Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 1 of 290 PageID #: 1473
`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 1 of 290 PagelD #: 1473
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`EXHIBIT 1
`EXHIBIT 1
`
`

`

`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 2 of 290 PageID #: 1474
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`
`
`US00885 6045B1
`
`(12) United States Patent
`Patel et al.
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 8,856,045 B1
`Oct. 7, 2014
`
`MOBILE-DEVICE-TO-MACHINE PAYMENT
`SYSTEMS
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`
`(54)
`
`(71)
`
`(72)
`
`(73)
`
`Applicant: Payrange Inc., Portland, OR (US)
`
`Inventors: Paresh K. Patel, Portland, OR (US);
`Chau M. Doan, Beaverton, OR (US)
`Assignee: Payrange Inc., Portland, OR (US)
`
`(*)
`
`Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 0 days.
`
`(21)
`
`Appl. No.: 14/214,644
`
`(22)
`
`Filed:
`
`Mar 14, 2014
`
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`
`(51)
`
`(52)
`
`(58)
`
`Related U.S. Application Data
`Continuation-in-part of application No. 29/477.025,
`filed on Dec. 18, 2013.
`Provisional application No. 61/917,936, filed on Dec.
`18, 2013.
`
`(2006.01)
`(2012.01)
`(2012.01)
`(2012.01)
`
`Int. C.
`G06Q 99/00
`G06O20/40
`G06O20/32
`G06O20/38
`U.S. C.
`CPC .............. G06O20/40 (2013.01); G06O20/327
`(2013.01); G06O20/3829 (2013.01); G06O
`20/3823 (2013.01)
`USPC .................... 705/71; 705/64; 705/76; 705/79
`Field of Classification Search
`USPC .......................................... 705/64, 71, 76, 79
`See application file for complete search history.
`
`T 2008
`WO WO2008/083022
`T 2008
`WO WO2008/083O25
`(Continued)
`OTHER PUBLICATIONS
`
`Madlmayr et al., “Near Field Communication based Mobile Payment
`System”, Austrian Research Funding Agency, Project 811408, Mar.
`6, 2008, 13 pages.*
`
`(Continued)
`Primary Examiner — James D Nigh
`(74) Attorney, Agent, or Firm — Law Office of Karen Dana
`Oster, LLC
`ABSTRACT
`(57)
`Described herein is a mobile-device-to-machine payment
`system and method for facilitating a cashless transaction for
`purchase of at least one product or service by a user from a
`payment accepting unit.
`26 Claims, 44 Drawing Sheets
`
`------------------------- Handheld computer sync or cellular ------------------------
`
`Ogles
`
`170
`
`20
`
`100
`Wired Serial
`
`Adapter
`Module
`
`150
`Bluetooth
`
`140 App
`Mobile Device
`
`130
`
`Wifi or Cellular
`
`Wired internet
`
`System
`Management
`Server
`
`Wired internet
`
`
`
`
`
`
`
`
`
`160
`
`Wifi or Cellular
`
`Funding Source
`Server
`
`

`

`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 3 of 290 PageID #: 1475
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`US 8,856.045 B1
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`

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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 4 of 290 PageID #: 1476
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 6 of 290 PageID #: 1478
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 10 of 290 PageID #: 1482
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 11 of 290 PageID #: 1483
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 12 of 290 PageID #: 1484
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 13 of 290 PageID #: 1485
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 13 of 290 PagelD #: 1485
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 14 of 290 PageID #: 1486
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 15 of 290 PageID #: 1487
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 16 of 290 PageID #: 1488
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 17 of 290 PageID #: 1489
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 18 of 290 PageID #: 1490
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 19 of 290 PageID #: 1491
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 20 of 290 PageID #: 1492
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 21 of 290 PageID #: 1493
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`Sheet 18 of 44
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 22 of 290 PageID #: 1494
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 23 of 290 PageID #: 1495
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 24 of 290 PageID #: 1496
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 26 of 290 PageID #: 1498
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 27 of 290 PageID #: 1499
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 32 of 290 PageID #: 1504
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 38 of 290 PageID #: 1510
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 41 of 290 PageID #: 1513
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 42 of 290 PageID #: 1514
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 44 of 290 PageID #: 1516
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`U.S. Patent
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`Oct. 7, 2014
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`Sheet 41 of 44
`
`US 8,856,045 B1
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`
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`

