Systems and methods for secure transaction management and electronic rights protection

DEMANDES OU BREVETS VOLUMINEUX

LA PRÉSENTE PARTIE DE CETTE DEMANDE OU CE BREVETS COMPREND PLUS D’UN TOME.

CECI EST LE TOME 1 DE 4

NOTE: Pour les tomes additionels, veillez contacter le Bureau Canadien des Brevets.

JUMBO APPLICATIONS / PATENTS

THIS SECTION OF THE APPLICATION / PATENT CONTAINS MORE THAN ONE VOLUME.

THIS IS VOLUME 1 OF 4

NOTE: For additional volumes please contact the Canadian Patent Office.

CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

SYSTEMS AND METHODS FOR SECURE TRANSACTION MANAGEMENT AND ELECTRONIC RIGHTS PROTECTION

Field(a) of the Invention^)

This invention generally relates to computer and/or electronic security.

More particularly, this invention relates to systems and techniques for secure transaction management. This invention also relates to computer-based and other electronic appliancebased technologies that help to ensure that information is accessed and/or otherwise used only in authorized ways, and maintains the integrity, availability, and/or confidentiality of such information and processes related to such use.

The invention also relates to systems and methods for protecting rights of various participants in electronic commerce and other electronic or electronically-facilitated transactions.

The invention also relates to secure chains of handling and control for both information content and information employed to regulate the use of such content and consequences of such use. It also relates to systems and techniques that manage, including meter and/or limit and/or otherwise monitor use of electronically stored and/or disseminated information. The invention

-1CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 particularly relates to transactions, conduct and arrangements that make use of, including consequences of use of, such systems and/or techniques.

Thé invention also relates to distributed and other operating systems, environments and architectures. It also generally relates to secure architectures, including, for example, tamper-resistant hardware-based processors, that can be used to establish security at each node of a distributed system.

Background and Summary of the Invention/s)

Telecommunications, financial transactions, government processes, business operations, entertainment, and personal business productivity all now depend on electronic appliances. Millions of these electronic appliances have been electronically connected together. These interconnected electronic appliances comprise what is increasingly called the “information highway.” Many businesses, academicians, and government leaders are concerned about how to protect the rights of citizens and organizations who use this information (also “electronic” or “digital”) highway.

-2CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Electronic Content

Today, virtually anything that can be represented by words, numbers, graphics, or system of commands and instructions can be formatted into electronic digital information.

Television, cable, satellite transmissions, and on-line services transmitted over telephone lines, compete to distribute digital information and entertainment to homes and businesses. The owners and marketers of this content include software developers, motion picture and recording companies, publishers of books, magazines, and newspapers, and information database providers. The popularization of on-line services has also enabled the individual personal computer user to participate as a content provider. It is estimated that the worldwide market for electronic information in 1992 was approximately $40 billion and is expected to grow to $200 billion by 1997, according to

Microsoft Corporation. The present invention can materially enhance the revenue of content providers, lower the distribution costs and the costs for content, better support advertising and usage information gathering, and better satisfy the needs of electronic information users. These improvements can lead to a significant increase in the amount and variety of electronic information and the methods by which such information is distributed.

-3CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/1S243

The inability of conventional products to be shaped to the needs of electronic information providers and users is sharply in contrast to the present invention. Despite the attention devoted by a cross-section of America’s largest telecommunications, computer, entertainment and information provider companies to some of the problems addressed by the present invention, only the present invention provides commercially secure, effective solutions for configurable, general purpose electronic commerce transaction/distribution control systems.

Controlling Electronic Content The present invention provides a new kind of “virtual distribution environment” (called “VDE” in this document) that secures, administers, and audits electronic information use.

VDE also features fundamentally important capabilities for managing content that travels “across” the “information highway.” These capabilities comprise a rights protection solution that serves all electronic community members. These .

members include content creators and distributors, financial service providers, end-users, and others. VDE is the first general purpose, configurable, transaction control/rights protection solution for users of computers, other electronic appliances, networks, and the information highway.

