US005898154A
`
`United States Patent
`
`[19]
`
`Rosen
`
`[11] Patent Number:
`
`5,898,154
`
`[45] Date of Patent:
`
`*Apr. 27, 1999
`
`[54]
`
`SYSTEM AND METHOD FOR UPDATING
`SECURITY INFORMATION IN A TIME-
`BASED ELECTRONIC MONETARY SYSTEM
`
`[75]
`
`Inventor: Sholom S. Rosen, New York, N.Y.
`
`[73] Assignee: Citibank, N.A., New York, NY.
`
`[*] N0tiC6I
`
`This patent is subject to a temiinal dis-
`claimer.
`
`[21] Appl. No.: 08/371,201
`
`[22]
`
`Filed:
`
`Jan. 11, 1995
`
`OTHER PUBLICATIONS
`
`Chaum, David, “Advances in Cryptology Proceedings of
`Crypto 83.” Plenum Press, New York 1983, pp. 377-382.
`Bruce Schneier “Applied Cryptography” 1994, pp. 417-429.
`Stephen M. Bellovin and Michael Merritt, “Limitations of
`the Kerberos Authentication System” Winter, 1991 pp. 1-16.
`“Le paiemcnt électronique”, P. Rémery, J.C. Pailles and F.
`Lay, L’Ech0 des Recherches, No. 134, 4“ trimester 1988
`-original French version and English translation.
`“(Latest) Checking Practice”, IIitoshi Iloriuchi, Consultant
`C0. -, Jul. 10, 1982, 10th Edition, English translation and
`original Japanese reference.
`
`Related U.S. Application Data
`
`(List continued on next page.)
`
`[62] Division of application No. 07/794,112, Nov. 15, 1991, Pat.
`No. 5,453,001.
`
`G06K 7/10; G06F 17/60
`Int. C|.6
`[51]
`................. .. 235/379; 380/24
`[52] U.S. Cl.
`[58] Field of Search .............................. .. 380/24; 235/379
`
`[56]
`
`References Cited
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`
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`
`Primary Examiner—Donald Hajec
`Assistant‘ Exzzminer—M ark Treinblay
`Attorney, Agent, or Firm—Morgan & Finnegan, L.L.P.
`
`[57]
`
`ABSTRACT
`
`An improved monetary system using electronic media to
`exchange economic value securely and reliably. The inven-
`tion provides a complete monetary system having electronic
`money that
`is interchangeable with conventional paper
`money comprising (1) issuing banks or financial institutions
`that are coupled to a money generator device for generating
`and issuing to subscribing customers electronic money
`including electronic currency backed by demand deposits, or
`electronic credit authorizations; (2) correspondent banks
`that accept and distribute the electronic money; (3) a plu-
`rality of transaction devices that are used by subscribers for
`storing electronic money, for performing money transactions
`with the on—line systems of the participating banks or for
`exchanging electronic money with other like transaction
`devices; (4) teller devices, associated with the issuing and
`correspondent banks, for process handling and interfacing
`the transaction devices to the issuing and correspondent
`banks, and for interfacing between the issuing and corre-
`spondent banks themselves; (5) a security arrangement for
`maintaining the integrity of the system; and (6) reconcilia-
`tion and clearing processes to monitor and balance the
`monetary System.
`
`(List continued on next page.)
`
`14 Claims, 69 Drawing Sheets
`
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`
`PayPal Ex.1012, p.1
`PayPal Ex.1012, p.1
`
`

`
`5,898,154
`Page 2
`
`US, PATENT DOCUMENTS
`
`.
`
`.
`
`.
`
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`.
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`.
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`1
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`.
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`’
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`,
`‘
`
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`.
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`
`.
