Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 1 of 28
`
`Exhibit E
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 2 of 28
`cese 2tov-0272-A08 DocuA
`
`US011328286B2
`
`a2) United States Patent
`US 11,328,286 B2
`(0) Patent No.:
`May10, 2022
`(45) Date of Patent:
`Wyatt
`
`(54) MULTI-FUNCTION ELECTRONIC PAYMENT
`CARD AND DEVICE SYSTEM
`
`(71) Applicant: CARDWARE, INC, San Jose, CA (US)
`
`(72)
`
`Inventor: David Wyatt, San Jose, CA (US)
`
`(73) Assignee: CARDWARE, INC., San Jose, CA
`(US)
`
`(58) Field of Classification Search
`CPC .... G06Q 20/341; G06Q 20/06; GO6Q 20/065;
`G06Q 20/223; GO6Q 20/24;
`(Continued)
`
`(56)
`
`References Cited
`U.S. PATENT DOCUMENTS
`
`5,276,311 A
`6,000,832 A
`
`1/1994 Hennige
`12/1999 Franklin et al.
`
`(*) Notice:
`
`(Continued)
`
`FOREIGN PATENT DOCUMENTS
`
`Subject to any disclaimer, the term ofthis
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 0 days.
`WO 2012154915 Al—11/2012
`(21) Appl. No.: 16/854,829
`
`
`
`Primary Examiner — Seung H Lee
`
`(22)
`
`Filed:
`
`Apr. 21, 2020
`
`(65)
`
`Prior Publication Data
`
`US 2021/0027276 Al
`
`Jan. 28, 2021
`
`Related U.S. Application Data
`
`(63) Continuation of application No. 16/025,829, filed on
`Jul. 2, 2018, now Pat. No. 10,628,820, which is a
`(Continued)
`
`(51)
`
`Int. Cl.
`G06Q 20/34
`GO7F 19/00
`
`(2012.01)
`(2006.01)
`(Continued)
`
`(52) U.S. Cl
`CPC..... G06Q 20/341 (2013.01); GO6K 19/06206
`(2013.01); GO6K 19/0716 (2013.01):
`(Continued)
`
`
`ABSTRACT
`(57)
`Embodiments include multi-function electronic payment
`card and device systems capable of generating a pro-
`grammed magnetic field of alternating polarity based on a
`speed of a card swipe, and methods for constructing the
`device for the purpose of emulating a standard credit card.
`An apparatus is described to allow the device to emulate
`behavior of a credit card when usedin electronic credit card
`readers. Additionally methods are described to allow user
`control of the device for the purpose of authorizing or
`controlling use of the device in the application of credit,
`debit and cash transactions, including cryptocurrency and
`card-to-card transactions. Methods are also described for
`
`generating a limited-duration credit card number whenper-
`forming a transaction for the purpose of creating a limited-
`use credit card number, which is limited in scope of use to
`a predetermined numberof authorized transactions. Further-
`more the device may interact with other similar devices in
`proximity for the purpose of funds or credit/debit transfers.
`
`27 Claims, 13 Drawing Sheets
`
`
`See
`
`eispiny a pluredity of aocounis stared by s raamary momprsedby
`8 credcand devices
`
` | s
`
`recelves an indication af 2
`election of an account from the
`phuiraity of acosiurits
`
`
`2a3
`
`
`
`
`
`
`|
`Curationcredit mumber associes nd device
`
`
`
`mat ofthe credk
`
`
`Auwith ths
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 3 of 28
`Case 7:24-cv-00279-ADA Documenti1-5-
`Filed 11/04/24
`Page 3of 28
`
`US 11,328,286 B2
`
`Page 2
`
`Related U.S. Application Data
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`
`continuation of application No. 15/250,698, filed on
`Aug. 29, 2016, now Pat. No. 10,013,693, which is a
`continuation of application No. 14/680,946,filed on Ne BS ee Rast
`'
`ca:
`4922,
`uscato
`Apr. 7, 2015, now Pat. No. 9,430,765, which is a
`8.517.276 B2
`8/2013 Mullen et al.
`continuation of application No. 14/217,261, filed on
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`10/2013 Rose etal.
`Mar. 17, 2014, now Pat. No. 9,022,286.
`8,628,012 Bl
`1/2014 Wallner
`8,671,055 B2
`3/2014 Spodak et al.
