Neifeld Ref: SCOT0016-7
`Client Ref: SCOT0016-7
`US Application and filing date: Filed Herewith
`USPTO CONF. NC):
`Inventor: SCOTT A. MOSKOWITZ et al.
`Title: Secure personal content server
`Entity Size: LARGE
`Priority claims and PCT Intl data: This application is a continuation of U.S. Application No.
`14869279, filed September 29, 2015, which is a continuation of U.S. Application No.
`14/256,315, filed April 18, 2014, which issued January 5, 2016 as U.S. Patent 9231980, which is
`a continuation of U.S. Application No. 13/796,538, filed March 12, 2013, which issued July 22,
`2014 as U.S. Patent No. 8,789,201, which is a continuation of Application No. 13/413,691, filed
`March 7, 2012, which issued May 27, 2014 as U.S. Patent No. 8,739,295, which is a
`continuation of U.S. Application No. 12/287,443, filed October 9, 2008, which issued as U.S.
`Patent No. 8,171,561 on May 1, 2012, which is a continuation of U.S. Application No.
`10/049,101, which issued as U.S. Patent No. 7,475,246 on January 6, 2009, which entered the
`US national stage July 23, 2002, which is a national stage entry of PCT/US00/21189, filed Aug.
`4, 2000, which claims the benefit of U.S. Patent Application No. 60/147,134, filed Aug. 4, 1999,
`entitled, "A Secure Personal Content Server" and U.S. Patent Application No. 60/213,489, filed
`Jun. 23, 2000, entitled "A Secure Personal Content Server." The contents of U.S. Application
`No. 14869279, filed September 29, 2015, U.S. Application No. 14/256,315, filed April 18, 2014,
`U.S. Application No. 13/796,538, filed March 12, 2013, U.S. Application No. 13/413,691, filed
`March 7, 2012, U.S. Application No. 12/287,443, filed October 9, 2008, and U.S. Application
`No. 10/049,101, filed July 23, 2002, are incorporated by reference in their entirety.
`
`37 CFR 1.7(c) FILING RECEIPT AND TRANSMITTAL LETTER WITH
`AUTHORIZATION TO CHARGE DEPOSIT ACCOUNT
`
`37 CFR 1.25(b) SELECTED AUTHORIZATION TO CHARGE
`1.
`UNDERPAYMENT AND REFUND OVERPAYMENTS TO DEPOSIT ACCOUNT 50-
`2106. The undersigned is an authorized signor for deposit account 50-2106 and authorizes
`charges for applications filed by Neifeld IP Law, PC, specified in 37 CFR 1.16 (national filing,
`search, exam fees); in 37 CFR 1.17 (processing, including petition fees); and 37 CFR 1.18 (post
`allowance, including issue fees) except that: the undersigned does not authorize charges for
`invention claims (specified in 1.16(h); (I); and (k)). The undersigned authorizes charges for a 35
`USC 371 national stage entry of a PCT international application identified in 37 CFR 1.492(a)-
`(c) and (h)-(j), but not (d)-(g) (all fees other than invention claims fees).
`
`FEES (PAID HEREWITH BY EFS CREDIT CARD SUBMISSION) $:1600
`2.
`1011/4011/3011 1.16(a) Basic filing fee - Utility (electronic filing) 280.00
`1111/2111/3111 1.16(k) Utility Search Fee 600.00
`1311/2311/3311 1.16(o) Utility Examination Fee 720.00
`
`3.
`
`THE FOLLOWING DOCUMENTS ARE SUBMITTED HEREWITH:
`NEW APPLICATION DOCUMENTS
`Transmittal SCOT0016-7 5-4-2017c.pdf
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0001
`
`

