Abstract:
Systems and methods of authorizing the activation of a previously functioning by subsequently deactivated or disabled communication device are disclosed. The method comprises receiving at a central processor an authorization request from a merchant terminal at the merchant store to authorize activation of a communication device, the central processor being in selective communication with the merchant terminal and a communications service provider; determining at the central processor whether the communication device was validly sold from the merchant store in a purchase transaction; authorizing at the central processor activation of the communication device, responsive to a determination that the communication device was validly sold from the merchant store in a purchase transaction; and sending a notification from the central processor to the communications service provider that the communication device is authorized and ready for activation.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS  
       [0001]     This application is a continuation of and claims priority to U.S. patent application Ser. No. 10/778,338 filed on Feb. 17, 2004, which in turn claims priority to U.S. Provisional Application No. 60/519,629 filed Nov. 14, 2003. 
     
    
     FIELD OF THE INVENTION  
       [0002]     This invention relates to distributing and activating communication devices, such as wireless phones. More particularly, the invention relates to distributing wireless communication devices at point-of-sale merchant terminals wherein the communication devices may be used for wireless communication service.  
       BACKGROUND OF THE INVENTION  
       [0003]     Merchant stores receive wireless phones from distributors and sell the phones and other communication devices to customers. These phones may be pay-as-you-go wireless phones. Typically, the phones are inactive when the stores receive the phones from distributors. Thus, in order for a customer to use a phone after purchase, the phone must be activated through a communication service provider, i.e., a carrier. For instance, a customer may purchase at a merchant store a phone pre-associated with a specific wireless telecommunication provider. To activate the phone, the customer must later call the provider, at which point the provider determines whether to activate the phone. Typically, providers will automatically activate any phone at a customer&#39;s request. Once activated, the phone can be used for its intended purpose, such as wireless communication service.  
         [0004]     The traditional method does not allow the carrier to know the status of the phone prior to activation. In other words, at the time of activation, but not prior, the carrier will know that the phone is in the hands of a user and no longer in the chain of distribution. However, the carrier will not know whether the phone was ever legitimately purchased at an authorized retailer. For instance, the carrier will not know whether the person calling to activate the phone is requesting to activate a stolen phone or a legitimately purchased phone.  
         [0005]     What is desired is a method of distributing the phone to customers so that a carrier can verify that a phone was validly purchased prior to activation.  
       SUMMARY OF THE INVENTION  
       [0006]     Systems and methods of authorizing the activation of a previously functioning by subsequently deactivated or disabled communication device are disclosed. The method comprises receiving at a central processor an authorization request from a merchant terminal at the merchant store to authorize activation of a communication device, the central processor being in selective communication with the merchant terminal and a communications service provider; determining at the central processor whether the communication device was validly sold from the merchant store in a purchase transaction; authorizing at the central processor activation of the communication device, responsive to a determination that the communication device was validly sold from the merchant store in a purchase transaction; and sending a notification from the central processor to the communications service provider that the communication device is authorized and ready for activation. 
     
    
     DESCRIPTION OF THE DRAWINGS  
       [0007]      FIG. 1  illustrates a system for authorizing the activation of a communication device according to an embodiment of the invention.  
         [0008]      FIG. 2  illustrates an exemplary communication device and package.  
         [0009]      FIG. 3  illustrates a flowchart showing a method of distributing a communication device according to an embodiment of the invention.  
         [0010]      FIG. 4  illustrates a flowchart showing a method of authorizing the activation of a communication device according to another embodiment of the invention.  
         [0011]      FIG. 5  illustrates a flowchart showing a method of authorizing the activation of a communication device according to yet another embodiment of the invention. 
