United States Patent (19)
`Muftic
`
`54 SECURE WORLD WIDE ELECTRONIC
`COMMERCE OVER AN OPEN NETWORK
`75 Inventor: Sead Muftic, Hasselby, Sweden
`73 Assignee: Entegrity Solutions Corporation, San
`Jose, Calif.
`
`USOO.5850442A
`Patent Number:
`11
`(45) Date of Patent:
`
`5,850,442
`Dec. 15, 1998
`
`5,371,794 12/1994 Diffie et al. ............................... 380/30
`5,475,758 12/1995 Kikuchi ..................................... 380/25
`
`Examiner David Cai
`Pri
`rimary Examiner
`avi
`Attorney, Agent, or Firm-Foley & Lardner
`
`21 Appl. No.: 622,015
`
`57
`
`ABSTRACT
`
`Mar. 26, 1996
`22 Filed:
`(51) Int. Cl." ........................................................ H04L 9/00
`52 U.S. Cl. ................................. 380/21: 380/30; 380/49;
`380/25
`58 Field of Search .................................. 380/21, 23, 25,
`380/30, 49
`
`56)
`
`References Cited
`U.S. PATENT DOCUMENTS
`5,005,200 4/1991 Fischer ...................................... 380/30
`
`A network of users and Servers of a type found in the Internet
`System is extended to permit Secure electronic commercial
`transactions to be accomplished. The network is extended to
`include a public key infrastructure and electronic transac
`-
`tions can be Securely performed utilizing Smart token tech
`nology. Conduct of a variety of common electronic business
`transactions over Such an extended network is provided.
`
`38 Claims, 32 Drawing Sheets
`
`PROPOSED. USERCA SENDS APPLICATION FORREGISTRATION
`TO PCA OR AUTHORIZED TRUST THRPARTY
`
`2605
`
`PCATTP INVESTIGATES REQUESTOR AND FACTS IN
`APPLICATION IN ACCORDANCE WITH PCA's POLICIES
`
`z 610
`
`GO
`
`ES 615
`
`REECT
`APPLICATION
`
`Z 6
`2O
`
`APPROVAL AND INSTRUCTIONS SENT TO APPLICANT, NEW
`ENTITY ADDED TO REGISTRATON DATABASE AND
`ADD NEW CAUSER PERFORMED BY PCA
`
`
`
`
`
`APPLICANT ACQUIRES PKAND SMART TOKEN
`SOFTWARE AND INSTALLS F NOT PREVIOUSLY DONE
`AN ACCRUIRESSMARTOKEN
`
`Z 030
`
`APPLICANT LOGS ONTO SYSTEM USING SMART TOKEN
`
`631
`
`APPLICANT PERFORMS CERTIFICATE
`E REQUEST,
`SIGNATUR
`
`
`SELF SIGNS CERIFICATE AND SENDST O CA
`
`
`
`(ES
`CAVERIFESAUTHENTICITY O
`CERTIFICATE
`F REQUEST, SIGNS
`FICATE SIGNATURE
`AND PERFORMS CERT
`REPLY
`
`64)
`
`CERTIFICATE
`SIGNATURE REJECT * Z. 645
`
`650
`
`APPLICANT PERFORMS RECEIVE CERTIFICATE
`
`Z 655
`
`END
`
`z so
`
`IPR2020-00686
`Apple EX1017 Page 1
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 1 of 32
`
`5,850,442
`
`
`
`NETWORK
`100
`
`INDEXING/
`ADDRESSING
`SERVER(S)
`
`SECURITY
`SERVER(S)
`
`TTP(S)
`
`
`
`SPECIAL PURPOSE
`SERVER(S)
`
`ARCHIVING
`SERVER(S)
`
`Z 120
`
`Figure 1
`
`IPR2020-00686
`Apple EX1017 Page 2
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 2 of 32
`
`5,850,442
`
`APPLICATION SOFTWARE
`
`WORLD WIDE WEB
`
`APPLICATION PROGRAMMING INTERFACE
`
`SERVER Z 230
`
`
`
`(CGI OR SIMILAR)
`
`SOFTWARE
`
`210 Z
`
`COMMUNICATION SOFTWARE
`
`200 Z
`
`OPERATING SYSTEM
`
`Figure 2
`
`IPR2020-00686
`Apple EX1017 Page 3
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 3 of 32
`
`5,850,442
`
`s
`
`
`
`:
`
`IPR2020-00686
`Apple EX1017 Page 4
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 4 of 32
`
`5,850,442
`
`NETWORK
`CONNECTION
`
`Z 485
`
`480
`
`NETWORK
`CARD/
`MODEM
`