`8,690,055 B2
`4/2014 Andersonetal.
`8,690,059 Bl
`4/2014 Wallner
`8788-418 B2
`7/2014 Spodak et al.
`8.814.046 BL
`8/2014 Wallner
`8,827,153 Bl
`9/2014 Rhoadesetal.
`8,851,370 B2
`10/2014 DiMuro
`8,870,081 B2
`10/2014 Olsonetal.
`Int. Cl.
`9,022,285 B2
`$/2015 Graylin
`9,105,020 B2
`8/2015 Roncaetal.
`G06Q 20/06
`9,123,036 B2
`9/2015. Graylinetal.
`G06Q 20/22
`9,129,270 B2
`9/2015 Spodak
`G06Q0 20/38
`9,177,241 B2
`11/2015 Spodak et al.
`GO7F 7/08
`9,195,926 B2
`11/2015 Spodak
`9,218,557 B2
`12/2015 Spodak et al.
`G06K 19/06
`9,286,561 B2
`3/2016 Olson et al.
`G06K 19/07
`9,406,011 B2
`8/2016 Bartenstein et al.
`GO06K 19/077
`9,412,105 B2
`8/2016 Graylin et al.
`G06Q 20/24
`9,547,816 B2
`1/2017 Mullen etal.
`9,646,301 B2
`5/2017 DiMuro
`G06Q 20/40
`9,734,345 B2
`8/2017 Spodak et al.
`(52) U.S. Cl.
`9,818,104 Bl
`11/2017 Katzeret al.
`.
`9'864.994 B2
`1/2018 Huanget al.
`CPC ....... GO06K 19/07749 (2013.01); G06Q 20/06
`10,032,100 B2
`7/2018 Mullenetal.
`(2013.01); GO6Q 20/065 (2013.01); G06Q
`10,037,524 B2
`7/2018 _Royyuru et al.
`20/223 (2013.01); GO6Q 20/24 (2013.01);
`loosecas Bo
`5en wa ‘ at
`G06Q 20/346 (2013.01); GO6Q 20/347
`255,
`ullen et al.
`.
`.
`11,100,431 B2
`8/2021 Mullen et al.
`(2013.01); G06Q 20/352 (2013.01); G06Q
`2002/0073045 Al
`6/2002 Rubin etal.
`20/385 (2013.01); G06Q 20/3827 (2013.01);
`2002/0153424 Al
`10/2002 Li
`G06O0 20/409 (2013.01); G06Q 20/4012
`2003/0195842 Al
`10/2003 Reece
`.
`.
`5008/0222047 Al
`9/2008 Boalt
`(2013.01); GO7F 7/0873 (2013.01); GO7F
`2009/0048971 Al
`2/2009 Hathawayetal.
`19/00 (2013.01)
`(58) Field of Classification Search 2011/0276416 Al=11/2011 Mullen et al.
`
`
`CPC..GO6Q 20/346: G06Q 20/347: G06Q 20/352: 2013/0159186 Al* 6/2013 Brudnicki........... HO4W 12/068
`
`.
`5
`3
`3
`705/44
`G06Q 20/3827; G06Q 20/385; G06Q
`2014/0164154 A1*
`6/2014 Ramaci veces GOTF 7/0893
`20/4012; GO6Q 20/409; GO6K 19/06206;
`705/16
`GO6K. 19/0716; GO6K 19/07749; GO7F
`7/0873: GOTE 19/00
`See application file for complete search history.
`
`sat
`oe
`(60) Provisional application No. 61/794,891, filed on Mar.
`15, 2013.
`
`(51)
`
`(2012.01)
`(2012.01)
`(2012.01)
`(2006.01)
`(2006.01)
`(2006.01)
`(2006.01)
`(2012.01)
`(2012.01)
`
`2015/0317632 Al
`2016/0125417 Al
`* cited by examiner
`
`11/2015 Parket al.
`5/2016 Huangetal.
