August 4, 1999
`
`Inventors: Scott Moskowitz & Michael Berry
`
`A Secure Personal Content ServerSECURE PERSONAL CONTENT SERVER
`
`Field of Invention
`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
`unsecureunsecured versions of the same value-added information, or media content, without
`adverse effect to the systems security.
`Authentication, verification and authorization are all handled with a combination of
`cryptographic and steganographic protocols to achieve efficient, trusted, secure exchange of
`digital information.
`
`Cross-Reference To Related Application
`This application is based on and claims the benefit of pending U.S. Patent Application
`Serial No. 60/147,134, filed 08/04/99, entitled, “A Secure Personal Content Server” and pending
`U.S. Patent Application Serial No. 60/213,489, filed 06/23/2000, entitled “A Secure Personal
`Content Server.”
`This application also incorporates by reference the following applications: pending U.S.
`Patent Application Serial No. 08/999,766, filed 7/23/97, entitled “Steganographic Method and
`Device”; pending U.S. Patent Application Serial No. 08/772,222, filed 12/20/96, entitled “Z-
`Transform Implementation of Digital Watermarks”; pending U.S. Patent Application Serial No.
`09/456,319, filed 12/08/99, entitled “Transform Implementation of Digital Watermarks”;
`pending U.S. Patent Application Serial No. 08/674,726, filed 7/2/96, entitled “Exchange
`Mechanisms for Digital Information Packages with Bandwidth Securitization, Multichannel
`Digital Watermarks, and Key Management”; pending U.S. Patent Application Serial No.
`09/545,589, filed 04/07/2000, entitled “Method and System for Digital Watermarking”; pending
`U.S. Patent Application Serial No. 09/046,627, filed 3/24/98, entitled “Method for Combining
`Transfer Function with Predetermined Key Creation”; pending U.S. Patent Application Serial
`No. 09/053,628, filed 04/02/98, entitled “Multiple Transform Utilization and Application for
`Secure Digital Watermarking”; pending U.S. Patent Application Serial No. 09/281,279, filed
`3/30/99, entitled “Optimization Methods for the Insertion, Protection, and Detection...”; U.S.
`Patent Application Serial No.09/594,719, filed June 16, 2000, entitled “Utilizing Data Reduction
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`in Steganographic and Cryptographic Systems” (which is a continuation-in-part of PCT
`application No. PCT/US00/06522, filed 14 March 2000, which PCT application claimed priority
`to U.S. Provisional Application No. 60/125,990, filed 24 March 1999); and pending U.S.
`Application No 60/169,274, filed 12/7/99, 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.
`Background of the Invention
`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.
`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.
`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.
`Hence, a need exists for a new and improved system for protecting digital content against
`unauthorized copying and distribution.
`Summary of the Invention
`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
`least one content data set, and is capable of transmitting the at least one content data set in a
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`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.
`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.
`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
`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 watermark 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.
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`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.
`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 facemust weigh the cost reduction against the real threat of unauthorized
`duplication of their value-added data content. WhereBecause cost reduction is an important
`business consideration, securing payment and authentication of anauthenticating individual
`copycopies of digital information, (such as media content,) presents unique opportunities to
`information service and media content providers with the appropriate tools. 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 theseall parties, oras well as
`with any third parties involved, directly or indirectly, in a given transaction.
`In another approach that is related to this goal, there are instances where transactions
`must be allowed to happen after perceptually-based [acoustic (hearing)/psychoacoustic
`(perceived hearing) or visual (viewing)/psychovisual (perceived viewing)] digital information
`can be authenticated. This type of verification(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 relates more to a provided,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 rely onhave different authentication
`issues which caninterests and requirements. By using the teachings of this application, these
`interests and requirements may be separated and then independently quantified or qualified by
`market participants in shorter periods of time under what is described by the present invention.
`Any party who must establish authentication ofAll parties in a transaction must
`authenticate information that is perceptually-observed, by nature of media content-richness, by
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`users or market participants. Thisperceptually observable before trust between the parties can be
`established. In today’s world, information (including perceptually rich information) is typically
`digitized, and may be perceptually based in natureas a result, can easily be copied and
`redistributed, negatively impacting buyers and, sellers orand other market participants, in
`confusing. Unauthorized redistribution confuses authenticity, non-repudiation,
`limit of
`liabilityability and other important “transaction events”.” In a networked environment,
`transactions and interactions occur over a transmission line between aor a network, with buyer
`and seller, or networked groups of users (Internet communities, closed electronic trading
`environments, etc.). While network effects may lead to increasing economic utility of at
`different points on the line or network. While such electronic transactions have the potential to
`add value to the underlying value-added information: in the absolute being bought and sold (and
`the potential to reduce the cost of the transaction), instantaneous piracy can rendersignificantly
`reduce the economic value of the good and services being offered to zero, or less than optimal
`profit positions.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.