`DISPLAY
`
`CPU
`
`MEMORY
`
`
`
`I/O
`CONTROLLER
`
`Z 435
`
`DISK
`CONTROLLER
`
`Z 425
`
`RS232
`PORT
`
`KEYBOARD
`
`HARD
`DRIVE
`
`FLOPPY
`DRIVE
`
`CARD
`READER
`
`430
`
`440
`
`420A
`
`420B
`
`450
`
`Figure 4
`
`IPR2020-00686
`Apple EX1017 Page 5
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 5 of 32
`
`5,850,442
`
`APPLICATIONS - GUI
`
`WWW MOSAIC SOFTWARE
`OREGUIVALENT
`
`API (CARD READER
`PRIMITIVES AND PKI)
`
`LAYER 5
`
`LAYER 4
`
`OPERATING SYSTEM
`
`LAYER 3
`
`AUTO DRIVER SELECT (OPTIONAL)
`
`LAYER 2
`
`DRIVERS
`FOR READERS
`AND SMART CARDS
`
`LAYER 1
`
`
`
`
`
`
`
`
`
`
`
`SMART
`CARD
`READER
`
`Figure 5
`
`IPR2020-00686
`Apple EX1017 Page 6
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 6 of 32
`
`5,850,442
`
`PROPOSED USERCA SENDS APPLICATION FOR REGISTRATION
`TO PCA OR AUTHORIZED TRUSTED THIRD PARTY
`
`Z 605
`
`PCAITTP NVESTIGATES REQUESTOR AND FACTS IN
`APPLICATION IN ACCORDANCE WITH PCA's POLICIES
`
`Z 610
`
`APPROVED GO
`ES
`
`615
`
`REJECT
`APPLICATION
`
`Z 620
`
`APPROVAL AND INSTRUCTIONS SENT TO APPLICANT, NEW
`ENTITY ADDED TO REGISTRATION DATABASE AND
`ADD NEW CA/USER PERFORMED BY PCA
`
`APPLICANT ACQUIRES PK AND SMART TOKEN
`SOFTWARE AND INSTALLS F NOT PREVIOUSLY DONE
`AND ACOUIRES SMART TOKEN
`
`APPLICANT LOGS ONTO SYSTEM USING SMART TOKEN
`
`Z 631
`
`APPLICANT PERFORMS CERTIFICATE SIGNATURE REQUEST,
`SELF SIGNS CERTIFICATE AND SENDS TO CA
`
`
`
`Z 635
`
`
`
`ACCEPTED GO
`(ES
`
`CERTIFICATE
`SIGNATURE REJECT * Z. 645
`
`640
`
`CAVERIFIES AUTHENTICITY OF REQUEST, SIGNS CERTIFICATE 17
`AND PERFORMS CERTIFICATE SIGNATURE REPLY
`650
`
`APPLICANT PERFORMS RECEIVE CERTIFICATE
`
`Z 655
`
`z so
`END
`Figure 6
`
`IPR2020-00686
`Apple EX1017 Page 7
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 7 of 32
`
`5,850,442
`
`START
`
`USER LOGS ON TO APPLICATION SERVER
`
`USER LOGS ON TO EDIT SUBSYSTEM USING
`STRONG AUTHENTICATION PROTOCOL.
`
`
`
`VALIDATES LOG ON ATTEMPT AGAINST STORED
`PK OF AUTHORIZED USER
`
`Z 720
`
`ADVERTISING INFORMATION
`ADDED/DELETED/CHANGED
`
`Z 730
`
`
`
`
`
`
`
`Figure 7
`
`IPR2020-00686
`Apple EX1017 Page 8
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 8 of 32
`
`5,850,442
`
`START
`
`WEB SEARCHES AND INDEXES OF WEBSITES
`
`Z 800
`
`USER LOGS ONTO SEARCH CENT
`
`USER SUBMTS SEARCH GUERY OR
`SENDS AWAY INTELLIGENT AGENT
`
`Z 820
`
`QUERY RUNS AGAINST INDEXOR AGENT SEARCHES
`THE ELECTRONIC coMMERCIAL ENVIRONMENT ...,
`
`Z 840
`
`Z 850
`
`HITS LSTED TO USER
`
`USER SELECTS A HIT OF INTEREST AND LOGS
`ON TO SERVER AND HOMEPAGE WHOSE
`INDEXED ITEMIS LOCATED, PREFERABLY BY A
`HYPERTEXT LINK OR SENDS AWAY INTELLIGENT
`AGENT AGAIN
`
`
`
`USER BROWSES HOMEPAGE FOR
`PRODUCT/SERVICE INFORMATION AND
`OPTIONALLY DOWNLOADS AN ORDER FORM OR
`WAITS THE AGENT TO RETURN WITH GOODS,
`SOFTWARE OR INFORMATION
`
`Figure 8
`
`IPR2020-00686
`Apple EX1017 Page 9
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 9 of 32
`
`5,850,442
`
`START
`
`
`
`USER DESIRING LISTING ON WHITE PAGES
`OR YELLOWPAGES SERVER SENDS
`REGUEST WITH APPROPRIATE INFORMATION
`(PUBLICLY KNOWN)
`
`USER DESRING TO OBTAIN INFORMATION
`ON PRODUCT OR OTHER USER SENDS
`REQUEST TO WHITE/YELLOWPAGES SERVER WITH
`GUERY INFORMATION AND RECEIVES LIST OF
