PATENT DOCUMENT

Publication Number: US-8280770-B2
Application Number: US-201113089989-A
Country: US
Kind Code: B2

Title: Method and apparatus for selling subscriptions to periodicals in a retail environment

Abstract:
A system comprises a point-of-sale (POS) terminal, a POS controller, a retail subscription system. The POS terminal allows a cashier to enter subscription sales data into the POS controller. The POS controller maintains databases on available subscriptions and produces databases containing data relating to subscriptions sold to customers. The retail subscription system verifies the subscriptions by reference to its own databases and transmits the subscriptions to a fulfillment house for distribution.

Claims:
1. A system for establishing a subscription to a periodical, comprising:
 a request receiving component configured to receive a request by a customer to purchase a single periodical; 
 an offering component configured to offer to sell a subscription to the periodical at a subscription rate; 
 an acceptance receiving component configured to receive an acceptance of the offer to sell the subscription; 
 a component configured to record the distribution of the single periodical as a first issue of the subscription; and 
 an electronic terminal. 
 
     
     
       2. The system of  claim 1 , wherein said electronic terminal displays information showing that a subscription to the single periodical requested by the customer is available. 
     
     
       3. The system of  claim 1 , wherein said electronic terminal receives subscription information about the customer. 
     
     
       4. The system of  claim 1 , wherein said system further includes a point-of-sale controller; and
 said electronic terminal transmits data indicating the sale of a subscription and an authentication code to said point-of-sale controller. 
 
     
     
       5. The system of  claim 4 , wherein said electronic terminal includes a printer and generates a printed receipt for the subscription that includes said authentication code. 
     
     
       6. A system for establishing a subscription to a periodical, and calculating the amount owed to the point-of-sale of said subscription, comprising:
 a request receiving component configured to receive a request by a customer to purchase a single periodical at given cost for the single issue; 
 an offering component configured to offer to sell a subscription to the periodical at a subscription price that is higher than the wholesale subscription cost; 
 an acceptance receiving component configured to receive an acceptance of the offer to sell the subscription at said subscription price; 
 a component configured to record the distribution of the single periodical as a first issue of the subscription; 
 an electronic terminal located at the point-of-sale of the single periodical and the subscription; 
 a point-of-sale controller that is in communication with said electronic terminal and that includes a local sales database that records the subscription price, the subscription cost; and the cost for the single periodical that is the first issue of the subscription; 
 whereby, the amount owed to the point-of-sale for the purchased subscription to the periodical can be readily calculated.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     The present application is a continuation of U.S. patent application Ser. No. 11/832,943, filed Aug. 2, 2007, entitled “METHOD AND APPARATUS FOR SELLING SUBSCRIPTIONS TO PERIODICALS IN A RETAIL ENVIRONMENT”, which issued as U.S. Pat. No. 7,949,558 on May 24, 2011; which itself claims priority to and is a divisional U.S. patent application Ser. No. 09/998,760 filed on Nov. 1, 2001 and entitled “METHOD AND APPARATUS FOR SELLING SUBSCRIPTIONS TO PERIODICALS IN A RETAIL ENVIRONMENT”, and issued as U.S. Pat. No. 7,509,268 on Mar. 24, 2009; which is a continuation of U.S. application Ser. No. 09/335,644, filed Jun. 18, 1999, entitled “METHOD AND APPARATUS FOR SELLING SUBSCRIPTIONS TO PERIODICALS IN A RETAIL ENVIRONMENT” and issued as U.S. Pat. No. 6,317,723 on Nov. 13, 2001; which is a continuation of U.S. application Ser. No. 08/841,791, filed May 5, 1997, entitled “METHOD AND APPARATUS FOR SELLING SUBSCRIPTIONS TO PERIODICALS IN A RETAIL ENVIRONMENT” and issued as U.S. Pat. No. 5,926,796 on Jul. 20, 1999. Each of the above-referenced applications is incorporated by reference herein in its entirety. 
     This application is also related to U.S. patent application ser. No. 09/073,165 filed May 5, 1998 and issued as U.S. Pat. No. 6,470,322 on Oct. 22, 2002; U.S. patent application Ser. No. 09/073,082 filed May 5, 1998 and issued as U.S. Pat. No. 6,542,874 on Apr. 1, 2003; U.S. patent application Ser. No. 09/073,169 filed May 5, 1998 and issued as U.S. Pat. No. 6,334,113 on Dec. 25, 2001; and U.S. patent application Ser. No. 09/072,715 filed on May 5, 1998 and issued as U.S. Pat. No. 6,334,112 on Dec. 25, 2001. 
    
