hard drive)
`
`Contents
`
`OUlside
`World
`
`2
`
`Unified Patents Exhibit 1006, pg. 1
`
`

`
`FOR THE PURPOSES OF INFORMATION ONLY
`
`Codes used to identify States party to the peT on the front pages of pamphlets publishing international applications under the PCT.
`
`AL
`AM
`AT
`AU
`AZ
`BA
`BB
`BE
`BF
`BG
`BJ
`BR
`BY
`CA
`CF
`CG
`CH
`CI
`CM
`CN
`CU
`CZ
`DE
`DK
`EE
`
`Albania
`Annenia
`Austria
`Australia
`Azerbaijan
`Bosnia and Herzegovina
`Barbados
`Belgium
`Burkina Faso
`Bulgaria
`Benin
`Brazil
`Belarus
`Canada
`Central African Republic
`Congo
`Switzerland
`Cote d'Ivoire
`Cameroon
`China
`Cuba
`Czech Republic
`Germany
`Denmark
`Estonia
`
`ES
`FI
`FR
`GA
`GB
`GE
`GH
`GN
`GR
`HU
`IE
`IL
`IS
`IT
`JP
`KE
`KG
`KP
`
`KR
`KZ
`LC
`LI
`LK
`LR
`
`Spain
`Finland
`France
`Gabon
`United Kingdom
`Georgia
`Ghana
`Guinea
`Greece
`Hungary
`Ireland
`Israel
`Iceland
`Italy
`Japan
`Kenya
`Kyrgyzstan
`Democratic People's
`Republic of Korea
`Republic of Korea
`Kazakstan
`Saint Lucia
`Liechtenstein
`Sri Lanka
`Liberia
`
`LS
`LT
`LU
`LV
`Me
`MD
`MG
`MK
`
`ML
`MN
`MR
`MW
`MX
`NE
`NL
`NO
`NZ
`PL
`PT
`RO
`RU
`SD
`SE
`SG
`
`Lesotho
`Lithuania
`Luxembourg
`Latvia
`Monaco
`Republic of Moldova
`Madagascar
`The fonner Yugoslav
`Republic of Macedonia
`Mali
`Mongolia
`Mauritania
`Malawi
`Mexico
`Niger
`Netherlands
`Norway
`New Zealand
`Poland
`Portugal
`Romania
`Russian Federation
`Sudan
`Sweden
`Singapore
`
`SI
`SK
`SN
`SZ
`TD
`TG
`TJ
`TM
`TR
`TT
`UA
`UG
`US
`UZ
`VN
`YU
`ZW
`
`Slovenia
`Slovakia
`Senegal
`Swaziland
`Chad
`Togo
`Tajikistan
`Turkmenistan
`Turkey
`Trinidad and Tobago
`Ukraine
`Uganda
`United States of America
`Uzbekistan
`Viet Nam
`Yugoslavia
`Zimbabwe
`
`Unified Patents Exhibit 1006, pg. 2
`
`

`
`W099/24892
`
`peT /uS98/24092
`
`VIRTUAL WALLET SYSTEM
`
`Cross-reference to Related Applications
`
`The present application claims priority under 35 USC 119( e) from US
`
`5
`
`Provisional Patent Application No. 601065,291 entitled "DISTRIBUTED NETWORK
`
`BASED ELECTRONIC WALLET," filed November 12, lQ97 and from US
`
`Provisional Patent Application No. 601081,748 entitled "VIRTUAL WALLET
`
`SYSTEM" filed April 14, 1998. The disclosures of each referenced application is
`
`hereby incorporated herein by reference.
`
`10
`
`Field of the Invention
`
`The present invention relates to apparatus, systems and methods for
`
`information and financial banking. Particular features of the present invention include
`
`electronic wallets and computer and related electronic apparatus based systems for the
`
`15
`
`storage, retrieval and management of personal information including personal
`
`financial information. An additional feature of the present invention is a system for a
`
`digitized signature.
