US007110954B2
`
`US 7,110,954 B2
`(10) Patent No.:
`a2) United States Patent
`
` Yungetal. (45) Date of Patent: Sep. 19, 2006
`
`
`(54) WIRELESS PURCHASE AND ON-LINE
`INVENTORY APPARATUS AND METHOD
`FOR VENDING MACHINES
`
`6,478,187 B1* 11/2002 Simson et al... 221/75
`6,764,003 B1*
`7/2004 Martschitsch et al.
`...... 235/383
`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)
`
`(*) Notice:
`
`Subject to any disclaimer, the term ofthis
`tent i
`tended
`djusted
`under
`35
`Parent
`18 oxmended OF aayusted Under
`US.C. 154(b) by 770 days.
`
`WoO
`
`WO 01/54087—*_—-7/2001
`OTHER PUBLICATIONS
`
`No 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.*
`Noauthor; 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
`
`(22)
`
`Filed:
`
`Mar.12, 2001
`
`(65)
`
`Prior Publication Data
`US 2002/0128932 Al
`Sep. 12, 2002
`
`* cited by examiner
`
`Primary Examiner—Thomas A. Dixon
`(74) Attorney, Agent, or Firm—Robert D. Ratz, Esq.;
`Cooper & Dunham LLC
`(57)
`ABSTRACT
`
`(51)
`
`Int. Cl.
`(2006.01)
`G06Q 10/00
`(52) US. Ch cceececceeenees 705/1; 235/381; 455/420
`(58) Field of Classification Search .........0.000... 705/1,
`705/16, 26, 28, 22; 455/420, 426.1, 406;
`235/380, 381
`See application file for complete search history.
`,
`References Cited
`U.S. PATENT DOCUMENTS
`
`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 provideshighefficient operation,
`reduced operation cost, and just-in-time service and mer-
`chandise delivery. The present invention further relates to an
`4,412,292 A . 10/1983 Sedam et al. «1.100 364/479
`apparatus and a method that allow both on-line inventory
`yhoes Citalianetset al.
`oonas A
`” eatoe
`
`
`management and wireless purchase of merchandise in a
`7/1999 Stapp etal.
`......
`5030771 A
`"705/28
`
`Vending machine.
`_... 364/479.96
`10/1999 Etoh etal.
`5,963,452 A
`
`6,056,194 A 5/2000 Kolls woeeeeeeeeeeee 235/381
`
`9/2002 Defosse .........ccccccceeee 709/200
`6,457,038 B1*
`11 Claims, 16 Drawing Sheets
`
`(56)
`
`@)
`
`Enable
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`
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`initiatizewireless
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`
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`
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`to display
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`
`
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`
`
`purchase function & enable on-line
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`
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`
`Enable wireless
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`YrYes
`Enablewireless
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`functions
`
`Disable wireless
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`
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`
` Send "Wireless
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`
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`Command and dataflow ofwirelesspurchase.
`(a)
`(b)
`
`purchase enabled”|~_-«0sdsplay | came sompater raperting gnabled?,
`
`«8,
`
`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 1
`Page 1
`
`

`

`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 1 of 16
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`US 7,110,954 B2
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 2
`Page 2
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`

`

`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 2 of 16
`
`US 7,110,954 B2
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 3
`Page 3
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`
`

`

`U.S. Patent
`
`Sep. 19, 2006
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`Sheet 3 of 16
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 4
`Page 4
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`

`

`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 4 of 16
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`US 7,110,954 B2
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 5
`Page 5
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`

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`U.S. Patent
`
`Sep. 19, 2006
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`Sheet 5 of 16
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 6
`Page 6
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`

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`U.S. Patent
`
`Sep. 19, 2006
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`Sheet 6 of 16
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`US 7,110,954 B2
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 7
`Page 7
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`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 7 of 16
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 8
`Page 8
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`U.S. Patent
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`Sep. 19, 2006
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`Sheet 8 of 16
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 9
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`U.S. Patent
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`Sep. 19, 2006
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 10
`Page 10
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`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 10 of 16
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`US 7,110,954 B2
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 11
`Page 11
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`

`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 11 of 16
`
`US 7,110,954 B2
`
`
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`Petitioner Kiosoft Exhibit 1011
`Petitioner Kiosoft Exhibit 1011
`Page 12
`Page 12
`
`
`
`
`
`
`
`
`
`
`
`