`
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`
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`
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`
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`
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`'
`OTHER PUBLICATIONS
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`‘
`John Tsushin Gakkai Gijzttsz/Kenkyu Hakoku, 1987, Vol.87,
`N0. 120, pp. 29-32, English Translation and Japanese ref-
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`1
`1
`1
`“Study Aid for Bills and Cheeks”, Makoto Tahira, Japan
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`
`PayPal Ex.1012, p.2
`PayPal Ex.1012, p.2
`
`

`
`5,898,154
`Page 3
`
`“Mirai Card (Future Card) Report”, IC Card Reduction to
`Practice Study Group, Dec. 1988, English translation and
`Japanese reference.
`“The Digital Distributed System Security Architecture”,
`Morrie Gasser, et al., Nat’l Inst. of Standards & 'l'ech., 12th
`Nat’l Computer Security Conference, Oct. 1(L13, 1989.
`“SPX: Global Authentication Using Public Key Certifi-
`cates”, Joseph J. Tardo and Kannan Alagappan,
`IEEE,
`CI-I2986-Aug. 1991 (232-243).
`“Practical Uses of Synchronized Clocks in Distributed Sys-
`tems”, Barbara Liskov, 10th Annual ACM Symposium on
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`“An Architecture for Practical Delegation in a Distributed
`System”, Morrie Gasser, Ellen McDerrnott, IEEE Computer
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`May 7-9, 1990.
`“IIybrid Concurrency Control for Abstract Data Types",
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`cicle VIII.8) Recommendations X500-X.521;,
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`Telegraph & Telephone Consultative Committee, IX Plenary
`Assembly, Melbourne, Nov. 14-25, 1988.
`Security For Computer Networks (An Introduction to Data
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`(1984) D.W. Davies and W.L. Price, Ch. 6 (pp.145-146),
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`language translation.
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`Financial Information System Center (FISC) (Japanese lan-
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`17, 1985, Economic Acts Study Group (translated Figure on
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`Dictionary of Financial Terminology, Toshio Ono et al.,
`Mar. 10, 1987; Economic Acts Study Group (translation on
`p. 125).
`Proposal of an Electronic Funds Transfer Method Consid-
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`
`1984 International Zurich Seminar On Digital Communica-
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`
`Privacy Protected Payments Unconditional Payer and/or
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`
`PayPal Ex.1012, p.3
`PayPal Ex.1012, p.3
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 1 of 69
`
`5,898,154
`
`FIG. 1
`
`TRANSACTION
`MM
`
`DEPOSIT!
`WITHDRAWAU
`PAYMENT!
`FOREIGN
`EXCHANGE
`
`DEPOSIT!
`WITHDFIAWAU
`PAYMENT]
`
`FOREIGN
`EXCHANGE
`
` ‘ ISSUINGBANKA
`
`
`MONEY GENERATOR
`
` j
`DISTRIBUTES SECURITY MESSAGES
`(CERTIFICATES, BAD MM LIST)
`BANK B
`
`
`
`
`
`
`6
`
`BANK A MONEY
`
`PayPal Ex.1012, p.4
`PayPal Ex.1012, p.4
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 2 of 69
`
`5,898,154
`
`FIG. 2
`
`TRANSACTION
`MONEY
`MODULE
`
` TRANSACTION
`MONEY
`
`PAYMENTI
`MODULE
`FOREIGN EXCHANGE
`
`
`
`DEPOSITS/WITHDRAWALS/PAYMENTS FOR
`LOANS/FOREIGN EXCHANGE
`20
`ACCOUNTING
`A B/.\NK|N(3 TRANSACTIONS
`SYSTEMS
`
`
`
`TRANSACTION
`RECONCILIATION
` GENERATOR
`SYSTEM
`MONEY MODULE
`
`PROBLEM
`REPORTS
`
`
`
`CERTI-
`
`SECURITY FICATES
`SYSTEM BAD
`MONEY
`MODULE LIST
`
`
`
`PayPal Ex.1012, p.5
`PayPal Ex.1012, p.5
`
` MONEY
`POSITION
`
`SYSTEM
`
`
`
`
`NETWORK 25 (NOT SHOWN)
`
`ELECTRONIC MONETARY SYSTEM
`
`
`
`
`
`5
`
`
`
`
`MONEY ISSUED
`RECONCILIATION
`SYSTEM
`
`
`
`PROBLEM
`
`REPORTS
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 3 of 69
`
`5,898,154
`
`TELEPHONE
`
`
`PERSONALCOMPUTER/WORKSTATION3
`
`
`
` MAINFRAME
`
`PayPal Ex.1012, p.6
`PayPal Ex.1012, p.6
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 4 of 69
`
`5,898,154
`
`FIG. 4
`
` HUMAN INTERFACE
`LOCAL PROCESSOR
`COMMUNICATIONS
`
`
`
`
`EXTERNAL INTERFACE
`
`30
`
`31
`SESSION MANAGER
`. . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`. . . . . . . . . . . . . . . . . . . . . . . . . . . ., . . . . . . . . . . . . . . . . . . _ . . . . . . ..
