(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2004/0117262 A1
`Berger et al.
`(43) Pub. Date:
`Jun. 17, 2004
`
`US 200401 17262A1
`
`(54) SYSTEM AND METHOD FOR CONDUCTING
`A MONETARY TRANSACTION
`
`(57)
`
`ABSTRACT
`
`(76) Inventors: Jeffrey Keith Berger, Palatine, IL
`(US); Alson Lee, Inverness, IL (US)
`
`Correspondence Address:
`MOTOROLAINC
`600 NORTH US HIGHWAY 45
`ROOM AS437
`LIBERTYVILLE, IL 60048-5343 (US)
`
`(21) Appl. No.:
`(22) Filed:
`
`10/321,902
`Dec. 17, 2002
`Publication Classification
`
`(51) Int. Cl. .................................................. G06F 17/60
`(52) U.S. Cl. ................................................................ 705/16
`
`There is provided a System and method for conducting a
`monetary transaction among a Point-Of-Purchase (“POP”)
`device (102), a mobile device (104) and a certifying author
`ity (108). The POP device (102) may provide goods and/or
`services. A short-range wireless link (110) is established
`between the POP device (102) and the mobile device (104),
`and a long-range wireless link (112) is established between
`the mobile device and the certifying authority (108). The
`POP device (102) provides its identity and prices for its
`goods/services to the mobile device (104). After a particular
`good/service is selected, the mobile device (104) provides
`its identity and certain information, namely the POP
`device's identity and the price for the Selected good/Service,
`to the certifying authority (108). The POP device (102) then
`receives the certain information back from the certifying
`authority (108) via the mobile device (104) as well as an
`asSociated digital Signature generated by the certifying
`authority. If the digital signature is authenticated, the POP
`device (102) dispenses the Selected good/Service.
`
`
`
`100
`
`Petitioner Kiosoft Exhibit 1003
`1
`
`

`

`Patent Application Publication Jun. 17, 2004 Sheet 1 of 6
`
`US 2004/0117262 A1
`
`102
`
`
`
`100
`
`Af7 G. Z
`
`Petitioner Kiosoft Exhibit 1003
`2
`
`

`

`Patent Application Publication Jun. 17, 2004 Sheet 2 of 6
`
`US 2004/0117262 A1
`
`206
`
`210
`
`212
`
`214
`
`
`
`216
`
`218
`
`220
`
`DEVICE ID
`
`TRANSACTION LOG
`
`GOODS/SERVICES
`
`NEMORY UNIT
`
`
`
`PRICES
`ROOT PUBLIC KEY
`
`
`
`CERTIFYING
`AUTHORITY
`PUBLIC KEY
`
`204
`
`SHORT-RANGE
`COMMUNICATION 222
`UNIT
`
`USER INTERFACE
`
`VISUAL
`OUTPUT
`
`224
`
`-
`
`MECHANICAL
`INPUT
`
`226
`
`202
`
`208
`
`CONTROL
`UNIT
`
`DISPENSINC
`MECHANISM
`
`102
`
`Af7G 2
`
`306
`
`304
`
`LONCER-RANCE
`COMMUNICATION
`UNIT
`
`SHORT-RANGE
`COMMUNICATION
`UNIT
`
`316
`
`J 10
`
`MEMORY UNIT
`
`N
`
`USER INTERFACE
`
`312
`
`314
`
`WOLATILE
`-
`
`NON-WOLATILE
`
`302
`
`30
`8
`
`PROCESSOR
`
`EXTERNAL
`CONNECTOR
`
`VISUAL
`OUTPUT
`
`3.18
`
`y
`MECHANICAL
`INPUT
`
`320
`
`104.
`
`AZ
`
`3.
`
`Petitioner Kiosoft Exhibit 1003
`3
`
`