     
    
     DETAILED DESCRIPTION OF THE EMBODIMENTS  
       [0012]     The subject matter of this application is related to the technology described in the following U.S. Patents and Patent Applications: U.S. application Ser. No. 10/253,243 filed Sep. 24, 2002, U.S. Provisional Application No. 60/324,333 filed Sep. 24, 2001, U.S. Provisional Application No. 60/396,404 filed Jul. 15, 2002, U.S. Provisional Application No. 60/519,630 filed on Nov. 14, 2003, U.S. Provisional Application No. 60/519,629 filed on Nov. 14, 2003, U.S. application Ser. No. 10/712,182 filed Nov. 13, 2003, U.S. application Ser. No. 10/655,828 filed Sep. 5, 2003, U.S. patent application Ser. No. 10/698,084 filed Nov. 3, 2003, U.S. application Ser. No. 10/411,971 filed Apr. 11, 2003, U.S. application Ser. No. 09/641,363 filed Aug. 18, 2000 (now issued as U.S. Pat. No. 6,575,361), U.S. Provisional Application No. 60/149,740 filed Aug. 19, 1999, U.S. application Ser. No. 10/732,641 filed Dec. 10, 2003, the U.S. Application filed Dec. 19, 2003 under Attorney Docket No. 64243.000005, and the U.S. Patent Application filed Jan. 16, 2004 under Attorney Docket No. 64243.000006. All of these applications are incorporated herein by reference in their entirety. It should be appreciated that the authorization and activation of communication devices as described herein may be combined with the novel systems and methods of the applications referenced above.  
         [0013]      FIG. 1  illustrates a system for authorizing the activation of a communication device according to an embodiment of the invention. The system comprises a manufacturer  14 , distributor  12 , one or more merchants  10 , one or more merchant terminals  4 , a central processor  2 , a central database  8 , a communication service provider  6  (also called “carrier” herein), and a carrier database  7 .  
         [0014]     The communication device may comprise a wireless handset such as a wireless phone, PDA, pager, phone/PDA combination device, internet-enabled device, or any other communication device. The communication device may be in a package, for instance when it is sold. The communication device package may be any container, box, or packaging that may contain, hold, or otherwise couple to the device. In a preferred embodiment, the package contains the device  16  when the customer purchases the device at a merchant terminal  4 .  
         [0015]     The manufacturer  14  manufactures communication devices and passes them to one or more distributors  12 . The distributors  12  ship the communication devices to one or more merchant stores  10 . The merchant stores  10  comprise one or more merchant terminals  4 . Customers purchase the communication devices at merchant terminals  4 .  
         [0016]     The merchant terminals  4  comprise an input/output device for inputting communication device and/or package information (such as an identifier) during a purchase transaction and passing such information to the central processor  2 . For instance, the merchant terminals may comprise any point-of-sale terminal configured to process sale transactions between merchants and customers. The merchant terminal  4  may comprise a barcode scanner and credit card reader, and it may be in selective communication with a network as well-known in the art.  
         [0017]     The central processor  2  may comprise any data processing system that stores, manages, and/or processes device-related information. In one embodiment, the central processor  2  may itself be a communication service provider  6  (also called a “telecommunications carrier” or “carrier” herein). The central processor  2  is configured to process device-related information (such as an identifier). The central processor  2  is further configured to store device-related information in a central database  8 . The information may comprise information received from a merchant terminal  4  during a device sale transaction. The central processor  2  is also configured to communicate information to and from a carrier  6 . For instance, the central processor  2  is configured to receive authorization requests and/or status inquiries from carriers  6 . The central processor  2  is configured to process information stored in the central database  8  based on such requests and inquiries. The central processor  2  is also configured to pass information to the carrier.  
         [0018]     In one embodiment, the central processor  2  is configured to communicate with merchant terminals regarding device activation requests.  
         [0019]     The carrier  6  may process information it receives from the central processor  2 . The carrier may also store information in a carrier database  7 . The carrier  6  is also configured to communicate with customers. For instance, the carrier  6  is configured to receive device activation requests from customers. The carrier  6  is also configured to process information based on the request and/or communicate with the central processor based on the request. The carrier  6  is also configured to pass information to the customer, such as an activation confirmation.  