`

`U.S. Patent
`
`Sep. 19, 2006
`
`Sheet 12 of 16
`
`US 7,110,954 B2
`
`
`
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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
`
`402
`
`400
`
`
`Send "On-line"
`message to central
`computer
`
`
`
`
`Send "Wireless
`
`purchase disabled”
`to display
`
`
`
`
`Disable Wireless
`
`
`purchase function
`& enable on-line
`
`
`inventory funciton
`
`404
`
`Yes
`
`Enable wireless
`purchase?
`
`
`
`Received
`setting from central
`computer?
`
`
`
`Disable wireless
`purchase & on-
`line-inventory
`functions
`
`
`
`Send "Wireless
`purchase disabled"
`to display
`
`
`Normal coin-
`
`operation
`
`401
`
`
`
`405
`
`
`
`
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`
`Yes
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`Enable wireless.
`purchase & on-
`line-inventory
`functions
`
`to display
`
`Send "Wireless
`purchase enabled”
`
`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 of 16
`
`US 7,110,954 B2
`
`
`
`Coin inserted?
`
`452
`
`450
`
`Yes
`
`Coin inserted?
`
`453
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`457
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`
` 456
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`Send partial phone
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`merchandize
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` and store
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`detected?
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`store transaction
`information
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`detected?
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` Check inventory
`signals
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`selection
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`Soldout
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`value
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`
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`central computer
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`
`Fig. 12: Command and data flow of wireless purchase
`
`(b)
`
`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
`
`- 501
`Update database
`
`502
`
`
`
`500
`
`
`
`Initialize wireless
`
`
`modem or X.25
`
`
`datalink
` Received
`
`SMS message
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` Send request
`
`Received
`to vending
`Y
`?
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`SMS message
`machine
` Yes
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`509
`|
`
`Schedule report message &
`Alert message
`Large content report message
`Power down message
`Alert message
`|
`
`
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`
`
`database
`Update machine
`
`Update inventory & transaction info in
`
`status in
`
`visualization
`
`
`
`
`Send setting to
`
` Send acknowledgment to
`
`originating vending
`originating vending machine
`
`machine
`
`
`On-line message
`|
`
`
`
`Retrieve setting of
`originating vending
`machine from
`database
`
`
`
`Update machine
`status in
`visualization
`
`
`
`
`Warn system
`
`
`
`
`
`
`operator
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`
`messages S17
`
`Log all SMS
`
`
`
`516
`
`515
`
`Fig. 14: Command anddata 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
`
`15
`
`25
`
`35
`
`40
`
`45
`
`50
`
`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 machinesis 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 predeterminedsale
`prices.
`Usually, vending machinesare groupedinto routes; one or
`more of these routes are managed by an operator. The
`operator sends service personnel to regularlyrefill the inven-
`tory, change merchandise, remove collected coins orbills,
`refill money changer, and perform other maintenance ser-
`vices. In mostcases, refill and maintenanceservice is carried
`out based on historical figures, which is the service fre-
`quency depends on past history of a particular vending
`machineat 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 methodor apparatusis 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 numberof U.S. patents have addressed the aspect of
`vending machine inventory management. U.S. Pat. No.
`6,056,194 issued to Brock Kolls on May 2, 2000 andentitled
`“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.
`USS. 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 usescellulartele-
`
`2
`phoneinterface 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.
`U.S. Pat. No. 5,794,144 issued to E. I. Corner 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.
`U.S. 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 commandsfrom the control center, and
`extracting market information of the vending machines.
`U.S. 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 U.S. 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 provideshighefficient 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 foundin anyof 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
`SMSprotocol. 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 powerfailure, transient,
`or intentional power down.(6) The present invention is fully
`programmable and can be programmedto 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.
`In the present
`invention, each vending machine is
`equipped with a control and communication unit (CCU).
`‘The CCU can comprise one or more of the following: a
`micro-controller, a cellular mobile phone modem, a power
`managementcircuit, 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
`
`powersupply derived from the vending machine and further
`connectedto 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 ofthe 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
`signals to initiate a vending transaction.
`(5) The micro-
`controller can record the quantity counter andrefill/service
`switch signals and includethat 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
`
`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 dayoffirst 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-
`mentof coins has been inserted through and accepted by the
`coin mech, the coin mechsignals 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 purchaseis 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. ‘he payment
`priority can be determined as desired in advance for a
`smooth vending operation.
`The display panel is capable of displaying partial phone
`numberof 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 showsonly part of the phone
`number, there is no concernof 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 managementcircuit is capable of providing the
`required power supply to the micro-controller andits periph-
`eral devices when an AC power supply is applied. Addi-
`tionally or alternatively, the power managementcircuit is
`capable of providing a backup battery supply when the AC
`power supply is removed or unstable. When the latter
`occurs, the power managementcircuit 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 managementcircuit
`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-controllerenters into a sleeping
`mode to conserve battery powerafter 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 SMSoverthe 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 predeterminedperiod of time has elapsed,
`or an alert level becomes active, or the contents of the
`transaction information has reached a certain size in the
`
`memory storage. On the other hand, the central computeris
`capable of requesting for vending transaction information by
`sending a SMSto 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.
`Whena 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.
`Suchidentification phone numberdiffers from the short code
`used for wireless purchase and is unknownto the purchasers.
`The identification phone numberis used by all the backend
`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 X.25 data modem card, an X.25 data line
`connecting the computer to the mobile network provider, a
`gateway service program, a control program, and a database.
`The use of the X.25 data link instead of a wireless modem
`is to ensure high communication integrity. The gateway
`service program can control the data line operation and
`buffering. The control program is capable of interfacing with
`the gateway service program, supporting visualization, con-
`trolling data flow, manipulating data, k