`
`US 7,110,954 B2
`(10) Patent No.:
`(12) Unlted States Patent
`
`Yung et a].
`(45) Date of Patent:
`Sep. 19, 2006
`
`(54) WIRELESS PURCHASE AND ON-LINE
`INVENTORY APPARATUS AND METHOD
`
`6,478,187 131 =1
`6,764,003 131 =1
`
`................ 221/75
`11/2002 Simson et a1.
`7/2004 Martschitsch et al.
`...... 235/333
`
`FOR VENDING MACHINES
`
`FOREIGN PATENT DOCUMENTS
`
`(75)
`
`Inventors: Hon Ching Yung, Hong Kong (HK);
`Kwong Keung Leung, Tuen Mun
`(HK); Hon Seng Lai, Hong Kong (HK)
`
`(73) Assignee: University of Hong Kong, Hong Kong
`(CN)
`
`W0
`
`7/2001
`*
`WO 01/54087
`OTHER PUBLICATIONS
`
`N0 author; New Bellsouth Technology Offers Economical Way to
`Read Meters, Track Vending Inventory Wirelessly; Bellsouth Test
`under way in Indianapolis;
`Jul.
`25,
`1995; PR Newswire
`P725AT005; dialog copy 2 pages.*
`
`( >1: ) Notice:
`
`Subject to any disclaimer, the term of this
`t
`t '
`t
`d d
`d'
`t d
`d
`35
`pa en IS ex en e or a Jus e un er
`U.S.C. 154(b) by 770 days.
`
`No author; Mobile Devices and the Internet to be the Star Attactions
`at CeBIT 2000, CellPoint and Unwire Exhibit to 700,000 expected
`visitors; Feb. 24, 2000; Business Wire, p. 1392; dialog copy 2
`pages.*
`
`(21) Appl. No.: 09/803,818
`
`* cited by examiner
`
`(22)
`
`Filed:
`
`Mar. 12, 2001
`
`(65)
`
`Prior Publication Data
`
`Primary ExamineriThomas A. Dixon
`(74) Attorney, Agent, or FirmiRobert D. Ratz, Esq.;
`COOPer & Dunham LLC
`
`US 2002/0128932 A1
`
`Sep. 12, 2002
`
`(57)
`
`ABSTRACT
`
`The present invention relates to an apparatus and a method
`for wireless purchase of merchandise from a vending
`machine by using a cellular mobile phone. The present
`invention permits a cellular mobile phone user to dial a
`sequence of code on the phone to invoke the vending
`machine to dispense merchandise, where payment
`is
`charged to the mobile phone account. The present invention
`also relates to an apparatus and a method for on-line
`inventory management. With on-line inventory manage-
`ment, the present invention provides high efficient operation,
`reduced operation cost, and just-in-time service and mer-
`chandise delivery. The present invention further relates to an
`apparatus and a method that allow both on-line inventory
`management and wireless purchase of merchandise in a
`Vendmg maChme'
`
`11 Claims, 16 Drawing Sheets
`
`(51)
`
`Int. C1-
`(2006-01)
`G06Q 10/00
`(52) US. Cl.
`........................... 705/1; 235/381; 455/420
`(58) Field of Classification Search .................... 705/1,
`705/16, 26, 28, 22; 455/420, 426.1,406;
`235/380, 381
`See application file for complete search history,
`_
`References Clted
`U.S. PATENT DOCUMENTS
`
`(56)
`
`10/1983 56d“? et al~ ~~~~~~~~~~~~~~~ 364/479
`
`3/1996 Batahanets et 31'
`194/207
`.
`8/1998 Comer et al.
`......
`.. 455/426
`
`.......... 705/28
`7/1999 Stapp
`
`10/1999 Etoh et al.
`364/47906
`5/2000 Kolls ................ 235/381
`
`9/2002 Defosse ...................... 709/200
`
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`Petitioner Kiosoft Exhibit 1011
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`Petitioner Kiosoft Exhibit 1011
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`Page 8
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`Petitioner Kiosoft Exhibit 1011
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`Petitioner Kiosoft Exhibit 1011
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 12
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`
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 13
`Page 13
`
`
`
`
`
`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 13 of 16
`
`US 7,110,954 B2
`
`Initialize wireless
`modem
`
`400
`
`Send "On«line"
`
`message to central
`computer
`
`402
`
`403
`
`Received
`
`
`setting from central
`computer?