`
`Background
`
`20
`
`With the explosion in popularity and utility of the internet and other electronic
`
`transaction mediums, the need for and dependence upon information in an electronic
`
`format is ever-increasing. The problem of storing, retrieving and managing all of a
`
`consumer's electronic data, however, has not yet been satisfactorily analyzed or
`
`solved.
`
`25
`
`Further, the problem is not currently being approached from the consumer's
`
`standpoint, but from the standpoint of the vendor looking to solve particular vendor
`
`needs. One form of product that deals with some of the above-stated needs are
`
`generally called electronic wallets. Typically, current electronic wallets are just an
`
`afterthought, however, used by vendors to enhance other products. Generally, an
`
`30
`
`electronic wallet is a software application, on a network or within a browser, that is
`
`part of a much larger program. Electronic wallets focus primarily upon the payment
`
`Unified Patents Exhibit 1006, pg. 3
`
`

`
`WO 99/24892
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`PCTlUS98/24092
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`aspects of electronic commerce. For example, electronic wallets comprise credit card
`
`account information and digital certificates that are used in authorizing electronic
`
`transactions that can be performed with the main product sold by the ·;endor.
`
`Additionally, electronic wallets are typically not universally interoperable.
`
`5
`
`Information added to the electronic wallet application of one vendor may not be able
`
`to be used by or accessed from other applications. In fact, a vendor providing a
`
`program may require that only the electronic wallet application associated with that
`
`program be !Jsed. Thus, a consumer is presented with the frustrating task of
`
`repeatedly entering and acquiring the data and information necessary to build the
`
`10
`
`components of their electronic wallet.
`
`Further, because current electronic wallets are primarily designed as a part of a
`
`bigger application, they typically have narrow functionality. Current electronic
`
`wallets generally are only able to hold certain pre-designated types of electronic
`
`information, such as credit card account information or digital certificates. Typically,
`
`15
`
`applications utilizing current electronic wallets may only need a payment function,
`
`and thus the electronic wallet only provides this function. Generally, the functionality
`
`of current electronic wallets is driven by vendor, rather than consumer, needs. On the
`
`other hand, a consumer looking to integrate an electronic wallet into all facets of their
`
`life needs the ability to store, manage and retrieve varied data from multiple data
`
`20
`
`sources. Thus, there is a need for an electronic wallet that is able to work with
`
`electronic data that is chosen based on the electronic wallet owner's needs, not just the
`
`needs of a particular software vendor.
`
`Additionally, electronic wallets typically reside either locally with the owner,
`
`such as in a smart card or on a personal computer, or remotely such as on a server.
`
`25
`
`There are drawbacks to both residences.
`
`Local residence has the advantage of complete control by the owner and not
`
`much resource allocation required by virtual wallet issuer. On the other hand, the
`
`local residence of an electronic wallet exposes the owner to the greatest risk of loss,
`
`such as if a smart card is lost or stolen or a personal computer hard drive crashes.
`
`30
`
`Further, security, portability and interoperability issues arise when the residence is the
`
`personal computer. Networked computers may be hacked into, thus exposing their
`
`valuable information. Also, many home computers are not mobile, thus restricting the
`
`2
`
`Unified Patents Exhibit 1006, pg. 4
`
`

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`WO 99/24892
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`PCTlUS98/24092
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`owner's ability to use the electronic wallet. Finally, local residence in programs such
`
`as browsers generally restrict compatibility with other applications in an effort to
`
`restrict the owner from conveniently utilizing competing browsers. Thus, local
`
`residence has some disadvantages.