`TRANSACTOR
`32
`MONEY HOLDER
`33
`
`
`
`
`
`
`VERIFIER
`
`
`
`43
`
`
`
`CLOCK/
`
`TIMER
`
`
`
`.§.U.5.$.C.Ii'.I_3.E.I3..5_ _______ __T_E.L.,L._EB. _____________ _.D.'.I3I_5_C_T_QBX .... .L ......................... ._
`41:
`42
`PAY/
`35% TRAN36I MAIN-37
`I
`PACKET
`:
`EXCHANGE IELOG MGRESEEGIEITY
`MANAGER
`2
`SERVICES
`CRYPTOGRAPHY
`44
`SYMMETRIC 45
`KEY
`ALGORITHMS
`
`PUBLIC
`KEY
`ALGORITHMS
`
`RANDOM
`NUMBER
`GENERATOR
`
`46
`
`TRANSACTION MONEY MODULE
`
`
`
`
`PayPal Ex.1012, p.7
`PayPal Ex.1012, p.7
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 5 of 69
`
`5,393,154
`
`
`.
`
`
`TIMER
`
`PUBLIC
`KEY
`ALGORITHMS
`
`CRYPTOG RAPHY
`44
`SYMMETRIC 45
`RANDOM
`46
`KEY
`NUMBER
`
`
`ALGORITHMS
`GENERATOR
`
`TELLER MONEY MODULE
`
`PayPal Ex.1012, p.8
`PayPal Ex.1012, p.8
`
`
`
`EXTERNAL INTERFACE
`
`30
`
`SESSION MANAGER
` TRANSACTOR
`. . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . .
`32 _
`MONEY HOLDER
`38
`. . . . . . . . . . . . . . _ . . . . . . . ., . . . . . . . . . . . . . . . . . . . . . _. . . ..
`
`31
`
`. . . . . . . . . . . . . . - . . . < . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . _ . .
`. . . ..
`
`
`TO
`/{%%SN- 49 MANAGER
`
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`36
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 6 of 69
`
`5,898,154
`
`FIG. 6
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` LOCAL PROCESSOR COMMUNICATIONS
`
`EXTERNAL INTERFACE
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`so
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`SESSION MANAGER
`32
`MONEY HOLDER
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`5
`NOTES
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`
`31
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`38
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`44
`SYMMETRIC 45
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`
`RANDOM
`NUMBER
`GENERATOR
`
`46
`
`
`
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`MONEY GENERATOR MODULE
`
`PayPal Ex.1012, p.9
`PayPal Ex.1o12, p.9
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 7 of 69
`
`5,898,154
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`PayPal Ex.1012, p.10
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 8 of 69
`
`5,898,154
`
`FIG. 8
`
`EXTERNAL INTERFACE
`
`COMMUNICATION SESSION MANAGER
`
`56
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`57
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`PayPal Ex.1012, p.11
`PayPal Ex.1012, p.11
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 9 of 69
`
`5,898,154
`
`FIG. 9
`
`4,5,6
`
`ACCOUNT PROFILE
`BAD MONEY MODULE LIST
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`27
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`PayPal Ex.1012, p.12
`PayPal Ex.1012, p.12
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 10 of 69
`
`5,898,154
`
`FIG. 10
`
`
`
`EXTERNALINTERFACE