         [0020]      FIG. 2  illustrates an exemplary communication device  16  and package  18 , the activation of which may be authorized using methods according to the invention. The top left figure in  FIG. 2  shows the front view of a typical communication device  16  such as a wireless phone. The top left figure shows the rear view of a typical communication device  16 .  
         [0021]     The device  16  may have an identifier  20  associated with the device  16 . The identifier  20  may be applied to (e.g., labeled on) the device  16 , the package  18 , or both. The identifier  20  may comprise an electronic serial number (ESN), an IMEI, a subscriber information module (SIM), a UPC code, or other number or indicia that identifies the device  16 . For instance, the ESN, IMEI, and/or SIM code may comprise numbers or codes that are uniquely associated with the device  16 . The identifier may be applied in a SIM card  22  (or SIM card indicia  22 ), a magnetic strip  24 , and/or a barcode  26 . For instance, the barcode  26  may represent the ESN, IMEI, or SIM, and optionally the UPC. In one embodiment, the phone has a SIM card  22  or an equivalent of a SIM card.  
         [0022]     The identifier  20  may be visible on the outside of the device  16  and/or package  18 , or it may be applied or otherwise encoded on the device  16  and/or package  18 . It also may be visible only after manipulating the device  16 , such as by taking out a battery. The identifier  20  may be used by the merchant, distributor, carrier, and customer to track the location and activation status of the device  16 , or for any other record-keeping purpose such as inventory management.  
         [0023]     The device  16  is typically in a package  18  prior to and during sale to a customer. The package may have barcodes and other indicia on it. The package may have an ESN  20  in barcode form. This ESN  20  may also be printed (or magnetically encoded) on the phone itself. There may be more than one identifier  20  associated with the device  16  and/or package  18 . The package  18  and device  16  may also have other barcodes used during purchase or during inventory scanning or other product scanning purposes. The package  18  may have one or more identifiers that are identical to or different from the one or more identifiers  20  associated with the device. In a preferred embodiment, the device  16  and package  18  have at least one identifier  20  in common.  
         [0024]     The bottom figure of  FIG. 2  shows a package  18  configured to contain the handset  16 . The package  18  may have one or more identifiers printed or otherwise stored on the package  18  as described for the handset. The package identifiers may be the same or different from the handset identifiers. In a preferred embodiment, the package  18  and device  16  have at least one identifier that is identical on both the package  18  and device  16 , such as an ESN  20 .  
         [0025]      FIG. 3  illustrates a flowchart showing a method of authorizing the activation of a communication device according to an embodiment of the invention. As used herein, the term “handset” refers generally to any type of communication device regardless of whether it actually comprises a handset.  
         [0026]     In step  31 , handset identifier information is received. For instance, the central processor and/or carrier receives handset identifier information. The manufacturer (or distributor) of the handsets may pass an inventory list of handset ESNs (or other identifiers) to the central processor or carrier. Alternately, a merchant may provide a list of handset identifiers to the central processor or carrier after (or before) it receives the handsets from a distributor. The central processor will then have one or more handset identifiers that may eventually purchased from merchants.  
         [0027]     In a preferred embodiment, each handset is pre-associated with a carrier. Thus, if the carrier receives handset identifier information, it would only receive handset identifier information for the handsets pre-associated with it. In another embodiment, a carrier is chosen after purchase by the customer. In this embodiment, the carrier would not receive identifier information at this stage.  
         [0028]     In optional step  32 , the identifier information is stored and/or processed. For instance, the central processor and/or carrier stores identifier information. The central processor and/or carrier may store a list of ESNs corresponding to handsets that were received by a particular store, delivered by a particular distributor, or manufactured by a particular manufacturer. The information may be stored in a central database coupled to the central processor or a carrier database coupled to the carrier. The central processor (and/or carrier) may also store status information associated with each handset. Because the handsets have not yet been sold, the central processor (and/or carrier) may store information for each handset indicating that the handset is “not sold.” Other methods of storing and/or identifying stored information may be used.  