`
`401
`
`
`
`
`
`
`
`404
`
`410
`
`
`Send "Wireless
`
`
`purchase disabled"
`
`to display
`
`
`405
`
`Yes
`
`Disable Wireless
`
`
`
`purchase function
`
`
`& enable on-Iine
`
`
`
`inventory funciton
`
`No
`
`Enable wireless
`
`purchase?
`
`
`
`
`Yes
`
`Disable wireless
`
`purchase & on-
`lineeinventory
`functions
`
`Send "Wireless
`
`
`purchase disabled"
`to display
`
`11
`
`412
`
`
`
`408
`
`.
`Normal com—
`
`operation
`
`
`Yes
`
`Enable wireless .
`purchase & on-
`line~inventory
`functions
`
`to display
`
`Send "Wireless
`
`purchase enabled"
`
`409
`
`Fig. 12: Command and data flow of wireless purchase
`
`(a)
`
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 14
`Page 14
`
`
`
`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 14 0f 16
`
`US 7,110,954 B2
`
`H 451
`Coin inserted?
`
`No.
`
`452
`
`
`Yes
`
`Enable
`
`merchandize
`Yes
`selection ‘
`
`
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`
`
`450
`
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`
`453
`
`456
`
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`
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`
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`
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`
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`
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`selection
`display panel
`
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`Check soldout
` Check inventory
`
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`
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`levels
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`transaction
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`inventory
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`level?
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`quantity
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`
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`
`Fig. 12: Command and data flow of wireless purchase
`
`0))
`
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 15
`Page 15
`
`
`
`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 15 of 16
`
`US 7,110,954 B2
`
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 16
`Page 16
`
`
`
`
`
`
`
`
`
`
`
`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 16 of 16
`
`US 7,110,954 B2
`
`I) 501
`
`Update database
`
`502
`
`500
`
`
`initialize wireless
`
`modem or X25
`datalink
`
`Received
`
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`
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`Received
`
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`to vending
`
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`
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`
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`
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`originating vending
`machine from
`
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`database
`
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`Alert message
`Power down message SChEdu‘e report message 3‘
`11
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`
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`
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`
`status in
`
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`visualization
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` Send acknowledgment to
`originating vending
`originating vending machine
`
`machine
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`
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`status in
`
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`operator
`visualization
`
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`
`
`516
`
`515
`
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`messages
`
`
`
`517
`
`Fig. 14: Command and data flow of on-line inventory
`
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 17
`Page 17
`
`
`
`US 7,110,954 B2
`
`1
`WIRELESS PURCHASE AND ON-LINE
`INVENTORY APPARATUS AND METHOD
`FOR VENDING MACHINES
`
`FIELD OF THE INVENTION
`
`The present invention relates generally to an apparatus of
`and a method for wireless purchase of merchandise. In
`particular, the present invention relates to an apparatus of
`and a method for controlling wireless purchase from a
`vending machine by using a cellular phone. Further, the
`present invention relates to on-line inventory management,
`inventory data acquisition and monitoring, and vending
`machine control.
`
`DESCRIPTION OF THE PRIOR ART
`
`A “vending machine” generally refers to a coin-operated
`machine that automatically dispenses a merchandise upon
`the receipt of a payment equal to or greater than a prede-
`termined sale price. Even though many vending machines
`are now designed to accept paper bills, electronic stored
`value cards, or credit cards as alternate payment methods,
`coin-operated vending machines remain the largest in num-
`ber.
`
`A major feature of vending machines is that the vending
`operation is fully automatic with no need of human super-
`vision. Accordingly, various vending machines have been
`used at locations where it is not cost effective to have a
`normal manned merchandise outlet or where 24-hour sale
`
`service is needed. The merchandise dispensed from vending
`machines typically include drinks, food, tobacco, stamps,
`newspaper, parking tickets, phone cards, and etc. The stor-
`age compartments in a vending machine may contain dif-
`ferent merchandise inventory at different predetermined sale
`prices.
`Usually, vending machines are grouped into routes; one or
`more of these routes are managed by an operator. The
`operator sends service personnel to regularly refill the inven-
`tory, change merchandise, remove collected coins or bills,
`refill money changer, and perform other maintenance ser-
`vices. In most cases, refill and maintenance service is carried
`out based on historical figures, which is the service fre-
`quency depends on past history of a particular vending
`machine at a particular location. As sale patterns may vary
`among vending machines at different sites and at different
`times, the historical data may cause undesirable inefficien-
`cies in the management of the vending machines. Accord-
`ingly, an automated method or apparatus is desired to collect
`on-line inventory data. Furthermore, the large number of
`cellular mobile phone users also creates the opportunity of
`payment by mobile phones. Therefore,
`it is desirable to
`provide a method or an apparatus allowing online payment
`for purchase made from vending machines.