`
`54
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`43
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`
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`
`46
`45
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`GENERATOR
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`44
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`CLOCK/
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`SECURITY SERVER
`
`PayPal Ex.1012, p.13
`PayPal Ex.1012, p.13
`
`

`
`U.S. Patent
`
`Ap1'.27, 1999
`
`Sheet 11 of 69
`
`5,898,154
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 12 of 69
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`5,898,154
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`PayPal Ex.1012, p.15
`PayPal Ex.1012, p.15
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`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 13 of 69
`
`5,898,154
`
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`PayPal Ex.1012, p.16
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 14 of 69
`
`5,898,154
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`PayPal Ex.1012, p.17
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 15 of 69
`
`5,898,154
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`PayPal Ex.1012, p.18
`PayPal Ex.1012, p.18
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 16 of 69
`
`5,898,154
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`PayPal Ex.1012, p.19
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`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 17 of 69
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`5,898,154
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 18 of 69
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`5,898,154
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`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 19 of 69
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`5,898,154
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`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 20 of 69
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`5,898,154
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`PayPal Ex.1012, p.23
`PayPal Ex.1012, p.23
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 21 of 69
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`5,898,154
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`PayPal Ex.1012, p.24
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 22 of 69
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`5,898,154
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`PayPal Ex.1012, p.25
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`
`U.S. Patent
`
`Apr. 27, 1999
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`Sheet 23 of 69
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`5,898,154