`

`37 CFR 1.7(c) FILING RECEIPT AND TRANSMITTAL LETTER WITH
`AUTHORIZATION TO CHARGE DEPOSIT ACCOUNT (2 pages)
`37 CFR 1.115 PRELIMINARY AMENDMENT (3 pages)
`Specification_Claims_Abstract_SCOT0016-7 5-4-2017c.pdf
`SPECIFICATION (31 pages)
`CLAIMS (10 pages)
`ABSTRACT (1 page)
`DOCUMENT CONTROL PAGE (1 page)
`Figures_SCOT0016-7_5-4-2017c.pdf
`FIGURES (10 pages)
`Declaration_SCOT0016-7_5-4-2017c.pdf
`INVENTOR DECLARATION (37 CFR 1.63) AND ASSIGNMENT (37 CFR 1.46)FOR.
`A PATENT APPLICATION FILED ON AND AFTER SEPTEMBER 16, 2012 (4 pages)
`SubstituteStatement_SCOT0016-7_5-4-2017c.pdf
`Substitute statement in Lieu of an Oath or Declaration (2 pages)
`aia0014_SCOT0016-7_5-4-2017.pdf
`Application. Data Sheet 37 CFR 1.76 (9 pages)
`
`FOR INTERNAL NEIFELD IP LAW, PC USE ONLY
`4.
`Disbursements: BankAcct#6, G/L 5010, check, amount, and entry date: 2591, 1600, 5/4/2017
`PClaw billing matter: [SCOT0001]
`Service Fees: Amount/CreditAtty/entry date/Services:
`400, BTM, 5/4/2017, firm charge for paying a gov. fee for application filing.
`
`INITIALS OF PERSON WHO ENTERED ACCOUNTING DATA:
`AUTHORIZING SIGNER ON DEPOSIT ACCOUNT:
`DATE: 5/5/2017
`SIGNATURE: /BruceMargulies/
`Printed: May 5, 2017 (1.0:41am)
`Bruce Margulies, Reg. No. 64,175
`Y:\Clients\SCOT Scott A Moskowitz and Wistaria Trading,
`Inc\ SCOT0016-7\ Drafts\ Transmittal SCOT0016-7 5-4-2017.wpd
`
`1
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0002
`
`

`

`Neifeld Ref: SCOT0016-7
`Client Ref: SCOT0016-7
`US Application and filing date: Filed Herewith
`USPTO CONF. NC):
`Inventor: SCOTT A. MOSKOWITZ et al.
`Title: Secure personal content server
`Entity Size: LARGE
`Priority claims and PCT Intl data: This application is a continuation of U.S. Application No.
`14869279, filed September 29, 2015, which is a continuation of U.S. Application No.
`14/256,315, filed April 18, 2014, which issued January 5, 2016 as U.S. Patent 9231980, which is
`a continuation of U.S. Application No. 13/796,538, filed March 12, 2013, which issued July 22,
`2014 as U.S. Patent No. 8,789,201, which is a continuation of Application No. 13/413,691, filed
`March 7, 2012, which issued May 27, 2014 as U.S. Patent No. 8,739,295, which is a
`continuation of U.S. Application No. 12/287,443, filed October 9, 2008, which issued as U.S.
`Patent No. 8,171,561 on May 1, 2012, which is a continuation of U.S. Application No.
`10/049,101, which issued as U.S. Patent No. 7,475,246 on January 6, 2009, which entered the
`US national stage July 23, 2002, which is a national stage entry of PCT/US00/21189, filed Aug.
`4, 2000, which claims the benefit of U.S. Patent Application No. 60/147,134, filed Aug. 4, 1999,
`entitled, "A Secure Personal Content Server" and U.S. Patent Application No. 60/213,489, filed
`Jun. 23, 2000, entitled "A Secure Personal Content Server." The contents of U.S. Application
`No. 14869279, filed September 29, 2015, U.S. Application No. 14/256,315, filed April 18, 2014,
`U.S. Application No. 13/796,538, filed March 12, 2013, U.S. Application No. 13/413,691, filed
`March 7, 2012, U.S. Application No. 12/287,443, filed October 9, 2008, and U.S. Application
`No. 10/049,101, filed July 23, 2002, are incorporated by reference in their entirety.
`
`37 CFR 1.1.15 PRELIMINARY AMENDMENT
`
`ASSISTANT COMMISSIONER FOR PATENTS
`
`ALEXANDRIA, VA 22313
`
`Dear Sir or Madam:
`
`Prior to examination on the merits, please amend this application as follows.
`
`2
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0003
`
`

`

`I.
`
`IN THE CLAIMS
`
`1.
`
`(Original) A local content server system (LCS) for creating a secure environment for
`
`digital content, comprising:
`
`a) a communications port in communication for connecting the system via a network to
`
`at least one Secure Electronic Content Distributor (SECD), said SECD capable of storing a
`
`plurality of data sets, capable of receiving a request to transfer at least one content data set, and
`
`capable of transmitting the at least one content data set in a secured transmission,
`
`b) a rewritable storage medium whereby content received from outside the LCS may be
`
`stored and retrieved,
`
`c) a domain processor that imposes rules and procedures for content being transferred
`
`between the LCS and devices outside the LCS, and
`
`d) a programmable address module which can be programmed with an identification code
`
`uniquely associated with the LCS, and
`
`said domain processor permitting the LCS to receive digital content from outside the
`
`LCS provided the LCS first determines that the digital content being delivered to the LCS is
`
`authorized for use by the LCS.
`
`Claims 2-31 (canceled).
`
`3
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0004
`
`