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 4 of 28
`Case 7:24-cv-00279-ADA Documenti1-5
`Filed 11/04/24
`Page 4of 28
`
`U.S. Patent
`
`May10, 2022
`
`Sheet 1 of 13
`
`US 11,328,286 B2
`
`
`
`220
`
`Fig. 1
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 5 of 28
`Case 7:24-cv-00279-ADA Documenti-5
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`
`U.S. Patent
`
`May10, 2022
`
`Sheet 2 of 13
`
`US 11,328,286 B2
`
`Disploy
`
`Sears:
`
`ternary (i
`
`her ES
`cnSOS
`
`Brancaaor
`
`Power
`Sots
`
`Posrer
`
`interticcs
`
`ric. 2B
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 6 of 28
`
`Case 7:24-cv-00279-ADA Documenti1-5 Page6of 28Filed 11/04/24
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`
`U.S. Patent
`
`May10, 2022
`
`Sheet 3 of 13
`
`US 11,328,286 B2
`
`BsSins
`feees eae
`
`display @ muraily of aconunts shored by a memory comprised by
`a credit card device
`
`Cee
`eek
`
`duration creachi nurnber assonigted wih the selected sccoount
`
`FACeVean indication of a selectionof an aonount from the
`plurality of accounts
`
`configure the cradiH card deviceto perform a iransaction
`according to user data associated withihe selected account
`
`encode & planar col of the credit card davics with a irited-
`
`FIG. 2C
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 7 of 28
`Case 7:24-cv-00279-ADA Documenti1-5
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`
`U.S. Patent
`
`May10, 2022
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`Sheet 4 of 13
`
`US 11,328,286 B2
`
`
`te a
`a .
`“ea standard magnetic canis_
`eo
`reader detected to be in
`wa,
`voreee oo
`proxprety':
`,
`
`
`
`“s
`a
`we
`
`NO Detect a movernent rate at which the body of the credit card
`
`device is moving relative to the standard magnetic card reader
`
`Generate a magnetic feld vie an inductor assembly comprised by
`ihe credit card devine, tha magnetic field having atarget rate of
`alternating polarity, wherein the targetrate of altematingpolarity
`is basedon the detected movernernt rate
`
`a
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 8 of 28
`
`Case 7:24-cv-00279-ADA Documenti1-5 Page8of 28Filed 11/04/24
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`
`U.S. Patent
`
`May10, 2022
`
`Sheet 5 of 13
`
`US 11,328,286 B2
`
`
`
`FIG. 4A
`
`
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 9 of 28
`Case 7:24-cv-00279-ADA Documenti1-5
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`Page 9of 28
`
`U.S. Patent
`
`May10, 2022
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`Sheet 6 of 13
`
`US 11,328,286 B2
`
`
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 10 of 28
`Case 7:24-cv-00279-ADA Document1-5
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`U.S. Patent
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`May10, 2022
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`Sheet 7 of 13
`
`US 11,328,286 B2
`
`at oeae
`
`receivean indication of an amouni of currencyfor a iransaction
`
`receive aninput signal at a credit card devicefrom a user
`enabling operation of a near-field communication (INFC) unit of
`the credit card device
`
`card device to a recipient ofthe transaction
`
`Generate, at ine credit card devices, an linuted-duration credit card
`number
`
`transmii the limited-duration credit card number framthe cradit
`
`Fig. 7
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 11 of 28
`Page 11 of 28
`Filed 11/04/24
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`U.S. Patent
`
`May10, 2022
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`Sheet 8 of 13
`
`US 11,328,286 B2
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`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 12 of 28
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`Filed 11/04/24
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`May10, 2022
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`Sheet 9 of 13
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`US 11,328,286 B2
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`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 13 of 28
`Page 13 of 28
`Filed 11/04/24
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`U.S. Patent
`
`May10, 2022
`
`Sheet 10 of 13
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`US 11,328,286 B2
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`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 14 of 28
`Page 14 of 28
`Filed 11/04/24
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`U.S. Patent
`
`May10, 2022
`
`Sheet 11 of 13
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`US 11,328,286 B2
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`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 15 of 28
`Case 7:24-cv-00279-ADA Document1-5
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`Page 15 of 28
`
`U.S. Patent
`
`May10, 2022
`
`Sheet 12 of 13
`
`US 11,328,286 B2
`
`Card Device with no Fixed
`PaymentInformation
`_-~--Smart Card Reader
`ny
`
`Front View jog,
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`Payment Network Logo
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`Contacts
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`Numbers
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`Back View
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`No Fixed Payment
`
`Numbers
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`_
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`Magnetic strip
`Card reader
`compatible
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`Optional NFC
`logo
`
`Smart Card readerfacility: Static and
`Dynamically-generated limited-use
`numbers
`
`/Magnetic strip readerfacility:
`limited-use information
`
`Edge/Side View
`
`Cryptographic Processor,
`Memory, Sequential
`Counter Unit
`
`oN
`
`\
`Optional NFC reader
`interface
`
`Fig 11
`
`

`

`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 16 of 28
`Page 16 of 28
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`Case 7:24-cv-00279-ADA Document 1-5
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`Case 7:24-cv-00279-ADA Document 1-5 Filed 11/04/24 Page 17 of 28
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`Case 7:24-cv-00279-ADA Document 1-5
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`US 11,328,286 B2
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`1
`MULTI-FUNCTION ELECTRONIC PAYMENT
`CARD AND DEVICE SYSTEM
`
`RELATED APPLICATIONS
`
`This is a Continuation application of commonly-owned
`USS. patent application Ser. No. 16/025,829, now USS. Pat.