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`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 24 of 69
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`5,898,154
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`PayPal Ex.1012, p.27
`PayPal Ex.1012, p.27
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`
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`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 25 of 69
`
`5,898,154
`
`TELLER MONEY
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`DIALOGUES
`
`S T S
`
`ADJUSTMENTS
`TO ACCOUNTS
`
`BAD MONEY
`MODULES
`
`TRANSACTION
`PROBLEM LIST
`
`BANKING
`
`20
`
`BANK
`SEEARR
`
`2’
`
`TRANSACTION RECONCILIATION SYSTEM
`
`FIG. 25
`
`PayPal Ex.1012, p.28
`PayPal Ex.1012, p.28
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 26 of 69
`
`5,898,154
`
`TELLER MONEY
`MODULES
`
`
`
`
`TELLER MONEY
`
`
`DEPOSITED
`
`
`ISSUING BANK1
`
`
`
`
`
`BANKING
`SYSTEMS
`
`
`
`
`
`
`
`
`BANK
`MON EY
`DEPOSITED
`
`
`
`CLEARING BANK 3
`
`CONSOLIDATE
`DEPOSITS
`
`.Z_
`ACCOUNHNG
`TRANSACTIONS
`
`
`MONEYISSUED .1,
`RECONCILIATION ISSUING BANK
`
`
`
`DEI/|F%NSE|}/ED
`SYSTEM
`
`
`
`-I13
`
`
`
`CLEARING
`SYSTEM
`
`«M M
`
`
`
`
`
`
`
`ACCOUNTING
`TRANSACTIONS
`
`
`
`
`
`BANK
`MONEY
`CLEARED
`
`MONEY ISSUED
`
`RECONCILIATION SYSTEM 23
`AT ISSUING BANK 1
`
`
`
`CLEARING BANK
`
`
`
`SYBS§'§I“jl"§I}C;OR
`
`
`SETTUNG
`
`CLEARING SYSTEM
`
`FIG. 26
`
`PayPal Ex.1012, p.29
`PayPal Ex.1012, p.29
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 27 of 69
`
`5,898,154
`
`MONEY GENERATOR
`MODULES
`
`'
`
`
`
`
`ISSUING BANK -1-
`MONEY
`MONEY
`DEPOSITED
`ISSUED
`
`
`
`
`
`3
`
`
`
` MONEY ISSUED
`RECONCILIATION
`
`MONEY ISSUED
`SYSTEM
`MASTER
`
`S M
`
`ONEY
`CLEARED
`
`FROM CLEARING
`BANK3
`«T T «S
`
`24
`
`SYSTEM
`
`
`
`
`UNMATCHED
`MONEY CLEARED
`
`MONEY Issugn
`NOT CLEARED
`
`ACCOUNTING
`TRANSACTIONS
`
`"'—’BANK,NG
`SYSTEMS
`
`20
`
`
`
`INVESTIGATION
`MONEY ISSUED
`DIALOGUES
`INVESTIGATION
`
`SYSTEM S
`
`
`CURRENT
`MONEY POSITION
`
`O“ E T»
`
`TRANSACTION
`HISTORY
`
`MONEY GENERATOR
`PROBLEMS
`
`BAD MONEY
`MODULES
`
`CLEARING BANK3
`
`BANK
`SECURITY
`SERVER
`
`27
`
`CERTIFICATION
`AGENCY 28
`
`MONEY ISSUED RECONCILIATION SYSTEM
`
`FIG. 27
`
`PayPal Ex.1012, p.30
`PayPal Ex.1012, p.30
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 28 of 69
`
`5,898,154
`
`SET UP WITHDRAWAL
`A —->TELLER B
`
`43-47
`
`TO TRANSACTION B
`CHECK NOTES TRANSFERRED
`
`72
`
`74
`
`776
`
`NOT S
`TRANSF) RRED
`' YES
`TO BANK B
`POST ACCOUNTING TRANSACTION
`(SEE ACCOUNTING)
`
`EE
`
`NO
`
`ESTABLISH SESSION
`TELLER B-—>MG
`
`190-258
`
`TO BANK B
`POST ACCOUNTING TRANSACTION
`(SEE ACCOUNTING)
`
`REQUEST NOTES
`TELLER B——>MG
`
`780-792
`
`TRANSFER NOTES
`MG —->TELLEFI B
`
`750-770
`
`TRANSFER NOTES
`TELLER B —->A
`
`750-770
`
`A—E‘3I“E"I'JEAa
`
`690-698
`
`cowuvnr
`TELLER B—>MG
`
`5904393
`
`I6WITHDRAWAL FROM ISSUING BANK
`
`FIG. 28
`
`PayPal Ex.1012, p.31
