(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2003/0130902 A1
`Athwal
`(43) Pub. Date:
`Jul. 10, 2003
`
`US 2003O130902A1
`
`(54) SHORTRANGE WIRELESS SYSTEM
`(76) Inventor: Taranjeet S. Athwal, Richmond (CA)
`Correspondence Address:
`Fasken Martineau DuMoulin LLP
`Toronto-Dominion Centre, Suite 4200
`Toronto Dominion Bank Tower
`Box 20
`Toronto, ON M5K 1N6 (CA)
`
`(21) Appl. No.:
`
`10/286,948
`
`(22) Filed:
`
`Nov. 4, 2002
`
`Foreign Application Priority Data
`(30)
`Nov. 2, 2001 (CA).......................................... 2,361,258
`Publication Classification
`(51) Int. Cl." ..................................................... G06F 17/60
`(52) U.S. Cl. ................................................................ 705/26
`(57)
`ABSTRACT
`An electronic commerce System including an electronic
`retail System for providing goods or Services to a customer;
`and, a wireleSS communication device operable via a com
`munications network, the device for initiating an electronic
`transaction with the electronic retail System, and for com
`pleting the transaction via the communications network.
`
`6O
`
`
`
`
`
`Long-range
`Wireless
`Technology
`(eg. Cellular)
`
`
`
`
`
`Financial system N 6 O
`(eg. Online Bank)
`
`OO.
`
`
`
`3 = Short-range Wireless
`/ s = 3
`SM Card
`/ 30
`O
`
`path
`
`fechnology
`(eg. Bluetooth, 802.11)
`
`X
`
`Electronic Retail System
`(eg. Vending Machinest
`Cash Registers)
`
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`Patent Application Publication
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`Jul. 10, 2003
`
`US 2003/0130902 A1
`
`Internet
`
`
`
`6O
`
`Long-range
`Wireless
`Technology
`(e.g. Cellular)
`V
`|40
`
`
`
`
`
`Financial System N 6 O
`(eg. Online Bank)
`
`OO
`
`-a-
`
`
`
`-10
`
`3 = Short-range Wireless
`
`
`
`.
`
`'s
`
`Mobile
`Technology
`Phone with
`(eg. Bluetooth, 802.1)
`SM Card
`/
`/ 30 s
`
`O
`
`Figure 1
`
`Electronic Retail System
`(eg. Vending Machinest
`Cash Registers)
`
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`US 2003/O130902 A1
`
`Jul. 10, 2003
`
`SHORTRANGE WIRELESS SYSTEM
`0001. This application claims priority from Canadian
`Patent Application No. 2,361,258, filed Nov. 2, 2001, and
`incorporated herein by reference.
`0002 The invention relates to the field of electronic
`commerce, and more Specifically to electronic commerce
`transactions conducted with Short-range mobile communi
`cations Systems including mobile or cellular telephones.
`
`BACKGROUND OF THE INVENTION
`Short-range wireless communication and personal
`0.003
`area networks are proliferating in common household prod
`ucts as well as mobile busineSS products. AS described in
`U.S. Pat. No. 6,275,500, which is incorporated herein by
`reference, Bluetooth technology, for example, allows for the
`replacement of the many proprietary cables that connect one
`device to another with one universal short-range radio link.
`Bluetooth technology may replace the cumberSome cables
`used today to connect a laptop to a cellular telephone or
`between other devices Such as printers, PDAs, desktops, fax
`machines, keyboards, joysticks or virtually any other digital
`device. Refrigerators, microwave Ovens, dish washers, laun
`dry washers and dryers, Stereo, television, digital video
`disks, Video games, lighting, irrigation, cooling and heating
`Systems among otherS may also take advantage of Such
`Short-range radio linkS. Bluetooth radio technology further
`provides a universal bridge to existing data networks, a
`peripheral interface, and a mechanism to form Small private
`ad hoc groupings of connected devices away from fixed
`network infrastructures. Designed to operate in a noisy radio
`frequency environment, Bluetooth radioS use a frequency
`hopping Scheme to make the link robust. Bluetooth radio
`modules avoid interference from other signals by hopping to
`a new frequency after transmitting or receiving a data
`packet.
`0004. While technologies such as Bluetooth exist for
`communications between certain common electronic pro
`duces, a need remains for effective and inexpensive com
`munications between electronic retail Systems, for example,
`vending machines, cash registers, kiosks, etc., and data
`networks for conducting electronic commerce transactions.