`A number of US. patents have addressed the aspect of
`vending machine inventory management. US. Pat. No.
`6,056,194 issued to Brock Kolls on May 2, 2000 and entitled
`“System and Method for Networking and Controlling Vend-
`ing Machines” discloses a vending machine control system
`and method for controlling vending of items from one or
`more vending machines operated by credit cards, debit
`cards, pre-pay cards, bills, or coins via a network.
`US. Pat. No. 5,930,771 issued to D. S. Stapp on Jul. 27,
`1999 and entitled “Inventory Control and Remote Monitor-
`ing Apparatus and Method for Coin-operable Vending
`Machines” uses bar code scanner to log inventory into a
`memory with each vending machine and uses cellular tele-
`
`10
`
`15
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`2
`
`phone interface and modem to transmit the vending infor-
`mation back to a central computer. The Stapp patent focuses
`on the bar code scanner embedded at racks and claims one
`
`cellular number used for a plurality of vending machines.
`US. Pat. No. 5,794,144 issued to E. I. Comer et al. on
`Aug. 11, 1998 and entitled “Methods and Apparatus for
`Communicating Data via a Cellular Mobile Radiotelephone
`System” describes a data collection system based on cellular
`network control channel, together with a paging message
`system for acknowledgment. The Corner patent focuses
`exclusively on the use of the control channel in the cellular
`network and the paging approach.
`US. Pat. No. 5,963,452 issued to T. Etoh et al. on Oct. 5,
`1999 and entitled “System for Managing Sales of Goods for
`Vending Machines” discusses the use of frequency modu-
`lated sub-carrier broadcasting facility for communication
`between a goods control center and the terminal computers.
`The Etoh patent focuses on the control of the vending
`machines via control commands from the control center, and
`extracting market information of the vending machines.
`US. Pat. No. 4,412,292 issued to J. K. Sedam et al. on
`Oct. 25, 1983 and entitled “System for the Remote Moni-
`toring of Vending Machines” describes a system using
`telephone line to communicate information obtained by a
`microprocessor in a vending machine. The Sedam patent
`focuses mainly on a plurality of sensors in a vending
`machine to establish alert conditions and to control inven-
`
`tory, route planning of the machines.
`Although the above US. patents disclose systems using
`cellular telephone network to communicate for on-line
`inventory control purpose, none of these patents discusses
`the use of the short message service (SMS) protocol. Fur-
`thermore, apart from inventory control, none of the patents
`discloses using a cellular mobile phone to purchase mer-
`chandise and to make the payment, let along a fully inte-
`grated solution to the purchase and on-line inventory prob-
`lem.
`
`SUMMARY OF THE INVENTION
`
`The present invention provides an alternate merchandise
`purchasing method that can co-exist with all
`the other
`purchasing schemes,
`including coins, bills, stored value
`cards, or credit cards available to vending machines.
`The present invention also integrates the purchasing func-
`tion with the online inventory function so that a single
`apparatus can handle the purchase of merchandise, monitor
`the inventory, and communicate with a central computer.
`The present
`invention relates to an apparatus and a
`method for wireless purchase of merchandise from a vend-
`ing machine by using a cellular mobile phone. The present
`invention permits a cellular mobile phone user to dial a
`sequence of code on the phone to invoke the vending
`machine to dispense merchandise, where payment
`is
`charged to the mobile phone account. The present invention
`also relates to an apparatus and a method for on-line
`inventory management. With on-line inventory manage-
`ment, the present invention provides high efficient operation,
`reduced operation cost, and just-in-time service and mer-
`chandise delivery. The present invention further relates to an
`apparatus and a method that allow both on-line inventory
`management and wireless purchase of merchandise in a
`vending machine.
`The apparatus and method of the present invention have
`at least the following features that are not found in any of the
`existing vending machines.
`(1) The present
`invention is
`generic enough to be integrated into either mechanical type
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 18
`Page 18
`
`
`
`US 7,110,954 B2
`
`3
`or electronic type vending machines. (2) The present inven-
`tion uses wireless modem that communicates with other
`
`mobile phones or a central computer Via the commercial
`cellular mobile network. (3) The present invention uses the
`SMS protocol. The inventory data is further encoded with
`cyclic redundancy code for error checking. (4) The present
`invention employs the micro-controller technology and uti-
`lizes mixed-mode analog-digital circuit
`interfacing tech-
`nologies for data acquisition, processing and storage. (5)
`The present invention provides a method of inventory data
`protection against data loss due to power failure, transient,
`or intentional power down. (6) The present invention is fully
`programmable and can be programmed to perform a multi-
`tude of tasks.