         [0029]     In step  33 , a handset identifier is input at a merchant terminal during a handset purchase transaction. For instance, one or more handset identifiers may be input at a merchant terminal during a transaction in which a customer purchases the handset. In this step, the customer selects a handset to purchase and purchases the handset at a merchant terminal. During the sale, the handset package (or handset) is scanned at the merchant terminal. In a preferred embodiment, an ESN associated with the handset is input at the terminal by scanning the handset package. Whether the package or handset is scanned, the identifier input at the merchant terminal is uniquely associated with the handset itself.  
         [0030]     Multiple identifiers may be input at the merchant terminal. For instance, a UPC code may be input as well as an ESN, IMEI, SIM, or other identifier. The UPC may input for merchant inventory purposes, while the ESN may be input for purposes of eventual handset activation.  
         [0031]     It should be noted that the handset is inactive or disabled prior to delivery to the customer. For instance, the handset is hotlined or otherwise disabled in the switch. It may be actively or passively disabled. The merchant may disable the handset at (or prior to) purchase. In a preferred embodiment the handset is disabled before it is distributed to the merchant. In one embodiment, the carrier disables the handset, such as before the merchant receives the handset into merchant inventory. For instance, the SIM may be disabled. This may occur before it is offered to the customer (e.g., before the product is placed on the store shelves or otherwise offered to the customer), or it may occur during the purchase transaction. When the SIM is disabled, the handset is disabled and cannot enable wireless handset service. In order to activate the handset, the customer must later contact a central server (such as by calling an 800 number or accessing a website of the carrier) and activate the handset. The server may comprise a computer or handset system of a telecommunications provider (i.e., carrier), preferably the provider of the wireless service to be enabled on the customer&#39;s purchased handset.  
         [0032]     In optional step  33 , the merchant terminal may also input information regarding the purchaser, such as the purchasers name, address, social security number, PIN, home or other telephone number, email address, website, or other information. Some of this information may be identified via a purchaser credit card or check, or the information may be provided by the customer at the request of the merchant. Customer information may also be passed to the central processor or carrier, which may store such information in a database. This information may be used to verify the identity of the purchaser when the purchaser later activates the phone.  
         [0033]     In step  34 , the central processor receives a handset identifier. The identifier may be the identifier input in step  33 . For instance, the merchant terminal may input the identifier and then pass the identifier to the central processor during sale of the handset to a customer. In a preferred embodiment, this occurs simultaneously with the sale. For instance, the sale transaction may comprise inputting the identifier information and automatically passing the information to the central processor. For instance, a barcode may be scanned during purchase, as with typical transactions, and the barcode number may be passed to the central processor.  
         [0034]     If a customer&#39;s funds are later determined to be invalid or insufficient, or if there is any other problem with the transaction (e.g., if the phone is returned), the merchant or merchant terminal may notify the central processor of the problem at that time. The phone may then become disabled again. Appropriate records of such return transactions may be stored and passed to the carrier and central processor.  
         [0035]     Alternately, there may be a delay between inputting the information at the merchant terminal and passing identifier information to the central processor. For instance, the merchant terminal may wait until the customer&#39;s purchase funds clear to ensure that only validly purchased handset identifiers are passed to the central processor.  
         [0036]     Also, if a handset is stolen or damaged, or is otherwise not eligible for distribution to a customer, the central processor may amend a database entry corresponding to the handset to reflect that the handset has been “cancelled.” Such a handset may not be activated, as reflected by its “cancelled” status.  
         [0037]     In step  35 , the handset is registered as being validly purchased and/or ready for activation. For example, the phone may become enabled or activated in the switch. In a preferred embodiment, the central processor passes handset identifier information to a carrier system to indicate that the handset was validly purchased. It may pass such information via any communication device or means, such as via the internet, dedicated data line, telephone IVR, or other system.  