`
`SUMMARY OF THE INVENTION
`0005 The present invention provides a system and
`method that for electronic commerce transactions wherein
`an electronic retail System utilizes short-range wireleSS
`technology to establish a data connections via customers
`mobile phones to authenticate and complete electronic com
`merce transactions.
`0006 According to one aspect of the invention, an elec
`tronic commerce System is provided. The electronic com
`merce System includes an electronic retail System for pro
`Viding goods or Services to a customer; and, a wireleSS
`communication device operable via a communications net
`work, the device for initiating an electronic transaction with
`the electronic retail System, and for completing the transac
`tion via the communications network.
`0007 According to another aspect of the invention, the
`both the electronic retail System and the wireleSS commu
`nication device have the ability to communicate with one
`another wirelessly.
`
`0008 According to another aspect of the invention, the
`electronic retail System is a vending machine.
`0009. According to another aspect of the invention, the
`communication device is a mobile phone.
`0010. According to another aspect of the invention, the
`communications network is the Internet.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`0011 Embodiments of the invention may best be under
`stood by referring to the following description and accom
`panying drawings. In the description and drawings, like
`numerals refer to like Structures and/or processes. In the
`drawings:
`0012 FIG. 1 is a block diagram illustrating an electronic
`commerce System and method in accordance with an
`embodiment of the invention.
`
`DETAILED DESCRIPTION OF THE
`PREFERRED EMBODIMENTS
`0013 In the following description, numerous specific
`details are Set forth to provide a thorough understanding of
`the invention. However, it is understood that the invention
`may be practiced without these specific details. In other
`instances, well-known Structures and/or processes have not
`been described or shown in detail in order not to obscure the
`invention. In the description and drawings, like numerals
`refer to like Structures or and/or processes.
`0014) The term Electronic Retail System (“ERS”) is used
`herein to refer to any electronic device that can accept
`payment for goods electronically. Examples are vending
`machines, cash registers, electronic kiosks, etc. The term
`Short-Range Wireless Technology ("SRWT) is used herein
`to refer to technologies that permit electronic devices to
`communicate with other electronic devices that are nearby
`(usually within 100 feet). Examples of such technologies are
`Bluetooth, 802.11, etc. The term Long-Range Wireless
`Technologies (“LRWT") is used herein to refer to technolo
`gies that permit mobile devices to communicate with tele
`phone and data networks (Internet) at distances usually
`greater than 100 feet. Examples of Such technologies are
`cellular networks such as CDMA, CDPD, TDMA, GPRS,
`etc. The term Subscriber Identity Modules (“SIM''') is used
`herein to refer to modules that can Store "electronic Signa
`tures” that can uniquely identify individuals for authentica
`tion. These are useful for determining if a customer is who
`they claim to be for the purposes of an electronic transaction.
`Typically, SIMS are dime-sized pieces of hardware that can
`be plugged into electronic devices Such as mobile phones.
`The term Mobile Communication Device (“MCD") is used
`herein to refer to any mobile electronic device that consum
`erS may carry with them Such as mobile phones, Personal
`Digital ASSistants ("PDAs), laptops, and Internet appli
`ances. These devices must have LRWT that provide the
`ability to communicate with carrier telecom data networks
`and also SRWT that will permit the MCD to communicate
`with ERS. The term Wireless Electronic Signal (“WES”) is
`used herein to refer to a wireleSS radio frequency Signal that
`is used to convey electronic data from one electronic device
`to another. The term ERS Software (“ERSS”) is used herein
`to refer to Software that resides on the ERS and is used to
`perform Special functions in accordance with the present
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`invention. The term MCD Software (“MCDS”) is used
`herein to refer to Software that resides on the MCD and is
`used to perform Special functions in accordance with the
`present invention.
`0.015
`FIG. 1 is a block diagram illustrating an electronic
`commerce System and method in accordance with an
`embodiment of the invention. In FIG. 1, the electronic
`commerce system is shown generally by numeral 100. The
`system 100 includes a MCD 110, an ERS 120, SRWT 130,
`LRWT 140, a network (e.g. the Internet) 150, and a financial
`system 160. The system 100 may include an input device, a
`central processing unit or CPU, memory, and a display (not
`shown). The input device may be a keyboard, mouse,
`trackball, or similar device. The CPU may include dedicated
`coprocessors and memory devices. The memory may
`include RAM, ROM, databases, or disk devices. And, the
`display may include a computer Screen or terminal device.
