Patent Publication Number: US-2002004756-A1

Title: Direct electronic purchase of online information

Description:
RELATED APPLICATIONS  
     [0001] This application is a continuation-in-part of U.S. Pat. application Ser. No. 09/612,407, entitled Direct Electronic Business Transaction, filed Jul. 6, 2000. 
    
    
     
       FIELD OF THE INVENTION  
       [0002] This invention relates to a method and system for purchasing electronic information from an electronic database. For example, the electronic information that may be purchased with the present invention may include audio data such as music and/or video data such as movies or feature films. The electronic information is ordinarily purchased in the form of Compact Disks (“CDs”) and Digital Video Disks (“DVDs”).  
       BACKGROUND OF THE INVENTION  
       [0003] Consumers ordinarily purchase digital audio data such as music in the form of musical CDs. The musical CD typically includes a collection of music selected and arranged by the producer or manufacturer of the CD. For example, a typical musical CD may include a collection of recently released songs by a particular artist. A musical CD may also include a combination of songs from a variety of artists. In either case, the manufacturer or producer of a particular musical CD chooses the selection and arrangement of songs recorded on the CD. The CD is then mass-produced and distributed to retailers for sale to the end user.  
       [0004] Similarly, consumers ordinarily purchase digital audio/video data such as movies or music videos in the form of DVDs. The DVD typically includes a movie, music video or collection of music videos. With respect to a DVD movie, the DVD may also include a collection of additional audio/video data such as movie outtakes or interviews with the director and/or actors of the movie. With respect to DVD music videos, the DVD may include a collection of music videos by a particular artist. In either case, the manufacturer or producer of the DVD chooses the selection and arrangement of audio/video data that is recorded on a particular musical DVD. The DVD is then mass-produced and distributed to retailers for sale to the end user.  
       [0005] This method of manufacturing and distribution of CDs and DVDs has a number of drawbacks. For example, the typical CD or DVD is manufactured or produced without any input from the end user. In other words, the electronic data that is recorded on the CD or DVD is selected by the manufacturer or producer of the CD or DVD, and not by the end user. Moreover, since the typical CD or DVD is mass-produced, the manufacturer or producer often selects the electronic data to be recorded on the CD or DVD that is believed to appeal to a large consumer base. As a result, the end user&#39;s selection of pre-recorded electronic data is ordinarily limited to those CDs and DVDs mass-produced by the CD and DVD manufacturer or producer. In other words, the current method of manufacturing and distributing CDs and DVDs does not provide for an end user that wants to purchase a unique selection or arrangement of pre-recorded electronic data.  
       [0006] For example, the end user may want to purchase a music CD recorded with a collection of songs from different artists. These songs, however, may only be available on separate CDs. The end user would then be required to purchase each of the CDs to obtain the desired songs. In addition to the added cost of purchasing several individual CDs, the end user may be required to purchase unwanted songs as a result of purchasing those CDs that include the desired songs.  
       [0007] Another disadvantage with the current method of manufacturing and distributing CDs and DVDs is the need for retailers to maintain an inventory of available CDs and DVDs. This presents a number of problems. First, the retailer will typically purchase from the manufacturer an adequate number of CDs or DVDs to meet the perceived demand for each particular CD or DVD. If the retailer perceives that the demand for a particular CD or DVD will be high, then a large number of CDs or DVDs will need to be purchased. If the retailer has overestimated the demand for a particular CD or DVD, then the retailer may have to absorb the cost of any unsold CDs or DVDs. If the retailer has underestimated the demand for a particular CD or DVD, then the retailer may loose sales as a result of having an inadequate inventory to meet the demand. In any event, the retailer must allocate the space necessary to display the inventory of the CDs and DVDs available for purchase by the end user.  