`No. 10,628,820, filed Jul. 2, 2018, which in turn was a
`Continuation application of commonly-owned U.S. patent
`application Ser. No. 15/250,698, now U.S. Pat. No. 10,013,
`693, filed Aug. 29, 2016, which in tur was a continuation
`of U.S. patent application Ser. No. 14/680,946, now U.S.
`Pat. No.
`9,430,765
`entitled “MULTI-FUNCTIONAL
`CREDIT CARD TYPE PORTABLE ELECTRONIC
`
`DEVICE,”filed Apr. 7, 2015 to inventor David Wyatt, which
`is itself a continuation of U.S. patent application Ser. No.
`14/217,261, now U.S. Pat. No. 9,022,286, similarly entitled
`“MULTI-FUNCTIONAL CREDIT CARD TYPE POR-
`
`TABLE ELECTRONIC DEVICE,”filed Mar. 17, 2014 by
`the same inventor David Wyatt, and claims the benefit of
`U.S. Provisional Patent No. 61/794,891 entitled “Multi-
`Functional Credit Card Device,” filed Mar. 15, 2013 to
`inventor David Wyatt. The benefit of the earlier filing dates
`is hereby claimed andthe contents of theearlier filed related
`applications are further incorporated by reference in their
`entirety.
`
`FIELD OF THE INVENTION
`
`Embodiments according to the present disclosure gener-
`ally relate to electronic or smart multi-function electronic
`devices and, more specifically, to more secure, smart multi-
`function electronic payment card and device systems and
`transaction processing thereof.
`
`BACKGROUND OF THE INVENTION
`
`There are several different types of credit cards available
`in the marketplace at present. A first type of credit card is a
`conventional, standardpiece of plastic with a magneticstrip,
`whichis readily available and in wide commercial use. The
`advantage of this first type of credit card is that a large
`portion of the infrastructure for credit card transactions is
`built around this type of card, and consequently such a card
`works in a wide array of vendors’ credit card machines,
`automated teller machines (ATMs), and other devices that
`support the present credit card and banking infrastructure.
`Another type of credit card device employs the use of a
`smart integrated circuit chip. These types of credit cards
`have a built in microprocessor with cryptographic capabili-
`ties. These microprocessors operate in a similar mannerto a
`cell phone having a chip comprising a cryptographic pro-
`cessor. Such a smart card device requires contact with a
`reader in order to be read and to perform a transaction. The
`reader provides the mannerin whicha facility interacts with
`the built-in processor on the card, e.g., for purposes of
`performingverification on the authenticity of the card or for
`making a direct deposit on the card. These credit card
`devices also comprise a magnetic strip such that they are
`compatible with standard plastic credit card readers in wide
`use.
`
`type of credit card device in circulation
`A different
`employs radio frequency identification (‘RFID’). These
`cards essentially have a low-power RF antennabuilt into the
`card, and when the cardholder passes the antenna in front of
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`a reader comprising an RF field, enough poweris generated
`to enable the processor to interact wirelessly with the
`receiving device.
`A concern with each of these types of credit cards
`presently available in the marketplace is that they can all be,
`in various ways, susceptible to theft and/or compromise.
`Therefore, these types of credit cards have security limita-
`tions. Further, cards employing smart
`integrated circuit
`chips and RF technology are not in wide use at present
`because they are incompatible with existing credit card
`infrastructure, which still predominantly supports conven-
`tional plastic credit cards.
