`(12) Patent Application Publication (10) Pub. No.: US 2005/0076334 A1
`
` Demeyer (43) Pub. Date: Apr. 7, 2005
`
`
`US 20050076334A1
`
`(54) SYSTEM AND METHOD FOR LICENSING
`SOFTWARE
`
`(52) US. Cl.
`
`............................................ 717/177; 717/172
`
`(76)
`
`Inventor: Michael Demeyer, Danville, CA (US)
`
`(57)
`
`ABSTRACT
`
`Correspondence Address:
`THOMAS, KAYDEN, HORSTEMEYER &
`RISLEY, LLP
`100 GALLERIA PARKWAY: NW
`STE 1750
`ATLANTA, GA 30339'5948 (US)
`.
`(21) Appl. No"
`(22)
`Filed:
`
`10/678’882
`Oct. 3 2003
`’
`Publication Classification
`
`(51)
`
`Int. Cl.7 ..................................................... G06F 9/445
`
`A system and method for licensing software using a clear-
`inghouse to license only the technology modules that an end
`user
`registers. The clearinghouse maintains registration
`information which can be used to bill a software provider for
`the technology licensed to the end user. The system can be
`used to compensate technology owners only after the end
`user registers an unlicensed technology module. Thus, the
`system and method allows software vendors to reduce costs
`by licensing only the technologies that an end user actually
`uses. The clearinghouse can also be used to track the usage
`of software functionality to determine the popularity of a
`particular technology.
`
`Restricted Software
`
`l—l-Q
`
`Re istration Re uest
`9
`q
`
`Registration Grant
`
`Software Provider
`(Second Party) fl
`
`
` End User (First Party) m
`User Computer System m
`
`
`
`
`
`
`
`
`
`
`Compensationfor
`
`forEachCopyof
`SoftwareSold
`
`
`
`1T
`
`
`
` echnologyLicens
`
`EachCopyof
`
`SoftwareSold
`
`
`L
`
`
`
`Technology Holder
`
`m
`
`APPLE EXHIBIT 1105
`
`Page 1 of 25
`
`APPLE EXHIBIT 1105
`Page 1 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 1 0f 14
`
`US 2005/0076334 A1
`
`
`
`
` 01.1990pua
`
`1onp01daJemuos
` GJEMJJOS
`
`GJEMIIJOSJo;uonesuedwoo
`emug01esueon
`
`
`
`(Lavaomd)
`
`VL'9|:|
`
`
`
`
`
`
`
`Compensation for
`Each Copy of
`Software Sold
`
`-l
`8
`3'
`3
`u 8-
`o (a
`<
`I
`2
`g
`
`g’
`:9
`E
`3
`I8 0
`3
`o
`S.
`%
`Technology Licens
`for Each Copy of
`-:
` Software Sold
`
`
`
`APPLE EXHIBIT 1105
`
`Page 2 of 25
`
`APPLE EXHIBIT 1105
`Page 2 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 2 0f 14
`
`US 2005/0076334 A1
`
`
`
`Jam/\OJdaJEMpJBH]
`
`
`
`919M303emu;01esueon
`
`Compensation for
`Each Copy of
`Software Sold
`
`Technology Licens
`for Each Copy of
`Software Sold
`
`.IepgAOJd
`
`APPLE EXHIBIT 1105
`
`Page 3 0f 25
`
`OD 6
`
`"-1
`
`m0
`
`)O3
`
`'
`(D
`
`0g0)fl
`
`CD
`(I)
`gQ.
`
`
`
`08Jap|OHA50|ouqoa_|_
`
`(13vuoma) 8L"SH
`
`312M303
`
`0O 3
`
`3U
`
`"C
`CD
`)
`Q)
`S".
`
`APPLE EXHIBIT 1105
`Page 3 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 3 0f 14
`
`US 2005/0076334 A1
`
`{11
`.
`
`=a
`
`E ‘5
`G
`on
`"
`"
`O ”a
`o
`...
`5
`a
`"U
`P“
`E ”3
`9:
`E;
`Qm
`{< v
`m
`|"‘
`"’ a
`° c
`E
`
`w
`(D
`g;
`:.
`n
`8
`ca.