         [0038]     In a preferred embodiment, the central processor transfers such information via an API so that the carrier system can easily recognize and process the information. After the carrier system processes the information, the handset is registered in the carrier&#39;s system as a validly purchased handset. For instance, the carrier may store the identifier in a carrier database file that includes identifiers for handsets that have been validly purchased. The fact that the handset is valid is apparent from the file it is stored in. Or, the carrier may amend an existing database entry corresponding to the handset to indicate that the handset has been validly sold.  
         [0039]     Alternately, the central processor may store status information indicating that the handset is “sold and ready for activation.” It may store such information in the manner described for the carrier system, or in any manner known in the art.  
         [0040]     In step  36 , the carrier receives from a customer a request to activate the handset. In this step, a customer contacts the carrier (via phone, internet, etc.) to activate the handset. For instance, the customer may call an 800 number that accesses a carrier IVR system, or the customer may access the carrier&#39;s website. The customer may also call a carrier customer service or activation department. The customer provides identifier information to the carrier system so that the carrier system can identify the specific handset for activation. For instance, the customer may provide the ESN or SIM, such as by entering the ESN at an internet or IVR prompt. Alternately, if the customer contacts the carrier using the handset itself, the handset may automatically provide identifier information to the carrier system.  
         [0041]     The customer may also provide customer identification information. Such identification information may comprise a customer name, address, phone number, receipt number, product number, or other number or code that may be associated with the purchased phone, purchaser, vendor, or wireless service provider. The carrier may request to verify such information prior to activation.  
         [0042]     In step  37 , the carrier determines whether the handset has been validly purchased. In a preferred embodiment, the carrier checks its database to determine whether the identifier is associated with a validly purchased handset. For instance, the carrier may determine whether an identifier associated with the handset (such as the ESN) is stored in a database corresponding to valid handsets.  
         [0043]     In another embodiment, the carrier system contacts the central processor to determine whether the identified handset has been validly sold. For instance, the carrier system (such as a customer service center) may pass a handset identifier (such as the one provided in step  36 ) to the central processor. This may occur by accessing a central processor IVR system, or by any other method of communication as described herein. The central processor would receive the identifier, access its database to determine whether the identifier is associated with a validly purchased identifier, and then pass an authorization result back to the carrier. The authorization result may indicate that the phone was validly sold or that the phone was not validly sold (or that there was some other problem associated with the handset). For instance, the central processor may determine the authorization result based on stored authorization status information.  
         [0044]     In step  38 , the carrier activates the handset or denies the customer&#39;s request. If the carrier determines that the handset was validly purchased, the carrier may activate the handset. If the carrier determines that the handset was not validly purchased, or if there is some other problem with the purchase of the handset, then the carrier may deny the customer&#39;s request and refuse to activate the phone.  
         [0045]     When a carrier activates the handset, the handset becomes usable. For instance, if the handset is a wireless telephone, then activating the handset might allow the customer to use the handset to access the carrier&#39;s wireless telecommunications services.  
         [0046]      FIG. 4  illustrates a flowchart showing a method of authorizing the activation of a communication device according to another embodiment of the invention. The method of  FIG. 4  should be interpreted in light of the discussion of  FIG. 3 .  
         [0047]     In optional step  41 , the central processor stores identifier information, e.g., as described for step  32 .  
         [0048]     In step  42 , a handset identifier is input at a merchant terminal during a handset purchase transaction, e.g., as described for step  33 .  
         [0049]     In step  43 , the merchant terminal passes the identifier to the central processor, e.g., as described for  34 .  
         [0050]     In step  44 , the central processor passes the identifier to the carrier.  
         [0051]     In step  45 , the identifier is stored in a carrier database. A status of the identifier (and/or corresponding handset) may be stored and/or updated based on receiving the identifier from the central processor. The various status possibilities are described below with respect to  FIG. 5 .  
         [0052]     Steps  44  and  45  may occur when, e.g., the central processor inserts the identifier into a carrier database, e.g., using an API. This process is also described in step  35 .  
         [0053]     In step  46 , the carrier receives a handset activation request, e.g., as described for step  36 .  