`
`SUMMARY OF THE INVENTION
`
`This Summary is provided to introduce a selection of
`concepts in a simplified form that are further described
`below in the Detailed Description. This Summary is not
`intended to identify key features or essential features of the
`claimed subject matter, nor is it intended to be used to limit
`the scope of the claimed subject matter.
`An embodiment
`includes a multi-function electronic
`device capable of generating a programmed magnetic field
`of alternating polarity based on a speed of a card swipe, and
`methods for constructing the device for the purpose of
`emulating a standard credit card. An apparatus is described
`to allow said device to emulate behavior of a credit card
`when used in electronic credit card readers. Additionally
`methods are described to allow user control of said device
`for the purpose of authorizing or controlling use of said
`device in the application of credit, debit and cash transac-
`tions,
`including cryptocurrency and card-to-card transac-
`tions. Methods are also described for generating a limited-
`duration credit card number when performing a transaction
`for the purpose of creating a limited-use credit card number,
`whichis limited in scope of use to a predetermined number
`of authorized transactions. Furthermore said device may
`interact with other similar devices in proximity for the
`purpose of funds or credit/debit transfers.
`More specifically, an aspect of the present disclosure
`provides an apparatus comprising: a thin card shaped sized
`body; a memory operative to store a plurality of identifica-
`tion data; a processor coupled to the memory; a user
`interface for selecting a select identification data of said
`plurality of identification data; a magnetic card reader detec-
`tion unit for determining if the body is adjacent to a standard
`magnetic card reader; and an inductor assembly coupled to
`the processor and integrated into the body,
`the inductor
`assembly under processor control for generating a magnetic
`field of alternating polarity responsive to the body being
`detected as adjacent to a standard magnetic card reader, the
`magnetic field generated in a region substantially encom-
`passing the standard magnetic card reader, wherein the
`magnetic field encodes said select identification data, and
`wherein the magnetic field is operable to be read by a
`magnetic read head of the standard magnetic card reader.
`According to another aspect of the present disclosure, a
`multi-function electronic device comprises: a near-field
`communication (NFC) unit; a touch sensorarray; a display;
`a motion rate detection array; a memory, storing a user data
`and a currency amount; and a processor operatively coupled
`to the NFC unit, the touch sensor array, the display, the
`motion rate detection array, and the memory; and wherein
`the processor initiates a card-to-card transaction between
`two multi-function electronic devices by a detected prox-
`imity of a first multi-function electronic device and a second
`multi-function electronic device and an input of information
`
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`3
`by a first user via said touch sensor array, and wherein the
`card-to-card transaction comprises an exchange of stored
`currency andsaid user data between the first multi-function
`electronic device and the second multi-function electronic
`device via the NFC unit.
`
`According to yet another aspect of the present disclosure,
`a method of performing a transaction comprises: receiving
`an input signal at a multi-function electronic device from a
`user enabling operation of a near-field communication
`(NFC)unit of the multi-function electronic device; receiving
`an indication of an amount of currency for a transaction;
`generating at said multi-function electronic device a limited-
`duration credit card number; and transmitting said limited-
`duration credit card number from said multi-function elec-
`
`tronic device to a recipient of the transaction.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`Embodiments of the present disclosure are illustrated by
`way of example, and not by way oflimitation, in the figures
`of the accompanying drawings and in which like reference
`numerals refer to similar elements.
`
`FIG. 1 is an illustration depicting an exemplary interac-
`tion between a multi-function electronic device and a stan-
`dard magnetic card reader, according to an embodiment of
`the present disclosure.
`FIGS. 2A-2B are block diagrams illustrating data flow
`between the magnetic coils on the multi-function electronic
`device and the microprocessor on the multi-function elec-
`tronic device according to an embodiment of the present
`disclosure.
`FIG. 2C depicts an exemplary process of selecting an
`account from a plurality of stored accounts according to an
`embodimentof the present disclosure.
`FIG.3 is a flowchart illustrating an exemplary process of
`generating a magnetic field with an alternating polarity
`according to an embodiment of the present disclosure.
`FIGS. 4A-4B illustrate a user interacting with a touch
`sensor of the multi-function electronic device, according to
`an embodimentof the present disclosure.
`FIG. 5 is an illustration of a multi-function electronic
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`device connected with a computing system and operating
`according to an embodiment of the present disclosure.
`FIG.6 is an illustration of two multi-function electronic
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`devices performing a transaction according to an embodi-
`ment of the present disclosure.