`(I)
`a
`3
`
`:9
`-:
`a
`
`
`
`VZ'9|:l
`uouensgfiea
`1senbea
`
`
`wasuonensgfiea
`
`
` Compensation for
`
`
`091(Wedpuooas)
`
`JapiAOJJammjos
`
`OZLJap|oHAfiolouqoal
`
`
`
`
`
`
`Hco
`
`Each Copy of
`Software Sold
`
`
`
`
`
`
`Technology Licens-
`for Each Copy of
`Software Sold
`
`
`
`
`
`APPLE EXHIBIT 1105
`
`Page 4 of 25
`
`APPLE EXHIBIT 1105
`Page 4 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 4 0f 14
`
`US 2005/0076334 A1
`
`34:35:45E
`
`
`
`E394”;5.332.
`
` rYrYdemfig0wger.T.r0fr0tanhel
`
`.nl..uCtoSCtorm8sn8nweya?we?RsmRmuRn
`ehel
`
`30.NW
`
`
`
`Ame—:4:5:45E
`
`
`
`Han—.338H.552.
`
`
`
`EaCm:$23»5:43E
`
`Gaga—:2.mine:E
`
`2603363
`
`
`
`mmgmqmzoz08::mm=m<5©
`
`
`
`mmmaqmgo:mmncomfl
`
`
`
`Amoco—E3:45E
`
`
`
`mags—d5.352.
`
`APPLE EXHIBIT 1105
`
`Page 5 0f 25
`
`APPLE EXHIBIT 1105
`Page 5 of 25
`
`
`
`
`
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 5 0f 14
`
`US 2005/0076334 A1
`
`30.MO
`
`
`
`.mathflfimhrlbUNncwo
`eEQcRaee.weeD.RT.LRT.
`dr.y.lV..mmmwgmas
`asucmoSeasnasn0m.lhn.lheSVEQC
`
`31335:45E
`
`48:306.
`
`
`magi—am$2252.
`
`333912mmo:mmommfimaa
`
`
`
`Qua—.1:5.13E
`
`
`
`Hon—.335mac—awn
`
`Zmosmama
`
`
`
`mmgmggg0&3\mm=m<3c
`
`Amancam5:45rm:
`
`
`
`mania...”5.352.
`
`:5
`
`
`
`
`
`023952.@585E86520:mmncomfi
`
`
`
`HanEwanA539Hum—.0;
`
`3c
`
`APPLE EXHIBIT 1105
`
`Page 6 0f 25
`
`APPLE EXHIBIT 1105
`Page 6 of 25
`
`
`
`
`
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 6 0f 14
`
`US 2005/0076334 A1
`
`RS
`
`30.EU
`
`4833068
`
`
`
`[83$3.,mmo:mmc.m6$a
`
`
`
`AHA—rdmum—15E
`
`
`
`flaESM—nm553:3
`
`$035063
`
`Awe—:4:
`
`
`
`#135855fleas.
`
`
`
`
`
`33:62.nofimmo:www.mfimaa
`
`HUM—13E.
`
`8
`
`C
`.0
`mm
`
`umso
`
`_<_mo:mam3
`
`
`
`28.32.0306::23538
`
`
`
`$862,265mmncmwn
`
`@2255:45E
`
`
`
`maxim—d5.252.
`
`
`
` wandag.923»5.25E0232:?mvfiaa:5
`
`APPLE EXHIBIT 1105
`
`Page 7 0f 25
`
`APPLE EXHIBIT 1105
`Page 7 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 7 0f 14
`
`US 2005/0076334 A1
`
`
`
`
`
`Ewan—Sana$3592.Z859848:30.08
`
`
`
`34:3Hum—.95E
`
`
`
`Comsmm+9mmo:
`
`30.Nm
`
`
`
`$856me30:30.08
`
`Um<3m38ammo:
`
`
`
`Ame—=4:Hum—15E
`
`1235855moafl.
`
`Restricted
`Software
`
`Registration
`Request
`
`.1
`
`Reg istratl
`GmM/
`
`Relieving
`Mechanism
`
`5...?Ec
`
`neat—:3$583
`
` HamGus.A53.
`
`
`
`Amoco—E5:45E
`
`
`
`mega...»5.352.
`
`APPLE EXHIBIT 1105
`
`Page 8 0f 25
`
`APPLE EXHIBIT 1105
`Page 8 of 25
`
`
`
`
`
`
`
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 8 0f 14
`
`US 2005/0076334 A1
`
`
`Provide Computer
`System and Bundled
`
`Software to a First Party
`
`&
`
`
`
`
`
`
`
`
`
`Invoke Functionality
`Within Software m
`
`
`
`
`egistration
`
`
`Register the
`Required to
`
`
`
`Execute
`Functionality
`
`
`
`m
`Functionality?