         [0054]     In step  47 , the carrier determines whether to activate the handset. This may comprise accessing a carrier database to determine whether the identifier is in the database, or to determine whether the identifier is associated with a handset that has been approved for activation. This may also comprise determining the status of the identifier (and/or the corresponding handset).  
         [0055]     In step  48 , the carrier responds to the customer request by either activating the handset or by denying the customer request. For instance, if the identifier is in the database (or if the identifier is associated with a handset approved for activation), the carrier will activate the handset. If not, then the carrier may deny the request.  
         [0056]      FIG. 5  illustrates a flowchart showing a method of authorizing the activation of a communication device according to yet another embodiment of the invention. The method of  FIG. 5  should be interpreted in light of the discussion of  FIG. 3 .  
         [0057]     In step  51 , the handset identifier is input at a merchant terminal during a handset purchase transaction, e.g., as described for step  33 .  
         [0058]     In step  52 , the merchant terminal passes handset identifier information to the central processor, e.g., as described for step  43 .  
         [0059]     In step  53 , the central processor processes and/or stores the identifier. For instance, the central processor may store the identifier in a database entry (or amend an existing database entry) to indicate that the identifier was received from a merchant terminal. The entry may be reflect that the corresponding handset has a particular status, e.g., that the handset is sold and ready for activation.  
         [0060]     In step  54 , the carrier receives a handset activation request from the customer, e.g., as described for step  46 .  
         [0061]     In step  55 , the carrier passes the activation authorization request to the central processor.  
         [0062]     In step  56 , the central processor processes the identifier. The central processor may determine whether the identifier was validly sold. For instance, the central processor may determine whether the identifier was received in a transaction according to steps  51  and  52 . The central processor may also determine the status of the handset (and/or corresponding identifier). For instance, the central processor may determine that the handset has a particular status, such as “sold and ready for activation,” “not sold,” “sold and activated,” “sold and returned,” or “cancelled.” Depending on the status, the central processor may determine to pass a positive or negative (or other) activation response. For instance, the central processor may determine to send a positive response if the corresponding handset is “sold and ready for activation.” The central processor may pass a negative response if the status is “cancelled,” “not sold,” or “sold and returned.” 
         [0063]     In step  57 , the central processor passes an activation authorization response to the carrier. The authorization response may be an indication to activate or to not activate. The authorization response may comprise status information about the identifier and/or corresponding handset.  
         [0064]     In step  58 , the carrier either activates the handset or denies the customer&#39;s request, e.g., as described for step  48 . The carrier&#39;s action may be based on the central processor&#39;s response in step  57 .  
         [0065]     It should be noted that different identifiers may be used in the different steps described herein, provided that the different identifiers are associated with a single handset. I.e., it is not necessary that the ESN be the single identifier that is used throughout the process. For instance, a barcoded number (e.g., a number that is mapped to or otherwise associated with a SIM or ESN in a database) may be scanned at the merchant terminal and passed to the central processor, but the processor may determine the SIM or ESN and pass it to the carrier. Here, the central processor may receive the UPC and determine the ESN or SIM that is associated with that barcode by processing information stored in a database (for instance, information received from the merchant associating UPC numbers with ESN numbers). Also, it should be appreciated that the term “identifier” may comprise information associated with the identifier. In other words, an identifier received by a carrier need not be the exact same as the identifier passed from a merchant terminal to a central processor in an earlier step, provided that the two identifiers are uniquely associated with the same device.  
         [0066]     It should also be noted that the communication devices mentioned above may be activated in any manner as described for activating PINs in the above-referenced applications.  
         [0067]     It will be understood that the specific embodiment of the invention shown and described herein is exemplary only. Numerous variations, changes, substitutions and equivalents will now occur to those skilled in the art without departing from the spirit and scope of the present invention. Accordingly, it is intended that all subject matter described herein and shown in the accompanying drawings be regarded as illustrative only and not in a limiting sense and that the scope of the invention be solely determined by the appended claims.