    
     BACKGROUND OF THE INVENTION 
     1. Field of the Invention 
     The present invention relates to a system for the distribution of periodicals. More particularly, the invention relates to a method and apparatus for facilitating the sale and fulfillment of a subscription to at least one periodical through retail channels. 
     2. Description of the Related Art 
     Each year, over one billion single-issue copies of magazines are sold through over 50,000 retail outlets in the United States. The cost of a single issue, or the “cover price,” is often two or three times higher than the pro rata price of a single issue through a subscription. Despite the higher prices, consumers are, willing to purchase single issues from retail outlets because of convenience and timeliness. 
     Some consumers decide to forgo the advantages of newsstand copies and purchase subscriptions to periodicals. For example, if a consumer wishes to subscribe to a magazine, the consumer may purchase a single issue at a retail outlet and mail back a “blow-in” or “bind-in” card enclosed in the-magazine issue. Publishers place blow-in subscription cards by loosely inserting the cards into periodicals, such as magazines, by air injection. Publishers insert bind-in cards into the periodicals by, for example, binding subscription cards into issues during the printing process. Publishers use these methods to sell subscriptions because of the potential profits earned thereon. Nevertheless, many inconveniences arise from the traditional methodologies, which do not promote, and in fact hinder, customers of single issues from subscribing to the periodicals. 
     One such inconvenience involves lost sales to the retailer. Retailers carry single-issue periodicals predominantly for impulse purchases. However, if a consumer purchases a single-issue periodical at a retail outlet and then subscribes to the periodical by a blow-in or bind-in card, the retailer earns no additional revenue from the subscription. In addition, subscription cards contained in retail copies encourage consumers to buy a subscription that deprives the retailer of potential revenue from future single-issue sales to that customer. Thus, retailers have no incentive to encourage purchasers of single issues to purchase subscriptions. 
     Several other inconveniences affect the consumer. For example, the initiation of a subscription by a blow-in or bind-in subscription card requires much time and patience on the part of the consumer. Such a subscription frequently takes weeks for processing. Indeed, federal rules require, when appropriate, that magazine publishers denote a waiting time disclaimer: “Allow 4-8 weeks for your first issue to be mailed.” In addition, due to processing and delivery delays, the consumer may not actually receive the first issue of the magazine until twelve weeks from the date of subscription. The uncertainty of when the first issue of the subscription will arrive often results in missed issues. In addition, purchasing subscriptions using subscription cards creates a risk of loss to the consumer because the consumer must deposit the subscription card in the mail, after which the consumer has no record or invoice of the transaction. 
     Still other inconveniences for the consumer arise from the method of payment. Payment under the traditional subscription method constitutes an inconvenience for the consumer because the only way to enclose payment with a blow-in or bind-in subscription card requires that the consumer enclose the card and payment in an envelope with accompanying postage. Even if a toll-free number is provided for initiating the subscription, the call itself inconveniences the consumer. Furthermore, if payment is not made at the time of ordering, a two-step process is required: first, the submission of the blow-in or bind-in card, and second, the payment of a bill. This two-step ordering process is not only inefficient but also wastes the consumer&#39;s valuable time. In paying the bill, moreover, the consumer must again correspond with the magazine publisher, paying an invoice by check and returning the payment by mail. Due to processing and delivery delays, the consumer may even receive multiple invoices of the bill, even though payment has already been made. These incidents of inefficiency not only inconvenience the consumer and increase the costs and efforts of the magazine publisher, but also jeopardize the goodwill of the magazine in the consumer&#39;s mind. 
     Another inconvenience for the consumer regarding the method of payment deals with the inability to pay with cash. There is presently no ready means for a consumer to subscribe to a periodical and pay with cash, except for the enclosure of cash in the mail. The transmittal of cash in the mail, however, presents a threat of loss—even the United States Postal Service warns consumers against sending cash through the mail. This inconvenience is particularly meaningful because some consumers may not wish to pay for a subscription to a controversial magazine by check or credit card, as these forms of payment serve as records of the transaction. 
     Still another inconvenience for the consumer in dealing with the method of payment involves the cost of the initial single-issue periodical. If a consumer subscribes to a periodical by responding to a blow-in or bind-in subscription card, the consumer loses the benefit of paying the lower subscription price for the first issue. Normally, the consumer initially purchases the single-issue periodical at full price, after which he pays the discounted price for the subscription. Thus, even when the consumer chooses to subscribe to a periodical following a single-issue purchase, the consumer always loses the initial investment of the purchase price of the single issue. 
     Yet other inconveniences affect the periodical publishers. Under the traditional subscription methodologies, publishers suffer reduced subscription revenues from consumers who might have purchased a subscription at the time they purchased the single-issue periodical at a retail outlet. Because the sale of periodicals at retail outlets depends primarily upon impulse sales, the inability to initiate an instantaneous subscription reduces subscription volume for periodical publishers. Also, outside the retail environment, a consumer may subscribe to a periodical in response to direct correspondence or indirect solicitations through the mail, telephonically, or through electronic means, such as e-mail. Nevertheless, under these circumstances, due to processing and mailing delays, the consumer still has no access to the current issue of the periodical, and the publisher loses these single-issue sales. 
     The prior art describes several attempts to address the inconveniences surrounding the traditional subscription methodologies. One attempt involved the sale of gift subscriptions at retail outlets. The consumer could purchase a box containing a gift card to be sent to the recipient, a magazine activation card to be sent to a processing center, and the envelopes for both sets of cards. The consumer would send the gift card to the recipient and the activation card to a processing center. The retailer would retain a percentage from the purchase price and remit the balance of the payment to the processing center. Upon receipt of the activation card from the consumer and the payment from the retailer, the processing center would take a percentage from the payment and forward the card and the balance of the payment to the magazine publisher. 