`Related situations extend to instances rangingrange 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 existing prior art by describing optimal
`combinations of cryptographic and steganographic protocols for “trusted” verification,
`confidence and non-repudiation of perceptually-based, digitized representations of perceptually
`rich information of the actual seller, vendor or anotherother associated institutioninstitutions
`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 that are not physically present for the actual
`transactionrelating 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. TheA second is the ability to match informationinformational 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—and serves to assist in narrowing andwhich make trading
`profitable by focusing profitable trade between partiesspecialized buyers and sellers. Another use
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`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 and exposure, value-addedor even the value of the
`information is such an assetbeing exchanged. By encouraging separate and distinct “trust”
`arrangements over an electronic network, profitable, market-based relationships can result.
`Utilizing theThe present invention in one of its many embodiments,can make possible
`efficient, and openly accessible markets for trade-basedtradable information can be made
`possible. Existing transaction security, (including on-line credit card purchasingcards, 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 value-added information being transacted or purchased failssold--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. TheseSuch 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.
`Buyers’ should still beware: but withWith 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 should not onlymay be seller driven throughby 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 inbefore 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 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
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`that envisionedembodied in existing closed system. Instead, the flexibility of the present
`invention’s architecture is sure toinvention will enable a greater and more diverse information
`marketplace.
`The present invention is not a “trusted system”, per sayse, 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”.
`A related additional set of embodiments regards the further separation of the transaction
`and the consumer’s identification versus the identification of the transaction only. This is
`accomplished through separated “trusted transactions” bound by authentication, verification and
`authorization in a transparent manner. With these embodiments, consumer and vendor privacy
`could be incorporated. More sophisticated relationships are anticipated between parties, who can
`mix information about their physical goods and services with a transparent means for consumers,
`who may not be known to the seller, who choose not to confide in an inherently closed “trusted
`system” or provide additional personal information or purchasing information (in the form of a
`credit card or other electronic payment system), in advance of an actual purchase decision or
`ability to observe (audibly or visibly) the content in the clear. This dynamic is inconsistent with
`existing systems’the prior art’s emphasis on access control, not transparent access to value-added
`information (in the form or goods or services), that can be transacted on an electronic or
`otherwise anonymous exchange.
`These embodiments may include decisions about availability of a particular good or
`service through electronic means (recognition, search engine function or find, so-called push,
`functions), such as the Internet, or means that can be modularized to conduct a transaction based
`on the present inventioninterconnection of various users (such as WebTV, a Nintendo or Sony
`game console which can be networkedwith network abilities, cellular phone, PalmPilot, etc.) that
`may have the capability of interconnections with a network of users (including sellers and
`consumers). Additionally, modularity of price and service desired by the consumer and available
`by the seller (fixed price, Dutch auction where the consumer fixes a price, auction where a
`market of buyers and sellers can “decide” a price. These embodiments may additionally be
`implemented in traditional auction types (including Dutch auctions). Consumers may view their
`anonymous marketplace transactions very differently because of a lack of physical human
`interactions, but the present invention can enable realistic transactions to occur by maintaining
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`open access and offering strict authentication and verification of value-addedthe information
`being traded. This has the effect of allowing legacy relationships, legacy information, and legacy
`business models to be offered in a manner which more closely reflects many observable
`transactions in the physical world. The tremendous benefits to sellers and consumers is obvious
`but; existing transactions need not reduce their expectations of security. As well, the ability to
`isolate and quantify aspects of an overa transaction by module potentially allows for better price
`determinations of intangible asset insurance, transaction costs, advertising costs, liability, etc.
`which have physical world precedent. In some embodiments, standardization or government
`support are surely anticipated, as the physical world will undoubtedly continue to make legal
`determinations in transactions under dispute.
`An important area of the prior art is discussed under the heading of “trusted systems”
`
`which architecturally enable users, almost always the publisher or rights owner, to set rules
`
`which bind digitized information copies to an inflexible and “containerized” architecture.