`

`Patent Application Publication Jun. 17, 2004 Sheet 3 of 6
`
`US 2004/0117262 A1
`
`404
`
`
`
`NETWORK
`COMMUNICATION
`UNIT
`
`406
`
`NEMORY UNIT
`
`412
`
`TRANSACTION LOC
`
`414 - N ROOT PRIVATE KEY
`
`PROCESSOR
`
`
`
`4 16
`
`POP DEVICE
`PRIVATE KEY
`
`
`
`
`
`
`
`
`
`
`
`
`
`TRANSACTION
`AUTHORIZATION
`CIRCUIT
`
`
`
`PRIVATE KEYS
`AND SIGNATURE
`CIRCUIT
`
`108
`
`Af7G 4
`
`Petitioner Kiosoft Exhibit 1003
`4
`
`

`

`Patent Application Publication Jun. 17, 2004 Sheet 4 of 6
`
`US 2004/0117262 A1
`
`Af7G. A
`500
`
`502
`
`START
`
`504
`
`CHECK FOR QUERY
`
`QUERY
`RECEIVED FROM MOBILE
`DEVICE
`
`
`
`
`
`YES
`
`SEND INFORMATION TO THE
`MOBILE DEVICE
`
`510
`
`516
`
`CHECK FOR RESPONSE TO
`INFORMATION
`
`DISPLAY "DENIED"
`MESSAGE
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`RESPONSE
`RECEIVED FROM MOBILE
`DEVICE
`
`522
`
`DISPLAY ERROR
`MESSAGE
`
`"AUTHORIZED"
`RESPONSE RECEIVED
`
`
`
`
`
`530
`
`528
`
`DISPENSE ITEM
`AND/OR MESSAGE
`
`YES
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`YES
`RETRIEVE PUBLIC KEY
`
`518
`
`
`
`
`
`AUTHORIZED
`AMOUNT EQUALS PRICE OF
`REQUESTED ITEM OR
`SERVICE
`
`
`
`SIGNATURE
`VALID
`
`YES
`
`IDENTIFY AUTHORIZED AMOUNT
`OF TRANSACTION
`
`Petitioner Kiosoft Exhibit 1003
`5
`
`

`

`Patent Application Publication Jun. 17, 2004 Sheet 5 of 6
`
`US 2004/0117262 A1
`
`602-( START
`
`604
`
`CONTACT POP DEVICE
`AND SEND QUERY
`
`606 - CHECK FOR RESENSE
`QUERY (I.E, INFORMATION)
`
`AfZ G. 6
`
`600
`
`608
`
`
`
`INFORMATION
`RECEIVED FRON POP
`DEVICE
`
`YES
`
`610
`
`CHECK USER INTERFACE FOR
`SELECTION FRON LIST
`
`612
`
`SELECTION
`FROM LIST
`DETECTED
`
`YES
`
`614
`
`SEND PACKET TO
`CERTIFYING AUTHORITY
`
`
`
`
`
`
`
`CHECK FOR RESPONSE
`TO PACKET
`
`616
`
`END
`
`622
`
`RESPONSE
`RECEIVED FROM CERTIFYING
`AUTHORITY
`
`NO
`
`
`
`
`
`YES
`
`FORWARD RESPONSE TO PACKET
`TO POP DEVICE (IE, RESPONSE
`TO INFORMATION)
`
`620
`
`Petitioner Kiosoft Exhibit 1003
`6
`
`