     This attempt fails to even address, much less overcome, the inconveniences associated with the traditional subscription methodologies. For example, this attempt provided no solution for the lengthy processing time required by the traditional methodologies. Also, this attempt provided no mechanism by which the subscriber could receive the current issue of the periodical as the first issue of the subscription. Furthermore, even if the consumer purchased the current issue concurrently with this attempt, the consumer would still not obtain the benefit of that issue in the subscription price. 
     Another attempt to overcome the inconveniences of the traditional subscription methodologies included the retail sale of subscriptions at bookstores. The subscriptions were offered as part of a shelf-displayed package placed on a hook. The consumer could purchase one of the packages and subscribe to a periodical by paying for the package at the retail point-of-sale and then sending the pre-paid subscription activation card to the fulfillment house. Still another attempt incorporated the sale of subscriptions at specialty subscription kiosks. These kiosks comprised a computer system utilizing touchscreen technology to enable consumers to select and purchase either a subscription or a gift subscription. The customer could pay for either type of subscription at the kiosk by credit card, and the kiosk would issue a receipt for the transaction. For gift subscriptions, the subscription kiosk would also dispense a gift card. For both types of subscriptions, the kiosks informed consumers of a four-to-eight week delay before the arrival of the first issue. 
     Again, none of these attempts solved the inconveniences of the traditional subscription methodologies. These attempts both incorporated significant delay due to processing requirements. Indeed, the subscription kiosk attempt specified a four-to-eight week delay. In addition, none of these attempts allowed the consumer to receive the current issue of the periodical with the subscription. Also, the attempts made no provision for a consumer to benefit from a subscription in the price of the current issue. 
     In all of the above attempts, significantly, the consumer never had the opportunity to purchase a single issue with the subscription, that is, where the subscription included the single issue in the price of the subscription. Indeed, whether or not these attempts were transmitted through a processing center, they all comprised invoice orders for the initiation of a simple subscription. As such, they all suffered at least one common inconvenience associated with the traditional subscription methodologies, namely, the inability to incorporate the current issue as the first issue of a subscription. Additionally, as illustrated above, all the cited attempts also suffered other common inconveniences because they all resulted at least in the loss of a sale of the initial single issue to the retail outlet and they all entailed significant processing delay resulting in a customer not receiving the most current issue of the periodical. 
     Thus, the traditional methodologies for the subscription to periodicals at retail locations give rise to unsatisfactory complications and inconveniences that discourage consumers from both purchasing a single issue and subscribing to the periodical. Accordingly, there is a need for a system that allows consumers to purchase a single issue and a subscription without the associated inconveniences caused by traditional subscription methodologies. 
     SUMMARY OF THE INVENTION 
     The present invention is directed to a subscription method and system that eliminates problems due to the limitations and disadvantages of the prior art. 
     It is an object of the invention to allow a consumer to purchase a single issue of a periodical as part of and along with a subscription at a retail outlet. 
     It is another object of the invention to allow a consumer to purchase a subscription to a periodical without missing the current issue of the periodical or paying the full cover price for the current issue. 
     It is still another object of the invention to encourage sales of subscriptions and provide incentives to retailers to encourage sales of subscriptions. 
     It is a further object of the invention to allow a consumer to pay cash for a subscription and provide the consumer with a receipt for purchasing the subscription. 
     To achieve these and other objects, and in accordance with the purposes of the invention, as embodied and broadly described, one aspect of the invention includes a method for establishing a subscription to a periodical, comprising the steps of receiving a request to purchase a single periodical, offering to sell a subscription to the periodical at a subscription rate, receiving an acceptance to the offer to sell a subscription, and providing the single periodical as the first issue of the subscription. 
     In another aspect, the invention includes a method for establishing a subscription to a periodical at a point-of-sale terminal, comprising the steps of receiving at a point-of-sale terminal a single issue of a periodical, receiving at the point-of-sale terminal a subscription card requesting a subscription to the periodical (the subscription card containing a first set of subscription information), inputting into the point-of-sale terminal a second set of subscription information (the second set including subscription price and term), receiving payment for the subscription, generating a receipt containing the subscription price and term, and providing the single issue as the first issue of the subscription. 
     In a further aspect, the invention includes a method for initiating a subscription to a periodical, from a retail subscription system, comprising the steps of receiving a completed subscription card indicating that a subscription to a periodical was sold (the subscription card containing subscription information and an authentication code), comparing the authentication code contained on the subscription card with authentication codes stored in a database, determining that the authentication code contained on the subscription card is valid if the authentication code contained on the subscription card matches at least one of the authentication codes stored in the database, and transmitting subscription information from the subscription card to a fulfillment house to initiate the subscription if the authentication code on the subscription card is determined valid. 
     Additional aspects of the invention are disclosed and defined by the appended claims. It is to be understood that both the foregoing general descriptions and the following detailed descriptions are exemplary and explanatory and are intended to provide further explanation of the invention as claimed. 
     BRIEF DESCRIPTION QF THE DRAWINGS 
     The accompanying drawings are included to provide a further understanding of the invention. These drawings are incorporated in and constitute a part of this specification, illustrate preferred embodiments of the invention, and together with the description, serve to explain the principles of the invention. 
    