`
`
`
`22—0
`
`
`
`
`
` Payment
`Required
`
`
`M
`
`
`
`
`Trigger
`Trigger
`Trigger
`Payment from
`Payment from
`Payment from
`
`First Party
`
`
`Executes
`Third Party to
`Second Party
`Second Party
`
`
`Fourth Party
`to Fourth Party
`to Third Party
`Registered
`
`
`
`E
`E9
`m
`Software
`
`2_3_g
`
`
`
`FIG. 3
`
`APPLE EXHIBIT 1105
`
`Page 9 0f 25
`
`APPLE EXHIBIT 1105
`Page 9 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 9 0f 14
`
`US 2005/0076334 A1
`
`QHNEMOW
`
`
`
`clmlmE25282:1352:38:
`
`
`
`wfigzom$.32?“
`
`
`
`a02.235236:ounbflwom
`
`~12£30.Hnmlm
`
`858m2505M
`
`
`
`N132332Kano—9.52;
`
`
`
`R:2352awe—258%
`
`
`
`32352322588
`
`
`
`32352b__22:==m
`
`
`
`cl:335.5@hwEmom
`
`
`
`:13889mm“2:95035
`
`
`
`©l.mHhot—>Ohm
`
`alwmLamb31%
`
`
`
`:osfizflwom28.:zofitwaéa83¢an
`
`
`
`
`
`NHhow—om%wc_o::8h
`
`
`
`a$23.5ohaigafl
`
`APPLE EXHIBIT 1105
`
`Page 10 0f 25
`
`APPLE EXHIBIT 1105
`Page 10 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 10 0f 14
`
`US 2005/0076334 A1
`
`Software Provider 1_59_/
`Hardware Provider1_g
`
`Computer System
`m
`
`Registration
`Clearinghouse Jfl
`
`§QQ Provide the
`Computer System with
`Protected Software
`
`m Use unprotected
`functionality modules
`
`& Request use of
`functionality module
`using unregistered
`technology modules
`
`& Display error and/or
`instructions
`
`fl Receive Request
`and Prepare Identifying
`Information
`
`Request Identifying
`
`m Record the
`technology module as
`registered
`
`Information
`
`
`fi Receive Registration
`
`Information
`
`
`
`_15_ Pay a Technology
`Holder Based on
`
`
`Registration Information
`
`fl Enable the
`Technology Module
`
`A Provide a relieving
`mechanism
`
`----------------------------------------------------------
`
`13 Provide Software
`Provider With
`
`Registration Information
`
`3 .0 0:
`
`APPLE EXHIBIT 1105
`
`Page 11 of 25
`
`APPLE EXHIBIT 1105
`Page 11 of 25
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 11 0f 14
`
`US 2005/0076334 A1
`
`
`
`
`lw..3550zwsonaoorfigName—oifioh
`
`
`
`.43:30ach—Eoohahue—o::ooh
`
`
`
`I“.5850mac—ossooh
`
`.SIH132953E
`
`
`
`
`
`
`
`flnew:o_w:_m
`
`
`
`NH32235ohnfimcm
`
`.2253:8
`
`$2moan:o.9“.
`
`APPLE EXHIBIT 1105
`
`Page 12 of 25
`
`APPLE EXHIBIT 1105
`Page 12 of 25
`
`
`
`
`
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 12 0f 14
`
`US 2005/0076334 A1
`
`aSamar—m
`
`:csnbfimngSum322.531
`NmSEE:322.3094
`
`:oanbmmwum
`
`aEnhwohm
`
`
`
`a553?:aegfifi
`
`
`
`WNW.322.50%
`
`Sm535$
`
`<56....