`

`Patent Application Publication
`
`Jun. 17, 2004 Sheet 6 of 6
`
`US 2004/0117262 A1
`
`702
`
`704
`
`CHECK FOR PACKET FROM
`NOBILE DEVICE
`
`706
`
`PACKET
`RECEIVED FROM
`POP DEVICE
`
`NO
`
`708
`
`YES
`IDENTIFY MOBILE DEVICE
`ID FRON PACKET
`
`NO
`
`
`
`710
`
`MOBILE
`DEVICE ID
`VERIFIED
`
`712
`
`YES
`IDENTIFY REQUESTED
`AMOUNT FROM PACKET
`
`714
`
`1 REQUESTED
`AMOUNT AUTHORIZED
`
`
`
`722
`
`
`
`ASSEMBLE "DENIED"
`RESPONSE TO PACKET
`
`ASSEMBLE "AUTHORIZED"
`RESPONSE TO PACKET
`
`RETRIEVE PRIVATE
`KEY
`
`716
`
`718
`
`SICN RESPONSE TO PACKET
`WITH PRIVATE KEY
`
`720
`
`LOC TRANSACTION
`
`724
`
`700
`
`SEND RESPONSE TO PACKET
`TO MOBILE DEVICE
`
`726
`
`AfZG 27
`
`Petitioner Kiosoft Exhibit 1003
`7
`
`

`

`US 2004/01 17262 A1
`
`Jun. 17, 2004
`
`SYSTEMAND METHOD FOR CONDUCTING A
`MONETARY TRANSACTION
`
`FIELD OF THE INVENTION
`0001. The present invention relates generally to the field
`of payment mechanisms, other than cash, for conducting
`monetary transactions. In particular, the field of this inven
`tion relates to Point-Of-Purchase (“POP”) devices having
`wireleSS communication capabilities for electronic payment
`of goods and/or Services.
`
`BACKGROUND OF THE INVENTION
`0002 POP devices may use payment mechanisms other
`than cash. Such POP devices generally require Secure appli
`cation modules or wide area communication channels to
`Support cashleSS transactions. In particular, a POP device
`includes Secret key technology issued by a financial autho
`rization System to guarantee the transaction. The Secret key
`technology is used in the mutual authentication process with
`the payment means and is integral to the transaction. The
`POP device must include protection mechanisms to protect
`the Secret key technology from discovery, thus adding
`Significant cost to the manufacture of the machine. Also, the
`POP device includes a “back channel” to a financial autho
`rization System, thus adding Significant cost to the manu
`facture and operation of the machine. Unfortunately, the cost
`of implementing these relatively expensive components
`Significantly raises the cost of manufacturing and operating
`POP devices that use alternative payment mechanisms.
`0003. Accordingly, there is a need for an alternative
`payment system for POP devices that does not require
`Special Security measures. There is a further need for an
`alternative payment system for POP devices that utilize
`relatively inexpensive communication technology and, thus,
`do not require expensive wide area communication compo
`nentS.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`0004 FIG. 1 is a perspective view of a preferred embodi
`ment in accordance with the present invention.
`0005 FIG. 2 is a block diagram representing the POP
`device of FIG. 1.
`0006 FIG. 3 is a block diagram representing the mobile
`device of FIG. 1.
`0007 FIG. 4 is a block diagram representing the certi
`fying authority of FIG. 1.
`0008 FIG. 5 is a flow diagram representing a preferred
`operation of the POP device of FIG. 2.
`0009 FIG. 6 is a flow diagram representing a preferred
`operation of the mobile device of FIG. 3.
`0.010
`FIG. 7 is a flow diagram representing a preferred
`operation of the certifying authority of FIG. 4.
`
`DETAILED DESCRIPTION OF THE
`PREFERRED EMBODIMENT
`0.011 The present invention is a system and method for
`conducting monetary transactions with Point-Of-Purchase
`(“POP”) devices. The system and method minimizes the cost
`of manufacturing and/or operating POP devices by mini
`
`mizing Security measures required by the machines and by
