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`SYSTEM FOR ADJUSTABLEDIGITAL LICENSING OVER TIME
`(THE THROTTLING PATENT)
`Inventor: Ric B Richardson
`Assignee: Uniloc Limited (Singapore)
`
`I, Ric B Richardson of Huntington Beach, CA have invented a licensing system for digital products that allows the
`license terms over time to allow license terms to be adjusted aroundthe target customer’s usual usage patterns but
`invokeslicenserestriction policies when customers intentionally abuse license terms.
`
`BACKGROUND
`A commoncapability of digital product license systemsis the ability to control how many devices are allowed to be
`used with each product license whichis usually sold to an individual customer or company. For example USpatent
`5,490,216 refers to a system wherea license is given to an individual, but in turn that licenseis linked to a specific
`personal computer thereby limiting the copyright holders exposure to copyright abuseif the user decided to share
`their license with other unauthorized users.
`
`A problem that has arisen overtimeis the fact that consumers of software have normal patterns of use that include
`the installation and use of digital products on multiple devices. For example a person may wishto buy software and
`use it on three computers at their home, a computerat work, a mobile computer and the computers at their holiday
`homeandtheir parent’s house. In addition to these uses, computers are also bought, sold and replacedso overtime
`maybe twoorthree times this number of computers may be used bythe user over time with a legitimate needto
`install and use the software on every computer.
`
`Publishers of digital products have a dilemmain that they may want their customersto receive the normal freedom
`to use the software that they have purchased but they also do not want the software licenses to be freely shared
`amongst end users or even in worst case shared anonymously overthe Internet resulting in massive piracy and
`copyright abuse of the product.
`
`To solve this problem some publishers have set a relatively high device to license ratio in their control systems in
`the hope that customers will not exceed the maximum numberof devices per license. An example ofthis is Apple
`iTunes which enables customers to play a purchased music file on up to five PCsper license before being requested
`to buy an additional license. They have also implemented a system that allows customers to turn off the license
`rights of individual PCs with regard to a specific musicfile license and therefore free up that device installation so
`that the music file can be used on one additional PC.
`
`While this method does go some wayto appeasing the problem of a normal customers usage expectations,it does
`not take into consideration the normalattrition that occurs with the purchase and upgrade of PC devices and places
`an expectation on the user to go through a numberof involvedstepsto retain their rights to use the software.
`
`The proposed invention addresses this and other problemsby allowing for a changing numberofdevice installations
`on a perlicense basis over time. The invention also includes a customer feedback system that warns a user when
`they are nearing the limit of their device installation ceiling for their license.
`
`An example scenario could be as follows. A software publisher wants to commencedistribution of a software
`product and to minimize unauthorized copying of their software. Their license may state that they authorize the user
`to use their software on up to five devices but reserve the right to increase this limit at their own discretion. The
`customerinstalls the software on the three computers they have at home. Each time the software connects to a
`license managementserver controlled by the publisher over the Internet to ensure that the device limit for the
`individual license has not been exceeded.
`
`The customer then choosesto install the same software on their PC at work. Upon contacting the publishers license
`managementserver over the Internet a messageis displayed to the user warning themthat they are nearing the limit
`of their device count for their license.
`
`Amazonv. Uniloc, IPR2017-00948
`Uniloc's Exhibit 2005, page 1
`
`Throttling Patent ~page I of4
`
`