`
`5
`
`A remote electronic wallet typically resides on a server. This option
`
`advantageously provides superior information protection, as the server cannot be lost
`
`or stolen. Yet, residence on a server inconveniently requires the owner to establish
`
`some sort of network connection to access the wallet. Further, remotely accessing the
`
`information brings about a problem in authenticating the identity of the individual
`
`10
`
`requesting access. Passwords and Personal Identification Numbers (PINs) may be
`
`utilized, however, to increase the protection of the information. Thus, remote
`
`residence has some disadvantages.
`
`Therefore, there exists a need to overcome some or all of the above-stated
`
`disadvantages of current electronic wallets and provide new apparatus, methods and
`
`15
`
`systems for information banking.
`
`Summary of the Invention
`
`The present invention provides apparatus, methods and systems for
`
`information and financial banking. Apparatus of the present invention include virtual
`
`20 wallets which allow for information and financial banking. Methods and systems of
`
`the present invention include information and financial banking methods utilizing
`
`virtual wallets.
`
`As used herein, financial banking refers to the banking, investment and
`
`securities services traditionally offered by the financial services industry. Information
`
`25
`
`banking or Information-based banking is an extension of the financial metaphor where
`
`precious information is stored in a secure place on behalf of the customer. In the
`
`present invention, information is treated in a similar manner as currency. Although,
`
`"information and value" are better analogs as are "data and currency" to each other,
`
`respectively. Examples of vaulted information can include insurance policies, legal
`
`30
`
`documents, medical records, in addition to financial and credit histories.
`
`Under the present invention, a consumer's personal information can be viewed
`
`through the use of both theoretical and practical devices which characterize the
`
`3
`
`Unified Patents Exhibit 1006, pg. 5
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`

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`W099/24892
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`PCTIUS98/24092
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`storage and value appreciation of" currency." For instance, the use of a vault to store
`
`currency can be used as a metaphor for storing and protecting information, while the
`
`investment of currency can be used as a metaphor for generating value from the
`
`transactional use of that information. Thus, the present invention provides an
`
`5
`
`individual with apparatus, systems and methods to vault and invest information.
`
`An embodiment of the present invention is a virtual wallet. Virtual wallets
`
`may be thought of as an electronic version of the physical metaphor, the conventional
`
`wallet. In one aspect, a virtual wallet of the present invention comprises software,
`
`possibly contained in special hardware, that acts as a container, for an owner/user of
`
`10
`
`the virtual wallet, for at least one of the following: payment mechanisms; identity
`
`authentication mechanisms; personal information; and electronic artifacts. A virtual
`
`wallet of the present invention may also be thought of as comprising an electronic
`
`system for the secure storage, retrieval and management of personal information.
`
`As noted above, a virtual wallet of the present invention acts as a container for
`
`15
`
`electronic objects, including but not limited to payment mechanisms, identity
`
`authentication mechanisms, personal information, electronic artifacts, and the like of
`
`the owner/user of the wallet. These electronic objects are preferably not limited to
`
`information from a single source, for example a financial services institution. Instead,
`
`a virtual wallet of the present invention may be utilized to hold information from a
`
`20
`
`variety of sources, including multiple financial institutions, and personal information
`
`from a variety of sources in order to provide a user with more useful virtual wallet.
`
`Many users of conventional wallets use their wallet to contain multiple bank cards,
`
`credit cards, personal information, notes, membership cards and the like from a
`
`variety of sources. In this regard, a virtual wallet of the present invention is preferably
`
`25
`
`similar to a conventional wallet in terms of the types and kind of information
`
`contained in each wallet. similar to a conventional wallet.