`INDEX ENTRIES SATISFYING OUERY
`
`USER SELECTS HIT OF INTEREST AND LOGS ON
`TO SERVER AND HOMEPAGE LISTED IN INDEX,
`PREFERABLY USING HPERTEXT LINK OR SENDS
`AWAY INTELLIGENT AGENT
`
`USER BROWSES HOMEPAGE FOR PRODUCT/
`SERVICE INFORMATION AND OPTIONALLY
`DOWNLOADS AN ORDERFORM ORWAITS FOR
`THE AGENT TO RETURN WITH GOODS,
`SOFTWARE OR INFORMATION
`
`Figure 9
`
`IPR2020-00686
`Apple EX1017 Page 10
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 10 0f 32
`
`5,850,442
`
`START
`
`LOG ON TO DESRED HOMEPAGE SERVER
`
`Z 1000
`
`BROWSE TO EXTENT NEEDED TO SELECT A
`PRODUCTISERVICE TO ORDER
`
`Z 1010
`
`ACTIVATE ORDER INDICATION ON HOMEPAGE
`
`Z 1020
`
`RECEIVE ORDER FORM FROM HOMEPAGE SERVER
`
`FILL OUT ORDER FORM WITH
`NEEDED INFORMATION
`
`OPTIONALLY INCLUDE PAYMENT
`
`Z 1040
`
`Z 1050
`
`
`
`DIGITALLY SIGNORDER FORM, CREATE DIGITAL
`ENVELOPE AND SEND TO SERVER
`
`Figure 10
`
`IPR2020-00686
`Apple EX1017 Page 11
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 11 of 32
`
`5,850,442
`
`
`
`
`
`
`
`DISPLAYELECTRONIC CHECK FORM WITH
`BANK AND CHECK NUMBER FILLED IN
`
`FILL N AMOUNT AND PAYEE
`
`Z 120
`
`APPLY DIGITAL SIGNATURE
`AND DIGITAL ENVELOPE
`
`Z 1130
`
`TRANSFER TO PAYEES TOKEN OR COMPUTER
`
`STORE COPY IN ISSUED CHECKS AREA
`
`Z 150
`
`a
`
`Z-1160
`
`Figure 11
`
`IPR2020-00686
`Apple EX1017 Page 12
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 12 of 32
`
`5,850,442
`
`START |
`
`7-1200
`
`OPEN DOMAN CHECKING
`
`SELECT MAKE DEPOSIT
`
`RETRIEVE SELECTED CHECKS FROM
`RECEIVED CHECKS AREA OF DOMAIN
`
`Z 1215
`
`LIST CHECKS ONELECTRONIC DEPOST SLIP
`
`OPEN CASH DOMAIN IF DESRED
`
`RETRIEVE CASH FOR DEPOSIT, IF ANY,
`LIST ON DEPOSIT SLIP AND TOTAL
`
`APPLY DIGITAL SIGNATURE AND DIGITAL ENVELOPE
`
`"Z- 225
`
`Z 1230
`
`Z 235
`
`TRANSFER TO BANKS COMPUTER
`
`
`
`RECEIVE RECEPT AND STORE IN RECEPTS
`AREA OF CHECKING DOMAIN AND CREDT
`ACCOUNT BALANCE
`
`Z 1245
`
`Figure 12
`
`IPR2020-00686
`Apple EX1017 Page 13
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 13 of 32
`
`5,850,442
`
`CREDIT CARD
`CO.
`
`Z 1320
`
`
`
`
`
`
`
`PURCHASER
`(CARD HOLDER)
`
`z 1330
`
`TRANSACTIONS
`
`
`
`
`
`SELLER
`(MERCHANT)
`
`Figure 13
`
`IPR2020-00686
`Apple EX1017 Page 14
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 14 of 32
`
`5,850,442
`
`
`
`DOMAN NAME: CREDIT CARD
`
`ISSUERNAME AND ISSUER NUMBER:
`
`ACCOUNT NAME (optional):
`
`ACCOUNT NUMBER:
`
`CREDIT LIMIT
`
`ACCOUNT BALANCE:
`
`PURCHASES:
`
`PAYMENTS:
`
`CREDITS (RETURNS):
`
`RECEPTS:
`
`FUNCTIONS:
`CREDIT CARDMAIN
`MAKE CCPURCHASE
`MAKE CC PAYMENT
`RECEIVE_CCCREDIT
`
`Figure 14
`
`IPR2020-00686
`Apple EX1017 Page 15
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 15 0f 32
`
`5,850,442
`
`OPEN DOMAINCREDIT CARD
`
`17 1510
`
`DISPLAY CREDIT CARD FUNCTIONS:
`1. MAKE PURCHASE
`2. MAKE PAYMENT
`3. RECEIVE CREDIT
`
`( 7 - 1520
`
`SELECT FUNCTION
`
`1-7 1530
`
`
`
`
`
`
`
`CALL PROCESS FOR SELECTED FUNCTION
`
`to
`
`Z 550
`
`Figure 15
`
`IPR2020-00686
`Apple EX1017 Page 16
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 16 of 32
`
`5,850,442
`
`DISPLAY ELECTRONIC CHARGE SLIP WITH
`ISSUER AND ACCOUNT NAME/NUMBER FILLED IN
`
`FILL IN ELECTRONIC ID OF SELLER AND AMOUNT
`
`APPLY DIGITAL SIGNATURE
`
`
`