       [0008] In addition to the above, the current method of manufacturing and distributing CDs and DVDs necessarily entails shipment of the CDs and DVDs from the manufacturer to the retailer. The cost of shipping will necessarily be added to the overall cost of the product, thereby raising the price paid by the end user. Moreover, the need for shipping of the product introduces delay in the availability of the product at the retailer. As a result, the retailer may loose sales due to the inability to quickly obtain the product from the manufacturer.  
       [0009] In view of the disadvantages and problems discussed above, there is a need for an improved method and system for purchasing recorded electronic data that overcomes these disadvantages and problems.  
       BRIEF SUMMARY OF THE INVENTION  
       [0010] The present invention provides an improved method and system for purchasing recorded electronic data that overcomes the above-referenced disadvantages and problems. In particular, the present invention provides a method and system whereby the end user may select or arrange the electronic information to be recorded on the medium such as a CD or DVD.  
       [0011] In the preferred method of the present invention, electronic information is purchased online by the end user by first selecting the electronic information to be recorded from an electronic database. The selected information may then be sampled by audio and/or visual means. The end user then pays for the selected electronic information. The electronic information is then received by a user printing device, which prints the electronic information on a medium such as a CD or DVD. A label is then selected by the end user and printed on the medium.  
       [0012] The preferred method enables the end user, and not the manufacturer, to select the electronic information to be recorded on the medium. For example, the end user may purchase a music CD recorded with a collection of songs from different artists. Alternatively, the end user may purchase a movie DVD that includes interviews with the movie actors, but does not include movie outtakes. The end user may therefore purchase CDs or DVDs with only the recorded electronic information desired by the end user.  
       [0013] The preferred system for online purchasing of electronic information according to the method of the present invention comprises a database for maintaining the electronic information, a user data-processing system for accessing the database, a user printing device for directly receiving and printing the electronic information on to a medium, and an electronic network for interconnecting the database, the user data-processing system, and the user printing device. For example, the electronic database, which may be maintained by a music wholesaler, could contain music by a number of artists in the form digital audio data. The database is accessed by a data-processing system such as computer. Once the end user has selected and purchased the desired digital audio data, the data is recorded on to a medium such as a CD by a user printing device.  
       [0014] The preferred system of the present invention eliminates the need to inventory individual CDs or DVDs. Instead, the retailer may merely maintain a supply of blank or unrecorded CDs or DVDs. Consequently, CDs or DVDs may be recorded at the time of purchase by the end user, without incurring delay or shipping costs. This system also eliminates the possibility of unsold or out of stock CDs or DVDs.  
       [0015] An electronic network connects the components of the preferred system. This enables the database to be located remotely from the user data-processing system and the user printing device. For example, the data-processing system and printing device would ordinarily be located at a music or video retailer, whereas the database would ordinarily be located at, and maintained by, the music or video producer or wholesaler. Alternatively, the user data-processing system and the user printing device could be maintained by the end user, thereby enabling the end user to purchase electronic information without the intervention of the retailer. The electronic network also provides for the connection of the database to multiple processing systems and the printing devices at various locations.  
       [0016] The preferred embodiment of the present invention includes features in addition to those listed above. Moreover, the advantages over the current art discussed above are directly applicable to the preferred embodiment, but are not exclusive. The other features and advantages of the present invention will be further understood and appreciated when considered in relation to the detailed description of the preferred embodiment. 
     