`

`II.
`
`REMARKS
`
`This preliminary amendment maintains claim 1 and cancels claims 2-31 (note the
`
`original application contains two claims numbered "26" and 31 claims in total).
`
`The specification and figures have been revised to re-label tables 1-3 as figures 8-10.
`
`5/4/2017
`
`Date
`
`Respectfully Submitted,
`
`/BruceMargulies/
`
`Bruce Margulies
`
`Registration No. 64,175
`
`BTM
`
`Printed: May 5, 2017 (10:41am)
`
`Y:\Clients\SCOT Scott A Moskowitz and Wistaria Trading,
`
`Inc\ SCOT0016-7\ Drafts\ Transmittal SCOT0016-7 5-4-2017.wpd
`
`4
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0005
`
`

`

`SECURE PERSONAL CONTENT SERVER
`
`CROSS REFERENCE TO RELATED APPLICATIONS
`
`[0000] This application is a continuation of U.S. Application No. 14869279, filed September 29,
`
`2015, which is a continuation of U.S. Application No. 14/256,315, filed April 18, 2014, which
`
`issued January 5, 2016 as U.S. Patent 9231980, which is a continuation of U.S. Application No.
`
`13/796,538, filed March 12, 2013, which issued July 22, 2014 as U.S. Patent No. 8,789,201,
`
`which is a continuation of Application No. 13/413,691, filed March 7, 2012, which issued May
`
`27, 2014 as U.S. Patent No. 8,739,295, which is a continuation of U.S. Application No.
`
`12/287,443, filed October 9, 2008, which issued as U.S. Patent No. 8,171,561 on May 1, 2012,
`
`which is a continuation of U.S. Application No. 10/049,101, which issued as U.S. Patent No.
`
`7,475,246 on January 6, 2009, which entered the US national stage July 23, 2002, which is a
`
`national stage entry of PCT/US00/21189, filed Aug. 4, 2000, which claims the benefit of U.S.
`
`Patent Application No. 60/147,134, filed Aug. 4, 1999, entitled, "A Secure Personal Content
`
`Server" and U.S. Patent Application No. 60/213,489, filed Jun. 23, 2000, entitled "A Secure
`
`Personal Content Server." The contents of U.S. Application. No. 14869279, filed September 29,
`
`2015, U.S. Application No. 14/256,315, filed April 18, 2014, U.S. Application No. 13/796,538,
`
`filed March 12, 2013, U.S. Application No. 13/413,691, filed March 7, 2012, U.S. Application
`
`No. 12/287,443, filed October 9, 2008, and U.S. Application No. 10/049,101, filed July 23,
`
`2002, are incorporated by reference in their entirety.
`
`FIELD OF INVENTION
`
`[0001] The present invention relates to the secure distribution of digitized value-added
`
`information, or media content, while preserving the ability of publishers to make available
`
`unsecured versions of the same value-added information, or media content, without adverse
`
`effect to the systems security.
`
`[0002] Authentication, verification and authorization are all handled with a combination of
`
`1
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0006
`
`