`
`According to the present invention, a virtual wallet may comprise one or more
`
`of the following features. A virtual wallet of the present invention may allow an
`
`owner to personalize its contents, enabling it to store any information the owner likes
`
`30
`
`in a format selected by the owner. Also, an owner of the virtual wallet is able to
`
`access its contents where ever the owner may be, which along with the personalized
`
`format, maximizes the wallet's convenience. Further, a virtual wallet of the present
`
`4
`
`Unified Patents Exhibit 1006, pg. 6
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`

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`W099/24892
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`PCTfUS98/24092
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`invention may allow an owner to link information stored in the wallet to other
`
`functions, which leverages the utility of the stored information and makes the virtual
`
`wallet interoperable with other applications. Additionally, a virtual wallet of the
`
`present invention may allow an owner to control access to and distribution of the
`
`5
`
`information in the wallet, thereby giving the owner security and total control over
`
`hislher personal information. The virtual wallet systems of the present invention may
`
`advantageously feature the offering of rewards to a virtual wallet owner for
`
`distributing their information. A further feature of a virtual wallet of the present
`
`invention is that the wallet may comprise a mechanism or mechanisms that eliminate
`
`10
`
`the risk of loss of the information in the wallet by remotely storing and/or disabling
`
`the wallet contents. In this way, a virtual wallet ofthe present invention may
`
`advantageously comprise a trusted place to keep information and valuable financial
`
`items, as well as a convenient way to move around information.
`
`Payment mechanisms stored in the virtual wallet may comprise bank account
`
`15
`
`information, credit account information, electronic currency, electronic checks and
`
`debit cards, for example. Identity authentication mechanisms stored in the virtual
`
`wallet include personal identification information and authentication information.
`
`Personal identification information may comprise, for example, name, home address,
`
`work address, home phone, work phone, emergency contact informatior:, and
`
`20
`
`biometric information. Authentication information may comprise objects such as
`
`certificates, access keys and biometric information. Personal information and artifacts
`
`of the owner that are stored in the virtual wallet may comprise, for example, the
`
`personal identification information as stated above, other personal phone numbers and
`
`addresses, appointments and reminders, personal preferences and interests, loyalty
`
`25
`
`credits, coupons, pictures, tokens and tickets. The above objects are just examples of
`
`some of the exhaustive capabilities of the virtual wallet. After reading this
`
`specification other examples will be obvious to those skilled in the art.
`
`An advantage of a virtual wallet of the present invention is that the virtual
`
`wallet may include information from a variety of sources. Further the information
`
`30
`
`from different sources may interact. For example, in a virtual wallet of the present
`
`invention which includes a frequent flyer type credit card the wallet owner would be
`
`able to manage and track both credit card information and the added value function of
`
`5
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`Unified Patents Exhibit 1006, pg. 7
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`

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`WO 99/24892
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`peT IUS98/24092
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`managing and tracking frequent flyer miles. In addition, an eclectic wallet, such as a
`
`virtual wallet of the present invention, may allow consumers to add items that are not
`
`affiliated with the wallet issuer. Allowing any item to be added to the wallet is
`
`advantageous to the consumer and other application vendors.
`
`5
`
`Another advantage of a virtual wallet of the present invention is that the virtual
`
`wallet may advantageously be a trusted place to keep information and valuable
`
`financial items. Currently there are many founded and unfounded consumer fears
`
`regarding privacy and the safety of electronic transactions. If given a choice, it seems
`
`logical that consumers would rather store their sensitive information with someone
`
`10
`
`that already has a reputation for trust and consumer advocacy than a suspicious third
`
`party. In a world where information is increasingly gathered on consumers in secret,
`
`marketed, and sold, an explicit policy of privacy protection and safety is a powerful
`
`inducement to hold a virtual wallet from a financial institution. Further, there is not
`
`only value in having consumer information, but value in moving it around as well.
`
`15 Also like money, information can be invested to provide - increasing returns.
`
`Information must also be protected, which give rise to the concepts of information
`
`vaults and safety deposit boxes. The central issue of privacy is turned into an
`
`opportunity, and is at the core of information banking.