`TRANSFER ELECTRONIC CHARGE SLIP
`TO SELLERS COMPUTER OR BANKS COMPUTER
`
`-
`
`Z 1640
`
`STORE COPY IN PURCHASE AREA
`
`7 650
`
`STORE RECEPT IN RECEPT AREA
`
`1-7 1660
`
`INCREASE ACCOUNT BALANCE
`
`7 1670
`
`to
`
`Z 1680
`
`Figure 16
`
`IPR2020-00686
`Apple EX1017 Page 17
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 17 0f 32
`
`5,850,442
`
`OPEN CHECKING DOMAIN
`
`SELECT WRITE CHECK
`
`AUTOMATICALLY FILL IN ISSUER
`INFORMATIONAS PAYEE
`
`
`
`APPLY DIGITAL. SGNATURE
`
`Z 1740
`
`TRANSFER CHECK AND RETURN CREDITS
`TO ISSUER'S COMPUTER
`
`{ z 1750
`
`STORE COPY IN PAYMENTS AREA
`OF CREDIT CARD DOMAIN
`
`1 Z 1760
`
`CHARGE ACCOUNT BALANCE IN CHECKING
`AND CREDIT CARD DOMAINS
`
`1-7 1770
`
`Z
`
`780
`
`Figure 17
`
`IPR2020-00686
`Apple EX1017 Page 18
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 18 of 32
`
`5,850,442
`
`START
`
`Z 800
`
`TRANSFER COPY OF RECEPT TO SELLERS COMPUTER
`
`Z 1805
`
`CASH, CHECK OR
`
`Z - 1810
`
`Gcase) CREEif REFUND CHECK)
`CREDD
`
`
`
`OPEN CASH
`DOMAIN
`
`STORE CASH
`
`Z 1840
`
`RECEIVE A SIGNED
`CREDIT INVOICE
`FROM SELLER
`
`STORE IN
`RECEIVED
`
`
`
`RECEIVE A SIGNED MODIFIED RECEPT FROM SELLER
`COMPRISING A COPY OF ORIGINAL RECEPT WITH
`RETURN INFORMATION APPENDED
`
`STORE MODIFED RECEPT IN RECEPT AREA
`
`Z 1855
`
`MARK OLD RECEIPTAS NVALID IN RECEPT AREA
`
`f2-1860
`
`IPR2020-00686
`Apple EX1017 Page 19
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 19 of 32
`
`5,850,442
`
`
`
`DOMAN NAME: ELECTRONIC CASH
`
`1900 - Z. OWNERNAME (optional):
`
`CURRENT VALUE:
`
`ISSUERNAME AND ISSUER NUMBER:
`
`NATIONALITY:
`
`1910
`
`FACE AMOUNT
`
`AMOUNT REMAINING:
`
`ISSUERS SIGNATURE:
`
`HISTORY:
`
`AMOUNT
`
`TRANSFEREE
`
`DATE/TIME
`
`RECEPTS FOR CASH EXPENDED:
`
`1920
`
`(1 of N RECORDS)
`
`FUNCTIONS:
`GET CASH
`PAY CASH
`
`1930 - 7
`
`Figure 19
`
`IPR2020-00686
`Apple EX1017 Page 20
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 20 0f 32
`
`5,850,442
`
`OPEN CHECKING DOMAIN
`
`Z-2010
`
`FILL OUT ELECTRONIC WITHDRAWAL. SLIP
`
`Z - 2020
`
`ELECTRONICALLY SIGN WITHDRAWAL. SLP
`AND PREFERABLY ENCRYPT
`
`TRANSFER SIGNED WITHDRAWAL. SLIP TO BANK
`
`, oo
`
`BANKVALIDATES WITHDRAWA SLIP SIGNATURE
`
`BANK PREPARESELECTRONIC CASH CERTIFICATE,
`SIGNS IT ELECTRONICALLY, PREFERABLY
`ENCRYPTST AND TRANSFERS IT TO USER'S
`TOKEN OR TO USER'S COMPUTER
`
`
`
`
`
`17 2050
`
`- Z 2060
`
`USER STORES CERTIFICATE IN ELECTRONIC
`CASH DOMAIN (BLOCK 2810) AND UPDATES
`CURRENT VALUE
`
`-
`
`Y 2070
`
`to
`
`Z 2080
`
`Figure 20
`
`IPR2020-00686
`Apple EX1017 Page 21
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 21 of 32
`
`5,850,442
`
`
`
`
`
`PREPARE AREPLICA CERTIFICATE (BLOCK 2810 OF
`FIGURE 28) FORTRANSFER SUBSTITUTING THE
`AMOUNT TO BE PAID AS THE FACE AMOUNT AND
`OMITTING AMOUNT REMAINING FIELD
`
`ENTER AMOUNT, TRANSFEREE AND DATE/TIME
`INFORMATION IN HISTORY FELD AND IN
`RECEPTS FIELD
`
`RECEIVE RECEPT FROM PAYEE AND STORE IN
`RECEPTS FOR CASH EXPENDED BLOCK OF
`ELECTRONIC CASH DOMAIN
`
`-
`
`Z 2150
`
`Figure 21
`
`IPR2020-00686
`Apple EX1017 Page 22
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 22 of 32
`
`5,850,442
`
`START
`
`PREPARE OFFER
`
`Z-2200
`
`APPLY DIGITAL SIGNATURE TO OFFER AND
`SEND TO OFFEREE OR countEROFFEREE
`
`7-220