`
`:osubmmwom
`
`aSamoan
`
`
`
`am55.255322289
`
`aNae—Sigh
`
`fi.555
`
`
`
`mmohwEmom3388A
`
`
`
`.Elvbim—uEmD«$3.2m
`
`
`
`mm:oflan:%mo_o::ooh
`
`
`
`lem.inmate—£3.51
`
`
`
`wimlm.hue—Sigh
`
`m=28:er
`
`$6395
`
`agm
`
`255.2%
`
`APPLE EXHIBIT 1105
`
`Page 13 0f 25
`
`APPLE EXHIBIT 1105
`Page 13 of 25
`
`
`
`
`
`
`
`
`
`
`
`
`
`Patent Application Publication Apr. 7, 2005 Sheet 13 of 14
`
`US 2005/0076334 A1
`
`Activating §_8_2
`
`
`
`
`Sending a license
`
`identification to a server
`
`fl
`
`
`
`
`Fetching a license acknowledgement
`to complete registration m
`
`Relieving the technology limitation
`
`&
`
`FIG. 7B
`
`
`
`
`Delivering a protected
`software 9;;
`
`
`
`Registering the
`necessary technologies
`
`
`
`
`
`
`Relieving the technology limitation
`
`
`
`
`m
`
`for necessary technologies fl
`
`
`
`Paying the royalty @
`
`FIG. 8
`
`APPLE EXHIBIT 1105
`
`Page 14 of 25
`
`APPLE EXHIBIT 1105
`Page 14 of 25
`
`
`
`Patent Application Publication
`
`Apr. 7, 2005 Sheet 14 0f 14
`
`US 2005/0076334 A1
`
`:oawtmmwom
`
`gum—5&5
`
`Mam
`
`uEbEmofi
`
`abus.
`
`uhnEmom
`
`
`
`
`
`3m55535322:3;
`
`MS”
`
`Eagflcm mmSusi:
`
`zezabflmam:czamemEarim
`aoSaEhfifiwlmwEahuohmWNW.323:3;
`
`
`”539$quI
`322:3;
`
`
`
`amohsfmom6333.5
`
`a£5“552358
`
`flSEES
`
`ahchE—uuk
`
`aESE—Bub
`
`NW.5855
`
`
`
`
`
`mmbe;9:2259:258
`
`55.22%;Em322:3:A
`um5:52.:EEQEOL‘
`
`\O
`
`
`
`Sm.5555
`
`wwwEwhwohm
`
`
`
`
`
`film.53:553205.89
`
`m.0."—
`
`=c=sb£wom
`
`wnm5.2m??—
`
`a3205—2;
`
`mm.5555
`
`APPLE EXHIBIT 1105
`
`Page 15 0f 25
`
`APPLE EXHIBIT 1105
`Page 15 of 25
`
`
`
`
`
`
`
`
`
`
`
`
`US 2005/0076334 A1
`
`Apr. 7, 2005
`
`SYSTEM AND METHOD FOR LICENSING
`SOFTWARE
`
`TECHNICAL FIELD OF THE INVENTION
`
`[0001] The present invention generally relates to a system
`and method for licensing software, and more particularly
`relates to a system for licensing specific technology modules
`within a software product on an as-needed basis and a
`method for the same.
`
`BACKGROUND OF THE INVENTION
`
`[0002] Personal computers are often sold with bundled
`software packages that are pre-installed on the computer.
`Similarly, peripherals for computers are sold with bundled
`software packages made available on an enclosed media
`such as a DVD, CD-ROM, floppy disk, or other known
`portable medium. Alternatively, software used with personal
`computers and computer peripherals may be downloaded
`from a remote server over a network. These software pack-
`ages typically provide functionality to be used by the end
`user with the purchased computer or peripheral device. For
`example, a DVD optical drive may be bundled with software
`used to play or record DVD movies or data. Similarly, an
`optical scanner may be sold with bundled software for
`capturing and viewing a scanned image, manipulating
`images, providing optical-character recognition (OCR), or
`software to enable a scanner and printer shared by the same
`personal computer to be used as a photocopier. Likewise, a
`personal computer may be sold with pre-installed anti-virus
`software, software tools for viewing digital photographs,
`video editing software, or operating system software.
`
`[0003] These bundled software products often include
`features that incorporate portions of executable software that
`require the payment of royalties to technology holders. The
`technologies used in a single software product may be
`developed and licensed from one or more technology hold-
`ers. A software provider typically licenses the intellectual
`property rights from each of the technology owners before
`selling the product to the end user. A license typically covers
`each copy of the software sold. This licensing cost
`is
`incorporated into the cost of the software product and passed
`on to the end user. In the case of playback software used to
`play commercially produced DVD movies,
`this software
`generally involves considerable per-unit licensing fees asso-
`ciated with licensed technologies that are required for play-
`back of certain content. The costs of these licenses are
`
`passed on to the end user in the purchase price of the
`playback software or hardware that bundles the software. An
`example of such a licensed feature is Dolby® Digital audio
`decoding, provided by Dolby Laboratories. Specifically, a
`license to the Dolby Digital technology is required within
`DVD playback software used to decode a DVD movie
`incorporating this audio technology.