`

`cryptographic and steganographic protocols to achieve efficient, trusted, secure exchange of
`
`digital information.
`
`[0004] This application also incorporates by reference the following applications: pending U.S.
`
`patent application Ser. No. 08/999,766, filed Jul. 23, 1997, entitled "Steganographic Method and
`
`Device"; pending U.S. patent application Ser. No. 08/772,222, filed Dec. 20, 1996, entitled
`
`"Z-Transform Implementation of Digital Watermarks" (issued as U.S. Pat. No. 6,078,664);
`
`pending U.S. patent application Ser. No. 09/456,319, filed Dec. 8, 1999, entitled "Z-Transform
`
`Implementation of Digital Watermarks" (issued as U.S. Pat. No. 6,853,726); pending U.S. patent
`
`application Ser. No. 08/674,726, filed Jul. 2, 1996, entitled "Exchange Mechanisms for Digital
`
`Information Packages with Bandwidth Securitization, Multichannel Digital Watermarks, and
`
`Key Management" (issued as U.S. Pat. No. 7,362,775); pending U.S. patent application Ser. No.
`
`09/545,589, filed Apr. 7, 2000, entitled "Method and System for Digital Watermarking" (issued
`
`as U.S. Pat. No. 7,007,166); pending U.S. patent application Ser. No. 09/046,627, filed Mar. 24,
`
`1998, entitled "Method for Combining Transfer Function with Predetermined Key Creation"
`
`(issued as U.S. Pat. No. 6,598,162); pending U.S. patent application Ser. No. 09/053,628, filed
`
`Apr. 2, 1998, entitled "Multiple Transform Utilization and Application for Secure Digital
`
`Watermarking" (issued as U.S. Pat. No. 6,205,249); pending U.S. patent application Ser. No.
`
`09/281,279, filed Mar. 30, 1999, entitled "Optimization Methods for the Insertion, Protection,
`
`and Detection . . . " (issued as U.S. Pat. No. 6,522,767); U.S. patent application Ser. No.
`
`09/594,719, filed Jun. 16, 2000, entitled "Utilizing Data Reduction in Steganographic and
`
`Cryptographic Systems" (issued as U.S. Pat. No. 7,123,718) (which is a continuation-in-part of
`
`PCT application No. PCT/US00/06522, filed 14 Mar. 2000, which PCT application claimed
`
`priority to U.S. Provisional Application No. 60/125,990, filed 24 Mar. 1999); and U.S. patent
`
`application Ser. No. 09/731,040 (Attorney Docket No. 031838.0010), entitled "Systems,
`
`Methods and Devices for Trusted Transactions," filed Dec. 7, 2000 (issued as U.S. Pat. No.
`
`7,159,116) which claimed priority to U.S. Application No. 60/169,274, filed Dec. 7, 1999,
`
`entitled "Systems, Methods And Devices For Trusted Transactions." All of the patent
`
`applications previously identified in this paragraph are hereby incorporated by reference, in their
`
`entireties, as if fully stated herein.
`
`2
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0007
`
`

`

`BACKGROUND OF THE INVENTION
`
`[0005] The music industry is at a critical inflection point. Digital technology enables anyone to
`
`make perfect replica copies of musical recordings from the comfort of their home, or as in some
`
`circumstances, in an offshore factory. Internet technology enables anyone to distribute these
`
`copies to their friends, or the entire world. Indeed, virtually any popular recording is already
`
`likely available in the MP3 format, for free if you know where to look.
`
`[0006] How the industry will respond to these challenges and protect the rights and livelihoods
`
`of copyright owners and managers and has been a matter of increasing discussion, both in
`
`private industry forums and the public media. Security disasters like the cracking of
`
`DVD-Video's CSS security system have increased doubt about the potential for effective robust
`
`security implementations. Meanwhile, the success of non-secure initiatives such as portable MP3
`
`players lead many to believe that these decisions may have already been made.
`
`[0007] Music consumers have grown accustomed to copying their music for their own personal
`
`use. This fact of life was written into law in the United States via the Audio Home Recording
`
`Act of 1992. Millions of consumers have CD players and purchase music in the Compact Disc
`
`format. It is expected to take years for a format transition away from Red Book CD Audio to
`
`reach significant market penetration.
`
`[0008] Hence, a need exists for a new and improved system for protecting digital content against
`
`unauthorized copying and distribution.
`
`SUMMARY OF THE INVENTION
`
`[0009] A local content server system (LCS) for creating a secure environment for digital content
`
`is disclosed, which system comprises: a communications port in communication for connecting
`
`the LCS via a network to at least one Secure Electronic Content Distributor (SECD), which
`
`SECD is capable of storing a plurality of data sets, is capable of receiving a request to transfer at
`
`3
`
`DISH-Blue Spike-408
`Exhibit 1008, Page 0008
`
`