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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 45 of 290 PageID #: 1517
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`U.S. Patent
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`Oct. 7, 2014
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`Sheet 42 of 44
`
`US 8,856,045 B1
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`
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`Male Adapter
`720
`
`Adapter Module 100
`
`Processing
`Unit
`750
`
`Security
`Unit
`755
`
`(e.g. encryption
`and decryption
`technology)
`
`Input & Output
`Mechanisms
`772, 774
`
`Bluetooth
`Mechanisms
`776
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`Communications
`Unit
`770
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`Female Adapter
`730
`
`FIG. 56
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`

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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 46 of 290 PageID #: 1518
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`U.S. Patent
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`Oct. 7, 2014
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`Sheet 43 of 44
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`US 8,856,045 B1
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`Mobile DeViCe 150
`
`Processing
`Unit
`850
`
`Communications
`Unit
`870
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`Cellular
`and/or WiFi
`Mechanisms
`872
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`BluetOOth
`Mechanisms
`876
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`
`
`FIG. 57
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`

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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 47 of 290 PageID #: 1519
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`U.S. Patent
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`Oct. 7, 2014
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`Sheet 44 of 44
`
`US 8,856,045 B1
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`System Management Server 130
`
`Memory
`960
`
`Professing
`nit
`950
`
`
`
`Security
`Unit
`955
`(e.g. encryption
`and decryption
`technology)
`
`Communications
`Unit
`970
`
`Wired, Cellular
`and/Or WiFi
`Mechanisms
`972
`
`FIG. 58
`
`