`
`[0004] However, the actual percentage of end users who
`playback DVDs requiring the Dolby technology is less then
`100% because some users only play personal content, while
`others may use the DVD drive only for data storage or other
`computing purposes. Further, some users may not use their
`DVD drive at all. In the case of Dolby Digital audio cited
`above, this technology is required for playback of commer-
`cial DVD discs using this technology. However, the decod-
`ing technology is not needed to view the large library of
`
`DVD movies which do not use Dolby Digital technology.
`For these users, the license fees associated with the tech-
`nologies are wasted.
`
`[0005] Prior art licensing systems, as shown in FIG. IA,
`provide for an interaction between an end user 10 and a
`software provider 20. In a first instance, the software pro-
`vider 20 directly provides a software product to the end user
`10 in exchange for compensation from the end user 10. In
`this case, the licensing fees for technologies such as Dolby
`Digital may be paid to the technology holders 30 by the
`software provider 20 for each copy of software sold, without
`regard to the actual use of the licensed technologies by the
`end user 10. In return, technology holder 30 provides a
`technology license for each copy of software sold by soft-
`ware provider 20.
`
`In the context of bundled DVD player software, the
`[0006]
`prior art system shown in FIG. 1B provides for licensing
`bundled software between an end user 10, hardware provider
`40, a software provider 20, and a technology holder 30. A
`software provider 20 provides a license for a software
`product with unlimited functionality to a hardware provider
`40 in exchange for compensation. The end user 10 is
`provided the software product 12 as bundled software
`included with a computer or computer peripheral supplied
`by the computer or hardware provider 40. Under the current
`state of the art, the licensing fees for technologies such as
`Dolby Digital are paid to the technology holders 40 by the
`software provider 20 (and/or the hardware provider 40)
`without regard to the actual use of the licensed technologies
`by the end user 10. Thus, because usage of the specific
`features within a software product are not typically tracked,
`a license to a particular technology is required for each
`software product 12 sold containing the technology. There-
`fore, there is a discrepancy between the cost of the technol-
`ogy license (by the hardware or software provider 20) and
`the actual need (by the end user 10), which is disadvanta-
`geous for both the end user 10 and software provider 20. For
`end user 10,
`the money for the license is wasted if the
`technology is not used. For the software provider 20, the
`high cost of license fees will either reduce profit margins or
`be passed on to the end user 10 in the selling price, which
`can inhibit market share.
`
`[0007] Accordingly, a need exists in the industry for a
`system and method of licensing software that addresses the
`aforementioned deficiencies and inadequacies.
`
`SUMMARY OF THE INVENTION
`
`[0008] The present invention is broadly directed to a novel
`system and method that, in response to a request or activa-
`tion of software by an end user, triggers a financial payment
`or accounting between two other enterprises (such as
`between a hardware provider and a software provider, or
`between a software provider and a technology holder, or
`between a hardware provider and a technology holder, etc.)
`
`In accordance with one embodiment of the present
`[0009]
`invention, a method is provided for licensing software on a
`computer hardware platform. The software includes at least
`one function that is restricted to a limited use. The method
`
`includes the step of transmitting an activation request to a
`registration clearinghouse in order to activate a technology
`that must be registered to use the function. The method also
`includes causing registration information related to the tech-
`
`APPLE EXHIBIT 1105
`
`Page 16 0f 25
`
`APPLE EXHIBIT 1105
`Page 16 of 25
`
`
`
`US 2005/0076334 A1
`
`Apr. 7, 2005
`
`nology to be compiled in a registration database within the
`registration clearinghouse. The method also includes receiv-
`ing a communication that is capable of relieving the limited
`use restriction of the function. Finally, actual usage of the
`technology is determined based on the registration informa-
`tion compiled in the registration database.
`
`[0010] According to a further enhancement of the above
`process, a software developer may pay the owner of a
`technology based on the registration information compiled
`in the registration database.
`
`[0011] Accordingly, one object of the present invention is
`to reduce costs to a company offering bundled software (e.g.
`a personal computer or DVD drive manufacturer) by only
`paying technology license fees for copies of software that
`actually use the technology.
`
`[0012] Another object of the present invention is to com-
`pensate technology holders for each copy of the software
`that actually uses their technologies, and to provide a clear
`understanding and documentation of the value of the tech-
`nology in the marketplace.