`The system 100 has stored therein data representing
`Sequences of instructions which when executed cause the
`method described herein to be performed. This software
`includes ERSS and MCDS software. Of course, the system
`100 may contain additional Software and hardware a
`description of which is not necessary for understanding the
`invention.
`0016 Mobile commerce or “m-commerce” transactions
`utilizing personal mobile devices 110 will become one of the
`normal methods for payment for Simple purchases Such as
`pop from Vending machines 120, hotel reservations, down
`loading virtual newspapers or MP3 music from electronic
`kiosks. The mobile device 110 is well Suited to being
`established as the centrepiece of all m-commerce transac
`tions in its role as the electronic wallet Since most consumers
`will always carry one on their perSon.
`0017 Currently, a customer will initiate an electronic
`transaction by first performing a search for all available ERS
`120 in their vicinity from their MCD 110. The MCD 110 will
`send a WES “inquiry” to all electronic devices 120. All ERS
`120 will respond with WES that convey detailed information
`such as their name, available products and prices. The MCD
`110 will display this information to the customer and the
`customer will Select the desired product or Service from the
`appropriate ERS 120. The MCD 110 will then send a WES
`to the appropriate ERS 120 indicating a customer request to
`perform a transaction. The ERS 120 will confirm availability
`of the desired product/service, calculate the cost and Sendan
`electronic “bill to the MCD 110 for the amount of the
`purchase via a WES. The customer will be prompted by the
`MCD 110 to verify the purchase and to select the customer's
`account which should be used to make the purchase. The
`customer will provide the requested information by Selecting
`a pre-configured account (e.g. credit, debit, etc.) for the
`purchase. The MCD 110 will then transmit payment account
`information and an authorization key (i.e. SIM chip ID or
`personal identification number) to the ERS 120 via a WES.
`The ERS 120 now has all of the required information to
`perform the transaction and deliver the good/Service to the
`CuStOmer.
`0.018. This sequence of steps is represented by arrows 1
`and 2 in FIG. 1.
`0019. However, the ERS 120 still needs to contact a
`third-party payment system 160 to transfer the required
`funds from the customer account to the ERS account to
`
`complete the payment. Current technology requires that the
`ERS 120 maintain a wired or wireless data connection to a
`communication network 150 such as the Internet or a private
`network. The ERS 120 uses this data connection and the
`communication network 150 to transfer funds from the
`customer's financial account to the ERS's financial account
`to complete the transaction.
`0020. However, the cost of maintaining a wired or wire
`less data connection for the ERS 120 to conduct transactions
`often exceeds the cost of the ERS 120. This reduces the
`effectiveness of electronic commerce and makes many trans
`actions unfeasible and unprofitable for ERS merchants.
`Additionally, in remote areas, it may not be possible to
`provide a data connection to the ERS 120 rendering such
`transactions impossible.
`0021 According to the present invention, a system and
`method is provided that allows an ERS 120 to communicate
`with data networks 150 to conduct electronic transactions,
`inexpensively and effectively.
`0022. The present invention avoids the failings of the
`prior art by providing an alternative method for data com
`munication to the ERS 120. This system and method utilizes
`SRWT130 and frees the ERS 120 from maintaining its own
`expensive wired or wireleSS data connection to communi
`cation networks 150 to complete financial transactions. The
`present invention uses SRWT 130 and the customer's MCD
`110 to create a LRWT 140 data connection between the ERS
`120 and the third-party financial system 160 to complete the
`electronic transaction. The present invention includes Soft
`ware that resides on the ERS 120 (i.e. ERSS) and also
`software that resides on the MCD 120 (i.e. MCDS). Tis
`Software is used to make a data connection between the ERS
`120 and the communication network 150.
`0023. Once the ERS 120 has all of the required financial
`information 1, 2 (e.g. customer financial institution, cus
`tomer account, customer authorization value, etc.), the ERS
`120 provides this information as input to the ERRS and
`invokes the ERRS.
`0024. The ERS further provides the unique device ID of
`the MCD 110. This will be particular to the SRWT 130
`employed by the MCD 110 and ERS 120. In the case of
`Bluetooth technology, the ID may be Bluetooth Device
`Address and in the case of WiFi or 802.11 technology, the ID
`may be the MAC address. The ERSS uses the unique device
`ID of the MCD 110 and SRWT 130 to create a wireless
`connection with the MCD 110.
