Prior art

To identify the most relevant prior art for US patent 7,177,838, I will search the USPTO database for the patent and examine its cited references.

The Google Patents entry for US7177838B1 lists 35 patent citations and 25 non-patent citations. The "Background of the Invention" section of US7177838 itself discusses various forms of electronic currency and related systems that existed prior to its filing, highlighting the problems they aimed to solve.

The Examiner, at the close of prosecution for US7177838, noted that "[t]he prior art taken alone or in combination failed to teach or suggest a vendor registering user to purchase electronic tokens wherein each token having a value of at least a fraction of a dollar and authorizing a purchase at a participating vendor web site without requiring any third party authentication and a physical manifestation of the user account.” This statement from the Notice of Allowability (October 6, 2006) provides critical insight into what the Examiner considered the distinguishing features of the claimed invention over the prior art known at that time.

Based on the patent document, here are some of the patent citations listed, along with their publication/filing dates, brief descriptions, and potential anticipation relevant to the claims of US7177838:

Patent Citations from US7177838B1:

• U.S. Pat. No. 5,983,207 to Turk et al.

  • Publication/Filing Date: The patent itself notes its existence, but not specific dates. Turk et al. is cited in the "Background of the Invention" section of US7177838.
  • Brief Description: This patent describes electronic currency systems based on gold or other commodities held at a central location.
  • Potential Anticipation (35 U.S.C. § 102): This reference, and similar systems, are distinguished in US7177838 by their reliance on central organizations (like banks) to manage user accounts and handle transactions. Therefore, it potentially anticipates aspects of electronic currency systems, but likely does not anticipate the vendor-issued and controlled tokens without third-party authentication as claimed in US7177838 (e.g., Claim 1, 12, 21), particularly the direct vendor control and lack of required interaction with a bank for each transaction.

• U.S. Pat. No. 5,671,364 to Turk.

  • Publication/Filing Date: The patent itself notes its existence, but not specific dates. Turk is cited in the "Background of the Invention" section of US7177838.
  • Brief Description: Similar to Turk et al., this patent discusses electronic currency systems based on a central commodity.
  • Potential Anticipation (35 U.S.C. § 102): Similar to the 5,983,207 patent, it would likely not anticipate the vendor-issued and managed electronic tokens and the direct vendor-user interaction emphasized in US7177838, particularly the features of Claims 1, 12, and 21 that avoid third-party bank interaction for each token transaction.

• U.S. Pat. No. 4,977,595 to Ohta et al.

  • Publication/Filing Date: The patent itself notes its existence, but not specific dates. Ohta et al. is cited in the "Background of the Invention" section of US7177838.
  • Brief Description: This patent describes cryptographic techniques that may be used by a bank to issue electronic cash.
  • Potential Anticipation (35 U.S.C. § 102): While covering cryptographic techniques for electronic cash, US7177838 distinguishes itself by avoiding the necessity of a bank or other central organization to issue or use the tokens. Thus, it likely does not anticipate the specific vendor-controlled issuance and redemption features of US7177838, particularly those in Claims 1, 12, and 21 that focus on the vendor directly managing the tokens.

Non-Patent Citations from US7177838B1 (from the "Background of the Invention" section):

• eCash (ecash Technologies Incorporated):

  • Description: "eCash" relies on encryption and digital signature technology, permitting selected "eCash" banks to issue "eCash" currency to users, which can be spent at accepting vendor websites. Vendors then exchange "eCash" for traditional money through an "eCash" bank. This system allows for micropayments and purchases without a credit card.
  • Potential Anticipation (35 U.S.C. § 102): Although "eCash" addresses micropayments and credit card avoidance, US7177838 differentiates itself by stating that "eCash" and similar systems "require that users and merchants make arrangements with authorized banks, and require both the user and the merchant to convert between real currency and electronic currency through an authorized bank." This suggests that "eCash" would not anticipate the vendor-issued and managed tokens of US7177838 that explicitly eliminate the need for third-party bank interaction for each transaction, which is a core element of Claims 1, 12, and 21.

• RocketCash (RocketCash Corporation):

  • Description: The RocketCash system sets up accounts for teens, allowing parents to add funds. Teens can then shop online, with purchases billed to their RocketCash account. It eliminates the need for credit cards but does not address micropayments.
  • Potential Anticipation (35 U.S.C. § 102): US7177838 notes that RocketCash "still necessary to establish and fund an account with a single central entity (i.e. RocketCash Corporation) before goods may be purchased." While it offers a stored value, it is not a system where the vendor directly issues and controls the tokens for use only on their site, which is key to Claims 1, 12, and 21 of US7177838.

• InternetCash (InternetCash Corporation):

  • Description: Based on a pre-paid card purchased in predetermined denominations from a store, usable at selected online merchants. It can handle smaller transactions than credit cards and provides anonymous purchasing without a credit card.
  • Potential Anticipation (35 U.S.C. § 102): US7177838 points out that InternetCash "requires merchants to obtain payment from a central organization." This indicates it would not anticipate the vendor-issued and controlled tokens of US7177838, as defined in Claims 1, 12, and 21, which remove the need for such a central intermediary for payment.

• Beenz (Beenz.com, Inc.):

  • Description: "Beenz" currency is earned as an incentive for online activity and can be spent at selected Web vendors. It does not use a credit card and can be used for micropayments.
  • Potential Anticipation (35 U.S.C. § 102): US7177838 states that "there is no way to purchase the 'beenz' currency" and that "vendors must rely on a single organization to receive payment in real money." This clearly differentiates "Beenz" from the system of US7177838 where tokens are purchased directly from the vendor, a crucial aspect of Claims 1, 12, and 21.

The Examiner's statement regarding the prior art, in conjunction with the distinctions drawn in the patent's background section, suggests that the core novelty of US7177838 lies in a vendor-centric electronic token system where the vendor directly issues, sells, and manages the tokens for use on their own site, without requiring a third-party financial institution for each transaction. Therefore, any prior art that relies on a central bank, a third-party issuer, or a universal electronic currency, would likely not anticipate the specific vendor-controlled aspects of the claims in US7177838.