    
    
     BRIEF DESCRIPTION OF SEVERAL VIEWS OF THE DRAWINGS  
     [0017] The present invention is illustrated by way of example and not limitation in the accompanying figures. In the figures, like reference numbers indicate identical or functionally similar elements.  
     [0018]FIG. 1 is schematic representation of a preferred embodiment of the system for online purchasing of electronic information according to the present invention; and  
     [0019]FIG. 2 is schematic representation of a preferred embodiment of the method for online purchasing of electronic information according to the present invention. 
    
    
     DETAILED DESCRIPTION OF THE INVENTION  
     [0020] According to the preferred embodiment of the present invention, a system and method for online purchasing of electronic information are disclosed in reference to FIGS. 1 and 2. FIG. 1 is schematic representation of a preferred embodiment of the system for online purchasing of electronic information. FIG. 2 is schematic representation of a preferred embodiment of the method for online purchasing of electronic information.  
     [0021] As best seen in FIG. 1, the electronic information  102  that is available for purchase by the end user is stored on a database  100 . The database  100  is ordinarily maintained by the owner of the electronic information  102 . The database  100  may also be maintained by a wholesaler, licensor or agent of the owner. By way of example, the database  100  may contain music in the form of digital audio data. In particular, the database  100  may include songs performed by various artists. By way of a second example, the database  100  may contain movies in the form of digital audio/video data. In particular, the database  100  may contain a collection of movies or music videos, which would necessarily include digital audio data as well.  
     [0022] Referring to FIG. 1, the electronic information  102  is accessed by the end user through a user data-processing system  110 . In the preferred embodiment, the data-processing system  110  comprises a stand-alone computer system located at a retailer. Alternatively, the data-processing system  110  may comprise a computer system maintained by the end user. In the preferred embodiment, the computer system includes a monitor  112 , an input device  114 , a sampling device  116  and a payment mechanism  118 .  
     [0023] The monitor  112  displays instructions, information or other data to the end user. The design and function of the monitor  112  is within the scope of those skilled in the art.  
     [0024] The input device  114  may include a keyboard and/or a plurality of button or switches. The input device  114  may also include a mouse, a trackball, a pointing device, including a touch panel, a key switch or a scanner. As will be described in more detail below, the end user utilizes the input device  114  to make selections of electronic information  102  to be purchased from the database  100 . The input device  114  is also used to issue commands necessary to carry out the method of purchasing the electronic information  102 . The input device  114  may also be used by the end user to provide data or information during the method of purchasing the electronic information  102 .  
     [0025] The sampling device  116  may include speakers or a headset through which audio data can be heard and LCD or other displays through which visual data can be shown. As will be described in more detail below, the sampling device  1   16  enables the end user to physically hear and watch samples of selected electronic information  102 . The sampling device  116  may also provide a mechanism for communication of audible instructions, commands or information to the end user during the method of purchasing the electronic information  102 .  
     [0026] The payment mechanism  118  provides a method of payment by the end user for the purchase of the electronic information  102 . For example, the payment mechanism  118  may include a credit card, ATM or other card reader capable of reading information from the end user&#39;s credit card. Alternatively, the payment mechanism  118  may include a device capable of accepting e-cash and/or electric check, paper or coin currency. As will be described in more detail below, the purchase of electronic information  102  requires payment by the end user to complete the transaction.  
     [0027] Referring to FIG. 1, the electronic information  102  purchased by the end user is received by a user printing device  120 . The user printing device  120  is capable of downloading or receiving the electronic information  102 , and recording or printing the electronic information  102  on to a medium that is provided to the end user as part of the transaction. For example, the user printing device  120  may be capable of recording electronic information  102  on to a CD or a DVD. The user printing device  120  may also be capable of printing visual information such as labels, jackets or inserts. In the preferred system, the user printing device  120  is located at the retailer and may be combined with the user data-processing system  110 .  
     [0028] Referring to FIG. 1, the database  100 , the user data-processing system  110  and the user printing device  120  are connected together by an electronic network  130 . The primary function of the electronic network  130  is to facilitate the transfer of electronic information  102 , commands and other data between each of these components. The electronic network  130  may comprise hard-wired connections, such as computer cables, between these devices, or may comprise connections utilizing telephone cables, satellite transmissions and/or the Internet. The electronic network  130  may also include supplemental connections between each of the devices. For example, the user data-processing system  110  and the user printing device  120  may be hard-wired together by computer cables  132 , whereas each of these components may be connected to the database  100  via the Internet. It will be recognized by those skilled in the art that the connection between these components may be through any suitable transmission medium, such as an electrical, optical or wireless medium.  
     [0029] The system for online purchasing of electronic information  102  may also include computer software capable of storing, analyzing and/or generating purchasing information regarding the end users and end user purchasing patterns. This purchasing information may be useful in determining the type of electronic information  102  that should be maintained on the database  100 . Purchasing information may also be necessary for the tracking and payment of licensing fees or royalties associated with the sale of the electronic information  102 .  
     [0030] The preferred method for online purchasing of electronic information  102  is schematically represented in FIG. 2. By way of example, the preferred method will be described in connection with the purchase of a collection of music to be digitally recorded on a CD. It should be understood, however, that the preferred method is equally applicable to the purchase of other types of electronic information  102  on other types of medium. For example, the purchase of movies and feature films on DVDs, or computer programs on CDs or computer disks.  
     [0031] In the first step  200  of the preferred method, the end user accesses the database  100  through the user data-processing system  110 . In particular, the end user begins by reading instructions displayed on the monitor  112  of the computer system. These instructions would ordinarily include an explanation of the online purchasing transaction, including the cost of the transaction. After the instructions have been displayed, the monitor  112  displays categories of electronic information  102  available for purchase from the database. These categories may include, for example, lists of electronic information  102  by title, artist, or latest releases.  