`
`[0013] Another object of the present invention is to lower
`prices for the end user, who benefits from the reduced costs
`to the company providing the bundled software while allow-
`ing convenient access to all technologies required to meet
`their needs.
`
`[0014] Another object of the present invention is to allow
`a software provider to deliver more value to the companies
`offering bundled software, and to provide expanded oppor-
`tunities for direct interaction with the end user.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`[0015] Many aspects of the invention can be better under-
`stood with reference to the following drawings. The com-
`ponents in the drawings are not necessarily to scale, empha-
`sis
`instead being placed upon clearly illustrating the
`principles of the present invention. Moreover, in the draw-
`ings, like reference numerals designate corresponding parts
`throughout the several views.
`
`[0016] FIG. 1A is a diagram of a prior art software
`licensing system;
`
`[0017] FIG. 1B is a diagram of another prior art licensing
`system for bundled software;
`
`[0018] FIG. 2A is a diagram of one embodiment of a
`software licensing system in which a second party records
`first party registration information for licensed technology in
`a software product;
`
`[0019] FIG. 2B is a diagram of one embodiment of a
`software licensing system in which a third party supplies
`bundled software to a first party, and a second party records
`the first party registration information in order to determine
`payment to a fourth party in exchange for a license to
`registered technology;
`
`[0020] FIG. 2C is a diagram of one embodiment of a
`software licensing system in which a third party supplies
`bundled software to a first party, and a second party records
`the first party registration information in order to determine
`payment to a fourth party for a license to the registered
`technology;
`
`[0021] FIG. 2D is a diagram of one embodiment of a
`software licensing system in which a third party provides a
`payment to a fourth party based on registration information
`recorded by a second party;
`
`[0022] FIG. 2E is a diagram of one embodiment of a
`software licensing system in which a third party provides a
`payment to a fourth party based on registration information
`recorded by the third party;
`
`[0023] FIG. 3 is a flow diagram of the systems and
`methods of the software licensing system;
`
`[0024] FIG. 4 is a diagram depicting an embodiment of
`the software licensing system;
`
`[0025] FIG. 5 is a flow diagram showing the steps for
`executing a software licensing system as described in the
`systems and methods of the present invention;
`
`[0026] FIG. 6 depicts an overview of the three parties
`used in a prior art software trading system;
`
`[0027] FIG. 7A shows a diagram of the protected software
`used in a software trading system;
`
`[0028] FIG. 7B is a flow diagram of a first preferred
`embodiment of a software trading system;
`
`[0029] FIG. 8 is a flow diagram of a second preferred
`embodiment of the software trading system; and
`
`[0030] FIG. 9 depicts a third embodiment of the software
`trading system.
`
`DETAILED DESCRIPTION OF THE
`PREFERRED EMBODIMENTS
`
`[0031] FIGS. 2A-2E depict an overview of several
`embodiments of the proposed efficient software licensing
`system.
`In accordance with the broader aspects of the
`system, FIG. 2A depicts a first embodiment of a software
`licensing system including a first party (typically an end user
`160), a second party (typically the software provider 150),
`and a technology holder 120. In such a system, the second
`party 150 pays the technology holder 120 for a license
`associated with each copy of a software product 110 sold
`containing technology owned by the technology holder 120.
`The first party 160 acquires software product 110, which is
`fully licensed, but contains unregistered software function-
`ality. Thus, neither the first party 160 or the second party 150
`are required to provide further compensation to the technol-
`ogy holder 120 for the software functionality used. How-
`ever, despite the functionality being licensed, certain soft-
`ware functionality is disabled until
`the first party 160
`requests registration of the functionality with the second
`party 150. Upon receiving the registration request,
`the
`second party 150 records the registration and enables the
`newly registered software by delivering a relieving mecha-
`nism to the first party 160. The second party 150 may now
`use the registration information obtained from the first party
`160 to determine which features of the software 110 are used
`
`more frequently. The second party 150 may then make
`decisions as to which technologies are included in future
`software releases.
`
`[0032] FIG. 2B depicts the broader aspects of a second
`embodiment in which a third party (typically a hardware
`provider 170) provides the first party 160 with bundled
`software containing functionality restrictions. The bundled
`
`APPLE EXHIBIT 1105
`
`Page 17 of 25
`
`APPLE EXHIBIT 1105
`Page 17 of 25
`
`
`
`US 2005/0076334 A1
`
`Apr. 7, 2005
`
`software is produced by the second party 150, and the
`software incorporates technology requiring a license from a
`fourth party (typically a technology holder 120). The first
`party 160 requests registration of the unregistered function-
`ality with the second party 150. Upon receiving the regis-
`tration request, the second party 150 records the registration
`and enables the newly registered software by delivering a
`relieving mechanism to the first party 160. Finally,
`the
`second party 150 compensates the fourth party 120 for a
`license to the actual technology used by the first party 160.