-4CA 02373508 2002-03-07

98/09209 PCT/ÜS97/15243

A fundamental problem for electronic content providers is extending their ability to control the use of proprietary information. Content providers often need to limit use to authorized activities and amounts. Participants in a business model involving, for example, provision of movies and advertising on optical discs may include actors, directors, script and other writers, musicians, studios, publishers, distributors, retailers, advertisers, credit card services, and content end-users. These participants need the ability to embody their range of agreements and requirements, including use limitations, into an “extended” agreement comprising an overall electronic business model. This extended agreement is represented by electronic content control information that can automatically enforce agreed upon rights and obligations. Under VDE, such an extended agreement may comprise an electronic contract involving all business model participants. Such an agreement may alternatively, or in addition, be made up of electronic agreements between subsets of the business model participants. Through the use of VDE, electronic commerce can function in the same way as traditional commerce—that is commercial relationships regarding products and services can be shaped through the negotiation of one or more agreements between a variety of parties.

-5CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Commercial content providers are concerned with ensuring proper compensation for the use of their electronic InformationElectronic digital information, for example a CD recording, can today be copied relatively easily and inexpensively. Similarly, unauthorized copying and use of software programs deprives rightful owners of billions of dollars in annual revenue according to the International Intellectual Property Alliance. Content providers and distributors have devised a number of limited function rights protection mechanisms to protect their rights.

Authorization passwords and protocols, license servers, “lock/unlock” distribution methods, and non-electronic contractual limitations imposed on users of shrink-wrapped software are a few of the more prevalent content protection schemes. In a commercial context, these efforts are inefficient and limited solutions.

Providers of “electronic currency” have also created protections for their type of content. These systems are not sufficiently adaptable, efficient, nor flexible enough to support the generalized use of electronic currency. Furthermore, they do not provide sophisticated auditing and control configuration capabilities. This means that current electronic currency tools lack the sophistication needed for many real-world financial business models. VDE provides means for anonymous currency

-6CA 02373508 2002-03-07

WO 98/09209 PCI7US97/15243 and for “conditionally” anonymous currency, wherein currency related activities remain anonymous except under special circumstances.

VDE Control Capabilities

VDE allows the owners and distributors of electronic digital information to reliably bill for, and securely control, audit, and budget the use of, electronic information. It can reliably detect and monitor the use of commercial information products.

VDE uses a wide variety of different electronic information delivery means: including, for example, digital networks, digital broadcast, and physical storage media such as optical and magnetic disks. VDE can be used by major network providers, hardware manufacturers, owners of electronic information, providers of such information, and clearinghouses that gather usage information regarding, and bill for the use of, electronic information.

VDE provides comprehensive and configurable transaction management, metering and monitoring technology. It can change how electronic information products are protected, marketed, packaged, and distributed. When used, VDE should result in higher revenues for information providers and greater •7CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 user satisfaction and value. Use of VDE will normally result in lower usage costs, decreased transaction costs, more efficient access to electronic information, re-usability of rights protection and other transaction management implementations, greatly improved flexibility in the use of secured information, and greater standardization of tools and processes for electronic transaction management. VDE can be used to create an adaptable environment that fulfills the needs of electronic information owners, distributors, and users; financial clearinghouses; and usage information analyzers and resellers.

Bights and Control Information

In general, the present invention can be used to protect the rights of parties who have:

(a) proprietary or confidentiality interests in electronic information. It can, for example, help ensure that information is used only in authorized ways;

(b) financial interests resulting from the use of electronically distributed information. It can help ensure that content providers will be paid for use of distributed information; and

-8CA 02373508 2002-03-07

WO98/09209 PCT/ÜS97/I5243 (c) interests in electronic credit and electronic currency storage, communication, and/or use including electronic cash, banking, and purchasing.

Protecting the rights of electronic community members involves a broad range of technologies. VDE combines these technologies in a way that creates a “distributed” electronic rights protection “environment. This environment secures and protects transactions and other processes important for rights protection. VDE, for example, provides the ability to prevent, or impede, interference with and/or observation of, important rights related transactions and processes. VDE, in its preferred embodiment, uses special purpose tamper resistant Secure Processing Units (SPUs) to help provide a high level of security for VDE processes and information storage and communication.