`including relatively inexpensive communication technology
`within the machines. In particular, public key information is
`solely used and stored by the POP devices instead of both
`public and private key information. Possession of both
`public and private key information is quite valuable,
`whereas possession of just public key information is nomi
`nal in value. POP devices that only utilize public key
`information require significantly less protection than POP
`devices that utilize public and private key information and,
`thus, cost significantly less to manufacture. Also, the POP
`devices use relatively inexpensive short-range communica
`tion technology instead of more expensive wide area com
`munication technology, thus, cost Significantly less to manu
`facture and operate.
`0012. The present invention is a method for a mobile
`device of conducting a monetary transaction between a POP
`device and a certifying authority. A first communication is
`established with the POP device, and a POP device identi
`fication and an amount are received from the POP device.
`Also, a Second communication is established with the cer
`tifying authority, and the POP device identification, the
`amount, and a mobile device identification are transmitted to
`the certifying authority. The POP device identification, the
`amount, and a digital Signature are then received from the
`certifying authority and forwarded to the POP device.
`0013 The present invention is also a method for a POP
`device of conducting a monetary transaction between a
`mobile device and a certifying authority. A communication
`is established with the mobile device, and a POP device
`identification and an amount are Sent to the mobile device.
`The POP device identification, the amount, and a digital
`Signature, provided by the certifying authority, are then
`received from the mobile device. Thereafter, one or more
`goods and/or notifications of Service are dispensed.
`0014. The present invention is further a system for con
`ducting a monetary transaction that comprises a POP device,
`a mobile device, and a certifying authority. The POP device
`has a first transceiver and is configured to generate infor
`mation including a POP device identification and an amount.
`The mobile device is associated with a mobile device
`identification, and the mobile device has a Second trans
`ceiver configured to communicate with the first transceiver
`of the POP device and a third transceiver configured to
`communicate with a remote device. The Second transceiver
`receives the information from the POP device. The certify
`ing authority has a fourth transceiver being configured to
`communicate with the third transceiver of the mobile device.
`The fourth transceiver receives the information and the
`mobile device identification from the mobile device and
`transmits the information and a digital signature to the
`mobile device. The mobile device forwards the information
`and the digital signature to the POP device.
`0.015
`Referring to FIG. 1, there is shown a block dia
`gram illustrating an electronic transaction System 100 in
`accordance with a preferred embodiment of the present
`invention. The system includes a Point-Of-Purchase
`(“POP”) device 102, a mobile device 104, a communication
`network 106 and a certifying authority 108. The POP device
`102 may dispense goods Such as consumer and commercial
`products, Services Such as power and product delivery, or
`both. For example, the present invention is equally appli
`
`Petitioner Kiosoft Exhibit 1003
`8
`
`