`(7) The present
`invention is based on a
`distributed architecture that each vending machine in the
`plurality of vending machines operates independently, with-
`out requiring authorization from a central computer. (8) The
`present invention is designed to co-exist with other payment
`devices. (9) The present invention deployed in large num-
`bers, with low probability of communication congestion.
`1n the present
`invention, each vending machine is
`equipped with a control and commtmication unit (CCU).
`The CCU can comprise one or more of the following: a
`micro-controller, a cellular mobile phone modem, a power
`management circuit, a battery, a display panel, a quantity
`counter interface, a refill/service switch interface, a door
`switch interface, a reset switch, a coin mech signal detection
`and simulation circuit, a merchandise dispensing interface
`circuit, a merchandise selection interface circuit, and a sold
`out interface circuit. The CCU can be connected to an AC
`
`power supply derived from the vending machine and further
`connected to the sold out circuit, the merchandise dispensing
`device,
`the coin mech, and the counter of the vending
`machine.
`The micro-controller is capable of running a resident
`program in the read-only memory of the micro-controller to
`carry out various actions. Exemplary actions performed by
`the micro-controller are shown below without any particular
`order. (1) The micro-controller can serve interrupting signals
`from the sold out circuit, the dispensing circuit, the quantity
`counter, the refill/service switch, the door switch, and/or the
`reset switch. (2) The micro-controller can encode and pack
`the inventory data into a format and size suitable for SMS
`communication.
`(3) The micro-controller can detect
`the
`presence of the coin mech signal and arbitrate between the
`coin or card purchase and the cellular phone purchase. (4)
`The micro-controller can enable the coin mech simulation
`
`(5) The micro-
`signals to initiate a vending transaction.
`controller can record the quantity counter and refill/service
`switch signals and include that as part of the inventory data.
`(6) The microcontroller can display part of the cellular
`mobile phone number or other messages on the display
`panel. (7) The micro-controller can initiate and control the
`communication with a central computer via a wireless
`modem. (8) The micro-controller can control and receive
`data from a central computer and then take appropriate
`actions. (9) The micro-controller can control and receive
`data from a purchaser’s phone, verify the coded sequence,
`and initiate the purchase. (10) The micro-controller can
`perform a software reset when the reset switch is pressed.
`(11) The micro-controller can record the date and time when
`the door switch is activated. Other standard functions of the
`
`micro-controller may include management of the on-board
`memory banks and referencing the real-time clock.
`The functions of the sold out interface circuit, the mer-
`chandise dispensing interface circuit, the quantity counter,
`and the refill/service switch can be broadly viewed as
`
`5
`
`10
`
`15
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`4
`
`inventory data collection. These components are capable of
`collecting one or more types of the following information:
`sold out data,
`the storage compartment from which the
`merchandise is dispensed, the total number of merchandise
`sold since the day of first installation, and the type of service
`carried out.
`
`The functions of the coin mech signal detection and
`simulation circuit are to detect and simulate the coin mech
`
`signals under certain situations. When an appropriate pay-
`ment of coins has been inserted through and accepted by the
`coin mech, the coin mech signals are active. The coin mech
`signals then drive a converter in the vending machine to
`allow a purchaser to select merchandise on the display panel
`of the vending machine via a number of buttons. On the
`other hand, when a wireless purchase is carried out, equiva-
`lent signals are simulated to activate the display panel and
`selection buttons for merchandise selection. To prevent
`signal contention, any coin mech signals, if active, must be
`detected. Once detected, the coin mech signals can interrupt
`the micro-controller, which can then serve the interrupt by
`disabling the wireless purchase in the earliest instance. It
`will be appreciated that other payment devices may be
`similarly interfaced with the vending machine. The payment
`priority can be determined as desired in advance for a
`smooth vending operation.
`The display panel is capable of displaying partial phone
`number of the purchaser whose purchase request the vend-
`ing machine is serving at the time. Therefore, the display
`function can notify the purchasers of the ongoing transac-
`tion. Because the display panel shows only part of the phone
`number, there is no concern of violating privacy. The display
`panel can also be used to display other messages during the
`system start-up, system testing, and cash transaction.