`FIG. 7 depicts an exemplary process according to an
`embodimentof the present disclosure.
`FIG.8A illustrates an exemplary multifunction electronic
`device,
`in accordance with embodiments of the present
`invention.
`
`FIG.8B illustrates exemplary displayed characteristics of
`multifunction electronic device, in accordance with embodi-
`ments of the present invention.
`FIG.9 illustrates an exemplary process of performing a
`financial transaction with a portable electronic device in
`conjunction with a payment reader,
`in accordance with
`embodiments of the present invention.
`FIG.10 illustrates an exemplary process for performing a
`financial transaction with a portable electronic device in
`conjunction with a personal computer, in accordance with
`embodiments of the present invention.
`FIG.11 illustrate an exemplary electronic credit-card-like
`multi-function electronic device that has no fixed payment
`information, in accordance with embodimentsofthe present
`invention.
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`FIG.12 illustrates an exemplary process for user selection
`of a preferred payment account for an electronic credit
`card-like device, in accordance with embodiments of the
`present invention.
`
`DETAILED DESCRIPTION OF THE
`INVENTION
`
`Reference will now be made in detail
`
`to the various
`
`embodiments of the present disclosure, examples of which
`are illustrated in the accompanying drawings. While
`described in conjunction with these embodiments, it will be
`understood that they are not intended to limit the disclosure
`to these embodiments. On the contrary, the disclosure is
`intended to cover alternatives, modifications and equiva-
`lents, which may be included within the spirit and scope of
`the disclosure as defined by the appended claims. Further-
`more, in the following detailed description of the present
`disclosure, numerousspecific details are set forth in order to
`provide a thorough understanding of the present disclosure.
`However, it will be understood that the present disclosure
`may be practiced without these specific details. In other
`instances, well-known methods, procedures, components,
`and circuits have not been described in detail so as not to
`
`unnecessarily obscure aspects of the present disclosure.
`Someportions of the detailed descriptions which follow
`are presented in terms of procedures, steps, logic blocks,
`processing, and other symbolic representations of operations
`on data bits that can be performed on computer memory.
`These descriptions and representations are the means used
`by those skilled in the data processing arts to most effec-
`tively convey the substance of their work to others skilled in
`the art. A procedure, computer generated step, logic block,
`process, etc.,
`is here, and generally, conceived to be a
`self-consistent sequence of steps or instructions leading to a
`desired result. The steps are those requiring physical
`manipulations of physical quantities. Usually, though not
`necessarily, these quantities take the form of electrical or
`magnetic signals capable of being stored, transferred, com-
`bined, compared, and otherwise manipulated in a computer
`system. It has proven convenient at times, principally for
`reasons of commonusage, to refer to these signals asbits,
`values, elements, symbols, characters, terms, numbers, or
`the like.
`It should be borne in mind, however, that all of these and
`similar terms are to be associated with the appropriate
`physical quantities and are merely convenient labels applied
`to these quantities. Unless specifically stated otherwise as
`apparent from the following discussions, it is appreciated
`29 66.
`that throughout the present claimed subject matter, discus-
`sions utilizing terms such as “storing,” “creating,”
`“protect-
`ing,”“receiving,” “encrypting,” “decrypting”, “destroying,”
`or the like, refer to the action and processes of a computer
`system or integrated circuit, or similar electronic computing
`device, including an embedded system, that manipulates and
`transforms data represented as physical (electronic) quanti-
`ties within the computer system’s registers and memories
`into other data similarly represented as physical quantities
`within the computer system memories or registers or other
`such information storage, transmission or display devices.
`Encoding Via an Alternating Polarity of a Magnetic Field
`In one embodiment of the present disclosure, a smart
`multi-function electronic device comprises a dynamic mag-
`netic region (strip) incorporating a main inductor assembly
`from which programmed magnetic field data symbols are
`dynamically generated. In one embodiment the inductor
`assembly may be a planar coil formed within the material
`
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`5
`that embodies the multi-function electronic device. An
`advantage of using a planar coil is that it can dynamically
`produce a magnetic field in such a manneras to emulate the
`interaction between a traditional magnetic strip and a con-
`ventional credit card reader. As the magnetic strip of a
`conventional credit card is passed through a magnetic reader
`head, stripes of alternating magnetic polarity embedded in
`the strip induce a magneticfield of alternating polarity at the
`reader head. The pattern formed by the alternating polarity
`of the magnetic field encodes information, which when
`transformed by a transducer to a current signal
`in the
`magnetic reader head, provides user information for a trans-
`action.