`
`OFFEREE OR
`COUNTEROFFEREE
`MAKES CHANGES
`TO OFFER
`
`
`
`Z 2250
`
`
`
`OFFEREE OR
`COUNTEROFFEREE
`APPLIES DIGITAL
`SIGNATURE
`
`CONTRACT RESULTS
`
`Z 2240
`
`Figure 22
`
`IPR2020-00686
`Apple EX1017 Page 23
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 23 of 32
`
`5,850,442
`
`
`
`
`
`
`
`
`
`
`
`
`
`START
`
`AUCTIONEER MAKES AVAILABLE IN ADVANCE
`A DIGITALLY SIGNED DESCRIPTION OF GOODS/Z-2300
`TERMS OF AUCTION (e.g. MINIMUM BID)
`
`OPEN BIDDING BY POSTING SOLICITATION
`OF BOS TO BBS OR CHAT ROOM
`(AUCTION FLOOR)
`
`BIDDER COMPOSES BID BY INCLUDING DE
`SCRIPTION OF GOODS/TERMS OF AUCTION |
`WITH BD AMOUNT TO DIGITALLY SIGNING
`
`z 2320
`
`BIDDER POSTS BID TO BBS OR CHAT ROOM
`
`BDS COMPARED
`HIGHEST BID POSTED TO BE3S
`OR CHAT ROOM
`
`AUCTIONEER POST CLOSE OF BIDDING
`PROCESS TIME TO BBS OR CHAT ROOM
`
`TIME
`GN) ExPRED
`
`7-260
`
`AUCTIONEER POSTS WINNING BID AND
`DIGITALLY SIGNS WINNING BID WITH
`DESCRIPTION/TERMS
`
`PAYMENT AND DELIVERY
`
`Z 23.80
`
`Figure 23
`
`IPR2020-00686
`Apple EX1017 Page 24
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 24 of 32
`
`5,850,442
`
`START
`
`OFFEROR, OFFEREE AND GUARANTOR NEGOTIATE tz
`TERMS OF CONTRACT AND TERMS OF GUARANTEE
`2400
`
`
`
`OFFEROR AND OFFEREE DIGITALLY SIGN CONTRACT
`SUBJECT TO A GUARENTEE AND FORWARD SIGNED
`CONTRACT TO GUARANTOR
`
`GUARANTOR APPLES DIGITAL SIGNATURE TO
`SIGNED CONTRACT INDICATING ACCEPTANCE
`OF TERMS OF GUARANTEE
`
`CONTRACT SIGNED BY GUARANTOR SENT
`TO OFFEROR AND OFFEREE
`
`( Z
`
`2430
`
`Figure 24
`
`IPR2020-00686
`Apple EX1017 Page 25
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 25 0f 32
`
`5,850,442
`
`CORPORATION
`Y
`
`
`
`
`
`
`
`REISSUED
`CERTIFICATE
`2540
`
`SURRENDER
`OF CERTFCATE
`FOR REISSUE
`25.30
`
`CERIFICATE
`
`
`
`
`
`ESCROW AGENT
`
`CASH OR
`EGUIVALENT
`2560
`
`CASH OFR
`EGUIVALENT
`2520
`
`
`
`REISSUED
`CERTIFICATE
`2550
`
`CASH
`OR
`EGUIVALEN
`2500
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`CERTIFICATE
`PLUS
`ASSIGNMENT
`251 O
`
`Figure 25
`
`IPR2020-00686
`Apple EX1017 Page 26
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 26 of 32
`
`5,850,442
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`TENDER
`OFFEROR
`
`CORPORATION
`
`
`
`STORE
`CERTIFICATE
`TO TENDER
`OFFER
`265
`
`STORE
`CERTIFICATE
`2660
`
`STORE
`CERTIFICATE
`2640
`
`TENDER
`OFFER
`261O
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`OFFER TO
`TENDER
`SHARES
`PER OFFER
`265
`
`OFFER
`TO TENDER
`
`
`
`
`
`
`
`
`
`Figure 26
`
`IPR2020-00686
`Apple EX1017 Page 27
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 27 Of 32
`
`5,850,442
`
`INDEXING
`SYSTEM
`
`Z 2730
`
`2730
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`BANK OR
`NSURANCE
`COMPANY
`(VENDOR)
`
`ENTER
`AUTHENTIC
`INFORMATION
`
`
`
`
`
`
`
`
`
`WORLD WIDE
`WEB TYPE
`COMMERCE
`SERVER
`
`
`
`ENTER
`AUTHENTC
`INFORMATION
`
`SMART TOKEN
`FOR DIGITAL
`SIGNATURE
`
`SMART TOKEN
`FOR DIGITAL
`SIGNATURE
`
`Figure 27
`
`IPR2020-00686
`Apple EX1017 Page 28
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 28 of 32
`
`5,850,442
`
`START
`
`VENDOR LOGS ON TO WORLD WIDE WEB SERVER
`
`< z
`
`soo
`
`
`
`VENDOR LOGS ON TO HTML EDIT SUBSYSTEM
`USING SMART CARD AND STRONG
`AUTHENTICATION PROTOCOL.
