Prior Art Search Report

US 9,679,286

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PRIOR ART SEARCH REPORT

Table of Contents

1. OBJECTIVE OF SEARCH 3

2. UNDERSTANDING THE SUBJECT MATTER 3

3. SEARCH METHODOLOGY 4

4. MAPPING SCORECARD 5

5. PRIOR ART REFERENCES – DETAILED ANALYSIS 6

RESULT -1 6

RESULT -2 11

6. OTHER RELATED REFERENCES 15

APPENDIX 17

7. DATABASES USED 17

8. KEYWORDS 17

9. SEARCH CONCEPTS 18

10. FIELD OF SEARCH 19

11. DISCLAIMER 20

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PRIOR ART SEARCH REPORT

1. OBJECTIVE OF SEARCH

Objective of this assignment is to find out prior art references for the elements as claimed in
independent claim 1 by the United States patent #9679286 titled “Methods and apparatus for enabling
secure network-based transactions”. Prior art references published/filed before the priority date of the
patent i.e. Sep 20, 2005 are preferred to form part of the report

2. UNDERSTANDING THE SUBJECT MATTER

The patent relates to an apparatus comprising a transaction card

bearing data and having an output interface capable of transmitting
the data, a card reader having an input interface enabled to accept the
data from the output interface of the transaction card, conversion
circuitry converting the card data to an analog modulated signal, and
an output pin from the card reader adapted to engage in a microphone
port of a smartphone, the output pin providing the analog modulated
signal to the port, and thence to the smartphone.

The smartphone comprises a processor executing coded instructions

from a non-transitory medium and the coded instruction executed by
the processor cause the data to be used in a communication on the
network. The coded instructions provide two-way communication with
a server hosted by a financial institution or an on-line merchant, and
the two-communication facilitate transactions by an owner of the card
with the financial institution or purchases by the owner of the card
with an on-line merchant.

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3. SEARCH METHODOLOGY

Analysis of
the retrieved
Determining
Identifying Framing patent/non-
scope of
Identifying the right indicative patent
claims of
keywords patent/non- search documents
subject Report
pertaining to patent concepts for with the view
patent from Preparation
subject databases to searching in to determine
intrinsic and
matter carry out the the the Invalidity
extrinsic
search databases of the
sources
subject
matter
PRIOR ART SEARCH REPORT

4. MAPPING SCORECARD

US 9,679,286

Result 1

Result 2
[Claimed Elements]

1. An apparatus comprising: ✓ ✓

a card reader having an input interface configured to accept transaction data from an output interface of a transaction
card, and an output pin, as a part of the card reader, configured to directly connect the card reader to a microphone
✓ ✓*
port of a smart telephone, the card reader providing the transaction data accepted from the output interface of the
transaction card to the output pin, and hence to the microphone port, as an analog variable voltage audio signal; and

coded instructions stored in a non-transitory medium of a first Internet-connected server, and accessible by a user of
✓* ✓*
the card reader;

wherein the coded instructions, when executed on a processor in the smart telephone, convert the analog variable
voltage audio signal received at the microphone port to the transaction data as digital data, establish direct data
✓* ✓
exchange between the smart telephone and a second Internet-connected server and facilitate transactions by a
financial institution, or purchases from an online-merchant, using the transaction data.

✓ represents relevant text mapping

✓* represents partial mapping with teaching/suggestion/motivation supported by the searcher’s comments
X represents element not available/identified in the prior art.

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PRIOR ART SEARCH REPORT

5. PRIOR ART REFERENCES – DETAILED ANALYSIS

Upon completion of this prior art search, two potentially relevant patents were found.

RESULT -1 BACK

Publication Number: US 6,579,728

Fabrication of a high resolution, low profile credit card reader and card reader for transmission of data by
Title: sound

Priority Date: Aug 03, 1998 Publication Date Feb 14, 2002

Inventor(s): Alan H. Grant | Richard J. Gambino

Assignee(s)/ Applicant(s): Privicon

ABSTRACT

A portable card reader designed to be carried in a wallet or purse has an electromagnetic head that reads information from a magnetic strip of
a card or information is read from the card by an array of Hall sensors. In a further embodiment, the card reader uses a magnetic sensor based
on magnetoresistive sensing of magnetic transitions of a magnetic stripe, suitable for use with small, portable electronic devices. In each
embodiment, the information read from the card may be converted to a sequence of electronic bursts of predetermined frequency, preferably

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PRIOR ART SEARCH REPORT

in the audible or ultrasound range. The sound signals are output by a speaker to the microphone of a telephone. The signal is then transmitted
over the telephone lines to a remote receiver. The receiver then converts the sound bursts into signal pulses, which can be read using the
computer software of a conventional card reader.