`PayPal Ex.1012, p.31
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 29 of 69
`
`5,898,154
`
`A SIGNS ON MONEY MODULE
`
`0'42
`
`To SUBSCRIBER A
`PROMPT FOR TRANSACTION
`
`A 3
`
`A PICKS WITHDRAWAL AMOUNT,
`BANK, AND ACCOUNT #
`
`44
`
`MONEY MODULE
`NETWORK SIGN ON A
`
`_
`5° 153
`
`ESTABLISH SESSION
`A——>TELLER B
`
`190-258
`
`REOUEsT WITHDRAWAL
`A-—+TELLER B
`
`700-724
`
`To TELLER A
`TRANSFER TOTAL OF CURRENCY
`AND TRANSFERRED CREDIT NOTES
`
`45
`
`47
`
`45
`
`YES
`
`750-770
`
`PayPal Ex.1012, p.32
`PayPal Ex.1o12, p.32
`
`
`
`TO TELLER A
`SEND ESSAGE NO NOTES
`
`TRANSFER NOTES
`A—>TELLER B
`
`SEND MESSAGE
`A—->TELLER B
`
`-8
`
`SETUP WITHDRAWAL
`
`FIG. 29
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 30 of 69
`
`5,898,154
`
`TO TELLER x
`SEND WITHDRAWAL REQUEST,
`AMOUNT, ACCOUNT#, ACCOUNT PROFILE
`
`700
`
`FIG. 30
`
`SEND MESSAGE
`
`2'8
`
`VALIDATE ACCOUNT NUMBER
`
`70417055
`
`TO BANK v
`VERIFY THERE IS SUFFICIENT FUNDS
`
`704
`
`671
`
`YES
`
`YES
`
`
`
`T0 TELLER X
`RECEIVE ACKNOWLEDGEMENT
`
`REQUEST WITHDRAWAL
`
`PayPal Ex.1012, p.33
`PayPal Ex.1o12, p.33
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 31 of 69
`
`5,898,154
`
`FIG. 30A
`
`SEND MESSAGE
`INSUFFICIENT FUNDS
`
`
`
`718
`
`
`
`TO TELLER X
`SEND AMOUNT
`
`
`
`
`ABORT TRANSACTION
`Y—>X
`
`NO
`
`500-524
`
`SEND MESSAGE
`X—>Y
`
`
`
`
`
`REQUEST WITHDRAWAL (CONTINUED)
`
`PayPal Ex.1012, p.34
`PayPal Ex.1012, p.34
`
`
` TO TRANSACTION Y
`
`
`
`SEND MESSAGE
`
`Y—>X
`
`2-8
`
` 720
`TO SUBSCRIBER X
`PROMPT SUBSCRIBER
`FOR NEW AMOUNT
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 32 of 69
`
`5,898,154
`
`FIG. 31
`
`SUBSCRIBER PROMPTS FOR SIGN ON
`
`0
`
`
`
`SESSION MANAGER
`RECEIVE PROMPT NOTE SIGN ON SESSION
`CHECK IF SIGN ON INHIBITED
`
`
` 1
`
`
`
`TO SUBSCRIBER
`SEND SUBSCRIBER
`SIGN ON INSTRUCTION
`
`20
`
` TO SUBSCRIBER
`SEND MESSAGE
`SIGN ON INHIBITED
`
`SUBSCRIBER MONEY MODULE SIGN ON
`
`PayPal Ex.1012, p.35
`PayPal Ex.1012, p.35
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 33 of 69
`
`5,898,154
`
`FIG. 31A
`
`SESSION MANAGER
`NOTE SIGN ON INHIBITED
`
`CLOCKITIMEH
`SET TIMER
`
`SUBSCRIBER MONEY MODULE SIGN ON (CONTINUED)
`
`PayPal Ex.1012, p.36
`PayPal Ex.1012, p.36
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 34 of 69
`
`5,898,154
`
`FIG. 32 ABORT TRANSACTION
`X—>Y
`
`
`
`SESSION MANAGER
`ROLL-BACK CHANGES
`
`500
`
`
`
`
`SESSION MANAGER x
`NOTE TRANSACTION ABOFITED
`
`502
`
`
`
`Iv
`
`506
`
`510
`
`51 2
`
`504 TRANSACTION
`MM?
`
`N0
`
`YE
`
`S
`To SUBSCRIBER x
`SEND MESSAGE TRANSACTION ABORTED
`
`SESSION MANAGER x
`SEND MESSAGE TO Y THAT
`TRANSACTION CANNOT BE COMPLETED
`
`N0
`
`508
`
`YES
`
`REVE;%gg§§gUNT|NG
`TRANSACTIONS
`
`SEND MESSAGE
`X—*Y
`
`2-3
`
`SESSION MANAGER Y
`ROLL-BACK CHANGES
`
`514
`
`SESSION MANAGEFI Y
`NOTE TRANSACTION ABORTED
`
`515
`
`520
`
`NO
`
`0 BANK X
`REVERSE ACCOUNTING
`TRANSACTIONS
`
` R T
`
`
`51 8
`
`MM?