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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 48 of 290 PageID #: 1520
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`1.
`MOBILE-DEVICE-TO-MACHINE PAYMENT
`SYSTEMS
`
`US 8,856,045 B1
`
`The present application is an application claiming the ben
`efit of U.S. Provisional Patent Application No. 61/917,936,
`filed Dec. 18, 2013, and a continuation-in-part of U.S. Design
`patent application No. 29/477,025, filed Dec. 18, 2013. The
`present application is based on and claims priority from these
`applications, the disclosures of which are hereby expressly
`incorporated herein by reference.
`
`BACKGROUND OF THE INVENTION
`
`Disclosed herein are mobile-device-to-machine payment
`systems and, more specifically, mobile-device-to-machine
`payment systems over a non-persistent network connection
`and featuring hands-free and manual modes.
`Vending machines (or “automatic retailing machines), in
`the broadest sense, have been around for thousands of years.
`The first simple mechanical coin operated vending machines
`were introduced in the 1880s. Modern vending machines
`stock many different types of products including, but not
`limited to drinks (e.g. water, juice, coffee, and Soda) and
`edible food products/items (e.g. Snacks, candy, fruit, and fro
`Zen meals), as well as a wide variety of non-food items. In this
`fast paced world, vending machines are ubiquitous.
`Vending machines are one type of “payment accepting
`unit (payment accepting units are also referred to herein
`generically as “machines”). A payment accepting unit (or
`machine) is equipment that requires payment for the dispens
`ing of products and/or services. In addition to vending
`machines, payment accepting units can also be other
`machines that require payment for the dispensing of a product
`and/or services including, but not limited to parking meters,
`toll booths, laundromat washers and dryers, arcade games,
`kiosks, photo booths, toll booths, transit ticket dispensing
`machines, and other known or yet to be discovered payment
`accepting units.
`In using a payment accepting unit, a user will (1) approach
`the payment accepting unit, (2) determine from the face of the
`payment accepting unit the product (or service) he desires, (3)
`insert payment (e.g. coins, bills, or payment cards), and (4)
`input his selection into the payment accepting unit using a
`user interface (e.g. a series of buttons, a keypad, touchscreen,
`or other input mechanism using, for example, the column and
`row at which a product is located). Based on the users input
`ted selection, technology within the payment accepting unit
`provides the desired product (or service) to the user.
`As the number of people with internet-connected mobile
`devices proliferates, so does the variety of uses for such
`devices. Mobile payment is a logical extension.
`There is a large development effort around bringing mobile
`payment to the retail sector in an effort to not only provide
`options to the user, but also increased convenience.
`In recent years, many improvements to modern Vending
`machines have been suggested. Many of the innovations
`relate to means for communicating with the vending machine.
`Some of these communication innovations are detailed in
`U.S. Pat. No. 6,584,309 to Whigham (the “Whigham refer
`ence”), U.S. Pat. No. 7,085,556 to Offer (the “Offer refer
`ence”), U.S. Pat. No. 7,127,236 to Khan et al. (the “Khan
`reference”), U.S. Pat. No. 7,721,958 to Belfer et al. (the
`“Belfer reference”), U.S. Pat. No. 8,396,589 to Katzenstein
`Garibaldi et al. (the “Garibaldi reference”), U.S. Pat. No.
`8,489,140 to Weineretal. (the “Weiner reference”), and Inter
`national Publication No. WO/2008/083025 to Carlson (the
`“Carlson reference').
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`The Whigham reference is directed to a system and method
`for purchasing a product from an automatic vending machine
`by means of a consumer's cellular telephone. The consumer
`requests a product available from the vending machine by
`dialing a specified telephone number that connects the con
`Sumer's cellular telephone to a server operated by a billing
`agency. The server recognizes the request for the product,
`creates a transaction record, and communicates a vend code
`to the consumer. Upon receiving the vend code from the
`server, the consumer transmits the vend code to the vending
`machine. The vend code may be an RF code, an audible tone
`code, or a manual code. Upon receipt of the vend code from
`the consumer, the vending machine dispenses the requested
`product.
`The Offer reference is directed to a vending machine that is
`designed to communicate with a cellular phone Such that it
`dispenses a product when it receives information indicating
`that the product has been selected. The Offer reference
`teaches permitting the cashless utilization of a vending
`machines via a communications service. Such as a cellular
`telephone. A response to a signal from the cellular telephone
`from the vending machine that indicates that a connection has
`been established between the vending machine and the cel
`lular phone may be a visual indication that is displayed on the
`cellular telephone. The vending machine outputs the cost of
`the product and that cost is debited from an account to pay for
`the product. The Khan reference describes a point of sale
`MicroAdapter device that enables payment transactions to be
`effected through a purchaser's personal trusted device (e.g.
`the user selecting the micropayment application on his per
`Sonal trusted device and confirming or cancelling the pur
`chase thereon) without relying upon tokens or prepayment
`cards. In one embodiment, the MicroAdapter includes a
`transceiver configured to receive a purchase signal from the
`personal trusted device including order and payment infor
`mation. In response, the MicroAdapter communicates via
`wireless telephony with a transaction authorizer to receive
`authorization for effectuating the purchase transaction. The
`MicroAdapter can effectuate micropayment transactions
`authorized by a Billing On Behalf of Others program admin
`istered through a wireless carrier/ISP or third party.