    
     
       IN THE DRAWINGS 
         FIG. 1  illustrates a block diagram of a retail subscription system in accordance with one embodiment of the present invention; 
         FIG. 2  illustrates a block diagram of a point-of-sale terminal, as shown in  FIG. 1 ; 
         FIG. 3  illustrates a block diagram of a point-of-sale controller, as shown in  FIG. 1 ; 
         FIG. 4  illustrates a block diagram of a retail subscription system, as shown in  FIG. 1 ; 
         FIG. 5  illustrates a sample of the contents of the local subscription database stored in the point-of-sale controller shown in  FIG. 3 ; 
         FIG. 6  illustrates a sample of the contents of the local authentication code database from the point-of-sale controller shown in  FIG. 3 ; 
         FIG. 7  illustrates a sample of the contents of the local sales database from the point-of-sale controller shown in  FIG. 3 ; 
         FIG. 8  illustrates a sample of the contents of the subscriber database from the retail subscription system shown in  FIG. 4 ; 
         FIG. 9  illustrates a sample of the contents of the authentication code database from the retail subscription system shown in  FIG. 4 ; 
         FIG. 10  illustrates a flow diagram of a method for establishing a subscription through a retail channel, in accordance with a first embodiment of the invention; 
         FIG. 11  illustrates a sample of a subscription card utilized by the method illustrated in  FIG. 10 ; 
         FIG. 12  illustrates a sample of a receipt generated by the method illustrated in  FIG. 10 ; 
         FIGS. 13A and 13B  illustrate flow diagrams of a method for establishing a subscription through a retail channel, in accordance with a second embodiment of the invention; 
         FIG. 14  illustrates a flow diagram of a method for establishing a subscription at the retail subscription system, in accordance with one embodiment of the invention; 
         FIG. 15  illustrates a flow diagram of a method for establishing a subscription at the fulfillment house, in accordance with one embodiment of the invention. 
         FIG. 16  illustrates a flow diagram of a method for processing the subscription payment from the point-of-sale to the retail subscription system and then to the fulfillment house, in accordance with one embodiment of the invention. 
     