`

`US 2004/01 17262 A1
`
`Jun. 17, 2004
`
`cable for enabling Services transactions, Such as pre-paid
`electric meter authorizations, as well as goods transactions.
`Communication between the POP device 102 and the mobile
`device 104 occurs via a short-range wireless link 110, and
`communication between the mobile device and the commu
`nication network 106 occurs via a longer-range wireleSS link
`112. Unlike the short-range and longer-range wireleSS links
`110, 112, communication between the communication net
`work 106 and the certifying authority 108 may be any type
`of wired connection, wireleSS connection, or combination
`wired/wireless and is represented by network link 114.
`0016. The POP device 102, the mobile device 104, the
`communication network 106 and the certifying authority
`must have data communication capabilities and may, option
`ally, include Voice communication capabilities. For the
`preferred embodiment, the mobile device 104 is a radiotele
`phone that includes both Voice and data communication
`capabilities and the communication network 106 is a tele
`communications network that communicates voice and data
`information with the mobile device. Examples of the mobile
`device 104 include, but are not limited to, radiotelephones,
`paging devices, personal digital assistants, portable comput
`ing devices, and the like, having wireleSS communication
`capabilities.
`0017. The POP device 102 requires utilization of short
`range wireleSS technology, the mobile device 104 requires
`utilization of short-range and longer-range wireleSS technol
`ogy, and the communication network 106 requires utiliza
`tion of longer-range wireleSS technology. Examples of short
`range wireless technology that may be used by the POP
`devices 102 and the mobile device 104 for short-range
`wireless link 110 include, but are not limited to, Bluetooth,
`Wi-Fi (i.e., IEEE 802.11a, 802.11b and 802.11g), HomeRF,
`proprietary RF communications, and infrared communica
`tions. Examples of longer-range wireleSS technology that
`may be used by the mobile device 104 and the communi
`cation network 106 for longer-range wireless link 112
`include, but are not limited to, Standard cellular protocols
`such as analog, CDMA, GSM, TDMA, UMTS, and paging
`protocols such as FLEX and REFLEX.
`0.018. The longer-range wireless link 112 has a longer
`range of communication than the Short-range wireleSS link
`110. A direct link is established between the mobile device
`104 and the POP device 102 when establishing the short
`range wireless link 110, and an indirect link is established
`between the mobile device and the certifying authority 108
`when establishing the longer-range wireleSS link 112. In
`other words, an ad hoc link operable within a particular
`range from the POP device 102 is established when the
`short-range wireless link 110 is established, and a network
`link is established between the mobile device 104 and a
`location remote from the POP device when the longer-range
`wireless link 112 is established.
`0.019
`Referring to FIG. 2, there is shown representative
`components of the Point of Purchase (“POP”) device 102. It
`should be understood that two or more components may be
`combined or one or more components may be separated into
`multiple components So long as the device 102 is capable of
`its primary functions as described herein. The POP device
`102 includes a control unit 202 for general operation of the
`device 102, Such as communicating with other components
`of the device, as well as calculating hash values and Signa
`