`The Belfer reference is directed to a system wherein a
`vending machine has an audio code collector and a code
`validator that is adapted to receive audio tones from a mobile
`device. The audio tones include authentication codes and
`dispense codes to control dispensing of product from the
`vending machine. To start the transaction, the consumer dials
`a unique set of symbols and digits to route the call to a
`Verification server. The symbols and digits may correspond to
`a unique vending machine identification number and product
`identification numbers.
`The Garibaldi reference is directed to an electronic device
`for the sale of intangible products through vending machines
`that include interfaces to communicate with external periph
`erals through the MDB protocol, the RS232 standard, and the
`DEX protocol, an interface to communicate with users, a
`communications system that enables it to act as part of a
`network and communicate with a central system, and a con
`troller, that articulates the communication among the above
`mentioned components, so as to enable a central system to
`perform diverse actions on a vending machine.
`The Weiner reference is directed to a system and method
`for providing productor service with a cellular telephone. The
`problem identified in the Weiner reference is that mobile
`communication devices are long-range electronic devices
`designed to be used for long-range communications. Eschew
`ing the use of near-field communication because it requires
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 49 of 290 PageID #: 1521
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`US 8,856,045 B1
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`3
`special design or modification of the mobile station (e.g. the
`vending machine), the Weiner reference teaches a mobile
`communication device identifier, consisting of a shielding
`defining a coverage area, the shielding arranged to reduce
`radio signals originating externally of the coverage area to be
`less than a pre-determined signal strength; an antenna asso
`ciated within the defined coverage area; a transceiver coupled
`to the antenna, the transceiver communicating with a mobile
`station inserted within the defined coverage area utilizing a
`signal strength greater than the pre-determined signal
`strength; and a service control unit responsive to the trans
`ceiver, the service control unit responsive to the communica
`tion to output a signal indicative of an authorization to provide
`a product or service.
`The Carlson reference is directed to a system and a method
`for using a portable consumer device such as a mobile phone
`for payments and the like. One embodiment of the Carlson
`system is directed to a method that includes the steps of
`receiving a payment request message (that includes a request
`to pay for a product from a vending machine) from a portable
`consumer device operated by a consumer, sending an autho
`rization response message back to the vending machine
`wherein the vending machine Subsequently prompts the con
`Sumer to enter a selection if the authorization response mes
`sage indicates that the consumer is authorized to make a
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`purchase, and receiving an acknowledgement message from
`the vending machine that the product was purchased. The step
`of 'sending an authorization response message back to the
`vending machine' is performed by a remote payment server
`and would require a persistent network connection.
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`nology to create a secured authorization request. The autho
`rization grant may be secured by the server security technol
`ogy to create a secured authorization grant. The secured
`authorization request and the Secured authorization grant are
`preferably undecipherable to the mobile device.
`The adapter module and the server may share a unique
`private key. The adapter module may have encryption/de
`cryption technology and the server may have encryption/
`decryption technology. The authorization request may be
`encrypted by the adapter module encryption/decryption tech
`nology using the unique private key to create an encrypted
`authorization request. The encrypted authorization request
`may be decrypted by the server encryption/decryption tech
`nology using the unique private key. The authorization grant
`may be encrypted by the server encryption/decryption tech
`nology using the unique private key to create an encrypted
`authorization grant. The encrypted authorization grant may
`be decrypted by the adapter module encryption/decryption
`technology using the unique private key. The encrypted
`authorization request and the encrypted authorization grant
`are preferably undecipherable to the mobile device.
`The adapter module is preferably surrounded by two zones,
`a payment Zone and an authorization Zone, wherein the pay
`ment Zone is within the authorization Zone. The adapter mod
`ule sends the authorization request when the mobile device is
`within the authorization Zone. The mobile device forwards
`the authorization grant for funds to the adapter module when
`the mobile device is within the payment Zone. A third Zone
`possible Zone is a communication Zone, the authorization
`Zone being within the communication Zone. The mobile
`device preferably receives advertising broadcast signals from
`the adapter module within the communication Zone.
`The system may have a hands-free mode in which the
`payment accepting unit dispenses the at least one product or
`service without the user interacting with the mobile device. A
`display of the payment accepting unit may be used for dis
`playing funds available based on information from the autho
`rization grant. The input mechanisms of the payment accept
`ing unit may be used for receiving user selection input when
`the user interacts with the input mechanisms to select the at
`least one product or service to be dispensed.
`The adapter module may be an in-line dongle for in-line
`insertion within a multi-drop bus of the payment accepting
`unit. Further, the payment accepting unit may have a multi
`drop bus to a payment receiving mechanism. The multi-drop