`

`least one content data set, and is capable of transmitting the at least one content data set in a
`
`secured transmission; a rewritable storage medium whereby content received from outside the
`
`LCS may be stored and retrieved; a domain processor that imposes rules and procedures for
`
`content being transferred between the LCS and devices outside the LCS; and a programmable
`
`address module which can be programmed with an identification code uniquely associated with
`
`the LCS. The LCS is provided with rules and procedures for accepting and transmitting content
`
`data. Optionally, the system may further comprise: an interface to permit the LCS to
`
`communicate with one or more Satellite Units (SU) which may be connected to the system
`
`through the interface, which SUs are capable of receiving and transmitting digital content; at
`
`least one SU; and/or at least one SECD. The SECD may have a storage device for storing a
`
`plurality of data sets, as well as a transaction processor for validating the request to purchase and
`
`for processing payment for a request to retrieve one of the data sets. The SECD typically
`
`includes a security module for encrypting or otherwise securitizing data which the SECD may
`
`transmit.
`
`[0010] A method for creating a secure environment for digital content for a consumer is also
`
`disclosed. As part of the method, a LCS requests and receives a digital data set that may be
`
`encrypted or scrambled. The digital data set may be embedded with at least one robust open
`
`watermark, which permits the content to be authenticated. The digital data set is preferably be
`
`embedded with additional watermarks which are generated using information about the LCS
`
`requesting the copy and/or the SECD which provides the copy. Once received by the LCS, the
`
`LCS exercises control over the content and only releases the data to authorized users. Generally,
`
`the data is not released until the LCS embeds at least one additional watermark based upon
`
`protected information associated with the LCS and/or information associated with the user.
`
`[0011] Another embodiment of the method of the present invention comprises: connecting a
`
`Satellite Unit to an local content server (LCS), sending a message indicating that the SU is
`
`requesting a copy of a content data set that is stored on the LCS, said message including
`
`information about the identity of the SU; analyzing the message to confirm that the SU is
`
`authorized to use the LCS; retrieving a copy of the requested content data set; assessing whether
`
`4
`
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`

`

`a secured connection exists between the LCS and the SU; if a secured connection exists,
`
`embedding a watermark into the copy of the requested content data set, said watemark being
`
`created based upon information transmitted by the SU and information about the LCS; and
`
`delivering the content data set to the SU for its use.
`
`[0012] The SU may also request information that is located not on the LCS, but on an SECD, in
`
`which case, the LCS will request and obtain a copy from the SECD, provided the requesting SU
`
`is authorized to access the information.
`
`[0013] Digital technology offers economies of scale to value-added data not possible with
`
`physical or tangible media distribution. The ability to digitize information both reduces the cost
`
`of copying and enables perfect copies. This is an advantage and a disadvantage to commercial
`
`publishers who must weigh the cost reduction against the real threat of unauthorized duplication
`
`of their value-added data content. Because cost reduction is an important business consideration,
`
`securing payment and authenticating individual copies of digital information (such as media
`
`content) presents unique opportunities to information service and media content providers. The
`
`present invention seeks to leverage the benefits of digital distribution to consumers and
`
`publishers alike, while ensuring the development and persistence of trust between all parties, as
`
`well as with any third parties involved, directly or indirectly, in a given transaction.
`
`[0014] In another approach that is related to this goal, there are instances where transactions
`
`must be allowed to happen after perceptually-based digital information can be authenticated.
`
`(Perceptually based information is information whose value is in large part, based upon its
`
`ability to be perceived by a human, and includes for example, acoustic, psychoacoustic, visual
`
`and psychovisual information.) The process of authenticating before distributing will become
`
`increasingly important for areas where the distributed material is related to a trust-requiring
`
`transaction event. A number of examples exist. These include virtual retailers (for example, an
`
`on-line music store selling CDs and electronic versions of songs); service providers (for
`
`example, an on-line bank or broker who performs transactions on behalf of a consumer); and
`
`transaction providers (for example, wholesalers or auction houses). These parties have different
`
`5
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`