`
`System security is typically based on persistence of access control over the content in a variety of
`
`implementations, with access and subsequent usage being tightly tied into the distribution
`
`system. The prior art has many disclosures which fail to mimic the real world and, in effect,
`
`eliminate impulse buying, sampling, re-creation of existing works, making a transaction more
`
`transparent to consumers, providing for support of both controlled and uncontrolled value-added
`
`information within the same system, and other important aspects of information distribution that
`
`cannot be predicted in advance of more open consumer access or recognition of the information
`
`in question. See US Pat. No. 5,428,606 for a discussion on democratizing digital information
`
`exchange between publishers and subscribers of said information.
`
`It is contemplated that the publisher and/or owner of the copyrights will want to dictate
`restrictions on the ability of the purchaser to use the data being sold. Such restrictions can be
`implemented through the present invention, which presents a significant advantage over the prior
`art (which attempts to effect security through access control and attempted tight reigns over
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`distribution). See US Pat. No. 5,428,606 for a discussion on democratizing digital information
`exchange between publishers and subscribers of said information.
`A goal for providers of value-added content is to maximize profits for the sale of their
`
`content. Marketing and promotion of thisthe informational content still requires costly
`
`advertising that will notcannot be eliminated with an ever-increasing, considering the ever
`
`increasing amount of information vying for consumers and other market participantsparticipant’s
`
`attention. Pricing, when inflexible, and expense limitations in creating recognition of a particular
`
`piece of value-added content are inherent to the nature of a market forNonetheless, in a market
`
`where the goods are speculatively valued goods, marketing budgets are inherently constrained, as
`
`you are trying to create demand for a product with little inherent value. Where such markets have
`
`participants, both buyers and sellers and their respective agents, with access to the same
`
`information in real time, market mechanisms efficiently price the market goods or services.
`
` These markets are characterized by “price commoditization” so buyers and sellers are
`limited to differentiating their offerings by selection and service. If the markets are about
`information itself, it has proven more difficult to accurately forecast the markettarget price where
`sellers can maximize their profits. Quality and quantity provide different evaluation criteria of
`selection and service relating to the value-added information to bebeing traded. The present
`invention regards a particular set of implementations of value-added content security in markets
`which may include unsecureunsecured and secure versions of the same value-added data (such as
`songs, video, research, pictures, electronic
`logos, electronic
`trademarks, value-added
`information, etc.).
`Transactions for value-added information can occur without any physical location. So,
`there is a need for a secure personal content server for which the value added information can be
`offered for transactions in a manner similar to real world transactions. One feature is to offer
`seemingly similar value added information in differing quality settings. These settings have
`logical relationships with fidelity and discreteness and are determined by market participants.
`Another issue is that because purchasers may be anonymous to sellers, it is more important to
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`have a particular value-added information object available so that market participants can fulfill
`their role are consumers.
`One fundamental weakness with systems known to those skilled in the artof current
`information markets is the lack of mechanisms to ensure that buyers and sellers can reach pricing
`equilibrium. This deficit is related to the “speculative” , “fashion”, and “vanity” aspectaspects of
`perceptual content (such as music, video, and art or some future recognition to purchasers). For
`other goods and services being marketed to an anonymous marketplace, market participants may
`never or choose never to see (and indeed, may choose to never see, an actual location with
`whichwhere the transaction is being soughtmay physically occur. A physical location may
`simply not exist. There are a number of such virtual operations in business today who, which
`would benefit from the improvements offered under the present system.
`The present invention also seeks to provide improvements to the art in enabling a realistic
`model for building trust between parties (or their agents) not in a “system”, per se. Because prior
`art systems lack any inherent ability to allow for information to flow freely to enable buyers and
`sellers to react to changing market conditions, as a matter of maintaining “security”. The present
`invention can co-exist with these “trusted systems” to the extent that all market participants in a
`given industry have relatively similar information inwith which to price value-added data. The
`improvement over such systems, however, addresses a core features in most data-added value
`markets:’ predictions, forecasts, and speculation over the value of information is largely aan
`unsuccessful activity for buyers and sellers alike. The additional improvement is the ability to
`maintain security even with unsecureunsecured or legacy versions of value-added information
`available to those who seek choices that fit less quantitative criteria—”“aesthetic quality” of the
`information versus “commercial price”. Purchase or transaction decisions can be made first by
`authenticating an electronic version of a song, image, video, trademark, stamp, currency, etc.