`
`A further advantage of a virtual wallet of the present invention is that the
`
`20
`
`virtual wallet provides a convenient way to move information around. As explained
`
`in more detail in our copending application entitled "DISTRIBUTED NETWORK
`
`BASED ELECTRONIC WALLET" (Methods and Systems for Information Banking),
`
`filed the same day as the present application and assigned serial number,
`
`- - - - - - - - , the disclosure of which being hereby incorporated herein by
`reference, a simple service of enormous convenience is to help consumers fill out
`
`25
`
`forms from their personal data that resides in the information bank via their wallet.
`
`Whether a loan application, a site registration, a job application, once the information
`
`is known, there is no reason that a consumer would have to type it in again, even
`
`though it might be for different reasons, or in a different order. A further feature is
`
`30
`
`that the owner of a virtual wallet may be able to have multiple answers for the same
`
`question, depending on the persona that they wish to represent at the time (social vs.
`
`work, for example).
`
`6
`
`Unified Patents Exhibit 1006, pg. 8
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`A further advantage of::t virtual wallet of the present invention is that the
`
`virtual wallet provides for selective loss, theft, and disaster recoverability. Many of
`
`the current wallet designs have deficiencies when the wallet is lost, stolen, or
`
`destroyed by disaster. It would be advantageous for a consumer to know that given
`
`5
`
`one of these unfortunate mishaps, their life is not ruined. In an embodiment of a
`
`system of the present invention a new virtual wallet may be issued with no loss or
`
`corruption of data. Should the wallet be stolen, the thief wiU have little opportunity to
`
`make use of the information, and the wallet keys can be disabled remotely without
`
`affecting the consumers account status or the items in the wallet.
`
`10
`
`Another further advantage of a virtual wallet of the present invention is that
`
`the virtual wallet may allow for nomadic access. Current wallet designs confine one
`
`not only to the machine upon which they received their wallet items (notably
`
`certificates), but to the particular browser that obtained them. This makes it very
`
`inconvenient to a consumer if they acquire a SET certificate at home and then wish to
`
`15
`
`use it at work. The present invention provides a solution is nomadic and allows the
`
`wallet to be used wherever the consumer happens to be.
`
`A further advantage of a virtual wallet of the present invention is that the
`
`virtual wallet may be a shopping aid. One result of having consumer information is
`
`the ability to infer what they are interested in. The virtual wallet system of the present
`
`20
`
`invention may allow the wallet issuer the opportunity to become a trusted electronic
`
`broker that will help consumers find what they want to buy. A further consequence is
`
`the ability to also become the consumer's electronic valet and filter out unwanted
`
`spam by knowing what they are not interested in. By recognizing that payment is
`
`only a part of commerce, and addressing other parts of commerce a virtual wallet of
`
`25
`
`the present invention provides additional advantages to both a consumer and a wallet
`
`issuer.
`
`A still further advantage of a virtual wallet of the present invention is that the
`
`virtual wallet may be an information organizer. In this regard, the virtual wallet of the
`
`present invention provides a convenient and useful way to manage and organize
`
`30
`
`personal information. Further, the personal information systems of the virtual wallet
`
`of the present invention may advantageously form part of the protected information
`
`bank.
`
`7
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`Unified Patents Exhibit 1006, pg. 9
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`

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`Another still further advantage of a virtual wallet of the present invention is
`
`that the virtual wallet may generate financial and non-financial rewards. In an
`
`embodiment of the present invention, part of a wallet package could be a rewards
`
`feature based upon several possible strategies. The first strategy makes discounts and
`
`5
`
`special offers available to holders of the wallets. This is a familiar technique to
`
`financial service providers and is not a radical departure from what is already done
`
`today with cards and membership programs. Typically, however, the discounts and
`
`offers are of a broadcast nature and may not necessarily match a given consumers real
`
`interests. Hence, some cost of delivering the discount and offer information is wasted
`
`lOon consumers that are not interested.
`
`A bolder strategy, made possible by the virtual wallet systems of the present
`
`invention, encourages consumers to make their demographics and interests available
`
`by pairing their information account (the stuff in their wallet) with a financial account.