Claimed Elements (US 9,679,286) Prior Art (US 6,579,728)

1. An apparatus comprising: [Col. 4, Line 10-12] As shown in FIG. 2, the reader 10 generally comprises an inductive
pickup head 16 having a coil 18, a modulator 20, amplifier 22 and speaker 24.

a card reader having an input interface configured [Col. 4, Line 10-17] As shown in FIG. 2, the reader 10 generally comprises an inductive
to accept transaction data from an output pickup head 16 having a coil 18, a modulator 20, amplifier 22 and speaker 24. As card 12
interface of a transaction card, and an output pin, is swiped through the reader 10, the magnetic strip 14 passes the inductive pickup head
as a part of the card reader, configured to directly 16. The inductive head 16 reads information from the magnetic strip 14 of the card 12 as
connect the card reader to a microphone port of a it is passed through the slot of reader 10.
smart telephone, the card reader providing the
[Col. 4, Line 21-28] As the card 12 moves past the inductive read head 16, magnetic

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PRIOR ART SEARCH REPORT

transaction data accepted from the output transitions representing binary data induce a small voltage in the coil 18 of the head 16.
interface of the transaction card to the output The voltage from the coil 18 stimulates the modulator 20 to produce a short burst of
pin, and hence to the microphone port, as an audio frequency signal. The audio frequency signal is amplified by audio amplifier 22 and
analog variable voltage audio signal; and sent to the speaker 24. The speaker 24 is preferably located on the bottom of the
reader 10 (of FIG. 1), so that it may be held in close proximity to the microphone of a
telephone, for instance.

[Col. 8, Line 33-39] The signal output from the Hall sensor array 34 can thus be received
and processed by the same hardware and software as is used in existing card readers
that are hard wired to telephone lines. The output voltage from the Hall sensor array 34
is amplified by amplifier 48 and transmitted as a sound signal by a loudspeaker 50 or
similar transducer of electrical signals to sound waves.

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PRIOR ART SEARCH REPORT

FIG. 3 is a chart of the signals generated by the card reader.

coded instructions stored in a non-transitory [Col. 4, Line 35-41] Once generated, the audio signal may be recorded on a portable
medium of a first Internet-connected server, and recording device 26 and the recorded signal played back whenever the credit card
accessible by a user of the card reader; information needs to be transmitted. The digital audio recording device is small and
portable, and can be held close to the telephone mouth piece and operated by pushing a
button. The credit card information can be protected from fraudulent use by the use of
a pin code actuated circuit so that a pin code must be entered on a key pad connected
to electronic switches so that the audio signal can only be played back when a proper
pin code has been entered.

[Col. 5, Line 8-10] The digital audio recording device can also be incorporated into a cell
phone. The recorded credit card data can be transmitted on command through the cell
phone communication channel.

[Searcher’s Comment: Unlike subject patent, the prior art doesn’t explicitly disclose a
coded instruction stored in the memory of cell phone to decode received information.
However, from the cited text it can be inferred that the recorded sound data is converted
into suitable form for transmission through cell phone communication channel.]

wherein the coded instructions, when executed [Col. 4, Line 32-41] As just described, the card reader shown in FIG. 2 can be used to
on a processor in the smart telephone, convert generate an audio frequency signal emitted by speaker 24 by passing the credit card 12
the analog variable voltage audio signal received so that the magnetic strip 14 passes the inductive pickup head 16. Once generated, the
at the microphone port to the transaction data as audio signal may be recorded on a portable recording device 26 and the recorded signal

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PRIOR ART SEARCH REPORT

digital data, establish direct data exchange played back whenever the credit card information needs to be transmitted. The digital
between the smart telephone and a second audio recording device is small and portable, and can be held close to the telephone
Internet-connected server and facilitate mouth piece and operated by pushing a button. The credit card information can be
transactions by a financial institution, or protected from fraudulent use by the use of a pin code actuated circuit so that a pin
purchases from an online-merchant, using the code must be entered on a key pad connected to electronic switches so that the audio
transaction data. signal can only be played back when a proper pin code has been entered.