`bus may have a male adapter and a female adapter. The
`adapter module may have a male adapter and a female
`adapter. The adapter module is preferably insertable in serial
`with the multi-drop bus by connecting the male adapter of the
`adapter module to the female adapter of the multi-drop bus
`and by connecting the female adapter of the adapter module to
`the male adapter of the multi-drop bus.
`Also described herein is a method for using a mobile
`device-to-machine payment system for facilitating a cashless
`transaction for purchase of at least one product or service by
`a user from a payment accepting unit may have input mecha
`nisms. The user may have a mobile device having both short
`range communication technology and long-range communi
`cation technology. The payment accepting unit is preferably
`capable of dispensing at least one product or service. The
`method includes the steps of: (a) sending an authorization
`request for funds to the mobile device using short-range com
`munication technology of an adapter module associated with
`the payment accepting unit; (b) receiving the authorization
`request for funds from the short-range communication tech
`nology of the adapter module at the short-range communica
`tion technology of the mobile device; (c) forwarding the
`
`BRIEF SUMMARY OF THE INVENTION
`
`40
`
`35
`
`Disclosed herein are mobile-device-to-machine payment
`systems and, more specifically, mobile-device-to-machine
`payment systems over a non-persistent network connection
`and featuring hands-free and manual modes.
`Described herein is a mobile-device-to-machine payment
`system for facilitating a cashless transaction for purchase of at
`least one product or service by a user from a payment accept
`ing unit that preferably has input mechanisms. The user has a
`mobile device that has both short-range communication tech
`nology and long-range communication technology. The pay
`ment accepting unit is capable of dispensing at least one
`product or service. The system includes an adapter module
`45
`and a server. The adapter module is associated with the pay
`ment accepting unit and has short-range communication tech
`nology for communicating with the short-range communica
`tion technology of the mobile device. The server has long
`range communication technology for communicating with
`the long-range communication technology of the mobile
`device. The adapter module is for sending an authorization
`request for funds to the mobile device using short-range com
`munication technology. The mobile device then forwards the
`authorization request for funds to the server using long-range
`communication technology. The server is for sending an
`authorization grant for funds to the mobile device using long
`range communication technology. The mobile device the for
`wards the authorization grant for funds to the adapter module
`using short-range communication technology. The payment
`accepting unit dispenses the at least one product or service in
`response to receiving user input to the payment accepting unit
`input mechanism if the adapter module has received the
`authorization grant.
`The adapter module may have security technology and the
`server may have security technology. The authorization
`request may be secured by the adapter module security tech
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`Case 1:23-cv-00278-MN Document 73-1 Filed 04/03/24 Page 50 of 290 PageID #: 1522
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`5
`authorization request for funds to a server using the long
`range communication technology of the mobile device; (d)
`receiving the authorization request for funds from the long
`range communication technology of the mobile device at
`long-range communication technology of the server; (e)
`sending an authorization grant for funds to the mobile device
`using the long-range communication technology of the
`server, (f) receiving the authorization grant for funds from
`long-range communication technology of the server at the
`long-range communication technology of the mobile device;
`(g) forwarding the authorization grant for funds to the adapter
`module using the short-range communication technology of
`the mobile device; and (h) receiving the authorization grant
`for funds from the short-range communication technology of
`the mobile device at short-range communication technology
`of the adapter module. At least one product or service may
`then be dispensed from the payment accepting unit in
`response to receiving user input to the payment accepting unit
`input mechanism if the adapter module has received the
`authorization grant.
`The method may include the steps of securing the autho
`rization request using security technology associated with the
`adapter module to create a secured authorization request,
`securing the authorization grant using security technology
`associated with the server to create a secured authorization
`grant, and the secured authorization request and the secured
`authorization grant are preferably undecipherable to the
`mobile device.
`The method may include the steps of (a) sharing a unique
`private key between the adapter module and the server, (b)
`encrypting using the unique private key the authorization
`request using encryption/decryption technology associated
`with the adapter module to create an encrypted authorization
`request, (c) decrypting using the unique private key the
`encrypted authorization request using encryption/decryption
`technology associated with the server, (d) encrypting using
`the unique private key the authorization grant using the
`encryption/decryption technology associated with the server
`to create an encrypted authorization grant, (e) decrypting
`using the unique private key the encrypted authorization grant
`using encryption/decryption technology associated with the
`adapter module, and (e) the encrypted authorization request
`and the encrypted authorization grant are preferably undeci
`pherable to the mobile device.
`The method may include the steps of (a) Surrounding the
`adapter module with two Zones, a payment Zone and an autho
`rization Zone, wherein the payment Zone is within th