`Embodiments of the present disclosure provide a multi-
`function electronic device able to generate a programmed
`magnetic field, wherein data is encoded and represented by
`an alternating polarity of the generated magnetic field. In a
`similar manner to a conventional plastic credit card, the
`magnetic field producedby the planar coil is able to be read
`by a pickup (or “transducer”) and to thereby transmit
`information to the magnetic card reader. FIG. 1 illustrates a
`credit card transaction 100 performed between a multi-
`function electronic device 101 and a conventional magnetic
`reader 150. The multi-function electronic device 101 gen-
`erates a magnetic field of alternating polarity 120 to be read
`by the conventional magnetic card reader 150, according to
`an embodimentof the present disclosure. The multi-function
`electronic device 101 is moved at a rate 130 relative to a
`
`magnetic reader head 155 of conventional magnetic card
`reader 150. The magnetic field 120 extends with sufficient
`distance and intensity from 101 so as to be read by magnetic
`head reader 155. The magnetic head reader 155 respondsto
`the magnetic field 120 by producing a current in the con-
`ventional fashion, which is then interpreted as encoded
`information by the magnetic reader 150. Therefore the
`magnetic field of alternating polarity 120 produced by the
`multi-function electronic device 101 has a substantially
`identical encoding effect as a traditional magnetic strip.
`Acharacteristic of encoding information in a conventional
`magnetic card strip is that binary information is encoded by
`the pattern of alternating magnetic polarity formed by fer-
`romagnetic stripes embedded on the magnetic strip. As the
`conventional magnetic card strip has a standardized format,
`the encoding of information is provided at a specified data
`density (bits per inch), according to which conventional
`magnetic readers are designed for interpretation of encoded
`data. In order to most ably emulate a conventional credit
`card interaction with a conventional magnetic reader the
`multi-function electronic device 101 of the present disclo-
`sure is provided with a means of determining a substantially
`optimal rate for alternating the polarity of the generated
`magnetic field 120 in order to produce data at a rate which
`is able to be readily received and correctly interpreted by the
`conventional magnetic reader 150. Embodiments of the
`present disclosure provide several means of determining the
`relative movement rate 130 between the multi-function
`
`electronic device 101 and the magnetic reader head 155.
`These features, as well as other characteristics of the multi-
`function electronic device of the present disclosure, can be
`better appreciated by a description of the internal compo-
`nents and functions of multi-function electronic device 101.
`
`FIGS. 2A and 2B depict exemplary embodiments of a
`smart multi-function electronic device, in a block diagram
`view. The components of the block diagram are illustrated
`according to functional connections, and their locations
`should not be construed as being limited to the respective
`locations as depicted in FIGS. 2A-2B. In FIG. 2A, multi-
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`function electronic device 201a is shown in a block diagram
`view. Multi-function electronic device 201a comprises a
`processor 205 and a memory unit 207, the processor 205
`operatively coupled to the components of multi-function
`electronic device 201a. The memory 207 comprises a plu-
`rality of accounts 209, which may be credit card accounts,
`banking accounts, merchant accounts, online accounts, cryp-
`tocurrency accounts, and combinations thereof. A motion
`detection module 210 is coupled to the processor unit 205
`and to a set of motion detection units, which comprise a rate
`detection assembly 225, an optical sensor array 230, and a
`set of accelerometers 235. The magnetic field is generated
`via a planar coil 220, which is controlled by the processor
`unit 205 via a coil interface 215. The rate at which the
`
`magnetic field changes polarity to encode the user data
`depends on the rate of relative movement detected by the
`rate detector. The multi-function electronic device 201a
`
`further comprises a real-time clock 240, a touch-sensorarray
`245, and a display 250, each operatively coupled to the
`processor unit 205. A user input may be madevia the touch
`sensor array 245, which may comprise a touch screen panel,
`a keypad, or a combination thereof. The display 250 is able
`to display an alphanumeric sequence, as well as graphical
`icons (such as a logo for a bank, or other images). See, for
`example, FIGS. 8A and 11. Further, an optional backup
`powersource 255 is depicted.
`In one embodiment, the processor unit 205 is connected
`to the planar coi