`

`authentication interests and requirements. By using the teachings of this application, these
`
`interests and requirements may be separated and then independently quantified by market
`
`participants in shorter periods of time.
`
`[0015] All parties in a transaction must authenticate information that is perceptually observable
`
`before trust between the parties can be established. In today's world, information (including
`
`perceptually rich information) is typically digitized, and as a result, can easily be copied and
`
`redistributed, negatively impacting buyers, sellers and other market participants. Unauthorized
`
`redistribution confuses authenticity, non-repudiation, limit of ability and other important
`
`"transaction events." in a networked environment, transactions and interactions occur over a
`
`transmission line or a network, with buyer and seller at different points on the line or network.
`
`While such electronic transactions have the potential to add value to the underlying information
`
`being bought and sold (and the potential to reduce the cost of the transaction), instantaneous
`
`piracy can significantly reduce the value of the underlying data, if not wholly destroy it. Even
`
`the threat of piracy tends to undermine the value of the data that might otherwise exist for such
`
`an electronic transaction.
`
`[0016] Related situations range from the ability to provably establish the "existence" of a virtual
`
`financial institution to determining the reliability of an "electronic stamp." The present invention
`
`seeks to improve on the prior art by describing optimal combinations of cryptographic and
`
`steganographic protocols for "trusted" verification, confidence and non-repudiation of digitized
`
`representations of perceptually rich information of the actual seller, vendor or other associated
`
`institutions which may not be commercial in nature (confidence building with logo's such as the
`
`SEC, FDIC, Federal Reserve, FBI, etc. apply). To the extent that an entity plays a role in
`
`purchase decisions made by a consumer of goods and services relating to data, the present
`
`invention has a wide range of beneficial applications. One is enabling independent trust based on
`
`real world representations that are not physically available to a consumer or user. A second is the
`
`ability to match informational needs between buyers and sellers that may not be universally
`
`appealing or cost effective in given market situations. These include auction models based on
`
`recognition of the interests or demand of consumers and market participants which make trading
`
`6
`
`DISH-Blue Spike-408
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`

`

`profitable by focusing specialized buyers and sellers. Another use for the information matching
`
`is to establish limits on the liability of such institutions and profit-seeking entities, such as
`
`insurance providers or credit companies. These vendors lack appropriate tools for determining
`
`intangible asset risk or even the value of the information being exchanged. By encouraging
`
`separate and distinct "trust" arrangements over an electronic network, profitable market-based
`
`relationships can result.
`
`[0017] The present invention can make possible efficient and openly accessible markets for
`
`tradable infornlation. Existing transaction security (including on-line credit cards, electronic cash
`
`or its equivalents, electronic wallets, electronic tokens, etc.) which primarily use cryptographic
`
`techniques to secure a transmission channel--but are not directly associated or dependent on the
`
`information being sold--fails to meet this valuable need. The present invention proposes a
`
`departure from the prior art by separating transactions from authentication in the sale of digitized
`
`data. Such data may include videos, songs, images, electronic stamps, electronic trademarks, and
`
`electronic logos used to ensure membership in some institutional body whose purpose is to assist
`
`in a dispute, limit liability and provide indirect guidance to consumers and market participants,
`
`alike.
`
`[0018] With an increasingly anonymous marketplace, the present invention offers invaluable
`
`embodiments to accomplish "trusted" transactions in a more flexible, transparent manner while
`
`enabling market participants to negotiate terms and conditions. Negotiation may be driven by
`
`predetermined usage rules or parameters, especially as the information economy offers
`
`potentially many competitive marketplaces in which to transact, trade or exchange among
`
`businesses and consumers. As information grows exponentially, flexibility becomes an
`
`advantage to market participants, in that they need to screen, filter and verify information before
`
`making a transaction decision. Moreover, the accuracy and speed at which decisions can be
`
`made reliably enables confidence to grow with an aggregate of "trusted transactions". "Trusted
`
`transactions" beget further "trusted transactions" through experience. The present invention also
`
`provides for improvements over the prior art in the ability to utilize different independently
`
`important "modules" to enable a "trusted transaction" using competitive cryptographic and
`
`7
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`DISH-Blue Spike-408
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`