The rights protection problems solved by the present invention are electronic versions of basic societal issues. These issues include protecting property rights, protecting privacy rights, properly compensating people and organizations for their work and risk, protecting money and credit, and generally protecting the security of information. VDE employs a system that uses a common set of processes to manage rights issues in an efficient, trusted, and cost-effective way.

-9CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

VDE can be used to protect the rights of parties who create electronic content such as, for example: records, games, movies, newspapers, electronic books and reference materials, personal electronic mail, and confidential records and communications.

The invention can also be used to protect the rights of parties who provide electronic products, such as publishers and distributors; the rights of parties who provide electronic credit and currency to pay for use of products, for example, credit clearinghouses and banks; the rights to privacy of parties who use electronic content (such as consumers, business people, governments); and the privacy rights of parties described by electronic information, such as privacy rights related to information contained in a medical record, tax record, or personnel record.

In general, the present invention can protect the rights of parties who have:

(a) commercial interests in electronically distributed information -- the present invention can help ensure, for example, that parties, will be paid for use of distributed information in a manner consistent with their agreement;

-10CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 (b) proprietary and/or confidentiality interests in electronic information - the present invention can, for example, help ensure that data is used only in authorized ways;

.5 (c) interests in electronic credit and electronic currency storage, communication, and/or use -- this can include electronic cash, banking, and purchasing; and (d) interests in electronic information derived, at least in part, from use of other electronic information.

VDE Functional Properties

VDE is a cost-effective and efficient rights protection solution that provides a unified, consistent system for securing and managing transaction processing. VDE can;

(a) audit and analyze the use of content, (b) ensure that content is used only in authorized ways, and

-11CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/15243 (c) allow information regarding content usage to be used only in ways approved by content users.

In addition, VDE:

(a) is very configurable, modifiable, and re-usable;

(b) supports a wide range of useful capabilities that may be combined in different ways to accommodate most potential applications;

(c) operates on a wide variety of electronic appliances ranging from hand-held, inexpensive devices to large mainframe computers;

(d) is able to ensure the various rights of a number of different parties, and a number of different rights protection schemes, simultaneously;

(e) is able to preserve the rights of parties through a series of transactions that may occur at different times and different locations;

CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 (f) is able to flexibly accommodate different ways of securely delivering information and reporting usage; and (g) provides for electronic analogues to real money and credit, including anonymous electronic cash, to pay for products and services and to support personal (including home) banking and other financial activities.

VDE economically and efficiently fulfills the rights protection needs of electronic community members. Users of VDE will not require additional rights protection systems for different information highway products and rights problems—nor will they be required to install and learn a new system for each new information highway application.

VDE provides a unified solution that allows all content creators, providers, and users to employ the same electronic rights protection solution. Under authorized circumstances, the participants can freely exchange content and associated content control sets. This means that a user of VDE may, if allowed, use the same electronic system to work with different kinds of content having different sets of content control information. The

-13CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 content and control information supplied by one group can be used by people who normally use content and control information supplied by a different group. VDE can allow content to be exchanged “universally” and users of an implementation of the present invention can interact electronically without fear of incompatibilities in content control, violation of rights, or the need to get, install, or learn a new content control system.

The VDE securely administers transactions that specify 10 protection of rights. It can protect electronic rights including, for example:

(a) the property rights of authors of electronic content, (b) the commercial rights of distributors of content, (c) the rights of any parties who facilitated the distribution of content, (d) the privacy rights of users of content, (e) the privacy rights of parties portrayed by stored and/or distributed content, and

- 14CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 (f) any other rights regarding enforcement of electronic agreements.

VDE can enable a very broad variety of electronically enforced 5 commercial and societal agreements. These agreements can include electronically implemented contracts, licenses, laws, regulations, and tax collection.