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
     Introduction 
     The system of the invention avoids the inconveniences of the prior art subscription methodologies by integrating the sale of a subscription along with the sale of a single-issue periodical at a retailer. In doing so, all parties benefit: the customer benefits from a discounted subscription rate on both the single issue and the subscription, the retailer benefits by receiving greater profits for the sale of a subscription over the sale of a single issue, and the publisher benefits by selling another subscription. The system is also useful to retailers because it generates additional sales with no additional inventory cost. 
     The system of the invention comprises several components including a point-of-sale (POS) terminal, a POS controller, a retail subscription system, and a fulfillment house. The POS terminal allows a cashier to enter sales data, which is stored in the POS controller. The POS controller maintains databases on the available subscriptions and produces databases of the subscriptions sold to customers. The retail subscription system serves as an agent or intermediary between the POS location and any fulfillment house. The retail subscription system verifies&#39;the subscriptions by reference to its own databases and, if valid, transmits the subscriptions to the fulfillment house for distribution. 
     System 
       FIG. 1  shows one embodiment of the system according to the invention. In this embodiment, system  100  includes POS terminal  120  attached to POS controller  122  and printer  124 . Customer  110 , who is preferably a consumer planning initially to purchase a single-issue periodical, transacts with a cashier at POS terminal  120  to purchase instead a subscription, and the cashier transacts in turn with retail subscription system  130 . Retail subscription system  130  in turn transacts with fulfillment house  140 . Fulfillment house  140  comprises a conventional fulfillment house receiving subscription orders and filling them by distributing (e.g., via mail) issues of periodicals. 
     Customer  110  may access customer assistance service  150  via traditional communication techniques, such as a telephone or digital communication channel. Customer assistance service  150  is in communication, preferably electronic, with retail subscription system  130  such that it can transmit requests for information to and receive requested information from retail subscription system  130  substantially in real-time. Customer  110  may utilize customer assistance service  150  to obtain answers to questions involving a subscription. 
       FIG. 2  illustrates one embodiment of POS terminal  120  used in system  100  shown in  FIG. 1 . As shown in  FIG. 2 , POS terminal  120  includes central processing unit (CPU)  200 , random access memory (RAM)  210 , read-only memory (ROM)  220 , at least one data input device  230 , data storage device  240 , display device  250 , clock  260 , communication port  270 , and POS network interface  280 . Although printer  124  is illustrated in  FIG. 1  as a separate element of POS terminal  120 , as illustrated in  FIG. 2 , printer  124  could also be incorporated into PUS terminal  120  in alternative embodiments. POS terminal  120  basically functions as a conventional digital cash register equipped with the additional functionality described herein. 
     As shown in  FIG. 2 , CPU  200  is directly coupled to each of the other elements of POS terminal  120  with the exception of POS network interface  280 , which is coupled to communication port  270 . CPU  200  executes program code (not shown) stored in one or more of RAM  210 , ROM  220 , and data storage device  240  to carry out the functions and acts described in connection with POS terminal  120 . CPU  200  preferably comprises at least one high-speed digital data processor adequate to execute program modules consistent with the invention, such as periodical subscription query, sale, and authentication, as well as conventional POS terminal functions. The processes performed by these modules are described in connection with  FIGS. 10-16 . CPU  200  interacts with RAM  210 , ROM  220 , and storage device  240  to execute stored program code according to conventional data processing techniques. 
     Data input device  230  permits POS terminal  120  to receive subscription information about customer  110  and, although shown as a single device, may comprise one or more data input devices of various types, such as an alphanumeric keyboard, a numeric keypad, a bar code scanner, a credit card reader, a disk drive, a memory, an electronic communication line, and a wireless transceiver. Input device  230  preferably transmits received information to CPU  200  for storage in data storage device  240 . 
     Printer  124  comprises a conventional POS terminal printer suitable for printing various paperwork, such as receipts, in accordance with instructions from CPU  200 . Display device  250  comprises a video driver sending signals to a screen capable of displaying either text or graphics under the control of CPU  200 . Display device  250  is preferably large enough to display information relating to general sales, as well as subscription sales, to the cashier. Communication port  270  links CPU  200  with POS network interface  280  to allow CPU  200  to communicate with other POS devices, such as POS controller  122 . 
       FIG. 3  illustrates one embodiment of POS controller  122  used in system  100 . POS controller  122  preferably comprises a server equipped with conventional hardware, including CPU  310 , RAM  320 , ROM  330 , data storage device  340 , clock  350 , communications port  360 , data network interface  370 , and POS network interface  380 . In general, elements of POS controller  122  common to POS terminal  120  preferably operate in substantially the same manner as described above. 
     Because POS controller  122  may service one or more POS terminals, POS network interface  380  is preferably capable of interfacing with one or more POS terminals. 
     Data network interface  370  allows POS controller  122  to interface with other data networks. In one embodiment, data network interface  370  links POS controller  122  with retail subscription system  130  to facilitate electronic communication. In alternative embodiments, POS controller  122  does not include data network interface  370  so that systems and networks other than POS terminals linked to POS network interface  380  are unable to access POS controller  122 . In these alternative embodiments, communication between POS controller  122  and retail subscription system  130  could occur by physical delivery, such as the mail. 
     Data storage device  340  preferably comprises a large capacity memory capable of maintaining local subscription database  342 , local authentication code database  344 , and local sales database  346 . Local subscription database  342  contains data pertaining to the periodicals to which subscriptions are available at the POS terminal location. Local authentication code database  344  contains a table of authentication codes available for verifying subscription sales. Local sales database  346  comprises a listing of information relating to subscription sales. In a preferred embodiment, data contained in one or more of these databases  342 ,  344 , and  346  may be periodically updated by transferring the updated data to POS controller  122  via disk, input device, or electronic transmission. Samples of the records and their respective fields contained in databases  342 ,  344 , and  346  are shown in and described in connection with  FIGS. 5-7 . 