`tures of received messages. In the alternative, the function of
`calculating hash values and Signatures may be performed by
`a separate component or one of the other components shown
`in FIG. 2.
`0020. The POP device 102 also includes a short-range
`transceiver or communication unit 204 for communication
`with an external entity, a memory unit 206 having non
`volatile memory, and a dispensing mechanism 208. The
`Short-range communication unit 204 communicates with
`Similar short-range communication units of other devices,
`such as the mobile device 104. The dispensing mechanism
`208 is capable of releasing an item, i.e., goods, or notifica
`tion of a service when authorized by the control unit 202.
`0021. The non-volatile memory of the memory unit 206
`may maintain a POP device identification ("ID") 210, a
`transaction log 212, a list of purchasable items and/or
`Services 214, prices of the items and/or Services 216, and one
`or more public keys 218, 220. The POP device ID 210 is a
`specific code distinguishes the POP device 102 from other
`POP devices, the transaction log 212 is an electronic record
`of all transactions that occur at the POP device, the list of
`purchasable items and/or Services 214 identifies all goods
`and/or services that are available for purchase at the POP
`device, and the prices of items and/or Services 216 provides
`a Specific Selling price for each item and/or Service identified
`by the list of purchasable items and/or services. The control
`unit 202 uses one or both public keys 218, 220 to decrypt
`information received from a remote location that has been
`encrypted using a private key corresponding to the public
`key. It is important to note that the POP device 102 only
`includes public keys that, unlike devices that include both
`public and private keys, do not require Special tamper
`protection mechanisms. The POP device 102 provides a
`purchase request message to the mobile device 104 via the
`short-range wireless link 110 that includes a POP device ID
`corresponding to the POP device, a list of items and/or
`Services available for purchase and prices associated with
`the items and/or Services available for purchase.
`0022 Optionally, the POP device 102 may also include a
`user interface 222. The user interface 222 may be used to
`provide acceSS for a cash transaction or to Supplement the
`user interface of the mobile device 104. For the preferred
`embodiment, the user interface 222 includes a visual output
`224 and a mechanical input 226, Such as a display and a
`keypad, respectively.
`0023 Referring to FIG. 3, there is shown representative
`components of the mobile device 104. Similar to the POP
`device 102, two or more components of the mobile device
`104 may be combined or one or more components may be
`separated into multiple components. The mobile device 104
`includes a processor 302 for general operation of the device,
`Such as communicating with other components of the
`device. The mobile device 104 is a device separate from the
`POP device 102 that serves to forward information received
`from the POP device to the certifying authority 108 via the
`communication network 106 and forward certain informa
`tion received from the certifying authority to the POP
`device. The mobile device 104 may also supplement any
`information that it forwards, Such as adding a mobile device
`identification ("ID") corresponding to the mobile device, a
`selection of goods or services available from the POP device
`102, the prices associated with each Selection, and/or total
`
`Petitioner Kiosoft Exhibit 1003
`9
`
`