`
`VENDOR OPTIONALLY DIGITALLY SIGNS OFFERS
`AND SIGNATURE IS WALIDATED USING
`CERTIFICATE(S) TO COMMON POINT OF TRUST
`
`VENDOR LOGS OFF
`
`Z-2840
`
`Figure 28
`
`IPR2020-00686
`Apple EX1017 Page 29
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 29 of 32
`
`5,850,442
`
`SERVER
`
`INDEXING
`SYSTEM
`
`
`
`DESIRED
`INFORMATION
`AND
`ORDER FORM
`(4)
`
`SEARCH
`(1)
`
`
`
`
`
`
`
`LOCATIONS OF
`INFORMATION
`(2)
`
`
`
`
`
`
`
`LOGON
`AND
`QUERY
`
`
`
`
`
`
`
`
`
`INTELLIGENT
`AGENT
`
`
`
`
`
`
`
`ELECTRONIC
`COMMERCE
`SYSTEM
`
`Figure 29
`
`IPR2020-00686
`Apple EX1017 Page 30
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 30 of 32
`
`5,850,442
`
`INSURANCE
`COMPANY
`
`
`
`
`
`
`
`WWW
`SERVER
`
`SEND SIGNED
`ORDER FORM
`(OFFER) AND
`OPTIONAL
`PAYMENT
`(2)
`
`
`
`SIGNED
`ACCEPTANCE
`AND PRODUCT
`(3)
`
`
`
`ORDER FORM
`GO
`
`Figure 30
`
`IPR2020-00686
`Apple EX1017 Page 31
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 31 of 32
`
`5,850,442
`
`START
`
`DOWNLOAD ORDER FORM FROM WWW SERVER OPTIONALLY
`INCLUDING OFFER TERMS AND CONDITIONS
`
`Z 3100
`
`FILL OUT ORDER FORMAND DIGITALLY SIGN
`
`Z 3110
`
`SEND SIGNED ORDER FORM TO VENDOR AND OPTIONAL PAYMENT (Z. 3120
`
`VENDOR AUTHENTICATES SIGNATURE ON ORDER AND
`OPTIONALLY ACCEPTS PAYMENT
`
`Z-330
`
`VENDOR SIGNS ACCEPTANCE OR INSURANCE POLICY AND SENDS
`SIGNED POLICY TO USER OR OTHER INTERESTED PARTIES OR BOTH
`
`– 7
`
`Figure 31
`
`IPR2020-00686
`Apple EX1017 Page 32
`
`

`

`U.S. Patent
`
`Dec. 15, 1998
`
`Sheet 32 of 32
`
`5,850,442
`
`3210
`
`
`
`
`
`
`
`VENDOR BUSINESS
`APPLICATIONS
`
`Z 3230
`
`VENDOR INTERFACE TO
`ELECTRONIC COMMERCE
`
`
`
`CERTIFICATE
`OF NSURANCE
`
`ORDER - 7 3240
`
`Z 3250
`
`Figure 32
`
`IPR2020-00686
`Apple EX1017 Page 33
`
`

`

`1
`SECURE WORLD WIDE ELECTRONIC
`COMMERCE OVER AN OPEN NETWORK
`
`This application is related to U.S. application Ser. No.
`08/573,025, filed Dec. 15, 1995 in the name of the same 5
`inventor and entitled SECURITY INFRASTRUCTURE
`FOR ELECTRONIC TRANSACTIONS (hereinafter Infra
`Structure application) which is incorporated herein by ref
`erence in its entirety.
`This application is also related to U.S. application Ser. 10
`No. 08/573,033, filed Dec. 15, 1995 in the name of the same
`inventor and entitled SMART TOKEN SYSTEM FOR
`SECURE ELECTRONIC TRANSACTIONS AND IDEN
`TIFICATION (hereinafter Smart Token application) which
`is incorporated herein by reference in its entirety.
`
`15
`
`TECHNICAL FIELD
`
`25
`
`This invention is directed to the field of communication
`Systems and more particularly to communication Systems
`which utilizes Smart tokens, such Smart cards or PCMCIA
`cards, and a public key infrastructure for enabling Secure
`electronic transactions to occur over an open network.
`BACKGROUND ART
`Encryption of information is normally undertaken to
`ensure privacy, that is, So that no one other than the intended
`recipient can decrypt the information. Encryption is also
`undertaken to ensure the authenticity of the information, that
`is, that a message which purports to originate with a par- so
`ticular Source actually does So and has not been tampered
`with.
`“Encrypting a message means to Scramble it in a way
`which renders it unreadable to anyone except the intended
`recipient. In one form, a cryptographic "key' is utilized to 35
`encrypt the message and the same key is required to trans
`form it from encrypted form back to plain text by decrypting
`it. An encryption System which operates in this way is
`known as a “single-key encryption System. In Such a
`System, the key must be available to both the Sender and the 40
`receiver. If unauthorized perSons have access to the key, then
`they can decrypt the encoded message and the object of
`privacy is defeated. The most obvious drawback of Single
`key encryption Systems is that it is not often convenient to
`provide the Sender and the receiver with the same key, Since 45
`they may be located far apart. A key can be transmitted
`acroSS a Secure channel from the Sender to the receiver, but
`if a Secure channel is available, there is no need for encryp
`tion.
`In a public key cryptographic System each participant has 50
`two related keys. A public key which is publicly available
`and a related private key which is not. The public and private
`keys are duals of each other in the Sense that material
`encrypted with the public key can only be decrypted using
`the private key. Material encrypted with the private key, on 55
`the other hand, can be decrypted only using the public key.