       FIG. 4  illustrates one embodiment of retail subscription system  130  used in the system shown in  FIG. 1 . As shown in  FIG. 4 , retail subscription system  130  includes CPU  410 , RAM  420 , ROM  430 , data storage device  440 , clock  450 , communications port  470 , data network interface  480 , and customer assistance service interface  490 . Again, elements of retail subscription system  130  common to POS terminal  120  or POS controller  122  preferably operate in substantially the same manner as described above. 
     Communication port  470  links retail subscription system  130  with data network interface  480 , which interfaces system  130  to external networks. In a preferred embodiment, one such external network is POS controller  122 . Customer assistance service interface  490  preferably interfaces retail subscription system  130  with customer assistance service  150 . In this embodiment, customer assistance service interface  490  provides access to, customer assistance service  150  at retail subscription system  130 . 
     Data storage device  440  maintains retail subscription system (RSS) subscriber database  442  and retail subscription system authentication code (RSSAC) database  444 . RSS subscriber database  442  stores subscription information transmitted from the retailer. RSSAC database  444  contains a list of authentication codes used to validate subscription sales. Authentication code generator  460  generates the authentication codes, which preferably represent unique alphanumeric identifiers: In a preferred embodiment, authentication code generator  460  includes a pseudo-random number generator used to select a sequence of alphanumeric characters having a predetermined length. Samples of the records and their respective fields contained in RSS subscriber database  442  and RSSAC database  444  are shown in and described in connection with  FIGS. 8 and 9 . 
     Database Formats 
     Samples of the contents of local subscription database  342 , local authentication code database  344 , local sales database  346 , RSS subscriber database  442 , and RSSAC database  444  are shown in  FIGS. 5-9 . The specific data and fields illustrated in these figures represent only one embodiment of the records stored in the databases of the invention. In most cases, the fields shown in  FIGS. 5-9  are relatively straightforward and self-explanatory. The data and fields of these databases, as well as the number of databases, can be readily modified from the described embodiment, for example, to include more or fewer data fields. 
     Local subscription database  342  maintained in POS controller  122  contains a listing of information relating to periodicals to which customer  110  may obtain a subscription at a retailer (e.g., POS terminal  120 ).  FIG. 5  illustrates a sample of the contents of local, subscription database  342 . As shown in  FIG. 5 , local subscription database  342  contains records having fields corresponding to, for example, the name of the periodical, the term of subscription, and the price of the subscription. As depicted in  FIG. 5 , the listing of periodicals may contain different records relating to the same periodical, each record having a different subscription term and price. 
     Local authentication code database  344  contains a listing of authentication codes available for use by POS controller  122  for subscription sales. Each authentication code preferably comprises a unique alphanumeric identifier of a predetermined length, though the code length could vary in alternative embodiments.  FIG. 6  illustrates a sample of the contents of local authentication code database  344 . As shown in  FIG. 5 , local authentication code database  344  contains a list of authentication codes, which may be contained in a single or multiple records. 
     Local sales database  346  maintains a log of information relating to the subscriptions ordered by customers, such as customer  110 .  FIG. 7  illustrates a sample of the contents of local sales database  346 . As shown in  FIG. 7 , local sales database  346  contains records having fields corresponding to, for example, date, sales receipt number, subscription title, subscription price, term of the subscription in months, the amount owed to the wholesaler for the cost of a single issue, and the amount owed to retail subscription system  130  for the cost of a subscription. These last two fields describe the difference between the subscription price and the amount of money retained by the point-of-sale location. For example, as illustrated in  FIG. 7 , if the price of the subscription is $20, and if the cost of the single issue is $2, and if the cost of the subscription is $10, then the point-of-sale location retains $8 from the subscription price (i.e., the subscription price charged the customer less the cost of the single issue remitted to the wholesaler and lets the cost of the subscription remitted to the retail subscription system). For all of these fields, from the data in this database as well as the data stored in other databases (e.g., local subscription database  342 ), the data for the corresponding fields can be readily calculated. Additionally, the designated fields may be appended for greater functionality. For example, the records stored in local sales database  346  could be modified to contain additional fields, such as subscriber name and subscriber address. 
     The use of data from local subscription database  342 , local authentication code database  344 , and local sales database  346  allows POS controller  122  to process subscriptions from POS terminals  120  as described below. 
     Upon receiving subscription information from POS controller  122 , retail subscription system  130  places the information in subscriber database  442 .  FIG. 8  illustrates a sample of the contents of subscriber database  442 . As shown in  FIG. 8 , subscriber database  442  contains records having fields corresponding to, for example, the store identification number, date, subscriber name, subscriber address, periodical name, term of subscription, authentication code, and number of issues remaining in the subscription. In one embodiment, an operator at retail subscription system  130  receives completed subscription cards corresponding to paid subscriptions and enters information from the subscriptions cards into retail subscription system  130 . In an alternative embodiment, POS controller  122  electronically transmits subscription information via data network interface  370  to retail subscription system  130  via data network interface  480 . 