`0025. Once this SRWT 130 connection is created, the
`ERSS requests a LRWT data connection 140 from the MCD
`120 by invoking the MCDS. The MCDS software is pre
`configured by the customer (or agents of the customer) with
`relevant information required by the telecom carrier to
`create a data connection with the communication network
`150 of the data carrier. This information may include APN's,
`gateway IP addresses, account names, account passwords,
`etc.
`0026. The MCDS utilizes the pre-configured information
`on the MCD 110 and the LRWT 140 available on the MCD
`120 to create a data connection with the available data
`network 150. Once the connection is created, the MCDS
`sends a WES to the ERS 120 indicating that the data
`connection has been created and is available for use by the
`ERSS.
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`0027. The ERSS utilizes the data connection provided by
`the MCD 110 to establish 3 a Secure LRWT 140 connection
`to its Financial System 160 (e.g. on-line bank). This secure
`connection can be created using any number of encryption
`methods currently available that are deemed to be sufficient
`for commercial transactions. These methods are not
`described here since they are commonly available. In gen
`eral, this information is encrypted So that the mobile device
`110 cannot decipher it.
`0028. The ERSS, using the secure data connection pro
`vided by the MCD 120, requests a finds transfer from the
`Financial System 160, in the amount of the price of the
`good/Service, from the customers account to an ERS
`account. The Financial System 160 performs the finds
`transfer and notifies 4 the ERSS that the transaction has been
`completed. The ERSS notifies 5 the MCDS to close the
`LRWT 140 data connection with the communication net
`work 150.
`0029. As output to the ERS 120, the ERSS provides a
`positive feedback if the funds have transferred correctly or
`a negative feedback if the funds did not transfer correctly. If
`the ERSS has provided negative feedback, the ERS 120
`sends 5 a WES to the MCD 110 indicating that there was a
`problem transferring the finds and the nature of the problem.
`The ERS 120 closes the SRWT 130 connection with the
`customers MCD 110 and prepares itself to process future
`commerce transactions.
`0030) If the ERSS has provided positive feedback, the
`p
`p
`ERS 12O:
`0.031) a) Sends 5 a WES to the customers MCD 110
`informing the customer that the transaction has been
`completed Successfully;
`0032) b) Provides 5 an electronic receipt to the MCD
`110;
`c) Delivers the product/service to the cus
`0033)
`tomer,
`0034 d) Closes the SRWT 130 connection with the
`mobile device 110; and,
`0035 e) Prepares itself to process future commerce
`transactions.
`0036) Data Carrier Product. The sequences of instruc
`tions which when executed cause the method described
`
`herein to be performed by the system of FIG. 1 can be
`contained in a data carrier product according to an embodi
`ment of the invention. This computer Software product can
`be loaded into and run by the system of FIG. 1.
`0037 Computer Software Product. The sequences of
`instructions which when executed cause the method
`described herein to be performed by the system of FIG. 1
`can be contained in a computer Software product according
`to an embodiment of the invention. This computer software
`product can be loaded into and run by the system of FIG. 1.
`0038 Integrated Circuit Produce. The sequences of
`instructions which when executed cause the method
`described herein to be performed by the system of FIG. 1
`can be contained in an integrated circuit product including a
`coprocessor or memory according to an embodiment of the
`invention. This integrated circuit product can be installed in
`the system of FIG. 1.
`0039. Although preferred embodiments of the invention
`have been described herein, it will be understood by those
`skilled in the art that variations may be made thereto without
`departing from the Spirit of the invention or the Scope of the
`appended claims.
`
`The embodiments of the invention in which an exclusive
`property or privilege is claimed are defined as follows:
`1. An electronic commerce System comprising: an elec
`tronic retail System for providing goods or Services to a
`customer, and, a wireless communication device operable
`via a communications network, Said device for initiating an
`electronic transaction with Said electronic retail System, and
`for completing Said transaction via Said communications
`network.
`2. The system of claims 1 wherein said electronic retail
`System and Said wireleSS communication device communi
`cate with one another wirelessly.
`3. The system of claim 2 wherein said electronic retail
`System is a vending machine.
`4. The system of claim 3 wherein said communication
`device is a mobile phone.
`5. The system of claim 4 wherein said communications
`network is the Internet.
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