`Compared to FIG. 2A, the system of FIG. 2B provides
`compensation to the fourth party 120 only when an end user
`160 registers technology owned by the fourth party 120.
`
`[0033] FIG. 2C depicts the broader aspects of a third
`embodiment in which the third party 170 provides the first
`party 160 with bundled software 110 containing function-
`ality restrictions. The bundled software 110 is produced by
`the second party 150, and the software 110 incorporates
`technology requiring a license from a fourth party 120. The
`first party 160 issues a request to register an unregistered
`function to the second party 150. Upon receiving the reg-
`istration request, the second party 150 records the registra-
`tion and enables the newly registered software by delivering
`a relieving mechanism to the first party 160. The second
`party 150 compensates the fourth party 120 for the actual
`technology used by the first party 160. Finally, the third
`party 170 compensates the second party 150 for the actual
`technology used by the first party 160.
`
`[0034] FIG. 2D depicts the broader aspects of a fourth
`embodiment in which the third party 170 provides the first
`party 160 with bundled software 110 containing function-
`ality restrictions. The bundled software 110 is produced by
`the second party 150, and the software 110 incorporates
`technology requiring a license from a fourth party 120. The
`first party 160 issues a request to register an unregistered
`function to the second party 150. Upon receiving the reg-
`istration request, the second party 150 records the registra-
`tion and enables the newly registered software by delivering
`a relieving mechanism to the first party 160. Finally, the
`third party 170 may compensate a fourth party 120 for the
`actual technology used by the first party 160. Accordingly,
`the fourth party 120 may deliver a license to the third party
`170.
`
`[0035] FIG. 2E depicts the broader aspects of a fifth
`embodiment in which the third party 170 provides the first
`party 160 with bundled software 110 containing function-
`ality restrictions. The bundled software is produced by the
`second party 150, and the software incorporates technology
`requiring a license from a fourth party 120. The first party
`160 issues a request to register an unregistered function to
`the third party 170. Upon receiving the registration request,
`the third party 170 records the registration and enables the
`newly registered software by delivering a relieving mecha-
`nism to the first party 160. Finally,
`the third party 170
`compensates the fourth party 120 for the actual technology
`used by the first party 160. Accordingly, the fourth party 120
`delivers a license to the third party 170.
`
`It will be understood that there are many obvious
`[0036]
`variations of the above embodiments, and these variations
`are intended to be included within the scope and spirit of the
`broader aspects of the invention. The system is designed
`such that an intermediate party (e.g.
`the second or third
`
`party) between an end user and a technology holder pays the
`licensing fees to a technology holder based on the actual
`usage of the technology by an end user. Logistics of the
`system such as: which party delivers the software, which
`party tracks the registration, which party provides the reliev-
`ing mechanism to the end user, and which party compensates
`the technology holder can be interchanged and still remain
`within the scope of the invention. This concept reflects an
`improvement from prior art systems which rely on the
`intermediate party to pay a technology holder for a full
`license for each copy of the software sold. Likewise, the
`system is distinguished from prior art systems which require
`the end user to pay a fee for additional functionality.
`
`[0037] FIG. 3 describes the broader aspects of a method
`for implementing a system as shown in FIGS. 2A-2E. First,
`a protected software with restricted functionality is provided
`to a first party (step 200). The first party may, for example,
`be an end user who has received the software as bundled
`
`with a computer system. At step 210, the first party invokes
`software functionality within the protected software. The
`restricted functionality requires registration, such as func-
`tionality including the playback of DVDs using Dolby
`Digital decoding. Thus, at step 220 the software determines
`if registration is required to execute the functionality. If the
`functionality does not require registration (the “NO” condi-
`tion), the user may execute the functionality without further
`action, as represented by step 230. If the functionality does
`require registration (the “YES” condition), the software is
`registered with a second or third party (step 240). The
`second or third party, for instance, may be the hardware
`provider or software provider. At step 250,
`the software
`determines if payment
`is required to license the newly
`registered functionality. If a payment is not required (the
`“NO” condition), as in the system of FIG. 2A, the first party
`may execute the newly registered software (step 230). If a
`payment is required (the “YES” condition), the registration
`triggers a payment to a fourth party from the second or third
`party (steps 270 and 280). For example, a hardware or
`software provider may pay a technology holder for the
`registered technology. Likewise, the registration may trigger
`a payment from a second party to a third party (step 260).