[Col. 5, Line 8-10] The digital audio recording device can also be incorporated into a cell
phone. The recorded credit card data can be transmitted on command through the cell
phone communication channel.

Searcher’s Summary

The prior art relates to a reader which comprises an inductive pickup head, a modulator, amplifier and speaker to pick up information read from
card and convert it to a sequence of electronic bursts of predetermined frequency, preferably in the audible or ultrasound range. The generated
sound signals are output by a speaker to the microphone of a cell phone. The recorded data can be transmitted on command through the cell
phone communication channel to server for transaction.

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PRIOR ART SEARCH REPORT

RESULT -2 BACK

Publication Number: US20050177484A1

Title: Audio-equipped transaction card systems and approaches

Priority Date: Jan 16, 2004 Publication Date Aug 11, 2005

Inventor(s): Keith Jentoft

Assignee(s)/ Applicant(s): Keith Jentoft

ABSTRACT

Approaches for using and implementing transactions involving audio-equipped transaction cards reduce both data-management efforts and
costs. In addition, certain applications further facilitate loyalty to the business entity that issues the audio-equipped transaction cards by, e.g.,
facilitating transactions with the card-issuing entity and/or selected business partners. One example embodiment is directed to audio-
equipped personal cards and an approach to purchase agreement that involve activating an audio transmission from a transaction card to
establish a point-of-sale purchase agreement. Data relating to the purchase agreement is communicated to an account/payment institution to
confirm the purchase agreement, optionally in response to the customer's PIN being received. In another embodiment, a two apparatus (or
“card”) approach involves retailers entering data via a retailer card that is useable by selected users (e.g., the retailer's representatives or
employees). For such retailer and/or customer cards, various implementations are directed to different approaches for entering user
information and/or security information such as customer PIN, a retailer-employee ID or PIN number.

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PRIOR ART SEARCH REPORT

Claimed Elements (US 9,679,286) Prior Art (US20050177484A1)

1. An apparatus comprising: [Para 47] An audio-equipped personal card system 200 includes a customer's ID unit 210 and
a retailer's ID unit 220. The customer's ID unit 210 is shown having a speaker 230 and an
activation element 240. The retailer's ID unit 220 is shown having a speaker 250 and an
activation element 260.

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PRIOR ART SEARCH REPORT

a card reader having an input interface [Para 47] An audio-equipped personal card system 200 includes a customer's ID unit 210 and a
configured to accept transaction data from retailer's ID unit 220. The customer's ID unit 210 is shown having a speaker 230 and an
an output interface of a transaction card, activation element 240. The retailer's ID unit 220 is shown having a speaker 250 and an
and an output pin, as a part of the card activation element 260.
reader, configured to directly connect the
[Para 49] In response to actuation of one or more of the respective activation elements 240
card reader to a microphone port of a smart
and 260, the ID units 210 and 220 respectively transmit audio signals 260 and 270. The audio
telephone, the card reader providing the
signal 260 contains at least a customer's account information (e.g., as read from an audio-
transaction data accepted from the output
equipped transaction card) and the audio signal 270 contains at least a retailer's ID, such as an
interface of the transaction card to the
account number for the retailer, to receive a fund transfer from the customer's account. One
output pin, and hence to the microphone
or both of the customer's ID unit 210 and the retailer's ID unit 220 may also contain a
port, as an analog variable
microphone (not shown) used to record or coordinate the transaction between the
voltage audio signal; and
customer's ID unit 210, the retailer's ID unit 220, and an account/payment institution 280.