`
`NO
`
`524
`
`TO SUBSCRIBER v
`SEND MESSAGE TRANSACTION ABORTED
`
`ABORT TRANSACTION MONEY MODULE TO MONEY MODULE
`
`PayPal Ex.1012, p.37
`PayPal Ex.1o12, p.37
`
`

`
`U-S- Patent
`
`Apr-27, 1999
`
`Sheet 35 of 69
`
`5,898,154
`
`SESSION MANAGER A
`ESTABLISH COMMUNICATION
`
`
`
`
`
`NETWORK SERVER
`REDUEsT CERTIFICATE
`
`SESSION MANAGER A
`RECEIVE REQUEST
`
`50
`
`FIG. 33
`
`52
`
`54
`
`MAINTAIN SECURITY A
`
`RETREIVE CERTIFICATE
`
`55 0
`
`58
`
`SECURITY SERVER
`SEND MESSAGE TO NETWORK
`SERVER TO DENY ACCESS
`
`NETWORK SERVER
`SEND MESSAGE TO MM
`TO DENY ACCESS
`
`SESSION MANAGER A
`RECEIVE MESSAGE NOTE
`SIGN ON DENIED
`76
`72 "“\
`‘I? SIGN ON DENIED
`
`NO
`
`TO BANK A
`SEND MESSAGE
`
`TRANSACTION
`
`sSE5§IE’” “I’éI‘c“A‘%"é“Ié‘I
`EN
`ER I
`NETWORK SERVER
`
`NETWORK SERVER
`ROUTE CERTIFICATE TO
`SECURITY SERVER
`
`SECURITY SERVER
`VERIFY CERTIFICATE
`
`54
`
`NO
`
`CERLIEISATE
`YES
`Q
`
`74
`
`TO SUBSCRIBER A
`
`SEND MESSAGE SIGN ON ®
`
`DENIED
`
`GEL‘)
`
`MONEY MODULE NETWORK SIGN ON
`
`PayPal Ex.1012, p.38
`PayPal Ex.1o12, p.38
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 36 of 69
`
`5,898,154
`
`
`
`SECURITY sERvER
`SEND BAD MONEY MODULE
`LIST AND NEW LIST OF
`CERTIFICATORY KEYS
`SIGNED USING LAST VERSION
`OF CERTIFICATORY KEY AND NOTICE
`TO RECERTIFY (IF NEEDED)
`
`73
`
`FIG" 33A
`
`SESSION MANAGER A
`RECEIVE MESSAGE
`
`MAINTAIN SECURITY A
`VALIDATE LISTS
`
`PUBLIC KEY A
`VALIDATE SIGNATURE
`
`80
`
`32
`
`84
`
`86
`
`N0
`
`9 I
`
`YES
`MAINTAIN SECURITY A
`
`
`YES
`CERTIFICATE
`96
`TO BE
`RECERTIFIED?
`
`No
`98
`
`G YES
`CERTIFICATE
`
`EXPIRED?
`
`NO
`
`100
`
`SESSION MANAGER A
`REQUEST DATE AND TIME
`
`88
`
`RANSACTIO
`MM?
`YES
`To SUBSCRIBER A
`
`NO
`
`90
`
`SECURITY PROBLEM
`
`%
`
`92
`
`TO BANK A
`SEND MESSAGE NETWORK
`SECURITY PROBLEM
`
`%
`
`MONEY MODULE NETWORK SIGN ON (CONTINUED)
`
`PayPal Ex.1012, p.39
`PayPal Ex.1o12, p.39
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 37 of 69
`
`5,898,154
`
`
`
`CLOCK/TIMER A
`SEND TIME
`AND DATE TO SESSION
`MANAGER
`
`SESSION MANAGER A
`SEND DATE
`AND TIME TO NETWORK
`SERVER
`
`
`
`
`102
`
`FIG. 33B
`
`104
`
`1 10
`
`NETwoRK SERVER
`SET NEW TIME AND DATE
`
`105
`
`NETWORK SERVER
`RECEIVE TIME AND DATE
`CHECK TIME AND DATE
`
`SESSION MANAGER A
`RECEIVE DATE AND TIME
`
`1 12
`
`“ME & DATE
`
`ADJSSETIM/MATS DATE
`
`1 14
`
`
`1 16
`
`
`2 THRESHOLD
`OF RETRIES
`
`No
`
`D
`
`YES
`120
`118
`NO To BANKA
`
`
`TRANSACTION
`SEND MESSAGE
`
`MM?