`The keys utilized in public key cryptographic Systems are
`Such that knowledge of the public key does not help deduce
`the corresponding private key. The public key can be pub
`lished and widely disseminated acroSS a communications 60
`network or otherwise and material can be sent in privacy to
`a recipient by encoding the material with the recipient's
`public key. Only the recipient can decrypt material
`encrypted with the recipient's public key. Not even the
`originator who does the encryption using the recipient's 65
`public key is able to decrypt that which he himself has
`encrypted.
`
`5,850,442
`
`2
`Sender's authentication can also be achieved utilizing
`cryptographic Systems. In a Single key System, a Sender, by
`encrypting a message with a key known only to authorized
`perSons, tells the recipient that the message came from an
`authorized Source.
`In a public key cryptographic System, if the Sender
`encrypts information using the Sender's Secret key, all recipi
`ents will be able to decipher the information using the
`sender's public key, which is available to all. The recipients
`can be assured that the information originated with the
`Sender, because the public key will only decrypt material
`encoded with the Sender's private key. Since, presumably,
`only the Sender has the private key, the Sender cannot later
`disavow that he sent the information.
`The use of encryption techniques provides a basis for
`creating electronic Signatures to documents which are even
`leSS Subject to forgery than handwritten Signatures. There are
`two ways in which encryption can be utilized to “sign' a
`document. The first method is by encrypting the entire
`document using the Signer's private key. The document can
`be read by anyone with the signer's public key and, Since the
`signer alone possesses his private key, the encrypted docu
`ment Surely originated with the Signer. Encryption of large
`documents requires considerable computational resources
`and, to speed up the process, a message digest may be used.
`A message digest of the document is analogous to a cyclic
`redundancy code (CRC) checksum attached to the end of a
`packet. The information in the body of the packet is pro
`cessed mathematically to produce a unique check Sum which
`is appended to the end of the packet. The integrity of the
`body of the packet is checked at the receiving end by
`recalculating the check Sum based on the received text and
`Seeing if it matches the check Sum appended to the packet.
`If it does, one assumes that the contents of the body of
`packet is unchanged from that present at the Sending end.
`The same can be done with entire documents.
`In modern implementations, a message digest is created
`using a cryptographically Strong one way hash function
`based on the message text and the message digest operates
`like a CRC check Sum.
`A clear text document may be signed by creating the
`message digest and then by encrypting the message digest
`using the signer's private key. Authentication that the con
`tent of the document has not been changed is achieved by
`computing the message digest of the received text and
`comparing it with the message digest decrypted using the
`signer's public key. If they agree, one may have a high
`degree of confidence that the document has been unchanged
`from the time it was signed, until the present and further, that
`that which the Sender “signed’ was the same document.
`Public key encryption software is widely available. For
`example, Pretty GoodTM Privacy public key encryption
`Software is available for non-commercial use over the Inter
`net in a form published by Phillip Zimmerman. One version,
`is PGP version 2.6.2 of Oct. 11, 1994. It is available from the
`Massachusetts Institute of Technology at net-dis.mit.adu, a
`controlled FTP site that has restrictions and limitations to
`comply with export control requirements. Software resides
`in the directory /pub/PGP. A fully licensed version of PGP
`for commercial use in the U.S.A. and Canada is available
`through ViaCrypt in Phoenix, Ariz.
`Some public key encryption Systems utilize a Single key
`encryption of the body of the text with the key changing
`from Session to Session. The Session key is encrypted
`utilizing the recipient's public key So that the encryption and
`decryption times are shorter.
`
`IPR2020-00686
`Apple EX1017 Page 34
`
`

`

`5,850,442
`
`15
`
`25
`
`35
`
`40
`
`3
`The Federal Data Encryption Standard (DES) is one
`available form of Single key encryption System.
`No data Security System is impenetrable. In any data
`Security System, one must question whether the information
`protected is more valuable to an attacker than the cost of the
`attack. Public key encryption Systems are most Vulnerable if
`the public keys are tampered with.
`An example will illustrate the problem. Suppose an origi
`nator wishes to Send a private message to a recipient. The
`originator could download the recipient's public key certifi
`cate from an electronic bulletin board System and then
`encrypt the letter to the recipient with that public key and
`Send it to him over an E-mail facility Such as Internet.
`Unfortunately, an interloper could generate a public key of
`his own with the recipient's user ID attached to it and
`Substitute the phony public key in place of the recipient's
`real public key. If the originator unwittingly uses a phony
`key belonging to the interloper instead of to the intended
`recipient, everything would look normal because the phony
`key has the recipient's user ID. Now the interloper is in a
`position to decipher the message intended for the recipient
`because the interloper has the related private key. The
`interloper may even go So far as to reencrypt the deciphered
`message with the recipient's real public key and Send it on
`to the recipient So that no one Suspects any wrongdoing.
`Worse yet, the interloper can make apparently good Signa
`tures on behalf of the recipient using the private key because
`everyone will believe the phony public key is authentic and
`will utilize it to check the recipient's Signatures.
`To prevent this from happening, requires preventing
`Someone from tampering with public keys. If one obtained
`the recipient's public key directly from the recipient, there
`is no doubt about the authenticity of the public key.