`

`US 2004/01 17262 A1
`
`Jun. 17, 2004
`
`amount due. As such, the POP device 102 only requires
`relatively inexpensive Short-range communication technol
`ogy for communication with the mobile device 104 instead
`of more expensive wide area communication technology for
`communication with the certifying authority 108.
`0024. The mobile device 104 may perform other func
`tions in addition to communicating between the POP device
`102 and the certifying authority 108. For example, for the
`preferred embodiment, the mobile device 104 is a radiotele
`phone having a cellular communication capability and a
`Bluetooth communication capability. Accordingly, the pre
`ferred embodiment is capable of general voice and data
`communication with a wide variety of destinations via a
`telecommunications network as well as voice and data
`communication with a wide variety of devices within a local
`communication area via an ad hoc or peer-to-peer network.
`0.025 The mobile device 104 includes a short-range
`transceiver or communication unit 304 for communication
`with the POP device 102, and a longer-range transceiver or
`communication unit 306 for communication with the certi
`fying authority 108 via the communication network 106. For
`an alternative embodiment, the mobile device 104 may
`include an external connector 308 for receiving a removable
`module, Such as a Smart card, to communicate with the POP
`device 104 and/or the certifying authority 108. The short
`range communication unit 304 communicates with Similar
`Short-range communication units of other devices, Such as
`the short-range communication unit 204 of the POP device
`102. The longer-range communication unit 306 communi
`cates with Similar longer-range communication units of
`other devices, Such as a base Station of the communication
`network 106.
`0026. The mobile device 104 may also includes a
`memory unit 310 having volatile memory 312 and non
`volatile memory 314 and a user interface 316 having a visual
`output 318 and a mechanical input 320. The non-volatile
`memory 314 of the memory unit 310 may maintain a mobile
`device ID, which is a specific code that distinguishes the
`mobile device 104 from other devices. It should be noted
`that the memory unit 308, or a portion thereof, may be
`directly coupled to the processor 302, integrated in the
`processor, or coupled to the external connector 308 of the
`mobile device 104 as a removable module, Such as a Smart
`card. The user interface 316 provides interaction of a user
`with the mobile device 104 as well as any device that
`communicates with the mobile device, but is not required for
`communicating information between the POP device 102
`and the certifying authority 108. For the preferred embodi
`ment, the user interface 316 includes a visual output 318 and
`a mechanical input 320, Such as a, display and a keypad,
`respectively.
`0.027
`Referring FIG. 4, there is shown representative
`components of the certifying authority 108. Similar to the
`POP device 102 and the mobile device 104, two or more
`components of the certifying authority 108 may be com
`bined or one or more components may be separated into
`multiple components. The certifying authority 108 includes
`a processor 402 for general operation of the authority, Such
`as communicating with other components of the authority.
`The certifying authority 108 is located remote from the POP
`device 102, but the exact location of the certifying authority
`is not important So long as it communicates with a commu
`
`nication network 106 and, in turn, communicates with the
`mobile device 104. Accordingly, the certifying authority 108
`includes a network transceiver or network communication
`unit 404 for communication with a plurality of entities,
`including the mobile device 104, via the communication
`network 106.
`0028. The certifying authority 108 is, or has a business
`relationship with, the operator of the POP device 102. The
`certifying authority 108 may have the capability of verify
`the authenticity of the mobile device 104, transfer funds
`between a financial account associated with the mobile
`device and the operator of the POP device 102, and digitally
`Sign authorizing transactions used in the dispensing products
`and/or services. The certifying authority 108 may be any of
`Several parties acting in the role of financial authorization
`and clearing. Examples of Such entities include, but are not
`limited to, a cellular System operator, a financial institution
`and a POP device operator.
`0029. The certifying authority 108 also includes a
`memory unit 406 having non-volatile memory, a transaction
`authorization circuit 408 and a private keys and Signature
`circuit 410. The non-volatile memory of the memory unit
`406 may maintain a transaction log 412 and one or more
`private keys 414, 416. The certifying authority 108 may also
`include public keys, but Such public keys are not utilized for
`the present invention. The transaction log 412 is an elec
`tronic record of all transactions that are processed by the
`certifying authority 108. The processor 402 uses each pri
`vate key 414, 416 to encrypt information destined for the
`POP device 102 so that the POP device may decrypt the
`information using a public key corresponding to the private
`key.
`0030 The transaction authorization circuit 408 autho
`rizes the financial transaction and the private keys and
`Signature circuit 410 digitally signs the financial transaction.
`It is to be understood that the transaction authorization
`circuit 408 and/or the private keys and signature circuit 410
`may be separate components from the processor 402, inte
`grated together within a single circuit, or integrated with the
`processor 402. The transaction authorization circuit 408
`performs operations related to the purchase transaction Such
`as, for example, identifying the mobile device 104, autho
`rizing the request for purchase received from the POP device
`102, and creating/appending a financial transaction record in
`the memory unit 406. The transaction authorization circuit
`408 provides purchase authorization message that includes a
`purchase amount, a POP device ID corresponding to the
`POP device 102, and a sequence number. Optionally, the
`purchase authorization message may also include the item(s)
`or Service(s) being purchased. The Sequence number is
`included in the purchase authorization message to prevent
`replaying the same transaction at a later time. The Sequence
`number may be generated by one of the components of the
`certifying authority 108, such as the processor 402, the
`transaction authorization circuit 408, or the private keys and
`signature circuit 410.
`0031. The private keys and signature circuit 410 pro
`ceSSes the purchase authorization message to generate a hash
`value, and Signs the hash value Via public key cryptography
`using a Secret or private key 414, 416 known only to the
`certifying authority 108. The signed purchase authorization
`message is transmitted from the network communication
`
`Petitioner Kiosoft Exhibit 1003
`10
`
`