[“Searcher’s Comment: Unlike the subject patent, two distinct acoustic signals are sent to cell-
phone –one by customer’s ID unit (card) and the other one by retailer’s ID unit (card reader).
However, in one embodiment, the prior art suggests that one or both of the customer's ID unit
210 and the retailer's ID unit 220 may also contain a microphone to coordinate the
transaction.”]

coded instructions stored in a non- [Para 37] In another specific example embodiment, the customer card (and, where applicable,
transitory medium of a first Internet- the retailer card) includes a built-in keypad on which the user enters the PIN and the tone
connected server, and accessible by a user (carrying the card information) is emitted only after the user enters the correct PIN number. In
this embodiment, the card electronics are preprogrammed with the PIN number (e.g., via

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PRIOR ART SEARCH REPORT

of the card reader; firmware programming, fully- or semi-programmable nonvolatile memory).

wherein the coded instructions, when [Para 49] In response to actuation of one or more of the respective activation elements 240
executed on a processor in the smart and 260, the ID units 210 and 220 respectively transmit audio signals 260 and 270. The audio
telephone, convert the analog variable signal 260 contains at least a customer's account information (e.g., as read from an audio-
voltage audio signal received at the equipped transaction card) and the audio signal 270 contains at least a retailer's ID, such as an
microphone port to the transaction data as account number for the retailer, to receive a fund transfer from the customer's account.
digital data, establish direct data exchange
[Para 50] In the example illustrated in FIG. 2, the audio signals 260, 270 are received by a cell-
between the smart telephone and a second
phone 290 for transmission to the account/payment institution 280. The audio-equipped
Internet-connected server and facilitate
personal card system 200 may be particularly useful for point-of-sale retailers such as mall
transactions by a financial institution, or
kiosks, street vendors, and professional service providers, as well as transactions between
purchases from an online-merchant, using
private individuals.
the transaction data.

Searcher’s Summary

The prior art relates to an audio-equipped personal card system which includes a customer's ID unit and a retailer's ID unit. The customer's ID
unit includes a speaker and an activation element and the retailer's ID unit also includes a speaker and an activation element. In response to
actuation of one or more of the respective activation elements, two audio signal are sent to phone - the audio signal 260 sent by customer ID
unit contains at least a customer's account information (e.g., as read from an audio-equipped transaction card) and the audio signal 270, sent
by retailer’s ID unit contains at least a retailer's ID, such as an account number for the retailer, to receive a fund transfer from the customer's
account.

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6. OTHER RELATED REFERENCES

Upon completion of this Patentability search 3 related patent disclosing different aspects of the clamed features were identified. The references
are arranged on the basis of their relevance with the subject matter.

S No.
Bibliographic Details Relevant Text

US 7,481,363 [Col. 4, Line 20-24] In FIG. 2, any device capable of connection to

1 Patent
telecommunications infrastructure 210 may receive a request for authentication
Number
since, in the preferred embodiment, such requests are generated utilizing the
well established dual tone multi-frequency (DTFM) encoder/decoder signal
Priority Date Aug 09, 2002
212. Such devices would include, standard wire telephone 220, cellular
telephone 222, any network computer 224 or a numericast network 226

Publication Aug 05, 2004 operated to collect and aggregate viewer payments, for example.

Date

Title Smartcard authentication and

authorization unit attachable
to a PDA, computer, cell
phone, or the like

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PRIOR ART SEARCH REPORT

2 US 6,607,136 [Abstract] The interactive authentication system allows a consumer to interact

Patent
with a base station, such as broadcast media (e.g., television and radio) or PC, to
Number
receive coupons, special sales offers, and other information with an electronic
card. The electronic card can also be used to transmit a signal that can be
Priority Date Sep 16, 1998
received by the base station to perform a wide variety of tasks. These tasks can
include launching an application, authenticating a user at a website, and
Publication Aug 19, 2003 completing a sales transaction at a website (e.g., by filling out a form

Date automatically). The interaction between the base station and the electronic
card is accomplished by using the conventional sound system in the base
station so that a special reader hardware need not be installed to interact with
Title Physical presence digital
the electronic card. The user is equipped with an electronic card that can receive
authentication system
and transmit data via sound waves. In the various embodiments, the sound
waves can be audible or ultrasonic (which can be slightly audible to some groups
of people).

