Patent ID: 6880054

Claim:
A method of preparing a portable data storage device having a secure operation mode for use as a software authentication device, the method comprising the steps of: activating the secure operation mode of the portable data storage device; communicatively coupling the portable data storage device to a data bus of a computer system via a universal serial bus (USB) port or a IEEE 1394 (Firewire) port; running a set-up program installed on the computer system to initiate a password set-up procedure; responsive to a request for password entry presented by the password set-up procedure, entering a unique password corresponding to a specific copy of an end-user software package that is to be supplied with the portable data storage device; encrypting the unique password; and storing the encrypted unique password in the portable data storage device; wherein an end-user can subsequently use the portable data storage device having the encrypted unique password stored therein to authenticate the specific copy of the end-user software package.