     RSSAC database  444  contains information allowing retail subscription system  130  to verify the authenticity of the authentication codes transmitted by POS controller  122 .  FIG. 9  illustrates a sample of the contents of RSSAC database  444 . As shown in  FIG. 9 , RSSAC database  444  contains records having fields corresponding to, for example, store identification number and authentication codes. Each store identification number is preferably associated with a different retailer and is assigned a plurality of authentication codes. In one embodiment, RSSAC database  444  indexes the stored authentication codes by store identification number. Retail subscription system  130  can therefore verify the authenticity of an authentication code transmitted from POS controllers  122  by comparing the received authentication code with the contents of RSSAC database  444 . 
     The use of data from subscriber database  442  and RSSAC database  444  allows retail subscription system  130  to process subscriptions transmitted from POS controller  122  and verify the subscription sales. 
     Process 
     In providing a subscription to a periodical in response to a sale of a single issue, the system shown and described in connection with  FIG. 1  preferably executes several distinct modules, or processes. These processes include facilitating the sale of a subscription at a POS terminal location, transmitting subscription information to a retail subscription system, and transmitting subscription information to a fulfillment house. The steps associated with these processes are described in connection with  FIGS. 10-16  and can be performed in any order, unless otherwise specified or dictated by the steps themselves. 
     One embodiment of the sale of a subscription at a POS location involves a series of steps illustrated in the flow diagram of  FIG. 10 . After a customer  110  selects a single issue of a periodical for purchase, a cashier at POS terminal  120  queries customer  110  as to whether customer  110  desires to purchase a subscription to that periodical (step  1010 ). If customer  110  declines the subscription, the cashier at POS terminal  120  proceeds with a conventional sale of the single issue (step  1015 ). If customer  110  accepts a subscription, customer  110  completes a subscription card, which customer  110  returns to the cashier at POS terminal  120  (step  1020 ). Customer  110  preferably obtains a subscription card from within the single issue (i.e., a blow-in card or a bind-in card). Alternatively, the cashier may provide a comparable subscription card to customer  110 . 
       FIG. 11  illustrates a sample subscription card. This sample subscription card contains a space for the subscriber&#39;s name, the subscriber&#39;s address, and the term of the subscription, as shown in  FIG. 11 . The sample subscription card may also contain the price for the term of subscription and may indicate alternative terms of subscription and prices. 
     Upon receiving the completed subscription card, the cashier at POS terminal  120  verifies that customer  110  correctly filled out the subscription card and imprints a validation mark on the subscription card (step  1030 ). The validation mark may include, for example, the signature of the cashier on the subscription card, a store stamp, a special label, a marking from printer  124 , or any other indicia indicating that the consumer has paid for the subscription. 
     Following validation, the cashier at POS terminal  120  scans a bar code on the single issue using a bar code reader connected to POS terminal  120 . By scanning the single issue, POS terminal  120  captures the identification of the periodical title and the single-issue price pursuant to the Uniform Produce Code (UPC), or bar code, located on the periodical issue (step  1040 ). To indicate the selection of a subscription, the cashier at POS terminal  120  presses a preprogrammed key on POS terminal  120  to indicate that the sale of a subscription has occurred and to obtain an authentication code (step  1050 ). POS terminal  120  may download a plurality of authentication codes from local authentication code database  344  and temporarily store them in data storage device  240  to be accessed, or alternatively, POS terminal  120  may request an authentication code from POS controller  122  after the preprogrammed key has been pressed. Following the indication of a subscription, POS terminal  120  displays a query to the cashier requesting information about the subscription term and price, which the cashier enters into POS terminal  120  (step  1060 ). At this  or  a later time, the cashier may insert the subscription card into printer  124  to have the authentication code imprinted on it. The cashier at POS terminal  120  collects the price for the subscription from customer  110  and causes printer  124  to print a receipt with the authentication code (step  1070 ). Customer  110  pays for the subscription in the same manner as any retail purchase, such as cash, credit card, personal check, or other form of credit or payment. The cashier at POS terminal  120  then delivers the printed receipt to customer  110  (step  1080 ). 
       FIG. 12  illustrates an example of this receipt, which contains certain subscription information. The subscription information includes an authentication code and customer service information, including an  800  customer service number. In an alternative embodiment, the cashier at POS terminal  120  provides customer  110  with a preprinted card indicating the authentication number and customer service information. 
       FIGS. 13A-13B  illustrate a flow diagram representing another embodiment for establishing a subscription pursuant to a single-issue sale. In this embodiment, POS terminal  120  is in continuous electronic communication with POS controller  122 . Customer  110  selects a single issue of a periodical and gives the periodical to the cashier at POS terminal  120  for purchase (step  1310 ). The cashier at POS terminal  120  scans the single issue to collect data from the UPC code, or bar code (step  1315 ). POS terminal  120  transmits the bar code data to POS controller  122  to determine whether a subscription is available for the periodical associated with the bar code data (step  1320 ). If not, the cashier proceeds with a conventional single-issue sale (step  1335 ). If a subscription is available, POS controller  122  sends a periodical subscription upsell query to POS terminal  120  (step  1325 ). That is, POS terminal  120  displays on display device  250  of POS terminal  120  a message informing the cashier that a subscription is available for the periodical. Pursuant to this prompt, the cashier at POS terminal  120  asks customer  110  whether he desires a subscription to the periodical (step  1330 ). If the customer responds in the negative, the cashier at POS terminal  120  proceeds with a conventional single-issue sale (step  1335 ). 
     Continuing on  FIG. 13B , if the customer responds affirmatively, the cashier at POS terminal  120  requests that customer  110  complete a subscription card, which the customer may obtain from the single-issue periodical or from the cashier (step  1340 ). After customer  110  has completed the subscription card, the cashier at POS terminal  120  inputs into POS terminal  120  the subscription term and price from the subscription card (step  1345 ). POS terminal  120  then transmits data indicating the sale of a subscription to POS controller  122 , and POS controller  122  retrieves an authentication code for the sale from local authentication code database  344  (step  1350 ). 