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 APPENDIX
7. DATABASES USED

The search was conducted in the following databases:

Thomson Innovation | Orbit | Google Patents | Espacenet | WIPO |

Patent Databases
JPO | FREE PATENT ONLINE | DEPATISNET | CIPO | SIPO

Non-Patent Databases Google | IEEE | SCIENCE DIRECT | CiteSeerX

8. KEYWORDS
One or more of the key words listed below have been used in different combinations while conducting
the prior art search

Keywords Technical Synonyms

Card Reader Card Receiver | Point of Sale | POS terminal | Electronic payment | Mobile
terminal |Portable | Handheld |Smartcard | Magnetic Strip | Adapter |
Scanner | Swipe Machine

Transaction Payment | Pay | Financial | Monetary | Banking | Accounting | Economic |

Fiscal

Output Pin Interface | Circuit |Pin | Speaker | Circuit | Transceiver | Transmitter

Microphone Receiver | Transducer | Mic | Mike | Bug | Amplifier | Recorder | Resonator

Audio Voltage Signal Audio | Acoustic | Sound | Ultrasound | Audile | Aural | Resonate | Wave
PRIOR ART SEARCH REPORT

Coded Instruction Firmware | Software | Program | Code | Algorithm | Application | App

Smartphone Phone | Cellphone | PDA |Portable Digital Assistant | Cellular | Mobile |

Telecommunication | Telecom | Palmtop | Tablet | Tab | Handheld Computer
| Portable Device

Transmit Transfer | Pass | Communicate | Relay | Send | Emit | Issue

Financial Institution Server | Transaction Server | Third Party | Merchant | Retailer | Trader | Agent
|Broker | Vendor | Seller | Dealer | Shop | Sales | Negotiator | Arbitrator |
Moderator

Conversion A/D | Analog To Digital | A2D | AD Converter | ADC | A-to-D | Transducer |

Converter | Analog | Digital | Encode | Quantize

9. SEARCH CONCEPTS

Following search concepts/strategies were identified and were used to search on different databases
using combination of class/keyword/active assignee/inventors in the domain

1 Acoustic transmission of financial card data

2 Near field acoustic transmission for financial transaction

3 Wireless card reader with acoustic signal transmission

4 Acoustic communication between card reader and smart phone

5 Sound wave decoder program in smartphone for transaction

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10. FIELD OF SEARCH

Following class codes were used alone and/or in combination with other class codes/keywords

IPC/CPC Classification

G06F Physics : Instruments : Computing; Calculating; Counting : Electric Digital Data

Processing : Checking-Devices : Coin-Freed Or Like Apparatus

G06F7/00 Mechanisms actuated by objects other than coins to free or to actuate vending,
hiring, coin or paper currency dispensing or refunding apparatus

• G07F7/025 by keys or other credit registering devices : by means, e.g. cards, providing
billing information at the time of purchase, e.g. identification of seller or
purchaser, quantity of goods delivered or to be delivered

G07F7/0873 Details of the card reader

• G07F7/088 the card reader being part of the point of sale [POS] terminal or electronic cash
register [ECR] itself

• G07F7/0886 the card reader being portable for interacting with a POS or ECR in realizing a
payment transaction

• G07F7/0893 the card reader reading the card in a contactless manner

G06F21/00 Security arrangements for protecting computers, components thereof,

programs or data against unauthorised activity

• G06F21/30 Authentication, i.e. establishing the identity or authorisation of security

principals

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• G06F21/34 involving the use of external additional devices, e.g. dongles or smart cards

• G06F21/44 Program or device authentication

Physics : Instruments : Computing; Calculating; Counting : Data Processing

Systems Or Methods, Specially Adapted For Administrative, Commercial,
G06Q Financial, Managerial, Supervisory Or Forecasting Purposes; Systems Or
Methods Specially Adapted For Administrative, Commercial, Financial,
Managerial, Supervisory Or Forecasting Purposes, Not Otherwise Provided For

• G06Q20/00 Payment architectures, schemes or protocols

• G06Q20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted
for home banking systems

• G06Q20/102 Bill distribution or payments

• G06Q20/105 involving programming of a portable memory device, e.g. IC cards, "electronic

purses"

11. DISCLAIMER
IIPRD has prepared this report based on database and information sources that are believed to be reliable by IIPRD.
IIPRD disclaims all warranties as to accuracy, completeness or adequacy of such information. The search is
performed for all published patent and non-patent literature and for all jurisdictions covered by reliable patent/non-
patent databases. The above report is prepared based on the search conducted with the help of keywords and other
information extracted from the target patent. Neither IIPRD nor its affiliates nor any of its proprietors, employees
(together, "personnel") are intending to provide legal advice in this matter.

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