US 7177838

An analysis of United States Patent 7,177,838 reveals a method for conducting e-commerce transactions using electronic tokens issued directly by a vendor. The patent, now expired, has been the subject of significant litigation.

Title: Method and apparatus for conducting electronic commerce transactions using electronic tokens

Assignee: The current assignee is listed as Aml Ip LLC. The original assignee was PayByClick Corp.

Inventors: Marvin T. Ling

Filing Date: April 21, 2000

Issue Date: February 13, 2007

Abstract: The patent describes a system where a vendor issues and maintains electronic tokens that customers can purchase online (e.g., with a credit card) or offline (e.g., with a check or money order). These tokens can then be used to buy or rent products and services from that specific vendor. This system is designed to reduce the overhead of third-party transaction processors, giving the vendor more control over pricing and payment arrangements. The patent also notes the system's applicability for renting software under various terms, such as for a limited time, a specific number of uses, or a certain number of processes.

Overview of Independent Claims:

This patent contains several independent claims that define the core of the invention. In plain language, these claims cover:

• Claim 1: A method for a vendor to conduct a business transaction over a network. This involves the vendor's server computer establishing an account for a user, the user purchasing electronic tokens from the vendor, the server storing the number of tokens in the user's account, the user selecting items to purchase, the server calculating the total token cost, and if the user has enough tokens, debiting the user's account and completing the transaction.
• Claim 12: A method for a user to conduct a business transaction with a vendor over a network. This claim mirrors the process from the user's perspective: establishing an account, purchasing tokens from the vendor which are stored by the vendor, selecting items, being informed of the total token cost, and confirming the purchase, which leads to the vendor debiting the token account.
• Claim 21: An apparatus (specifically, a vendor's server computer) for conducting a business transaction. This server is configured to establish user accounts, sell electronic tokens to users, store these tokens, present products for sale with prices in tokens, receive a purchase order, determine if the user has sufficient tokens, and if so, debit the account and confirm the transaction.
• Claim 31: A method for a vendor to facilitate transactions between different users. This involves the vendor's server establishing accounts for multiple users, selling tokens to a first user, the first user authorizing a transfer of tokens to a second user, and the server debiting the first user's account and crediting the second user's account. This is framed for applications like online auctions.

No records for US Patent 7,177,838 were found in the CAFC 2026 dockets based on the conducted search. However, the patent has a history of litigation in various district courts.