     [0032] In the next step  202 , the end user selects a category of electronic information  102  by indicating the selection through an input device  114  on the computer system. For example, the end user may select as a category of electronic information  102  music by a particular artist, the selection being made by typing the name of the artist on the keyboard of the input device  114 . Other types of example categories may include “Country &amp; Western Classics,” “This Week&#39;s Hot Chart” or “Introduction To Music.” After the category is selected, the monitor  112  displays the available choices for the selected category. In this example, the monitor displays  112  a list of songs, or collections of songs, performed by the selected artist.  
     [0033] In the next step  204 , the end user selects one or more of the available choices for sampling or purchase. For example, the end user may select a specific song performed by the artist. Alternatively, the end user may select a collection of songs offered as a package. The collection of songs, for example, may be a specific album produced by the artist. The end user may also select a compilation of songs by different artists arranged by subject or a theme such as “Hits of the 50&#39;s”.  
     [0034] After a song or compilation of songs has been selected, the end user has the option of sampling the selection in step  206 . A sample of the song or compilation, in the form of digital audio data, is then transferred, via the electronic network  130 , from the database  100  to the user data-processing system  110  whereby it can be listened to by the end user through the speakers or headphones of the sampling device  118 .  
     [0035] Following the sampling of the selection, the end user confirms or rejects the selection of electronic information  102  in step  208 . The end user then has the option of sampling and/or purchasing another selection from either the same category or from a different category. This process may be continued at the discretion of the end user until the end user has completed the selection process or elected to terminate the transaction without a purchase.  
     [0036] It should be understood that it is not necessary for the end user to sample any of the selections, but may instead proceed directly from the selection step  204  to the step  208  of confirming or rejection the selection.  
     [0037] Following the selection process, the end user remits a payment for the purchase of the selected electronic information  102  in step  210 . In the preferred embodiment, the end user authorizes payment for the purchase through a credit or debit card. In the preferred embodiment, the end user inserts or “swipes” a credit card though a credit card reader (i.e., payment mechanism  118 ) provided on the data-processing system  110 . The credit card reader accesses the information contained on a magnetic strip on the credit card and processes the transaction. The details of the credit card operation are within the scope of those skilled in the art of credit card transactions and therefore will not be discussed in detail.  
     [0038] Alternatively, the end user may pay for the purchase by inserting paper currency into an appropriate payment mechanism  1   18  or device on the data-processing system  110 . The end user may also pay for the purchase through a separate transaction not connected with the data-processing system  110 . For example, the data-processing system  110  may generate an invoice for the purchase (which may alternatively be printed by the user printing device  120 ). The end user then pays the invoice amount to the retailer that is hosting or maintaining the data-processing system  110 .  
     [0039] Once payment for the purchase of the selected electronic information is authorized or completed, the selected electronic information is transferred or downloaded from the database  100  to the user printing device  120  in step  212 . In this example of the preferred embodiment, the user printing device  120  comprises a CD recording device that is capable of recording or “burning” the selected electronic information  102  (e.g., music in the form of digital audio data) onto a blank CD. After the electronic information  102  has been received, the user printing device  120  records the information on the CD in step  214 .  
     [0040] Following the recordation of the CD, the end user has several options regarding the selection and/or printing of data relating to the purchased electronic information  102 . For example, the end user may elect to have data in the form of a label printed on the surface of the CD. As referenced in step  216 , the label may be a pre-selected design stored in the database  100  and offered in connection with the purchased electronic information  102  (e.g., a label selected by the artist of songs purchased). Pre-selected label designs available to the end user are displayed on the monitor  112  of the user data-processing system  110 . The end user may also have the option of altering or customizing the pre-selected label by, for example, including the name or picture of the end user. The end user may elect to include this information on the CD for identification purposes or to personalize the CD. To add the end user&#39;s name to the CD label, the end user types the name on the keyboard of the input device  114 . A picture can be added to the label through the use of a scanner or other input device  114 . The input device  114  can also be used to manipulate the data or information to be printed on the label. For example, computer software on the data-processing system  110  may enable the end user to create unique label designs.  
     [0041] Once the end user has completed the process of selecting a label in step  216 , the user printing device prints the label for the CD in step  218 . This may be accomplished by printing the label directly on the CD, or by printing a separate self-adhesive label that can be affixed to the CD by the end user.  
     [0042] The end user may similarly select and print a jacket and/or inserts for the CD case in steps  220 ,  222 ,  224  and  226 . For example, the end user may elect to print lyrics of the songs purchased, or biographical information for the artist of the songs. If so, then the end user utilizes a process similar to the process described in connection with the selection and printing of labels.  
     [0043] Once the printing the label, jacket and any inserts is complete, the purchase transaction is completed in step  228 . At this time, the end user is ordinarily provided with a receipt or invoice for the purchased electronic information  102 . In the preferred embodiment, the receipt or invoice is generated by the user printing device  120 .  
     [0044] It should be appreciated that many of the above-referenced steps can be performed in any order without departing from the method of the present invention. For example, the step  210  of paying for the purchase of the electronic information  102  can be deferred until after the label, jacket and any inserts are selected and printed in steps  216 ,  218 ,  220 ,  222 ,  224  and  226 . This would permit fees to be charged for some or all of these printing operations.  
     [0045] It should also be understood that many steps incidental or ancillary to the method of the present invention have been deleted from the above description for the purpose of clarity. However, such incidental or ancillary steps are within the knowledge of those skilled in the art of.  
     [0046] Although the above-described method has been described in connection with the purchase of music or movies, it should be noted that the method and system of the present invention is applicable to the purchase of any type of electronic information. For example, the method and system of the present invention can be used for the purchase of computer software or games.