`However, where the public key is acquired from a Source of
`uncertain reliability, there may still be a problem. One way
`to obtain the recipient's public key would be to obtain it
`from a trusted third party who knows he has a good copy of
`the recipient's public key. A trusted third party could sign the
`recipient's public key, utilizing the trusted third party's
`private key, thus Vouching for the integrity of the recipient's
`public key. However, to be sure that the third party's public
`key is authentic, requires that the Sender have a known good
`copy of the third party's public key with which to check his
`Signature. A widely trusted third party could specialize in
`providing a Service of Vouching for the public keys of other
`parties. This trusted third party could be regarded as a key
`Server or as a certifying authority. Any public key certificates
`bearing the certifying authority's Signature would be trusted
`as truly belonging to whom they appear to belong to. Users
`who desire to participate would need a known good copy of
`the certifying authority's public key So that the certifying
`authority's Signatures could be verified.
`Public key encryption Systems are also Subject to a
`Vulnerability involving the use of bogus time Stamps. A user
`may alter the date and time Setting of the user's Systems
`clock and generate either public key certificates or Signa
`tures that appear to have been created at a different time. He
`can make it appear that a document was signed earlier or
`later than it was actually signed or that the public's Secret
`key pair was created earlier or later. This may have Some
`type of benefit, for example, by creating circumstances
`which might allow him to repudiate a signature. In Situations
`where it is critical that a Signature have the actual correct
`date and time, an electronic equivalent of a notary can be
`utilized. An electronic notary would apply the notary's
`electronic Signature to other people's electronic Signatures,
`thus witnessing the date and time of the signed document. A
`
`45
`
`50
`
`55
`
`60
`
`65
`
`4
`notary could actually maintain a log of detached Signature
`certificates and make it available for public access. The
`notary's signature would have a trusted time Stamp which
`might carry more credibility than a time Stamp on the
`original Signature alone.
`In most open network architectures, Security is an ad hoc
`thing. Individual Stations having access to the network may
`or may not choose to utilize encryption in their transmis
`Sions. If they do So, they alone are responsible for ensuring
`that they have properly authentic keys of the person with
`whom they are communicating. Some efforts have been
`made to Standardize Security procedures for Such a network.
`For example, the current State of the development for Secure
`systems across the Internet is found in the Network Working
`Group Request For Comments No. 1421, dated February
`1993 (RFC 1421). This document addresses proposals for
`privacy enhancement for Internet electronic mail, namely,
`message encryption and authentication procedures. That
`document is incorporated in its entirety by reference into this
`application.
`A second proposal, Network Working Group Request For
`Comments No. 1422, also dated February 1993, addresses
`privacy enhancement for Internet electronic mail and par
`ticularly addresses certificate-based key management. This
`document is also incorporated by reference into this appli
`cation in its entirety.
`These proposals incorporate concepts utilized in the
`X.400 Message Handling System model of CCITT Recom
`mendation X.400, the directory system Recommendation
`X.500 and the CCITT 1988 Recommendation X.509
`directed to an authentication framework.
`AS advances in technology permit continued increases in
`the degree of miniaturization of electronic components,
`Smart cards have been developed which include a processor
`and/or memory built into a transport medium the size of a
`typical credit card. The processors in these cards can be
`programmed like any other computer to perform desired
`functions. Smart card readers are known which permit one
`to both read the contents of a Smart card, but also to interact
`with the Smart card to change its contents and to accomplish
`cooperative functions which can range from the Simple to
`the Sophisticated.
`A number of applications of Smart card technology have
`been proposed. However, only relatively few have been
`actually implemented and those that have, have been limited
`mainly to a single Subject matter domain.
`Automatic teller machine banking is well known in the art
`by which one accesses a bank account through the use of a
`bank card or a credit card and a personal identification
`number (PIN). Many account functions can be performed
`using ATMs; however, many cannot. Further, there is
`inconvenience associated with physically travelling to a
`nearby ATM machine in order to obtain banking services.
`Some banks provide on-line access to Some account
`information, which might be accessible from a user's per
`Sonal computer, but these Systems do not permit many
`important and desirable account functions, Such as cash
`withdrawals.
`Credit cards are also well known in the art. A credit card
`issuer provides a line of credit to a card holder, typically, and
`the card holder draws on that line of credit to make pur
`chases from merchants who accept the card. The merchants
`can obtain cash value from the credit card issuer almost
`immediately at the cost of a Service fee or percentage.
`There have been proposals for the creation and use of
`electronic money. However, wide spread usage of the pro
`
`IPR2020-00686
`Apple EX1017 Page 35
`
`

`

`5,850,442
`
`15
`
`25
`
`35
`
`40
`
`S
`posals has not been achieved, perhaps because of the com
`plexities associated with utilizing the technology and
`because of the capital investment required to equip com
`mercial establishments with terminals which can accept and
`process electronic money.
`One of the problems with the prior art proposals is that
`they are directed only to Internet mail and do not cover a
`variety of the other types of services which might be
`performed over an open network. Specifically, they do not
`address secure transactions utilizing HTTP (Hypertext
`Transfer Protocol) and they do not address program-to
`program communications.
`Another problem with the prior art identified above is that
`for the most part these represent recommendations and
`proposals and do not represent actual implementations of
`Systems for carrying out Secure transactions.
`Another problem with the prior art is that there is n