     POS controller  122  records subscription information in local sales database  346  and transmits the subscription information, including the authentication code and customer service telephone number, to POS terminal  120  (step  1355 ). At this or a later time, the cashier at MS terminal  120  may insert the subscription card into printer  124  to have the authentication code imprinted on it. The cashier at POS terminal  120  then collects the amount due for the subscription from customer  110  (step  1360 ). Upon indication of payment to FOS terminal  120 , printer  124  prints a receipt for the transaction, which the cashier delivers to customer  110  (step  1365 ). As in the previous embodiment described in connection with  FIG. 12 , the receipt includes an authentication code and customer service information. 
       FIG. 14  illustrates a process for retail subscription system  130 . A cashier at POS terminal  120  collects subscription information over a predetermined time period, such as, for example, on a daily or weekly basis (step  1400 ). At the end of this period, the retailer transmits the subscription information to retail subscription system  130  (step  1410 ). As discussed above, this may be done by bundling subscription cards completed by customers purchasing subscriptions over the course of a predetermined time period and mailing the bundle of subscription cards to retail subscription system  130 . Alternatively, this may be done electronically, such as, for example, over a modem. Upon receiving the subscription information, retail subscription system  130  checks the authenticity of the authentication code associated with each subscription sale (step  1420 ). As described above, retail subscription system  130  validates authentication codes by comparing the authentication codes sent with the subscription information with the authentication codes stored in RSSAC database  444 . 
     If the authentication code is invalid, retail subscription system  130  rejects the subscription as invalid (step  1440 ). If the authentication code is valid (step  1430 ), retail subscription system  130  accepts the subscription and enters the subscription information into subscriber database  442  (step  1450 ). After a predetermined time, retail subscription system  130  transmits information contained in subscriber database  442  to fulfillment house  140  (step  1460 ). 
       FIG. 15  illustrates a fulfillment process of the invention. In accordance with this fulfillment process, fulfillment house  140  receives subscription information transmitted from retail subscription system  130  (step  1510 ). Upon receipt of the subscription information, fulfillment house  140  creates, or modifies, a record in a subscription database (step  1520 ). Fulfillment house  140  then determines from the data contained within the subscription database whether a single issue of the subscription was delivered during the sale of the subscription (step  1530 ). If not, fulfillment house  140  processes a conventional subscription (step  1540 ). If so, fulfillment house  140  instructs the subscription database to deliver the normal number of subscription issues less one issue (step  1550 ). Additionally, fulfillment house  140  transmits to the publisher of the periodical the subscription information relating to customer  110  to update circulation numbers ( 1560 ). 
       FIG. 16  illustrates a process for transacting and tracking a subscription payment in accordance with one embodiment of the invention. This process includes the transaction of a payment from a POS terminal location, to a retail subscription system, and to a fulfillment house. In accordance with this payment process, a cashier at POS terminal  120  collects payment for a subscription from customer  110  based upon the subscription price (step  1610 ). From this subscription payment, the retailer at the POS terminal location pays the cost of the single issue to the wholesaler (step  1620 ). From the remainder of the subscription payment, the retailer then retains a percentage and, based on the same time period for the transmittal of subscription information, remits the balance of the payment to retail subscription system  130  (step  1630 ). From the balance of the subscription payment remitted to retail subscription system  130 , retail subscription system  130  retains a percentage and correspondingly remits the balance to fulfillment house  140  (step  1640 ). In alternative embodiments, payment collected at POS terminal  120  for the sale of a subscription may be distributed among the different parties according to predetermined methodologies. 
     Conclusion 
     The system of the invention provides for the retail sale of subscriptions to periodicals. This system provides for the sale of subscriptions in a retail environment, where a customer has initiated the purchase of a single issue of a periodical. This subscription methodology provides many advantages over the traditional subscription methodologies. 
     It will be apparent to those skilled in the art that various modifications and variations can be made in the system and processes of the present invention without departing from the spirit and scope of the invention. Thus, it is intended that the present invention cover all modifications and variations of the invention within the scope of the appended claims.

Metadata:
Filing Date: 20110419
Publication Date: 20121002
Grant Date: 20121002
Priority Date: 19970505
Inventors: WALKER JAY S.
JINDAL SANJAY K.
Assignee: APPLE INC
CPC Classifications: [{"code": "G07F17/32", "inventive": true, "first": true, "tree": "[]"}, {"code": "G07F17/32", "inventive": true, "first": true, "tree": "[]"}, {"code": "G06Q20/20", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q20/208", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/00", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0208", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0224", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0238", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0601", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0635", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07F17/3255", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07F17/329", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07G1/0036", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07G1/12", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q20/20", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07F17/3255", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0208", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0224", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07G1/12", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0601", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0635", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/00", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07G1/0036", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q20/208", "inventive": true, "first": false, "tree": "[]"}, {"code": "G06Q30/0238", "inventive": true, "first": false, "tree": "[]"}, {"code": "G07F17/329", "inventive": true, "first": false, "tree": "[]"}]
Family ID: 25285696