`For example, a hardware provider may compensate a soft-
`ware provider for the registered technology. One skilled in
`the art would appreciate that depending on the implemen-
`tation, the payment may actually be made at a later time,
`even though the first party is authorized immediately to
`execute the software.
`
`[0038] As a more specific example, referring back to FIG.
`2B, the system allows a software provider 150 to license
`software provided with a computer system 100 or bundled
`with a computer peripheral
`for only the technologies
`required by a end user 160. For example, as a way to reduce
`wasted license fees, software for playing DVD media can be
`provided by the hardware provider to an end user 160 with
`limited functionality, specifically eliminating certain tech-
`nologies that have associated licensing fees. The end user
`160 can, through the Internet or some other electronic or
`physical mechanism, download or enable these technologies
`only when needed from the software provider 150. This can
`occur automatically when the end user 160 first attempts to
`play a commercial DVD, or on user request at any time prior
`to this.
`
`APPLE EXHIBIT 1105
`
`Page 18 of 25
`
`APPLE EXHIBIT 1105
`Page 18 of 25
`
`
`
`US 2005/0076334 A1
`
`Apr. 7, 2005
`
`[0039] When an end user 160 requests a necessary tech-
`nology, he will identify himself as a unique and authorized
`recipient of this technology to the company that provides the
`technology activation service (in this proposal, the DVD
`software provider). There are several possible mechanisms
`for this, including the use of a serial number (provided with
`initial purchase) or some means of uniquely identifying the
`computer system 100, such as the Service Code on a Dell
`personal computer. Based on this identifying information,
`the appropriate technology is provided to the end user and
`the software provider 150 is charged for the technology
`license. Software provider 150 may then choose to recoup
`the license fees from the hardware producer, or alternatively,
`a hardware provider 170 may be required to pay license fees
`to a technology holder 170 based on the end user 160
`registration of the software.
`
`[0040] When the end user 160 is receiving or activating
`the required technology, there is an opportunity for the sale
`of additional products, and to capture the user information
`for future sales. The revenue from these additional transac-
`
`tions can be shared with the hardware provider to help offset
`costs. This also provides an opportunity to sell more
`advanced technologies from the technology holders, result-
`ing in additional license fees.
`
`[0041] Referring to FIG. 4, a more detailed diagram of the
`licensing system is depicted. Software product 110 may be
`executed within computer system 100. The computer system
`100 may also include input devices such as mouse and
`keyboard (not shown) to provide the end user 160 with a
`means for interacting with the user interface of the computer
`system 100. The computer system may include a variety of
`storage devices such as an optical drive to read data infor-
`mation from optical discs such as those using CD or DVD
`technology. Software product 110 contains functionality
`module 106. Functionality module 106 represents a licensed
`or unlicensed software feature. For example, where software
`product 110 is software for playing DVD movies,
`the
`software may contain a functionality module that allows
`decoding the compressed video in a DVD movie, or playing
`a DVD movie with audio technologies such as Dolby Digital
`decoding, Dolby Surround decoding, DivX decoding, or
`DTS digital sound. While only one functionality module 106
`is depicted,
`it
`is to be understood that more than one
`functionality module may exist in software product 110.
`
`[0042] Each functionality module 106 may use one or
`more technology modules 107. Technology modules 107
`represent intellectual property rights embodied within soft-
`ware product 110 that may be needed to execute a specified
`software functionality module 106. For example, a technol-
`ogy module 107 may incorporate the technology required to
`decode Dolby Digital audio. The technology modules 107
`embodied within the functionality modules 106 are owned
`by technology holders 120. For example, Dolby Digital
`audio is owned by Dolby Laboratories. Thus, technology
`holder 120 may own patents, copyrights, or other protectible
`rights associated with technology modules 107.
`
`[0043] Thus, software product 110 may contain function-
`ality modules 106 that require securing additional licensing
`from one or more technology holders 120. These modules
`will be referred to as unlicensed technology modules 107.
`Software product 110 may also contain functionality mod-
`ules 106 that do not require separate licenses beyond that
`
`required to use the basic software product 110. For instance,
`functionality modules 106 that allow playing a DVD without
`certain audio features or viewing the enhanced con