`

`CNAMPWN
`
`Twoweekslater the user wishesto install their software on the two computers they ownat the customers holiday
`home.If the publisher uses the proposed invention the maximum numberof devices for the license may have been
`adjusted to accommodate a reasonable small increase in the numberof devices linked to a specific license and both
`PCs may be allowed toinstall and run even though the publishers stated device limit per licenseis five.
`
`Then three monthslater, the user experiences water damage from a flood in their house and a new PCis purchased.
`Uponinstallation of the protected software the invention will allow the user to obtain additional deviceinstallations
`from the publishers license managementserverfor the same license even though the device limit is five.
`
`However,if that user shares their license with all the computerusers in a college dormitory, the invention can be set
`to stop wholesale abuseof the license terms.
`
`PRIOR ART
`Patents:
`Uniloc patent 5,490,216 and Microsoft patent 6,243,468
`
`Websearch terms:
`Throttling license/ software/ authroisation, software license, time basedlicense, timedlicense, expiring license,
`expiring certificate, activation, timed activation.
`
`Companies researched for priorart:
`Crypkey, Apple, Macrovision, Microsoft and other small related companies.
`
`DRAWINGS
`
`Figure 1: example License
`Figure 2: system for license and device authorization
`
`DESCRIPTION AND OPERATION
`The described example embodimentof a system for adjustable digital licensing over time allows a software user to
`increase the numberof devices they can use with a particular software license 60 over the period of ownership of
`that license.
`
`Initially, the publisher or distributor of the software sets rules 60 that govern the use of the software on a specific
`numberof devices. These rules are described as an example embodimentin figure 1. The numberof devices
`allowedto run the software in an authorized or enabled state increases over time to reflect the normal usage pattern
`of software users where the user adds devices, replaces or upgrades devices over time. Therules 60 reflect this
`pattern of an increasing numberof devices authorized over time. Forthe first five days of the users use of the
`software a total of five devices can be authorized on new devices. For the next twenty-five days until the thirtieth
`day after first authorization, the user is allowed to authorize a total of seven new devices. Afterthe first thirty days
`an additional four devices can be authorized, delivering the maximum numberof copies on separate devices under
`the license which, in this example embodiment,is eleven.
`
`Figure 2 shows an example embodiment of a software system that is designed to managethe rules terms 60
`describedin figure 1.
`
`Device locked license systems such as described in USS,490,216 enable software license to be locked to a license
`agreement and specific authorized devices. The system usually comprises a device that requests authorization 50 by
`means of a software process 50 and the licensing authority 55 which is usually a software system that represents the
`publisher or distributors interests and regulates the numberof devices that can be used with eachlicense.
`
`Amazonv. Uniloc, IPR2017-00948
`Uniloc's Exhibit 2005, page 2
`
`Throtiling Patent —page 2 of4
`
`

`

`Typically the device requesting authorization 50 collects license related 10 and unique device identifying
`information 11, compiles it into a communication and sendsit to the authorization authority 55. Upon receipt the
`license authority 55 checks that the license information is valid 13. If the request fails, an authorization is
`disallowed 14 and the device based software is sent a messageto this effect. In practice this will involve further
`action by the device based software to notify the user of the failure to authorize and then either terminate the
`software or allow the software to continue in some form oftrial mode.
`
`If the request for authorization 12 includes license data that is valid, the license information checking process 13
`will pass and the requesting devices unique identity information 11 is checked to see if it exists in the database or
`prior authorizations 15, If the device identity exists 16, meaning that the software has been successfully registered
`on the same device in the past, then according to the license terms for the software 60 a re-authorizationis
`automatically allowed 17. A communication allowing the software to continue in an authorized state is passed to the
`requesting device software 50 and the software on the device is subsequently authorized 18 and allowed to run.
`
`If the unique identity of the device 11 is not in the authorization database 15 of previous device requests, then the
`licensing authority 55 checksto see if the new authorization request is the first request or is a subsequent request
`that has occurred in the first five days from the date ofthe first successful authorization 19.
`
`If the request is withinthe first five day period 19, the authorization database 15 is consulted for a count of how
`many successful authorizations for new devices have been allowed. Underthe license rules 60, if the device countis
`less than five then a messageis sent to the request device that allows the software to continue in an authorized state
`18. If the device count is equal to five then the licensing authority 55 sends a message to the requesting device 50
`allowing the device to run in an authorized state 18 but also may optionally inform the userthat the limit of the
`numberof devices available to run underthis license has been reached 22 and that subsequent requests for
`authorization may be denied in the short term.
`
`CANDNPWNKE
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`If the count of devices authorized for use with the specific license 10 is greater than five 23, then the licensing
`authority 55 sends a message denying authorization 25 and the useris optionally notified that the limit of devices
`that can be authorizedwith their license terms has been exceeded24. In practice, the software on the requesting
`device 50 will either subsequently terminate the software or allow the software to runinalimited trial modeif this
`is available.
`
`If the numberof days sincethe first authorization of a device for the license 10 is not less than six 19, then the
`licensing authority tests the time elapsed from the first successful authorizationto see ifit is less than thirty-one
`days since the date and timeofthe first successful authorization 26. If this test 26 is successful then a test is made to
`see if the count of successful new device authorizations is less than seven 27. If this is so a communication is made
`to the requesting device 50 authorizing the device to run 28. If the new device count is equal to seven 29 then the
`user is warnedthat their device limit has been reached 30 andthe device is subsequently authorized to run 28.
`
`However, if the new device count is greater than seven 31, a communication is made to the requesting device 50
`that the authorization is denied 33 and optionally the user is notified that their license device count has been
`exceeded 32.
`
`If the numberof dayssince the first successful authorization is greater than thirty days 34, the device count for the
`license 10 is checkedin the authorization database 15 and the device count for the license retrieved. If the number
`of successful new device authorizationsis less than ten 35 then the device authorization is allowed 36. If the device
`countis equal to eleven 37 then the useris optionally warned that they have reached the limit 38 and the deviceis
`authorized to run 36.
`
`Howeverif the device count is greater than eleven 39 then a communication is made to the requesting device 50 that
`the user be optionally notified that their device number terms ofthe license have been exceeded 40 and the
`authorization is denied 41.
`
`Amazonv. Uniloc, IPR2017-00948
`Uniloc's Exhibit 2005, page 3
`
`Throttling Patent —page 3 of4
`
`