`CLOCK
`
`MALFUNCTION
`
`
`
`
`
`
`To SUBSCRIBER A
`SEND MESSAGE TO SUBSCIRBER
`CLOCK MALFUNCTION
`
`<EI<YE‘°’
`
`YES
`
`NETWORK SERVER
`
`SEND ACKNOWLEDGEMENT
`
`SESSION MANAGER A
`RECEIVE
`ACKNOWLEDGEMENT AND
`NOTE NETWORK SIGN ON
`
`
`
`
`
`M 122
`
`126
`
`128
`
`MONEY MODULE NETWORK SIGN ON (CONTINUED)
`
`PayPal Ex.1012, p.40
`PayPal Ex.1012, p.40
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 38 0f 69
`
`5,898,154
`
`FIG. 33C
`
`
`
`
`
`MAINTAIN SECURITY A
`GENERATE NEW CERTIFICATE
`
`
`
`126
`
`128
`
`130
`
`PUBLIC KEY A
`GENERATE NEW KEYS AND SIGNS
`CERTIFICATES WITH OLD KEY
`
`
`
`
`
`
`
`
`
`SESSION MANAGER A
`SEND SIGNED CERTIFICATE TO
`SECURITY SERVER
`
`SECURITY SERVER132
`
`‘I36
`
`SIGNATURE
`VALID?
`
`YE
`
`MONEY MODULE NETWORK SIGN ON (CONTINUED)
`
`PayPal Ex.1012, p.41
`PayPal Ex.1012, p.41
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 39 of 69
`
`5,898,154
`
`9 FIG. 33D
`
`140
`
`SESSION MANAGER A
`RECEIVE CERTIFICATE
`
`142
`
`144
`
`MAINTAIN SECURITY A
`
`VALIDATE CERTIFICATE
`
`PUBLIC KEY A
`VALIDATE SIGNATURE
`
`‘I45
`
` NO
`
`S
`
`YE
`SESSION MANAGER A
`SEND ACKNOWLEDGEMENT
`TO SECURITY SERVER
`
`148
`
`9
`
` SESSION MANAGER A
`
`
`SEND MESSAGE AND
`CERTIFICATE TO
`
`
`SECURITY SERVER-
`CERTIFICATE INVALID
`
`
`
`SECURITY SERVER
`VALIDATE SIGNATURES
`
`150
`
`1 52
`
`154
`
`YE
`
`EFITIFICAT
`VALID?
`
`NO
`
`SECURITY SERVER
`DISCONNECT FROM NETwoRI<
`
`156
`
`153
`
`NETWORK SERVER
`SEND MESSAc3TI%crI\’I=MMALEUNCTIoN
`SESSION MANAGER A
`160
`
`RECEIVE MESSAGE
`
`162
`
`TRANSACTION
`MM?
`
`164
`
`To SUBSCRIBER A
`REQUEST SUBSCRIBER FOR RETRY
`
`NO
`
`
`
`1
`
`66
`
`To BANK A
`REQUEST FOR RETRY
`
`MONEY MODULE NETWORK SIGN ON (CONTINUED)
`
`168
`
`PayPal Ex.1012, p.42
`PayPal Ex.1012, p.42
`
`

`
`U.S. Patent
`
`Apr. 27, 1999
`
`Sheet 40 of 69
`
`5,898,154
`
`FIG. 34
`
`
`
`
`
`
`
`190
`
`SESSION MANAGER A
`CHECK IF NETWORK
`CONNECTION TO ANOTHER
`
`MONEY MODULE IS REQUIRED
`
`
`192
`
`/194
`
`
`
`
`
`
`
`
`
`CONNECTIO
`NEEDED?
`
`
`
`
`
`
`YES
`
`SESSION MANAGER A
`SEND NETWORK SERVER
`REQUIRED DESTINATION
`
`NETWORK SERVER
`
`ESTABLISH LINK TO DESTINATION
`MONEY MODULE B AND
`SEND ACKNOWLEDGEMENT
`
`196
`
`PayPal Ex.101