`The power management circuit is capable of providing the
`required power supply to the micro-controller and its periph-
`eral devices when an AC power supply is applied. Addi-
`tionally or alternatively, the power management circuit is
`capable of providing a backup battery supply when the AC
`power supply is removed or unstable. When the latter
`occurs, the power management circuit detects a voltage drop
`and starts counting in a timing loop. During the voltage drop
`period, the backup battery is used as power supply. How-
`ever, the battery is not intended for carrying out normal
`operations. If the voltage drop lasts after a predetermined
`period of time has elapsed, the power management circuit
`signals the micro-controller that a power down condition has
`occurred. Upon receiving this confirmation, the micro-con-
`troller immediately forwards all
`the vending transaction
`information obtained since the last reporting time to a
`central computer. The micro-controller enters into a sleeping
`mode to conserve battery power after sending all the infor-
`mation and receiving an acknowledgment from the central
`computer. If the voltage level returns to the normal level
`within the predetermined period of time, the power man-
`agement circuit switches back to the AC power supply.
`Normal operations resume.
`The wireless modem is capable of establishing a commu-
`nication link with the purchaser’s mobile phone and/or with
`a central computer. As a cellular mobile phone modem, it
`can receive and transmit SMS over the existing commercial
`mobile network. When a purchaser dials the code from a
`cellular phone, the phone communicates with the wireless
`modem. The wireless modem in turn sends an interrupt to
`the micro-controller. The micro-controller serves the inter-
`
`rupt by turning on the display buttons on the panel of the
`vending machine to allow the purchaser select merchandise
`via the buttons. As to the communication between the
`
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 19
`Page 19
`
`
`
`US 7,110,954 B2
`
`5
`vending machine and a central computer, the communica-
`tion can be both directions. On one hand, the micro-con-
`troller is capable of automatically packing the vending
`transaction information and transmitting them to the central
`computer, when a predetermined period of time has elapsed,
`or an alert level becomes active, or the contents of the
`transaction information has reached a certain size in the
`
`6
`FIG. 12 depicts the command and data flow of wireless
`purchase of the present invention;
`FIG. 13 depicts the on-line inventory management con-
`figuration of the present invention; and
`FIG. 14 depicts the command and data flow of on-line
`inventory of the present invention.
`
`5
`
`10
`
`memory storage. On the other hand, the central computer is
`capable of requesting for vending transaction information by
`sending a SMS to the vending machine where, after verify-
`ing the sender identity, the micro-controller automatically
`packs the vending transaction information since the last
`reporting time and transmits them to the central computer.
`When a plurality of vending machines are employed in a
`wireless purchase and on-line inventory management appa-
`ratus, each vending machine can be identified uniquely by a
`central computer through an identification phone number.
`Such identification phone number differs from the short code
`used for wireless purchase and is unknown to the purchasers.
`The identification phone number is used by all the backend 20
`operations to identify the machine or the inventory data
`associated with the machine. The central computer can
`consist of one or more of the following: a Windows NT
`computer, an X25 data modem card, an X25 data line
`connecting the computer to the mobile network provider, a 25
`gateway service program, a control program, and a database.
`The use of the X25 data link instead of a wireless modem
`
`15
`
`is to ensure high communication integrity. The gateway
`service program can control the data line operation and
`bufiefing. The control program is capable of interfacing with 30
`the gateway service program, supporting visualization, con-
`trolling data flow, manipulating data, keeping log of the
`incoming and outgoing data and events, and writing data
`into a database. The database is capable of collating the data
`for data analysis, route planning,
`inventory control, and 35
`other management purposes.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`The present invention will become more apparent from 40
`the following description in conjunction with the accompa—
`nying drawings, in which:
`FIG. 1 is a block diagram depicting a vending machine of
`a mechanical type;
`FIG. 2 is a block diagram depicting a vending machine of 45
`an electronic type;
`FIG. 3 is a block diagram of the control and communi—
`cation unit (CCU) of the present invention;
`FIG. 4 is a schematic diagram of the micro-controller
`circuit of the present invention;
`FIG. 5 is a schematic diagram of the power management
`circuit of the present invention;
`FIG. 6 is a schematic diagram of the merchandise dis-
`pensing interface circuit of the present invention;
`FIG. 7 is a schematic diagram of the sold out interface
`circuit of the present invention;
`FIG. 8 is a schematic diagram of the coin detection and
`simulation circuit of the present invention;
`FIG. 9 depicts the interface between the