`

`steganographic elements, as well as being able to support a wide variety of perceptually-based
`
`media and information formats. The envisioned system is not bound by a proprietary means of
`
`creating recognition for a good or service, such as that embodied in existing closed system.
`
`Instead, the flexibility of the present invention will enable a greater and more diverse
`
`information marketplace.
`
`[0019] The present invention is not a "trusted system", per se, but "trusted transactions" are
`
`enabled, since the same value-added information that is sought may still be in the clear, not in a
`
`protected storage area or closed, rule-based "inaccessible virtual environment".
`
`[0020] A related additional set of embodiments regards the further separation of the transaction
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`and the consumer's identification versus the identification of the transaction only. This is
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`accomplished through separated "trusted transactions" bound by authentication, verification and
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`authorization in a transparent manner. With these embodiments, consumer and vendor privacy
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`could be incorporated. More sophisticated relationships are anticipated between parties, who can
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`mix information about their physical goods and services with a transparent means for consumers,
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`who may not be known to the seller, who choose not to confide in an inherently closed "trusted
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`system" or provide additional personal information or purchasing information (in the form of a
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`credit card or other electronic payment system), in advance of an actual purchase decision or
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`ability to observe (audibly or visibly) the content in the clear. This dynamic is inconsistent with
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`the prior art's emphasis on access control, not transparent access to value-added information (in
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`the form or goods or services), that can be transacted on an electronic or otherwise anonymous
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`exchange.
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`[0021] These embodiments may include decisions about availability of a particular good or
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`service through electronic means, such as the Internet, or means that can be modularized to
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`conduct a transaction based on interconnection of various users (such as WebTV, a Nintendo or
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`Sony game console with network abilities, cellular phone, PalmPilot, etc.). These embodiments
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`may additionally be implemented in traditional auction types (including Dutch auctions).
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`Consumers may view their anonymous marketplace transactions very differently because of a
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`lack of physical human interactions, but the present invention can enable realistic transactions to
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`occur by maintaining open access and offering strict authentication and verification of the
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`information being traded. This has the effect of allowing legacy relationships, legacy
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`information, and legacy business models to be offered in a manner which more closely reflects
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`many observable transactions in the physical world. The tremendous benefits to sellers and
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`consumers is obvious; existing transactions need not reduce their expectations of security. As
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`well, the ability to isolate and quantify aspects of a transaction by module potentially allows for
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`better price determinations of intangible asset insurance, transaction costs, advertising costs,
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`liability, etc. which have physical world precedent.
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`[0022] It is contemplated that the publisher and/or owner of the copyrights will want to dictate
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`restrictions on the ability of the purchaser to use the data being sold. Such restrictions can be
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`implemented through the present invention, which presents a significant advantage over the prior
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`art (which attempts to effect security through access control and attempted tight reigns over
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`distribution). See U.S. Pat. No. 5,428,606 for a discussion on democratizing digital information
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`exchange between publishers and subscribers of said information.
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`[0023] A goal for providers of value-added content is to maximize profits for the sale of their
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`content. Marketing and promotion of the informational content cannot be eliminated, considering
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`the ever-increasing amount of information vying for consumers and other market participant's
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`attention. Nonetheless, in a market where the goods are speculatively valued, marketing budgets
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`are inherently constrained, as you are trying to create demand for a product with little inherent
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`value. Where such markets have participants, both buyers and sellers and their respective agents,
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`with access to the same information in real time, market mechanisms efficiently price the market
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`goods or services. These markets are characterized by "price commoditization" so buyers and
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`sellers are limited to differentiating their offerings by selection and service. If the markets are
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`about information itself, it has proven more difficult to accurately forecast the target price where
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`sellers can maximize their profits. Quality and quantity provide different evaluation criteria of
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`selection and service relating to the information being traded. The present invention regards a
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`particular set of implementations of value-added content security in markets which may include
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`unsecured and secure versions of the same value-added data (such as songs, video, research,
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`pictures, electronic logos, electronic trademarks, value-added information, etc.).
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`[0024] Transactions for value-added information can occur without any physical location. So,
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`there is a need for a secure personal content server for which the value added information can be
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`offered for transactions in a manner similar to real world transactions. One feature is to offer
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`seemingly similar value added information in differing quality settings. These settings have
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`logical relationships with fidelity and discreteness and are determined by market participants.
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`Another issue is that because purchasers may be anonymous to sellers, it is more important to
`have a particular value-added information object available so that market participants can mil II
`their role are consumers.
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`[0025] One fundamental weakness of current inforniation markets is the lack of mechanisms to
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`ensure that buyers and sellers can reach pricing equilibrium. This deficit is related to the
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`"speculative", "fashion", and "vanity" aspects of perceptual content (such as music, video, and
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`art or some future recognition to purchasers). For other goods and services being marketed to an
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`anonymous marketplace, market participants may never see (and indeed, may choose to never
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`see, an actual location where the transaction may physically occur. A physical location may
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`simply not exist. There are a number of such virtual operations in business today, which would
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`benefit from the improvements offered under the present system.
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`[0026] The present invention also seeks to provide improvements to the art in enabling a realistic
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`model for building trust between parties (or their agents) not in a "system", per se. Because prior
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`art systems lack any inherent ability to allow for information to flow freely to enable buyers and
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`sellers to react to changing market conditions. The present invention can co-e