`

`US 2004/01 17262 A1
`
`Jun. 17, 2004
`
`unit 404 to the mobile device 104 via the communication
`network 106 and forwarded by the mobile device to the POP
`device 102.
`0.032
`Referring to FIG. 5, there is shown a flow diagram
`representing a preferred operation 500 of the POP device
`102. The preferred operation 500 of the POP device 102
`begins at step 502 and, POP device monitors for any mobile
`devices within a proximity of the POP device. In particular,
`the control unit 202 of the POP device 102 checks for any
`query received by the Short-range communication unit 204
`from a short-range communication unit 304 of a mobile
`device 104 within the proximity via the short-range wireless
`link 110 at step 504. The proximity is limited by a maximum
`range of point-to-point transmission of the short-range wire
`less link 110. If a query is not received initially, then the
`control unit 202 continues the check for any query multiple
`times, if necessary, at Step 506. The query is a request for
`information that includes a POP device ID, available items
`and/or Services, corresponding prices of Such items and/or
`services, and the uniform resource locator (“URL) or phone
`number of an appropriate certifying authority 108.
`0033. If a query is received from a mobile device 104 via
`short-range wireless link 110, then the control unit 202
`retrieves the information from the memory unit 206 and
`directs the Short-range communication unit 204 to Send the
`information to the mobile device 104 via the short-range
`wireless link 110 at step 508. The short-range communica
`tion unit 204 then checks for a response to the information
`from the mobile device 104 at step 510, and continues to
`check for a response at step 512. When the short-range
`communication unit 204 receives the response to the infor
`mation, the control unit 202 may analyze the response to
`determine whether the response provides authorization for
`any type of transaction for the POP device's goods and/or
`services has been received from the certifying authority 108
`at step 514. The control unit 202 may determine whether
`authorization is provided by a wide-variety of methods. For
`example, the control unit 202 may determine that the autho
`rization has been provided if the response to the information
`includes header data that So indicates, if the Signature So
`indicates, or if the response to the information is not signed.
`In the alternative, the control 202 may determine whether
`authorization is provided after the response to the informa
`tion has been decrypted if authorization Status is included
`within the Signature. If an "authorized’ response is not
`received (i.e., a “denied’ response is received), then the
`visual output 224 of the POP device 102, the visual output
`318 of the mobile device 104, or both, will provide an
`appropriate “denied' message at Step 516.
`0034). If an “authorized” response to the information is
`received, then the control unit 202 retrieves the public key
`from memory unit 206 to decrypt the response at step 518.
`The POP device 102 uses a public key to decrypt the
`message Signature of the response and compare against a
`locally generated Signature or hash. The control unit 202
`then determines whether the Signature of the response is
`valid at step 520. If the signature is not valid, then visual
`output 224 of the POP device 102, the visual output 318 of
`the mobile device 104, or both, provides an error message at
`step 522.
`0035). For the preferred embodiment, the POP device 102
`does not have any means to provide change for any differ
`
`ence between amounts paid by a purchaser and amounts due
`by the purchaser in order to minimize the cost of manufac
`turing the POP device 102. Therefore, the amount authorized
`by the certifying authority 108 must equal the price of the
`requested item(s) and/or service(s). Thus, if the signature is
`valid, then the control unit 202 identifies from the decrypted
`response the amount authorized for the transaction by the
`certifying authority 108 at step 524. If, at step 526, the
`authorized amount does not equal the price of the requested
`item(s) and/or Service(s), then the visual output 224 of the
`POP device 102, the visual output 318 of the mobile device
`104, or both, provides an error message at step 522. If the
`authorized amount equals the price of the requested item(s)
`and/or service(s), then the dispensing mechanism 208 dis
`penses the appropriate item(s) and/or message regarding the
`purchased service(s) at step 528. Optionally, the control unit
`202 may write the transaction information to log file in the
`memory unit 310. Finally, the control unit 202 terminates the
`operation 500 at step 530, at which point, the control unit
`may return to the beginning of the operation at Step 502.
`0036 Referring to FIG. 6, there is shown a flow diagram
`representing a preferred operation 600 of the mobile device
`104. The preferred operation 600 of the mobile device 104
`begins at step 602. The mechanical input 320 of the mobile
`device 104 may simply wait until a particular command is
`received from a user. In the alternative, the short-range
`communication unit 304 may monitor a proximity of the
`mobile device 104 for any POP devices 102, particularly
`POP devices having Similar short-range communication
`units. After beginning the operation 600 at step 602, the
`Short-range communication unit 304 contacts the short
`range communication unit 204 of the POP device 102 and
`sends a query to the unit at step 604. To make Sure that
`communication is possible, the short-range communication
`unit 304 checks the local airspace to determine whether the
`POP device 102 (or any POP device) is within proximity of
`the mobile device 104 via the short-range wireless link 110.
`AS Stated above, the proximity is limited by a maximum
`range of point-to-point transmission of the short-range wire
`less link 110.
`0037. The short-range communication unit 304 checks
`for any response to the query, i.e., any information received
`from the POP device 102, at step 606. As stated above, the
`information includes a POP device ID, available items
`and/or Services, corresponding prices of Such items and/or
`services, and the uniform resource locator (“URL) or phone
`number of an appropriate certifying authority 108. If a
`response to the query is not received initially, then the
`Short-range communication unit 304 continues the check for
`any response multiple times, if necessary, at Step 608. After
`the response to the query is received, the Visual output 318
`provides the available items and/or Services. The mechanical
`input 320 then checks any user Selection of one or more
`items and/or services at step 610. The mechanical input 320
`continues to wait unit one or more Selections are made at
`step