`Additional anticipated improvements areinclude the ability to support varying pricing
`models such as auctions that are difficult or impossible to accomplish under existing prior art
`that leaves all access and pricing control with the seller alone. As well, and the separation of the
`transaction from the exchange of the value-added information, givingwhich gives more control
`to buyers over their identities and purchasing habits, (both sensitive and separately distinct forms
`of “unrelated” value-added information). Essentially, no system known in the art allows for
`realistic protocols to establish trust between buyers and sellers in a manner more closely
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`reflecting actual purchasing behavior of consumers and changing selling behavior of sellers. The
`goal in such transactions is the creation of trust between parties as well as “trusted relationships”
`with those parties. The present invention is an example of one such system for media content
`where the “aesthetic” or “gestalt” of the underlying content and its characteristics is a component
`of buying habits. Without an ability to open distribution systems to varying buyers and sellers,
`media content may be priced at less than maximum economic value and buyers may be deprived
`of a competitive, vigorous marketplace for exciting media content from many different creative
`participants.
`To the extent that recognition (“recognition, recognition, recognition”) plays such a key
`role in an information economy, value-added data should be as accessible as possible to the
`highest number of market participants in the interests of furtherfurthering creativity, and building
`a competitive marketplace for related goods and services. This is to the benefit of both buyers
`and sellers as well as the other participants in such an economic ecosystem. The Internet and
`other transmission-based transactions with unknown parties presents a number of challenges to
`information age vendors—continuing who wish to develop customer relations, trust and
`profitable sales of their products and services. While the. The information economy, if is largely
`an anonymous marketplace, isthus, making it much hardermore difficult to identify consumers
`“and” sellers alike: a fundamental problem for an information economy. The present invention
`provides remedies to help overcome these weaknesses versus other related systems described in
`the prior art.
`One approach U.S. Pat. No. 5, 892, 900 to Ginter et al., relies on “universal” adoption of
`
`a “virtual distribution environment” (VDE) leaving all control over distribution to the publisher,
`
`without any flexibility provided to the consumer. The limited flexibility that exists is
`
`predetermined by the seller. While in theory this approach appears to offer important advantages
`
`in markets where price and product information may be readily available and known to market
`
`participants (such as commodities), often the sale and exchange of “value-added information”,
`
`itself, is speculative. Absent open access to said data by consumers or other market participants
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`(aggregators, distributors, wholesalers, financial
`
`interests, etc.)
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`leaves a condition of
`
`indeterminable valuation, or even underexploitation of the intangible information asset.
`
`While Ginter et al. discusses “persistence” of the separation between rights applications
`
`and the foundation of the VDE, what results is a strict set of control which unnecessarily limits
`
`potentially useful and economically beneficial access by those potential purchasers who do not
`
`choose to rigidly make decision solely on price. The pricing structure has no relationship with
`
`the underlying value-added data, only the predetermined rules governing the use of the content is
`
`anticipated. Additionally, the architecture replaces one set of controlled distribution with another
`
`in the form of a proprietary VDE distribution channel or channels; preservation of a “virtual
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`black box” limits the free flow of content, and information about that content, that actually exists
`
`to the commercial benefit of media content owners.
`
`The present invention concerns itself with higher economic efficiencies by preserving an
`
`open architecture that is focused primarily on authentication, verification and authorization of
`
`value-added information: access restriction is not a primary goal. Thus, failure of authentication
`
`or verification do not constitute a security failure within the context of the present invention as it
`
`would with Ginter el al. Moreover, legacy media which may exist as physical media such as
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`CDs, LaserDiscs, MiniDiscs, photographs, PhotoCD, VHS, Digital Video, etc., pre-recorded or
`
`otherwise, or other unsecure tangible recorded media is not excluded by fiat. Consumers are
`
`given flexibility in their choice of recording media, content characteristics such as quality, time
`
`of delivery, etc.: publishers are still assured payment and also benefit from better information
`
`flow to and from the marketplace. This is not possible with Ginter et al. because information is
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`used and accessed in only “authorized ways”.
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`Another series of related systems, are US Pat. No. 5,715,403, US Patent No. 5,634,012,
`
`US Pat. No. 5,629,980 all to Stefik, propose associations between “usage rights” and a digital
`
`work. While these system offer arguably more flexibility in enabling different rule sets for
`
`different proposed digital distribution channels, all digital works have permanently attached
`
`rights. And all transactions must be coupled to a repository. It is not clear that affixing rights to
`
`content necessarily aides sellers or owners of content, especially if the consumers or other
`
`participants in the market find use in the information not known by the seller at the time rights
`
`were affixed. Unlike, physical media sold