`

`OANAMSWNeK
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`Theresult is a license system that allows consumers of software to load their software on new or replacement
`devices as they are purchased over time without exposing the publisher to copying abusesthat is common amongst
`software pirates and casual software copiers.
`
`ALTERNATIVE EMBODIMENTS
`
`Alternative embodiments of this invention includes but are not limitedto:
`
`A system as above where the license management system is linked to a fixed calendar date rather than the date of
`first successful authorization. This approach can be used for marketing and distribution purposes such as specifying
`specific periods of high copy counts to encourage word of mouth and user to user sharing butlater restricting the
`device count to encourage people to begin paying for copies that have beenintentionally shared.
`
`The example embodimentis simple for the purposes of understanding but can include any numberof evaluation
`periods, not just the five, thirty and unlimited day periods described in the example. Also the numberofnotification
`stages can be indefinitely expanded, for example the user could be given a polite message encouraging them to be
`careful with making copies when they are two copies away from their count limit and a stronger message whenit is
`their last copy before being denied authorizations. Messages could also optionally tell the user how many days they
`have to wait before additional device authorizations will be available.
`
`The example embodimentalso showsthat the allowed copy count increases over time. An alternative embodiment
`could be used where the allowed copy count decreases over time. This may be useful in a situation, for example,
`wherethe publisher supplies their software with a fairly open device countlicense rule but discovers individual
`instances of copy abuse and decidesto limit the license terms of those specific licenses.
`
`The described system could also be used with authorizations for software that is rented or otherwise allowed to be
`used for a specific period of time or numberofuses rather than indefinitely as in the example embodiment.
`
`Analternative embodimentof all of the above scenarios could include an algorithm rather than an arbitrary value in
`calculating both the time period for the calculation of the device count, and the device count related to that specific
`measuredtime period. For example, the algorithm for the available device count could be equal to the numberof
`elapsed days since the first successful activation divided by five in brackets plus five. Using the example algorithm
`a device count of five would be available from day one, and a device countof eleven at day thirty and so on.
`
`Anotheralternative embodiment could be used for security applications where access is granted to data or some
`other valuable or important item as a result of a successful authorization rather than in the example embodiment
`whereit is a license that is being granted.
`
`Amazonv. Uniloc, IPR2017-00948
`Uniloc's Exhibit 2005, page 4
`
`Throttling Patent — page 4 of4
`
`

`

`
`
`
`Example License Rules
`
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`License allows:
`
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`
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`for devices already authorized.
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`* 5 devices to be added within the first 5
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`days ofthe initial authorization date and
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`time.
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`* 7 devices to be added within the first
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`30 daysof the initial authorization date
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`and time.
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`* 11 devices to be allowedin total.
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`* Indefinite numbers of re-authorizations
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`Figure 1
`
`
`
`Amazon v. Uniloc, IPR2017-00948
`Uniloc's Exhibit 2005, page 5
`
`Amazon v. Uniloc, IPR2017-00948
`Uniloc's Exhibit 2005, page 5
`
`

`

`
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`tee eee ee eeeoceceseseeseee “Amazon \Uniloc, IPB2017-00948.ee
`Figure 2
`Uniloc\s-Exhibit 2005-page 6
`
`