`
`Initially, consumers are instructed to specify those things they are interested in, and an
`
`15
`
`electronic shopping agent will report back to them on what it finds. The consumer
`
`interests are then categorized into profiles, less their identities, and put into a database.
`
`Instead of selling profiled mailing lists, which is perceived in a negative light by
`
`consumers, marketers would pay to have an electronic advertisement delivered to
`
`virtual wallet users of a given profile.
`
`20
`
`The information bank behind the wallet preserves the consumer's identity,
`
`while making valuable information available to marketers. These types of marketing
`
`responses are perceived as less of an intrusion to privacy since the consumer has
`
`indicated their interest by submitting a search for an item.
`
`The value proposition of the wallet is that a portion of the money received
`
`25
`
`from the marketers for delivery is passed on to the consumer into their associated
`
`financial account. In effect, the marketers are paying a consumer for their time to
`
`consider an offer. Because the marketing messages are screened through the
`
`consumer's individual profiles, the consumer will not be receiving anything that is
`
`grossly dissonant from their stated interests. Marketers will be able to get an
`
`30
`
`aggregate count of how many individuals match the requested profile and a price
`
`quotation prior to an investment in delivering the ad. This allows them to refine their
`
`profile definition and tailor their marketing messages prior to large outlays of cash.
`
`8
`
`Unified Patents Exhibit 1006, pg. 10
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`This is clearly a win-win scenario for both the consumers and the marketers. The
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`wallet interface metaphor can be used to help the consumer track their returned value,
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`and to enable them to move their information in and out of the "vault" area to the
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`"information investment' area where the information is made available to profile
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`5
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`searches.
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`A variant of this concept recompenses the consumers with non-monetary
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`rewards such as loyalty credits. Loyalty credits can legitimately have a higher
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`perceived value than a cash equivalent. Currently, loyalty programs of high demand
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`(e.g. frequent flyer miles) are typically limited to large companies, and the rewards are
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`10
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`not very liquid. In addition to receiving loyalty credits in return for viewing
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`marketing messages, a virtual wallet provider could also offer a brokerage and
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`exchange service to "swap" various loyalty credits for others. This is consistent with
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`increasing the velocity of exchange philosophy and has an overall beneficial impact
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`on the aggregate of loyalty programs. Suppliers benefit because they can relieve their
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`15
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`debt faster. The "loyalty" objective is still met since consumers will join loyalty
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`programs for products they intend to buy frequently anyway. The overall value
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`becomes higher to a consumer because their flexibility of what they can exchange the
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`credits for has increased, and the potential loss of earned credits due to expiration
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`dates is "reduced. Another clear win-win for consumers and marketers via the same
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`20 mechanism.
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`Further details relating to the present invention are set forth in the appended
`
`figures and the following description.
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`Brief Description of the Drawings
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`25
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`Figure 1 is a schematic representation of an embodiment of a virtual wallet
`
`system of the present invention.
`
`Figure 2 is another schematic representation of an embodiment of a virtual
`
`wallet system of the present invention.
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`Figure 3 is a schematic representation of an embodiment of an electronic
`
`30 wallet architecture according to the present invention.
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`Figure 4 is another schematic representation of an embodiment of an
`
`electronic wallet architecture according to the present invention.
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`9
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`Unified Patents Exhibit 1006, pg. 11
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`

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`WO 99/24892
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`peT /uS98/24092
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`Figure 5 is a flowchart of an intermediated transaction function of the present
`
`invention.
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`Figure 6 is a flowchart of a wallet open for payment function cfthe present
`
`invention.
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`5
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`Figure 7 is a flowchart of a publish public key function of the present
`
`invention.
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`Figure 8 is a flowchart of a purchase with coupons function ofthe present
`
`invention.
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`Figure 9 is a flowchart of a ticket purchase and use function of the present
`
`10
`
`invention.
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`Figure 10 is a schematic diagram of the contents of an example virtual wallet
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`of the present invention.
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`Figure 11 is a diagram of an example virtual wallet system of the present
`
`invention.
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`15
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`Figure 12 is a schematic representation of JAVA API's which may be utilized
`
`in the example virtual wallet system of the present invention.
`
`Detailed Description of the Invention
`
`The present invention provides apparatus, systems and methods that allow an
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`20
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`individual to manage their financial and personal information. An embodiment of the
`
`present invention is referred to herein as a virtual wallet. The present invention
`
`includes virtual wallets, virtual wallet systems and methods utilizing virtual wallets.
`
`Embodiments and features of the present invention are described in detail with
`
`reference to the appended Figures.
`
`25
`
`Figure 1 depicts a possible embodiment of the present invention. Referring to
`
`Figure 1 according to the present invention a virtual wallet may comprise a hybrid
`
`between a wallet that resides locally with the owner, 2 and a wallet that resides
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`remotely, such as with a server, 4. A virtual wallet system further includes an
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`interface, 6 between the local function, 2 and the server, 4. The virtual wallet system
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`30 may interact with the outside world, 8 through local wallet 2 and/or the server 4. The
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`hybrid virtual wallet combines the portability, owner control and minimized issuer
`
`resource aspects of a local wallet with the security and storage capability of a remote
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`10
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`Unified Patents Exhibit 1006, pg. 12
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`

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`W099/24892
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`PCTIUS98/24092
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`wallet. Thus, the hybrid virtual wallet advantageously optimizes the advantages of
`
`each type of residence. In the following discussion, the local residence or portion of
`
`the wallet may be referred to by these names or as a "client". The remote portion of
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`the wallet may be referred to by this name or as a "server".
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`5
`
`The local residence of the wallet may comprise, for example, the owner's
`
`personal computer, smart card, or other similar device that enables the wallet to be
`
`utilized off-line. Typically, the local aspect of the virtual wallet, the local contents, 3
`
`comprises data and information determined by the wallet owner to be important, while
`
`the entire wallet is contained remotely. For example, the local aspect of the virtual
`
`10 wallet may comprise stored value purses, important personal and authentication
`
`information, and account information enabling the local aspect of the virtual wallet to
`
`emulate any of the functionality contained within the entire wallet. The owner
`
`advantageously is able to define and have access to the most important aspects of the
`
`wallet in a convenient package that can be remotely utilized. Preferably, the local
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`15
`
`aspect of the wallet is mirrored on the remote wallet or server, thus protecting the
`
`information in case the card has to be replaced. Additionally, the local aspect of the
`
`wallet comprises a certificate or other similar authentication instrument that allows the
`
`owner to remotely gain access to the entire virtual wallet on the server. Thus, the
`
`owner can still have access to all of the wallet functionality at sites where the local
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`20
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`aspect of the wallet can be linked to the server.
`
`The remote aspect of the virtual wallet advantageously provides security for
`
`all of the information in the wallet. The server also provides greater storage capacity
`
`for information compared to a smart card or personal computer, for example. The
`
`contents 5, of the remote aspect of the virtual wallet comprises the entire wallet,
`
`25 which may be in part mirrored in a local aspect of the virtual wallet. The remote
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`aspect of the virtual wallet, however, may not completely mirror cash and cash-like
`
`objects in the local aspect of the wallet due to off-line transactions. The present
`
`invention, however, updates the remote aspect of the virtual wallet with the latest
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`information from the local aspect of the virtual wallet when the local wallet is on-line.
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`30 Additionally, according to an advantageous feature of the present invention, the
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`remote aspect of the virtual wallet provides privacy protection in transactions by
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`replacing the owner's identity and address, for example, with secret information
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`11
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`Unified Patents Exhibit 1006, pg. 13
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`

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`W099/24892
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`PCTIUS98/24092
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`known only to the wallet server. This feature may be utilized, for example, when
`
`marketer