Contrast With Traditional Solutions

Traditional content control mechanisms often require users to purchase more electronic information than the user needs or desires. For example, infrequent users of shrinkwrapped software are required to purchase a program at the same price as frequent users, even though they may receive much less value from their less frequent use. Traditional systems do not scale cost according to the extent or character of usage and traditional systems can not attract potential customers who find that a fixed price is too high. Systems using traditional mechanisms are also not normally particularly , secure. For example, shrink-wrapping does not prevent the constant illegal pirating of software once removed from either its physical or electronic package.

-15CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Traditional electronic information rights protection systems are often inflexible and inefficient and may cause a content provider to choose costly distribution channels that increase a product’s price. In general these mechanisms restrict product pricing, configuration, and marketing flexibility. These compromises are the result of techniques for controlling information which cannot accommodate both different content models and content models which reflect the many, varied requirements, such as content delivery strategies, of the model participants. This can limit a provider’s ability to deliver sufficient overall value to justify a given product’s cost in the eyes of many potential users. VDE allows content providers and distributors to create applications and distribution networks that reflect content providers’ and users’ preferred business models.

It offers users a uniquely cost effective and feature rich system that supports the ways providers want to distribute information and the ways users want to use such information. VDE supports content control models that ensure rights and allow content delivery strategies to be shaped for maximum commercial results.

Chain of Handling and Control

VDE can protect a collection of rights belonging to various parties having in rights in, or to, electronic information. This

-16CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 information may be at one location or dispersed across (and/or moving between) multiple locations. The information may pass through a “chain” of distributors and a “chain” of users. Usage information may also be reported through one or more “chains” of parties. In general, VDE enables parties that (a) have rights in electronic information, and/or (b) act as direct or indirect agents for parties who have rights in electronic information, to ensure that the moving, accessing, modifying, or otherwise using of information can be securely controlled by rules regarding how, when, where, and by whom such activities can be performed.

VDE Applications and Software

VDE is a secure system for regulating electronic conduct and commerce. Regulation is ensured by control information put in place by one or more parties. These parties may include content providers, electronic hardware manufacturers, financial service providers, or electronic “infrastructure” companies such as cable or telecommunications companies. The control information implements “Rights Applications.” Rights applications “run on” the “base software” of the preferred embodiment. This base software serves as a secure, flexible, general purpose foundation that can accommodate many different rights applications, that is, many different business models and their respective participant requirements.

-17CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

A rights application under VDE is made up of special purpose pieces, each of which can correspond to one or more basic electronic processes needed for a rights protection environment. These processes can be combined together like building blocks to create electronic agreements that can protect the rights, and may enforce fulfillment of the obligations, of electronic information users and providers. One or more providers of electronic information can easily combine selected building blocks to create a rights application that is unique to a specific content distribution model. A group of these pieces can represent the capabilities needed to fulfill the agreements) between users and providers. These pieces accommodate many requirements of electronic commerce including:

• the distribution of permissions to use electronic information;

• the persistence of the control information and sets of control information managing these permissions;

• configurable control set information that can be selected by users for use with such information;

-18CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • data security and usage auditing of electronic information; and • a secure system for currency, compensation and debit management.

For electronic commerce, a rights application, under the preferred embodiment of the present invention, can provide electronic enforcement of the business agreements between all participants. Since different groups of components can be put together for different applications, the present invention can provide electronic control information for a wide variety of different products and markets. This means the present invention can provide a “unified,” efficient, secure, and cost-effective system for electronic commerce and data security. This allows VDE to serve as a single standard for electronic rights protection, data security, and electronic currency and banking.

In a VDE, the separation between a rights application and its foundation permits the efficient selection of sets of control information that are appropriate for each of many different types of applications and uses. These control sets can reflect both rights of electronic community members, as well as obligations

-19CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 (such as providing a history of one’s use of a product or paying taxes on one’s electronic purchases). VDE flexibility allows its users to electronically implement and enforce common social and commercial ethics and practices. By providing a unified control system, the present invention supports a vast range of possible transaction related interests and concerns of individuals, communities, businesses, and governments. Due to its open design, VDE allows (normally under securely controlled circumstances) applications using technology independently created by users to be “added” to the system and used in conjunction with the foundation of the invention. In sum, VDE provides a system that can fairly reflect and enforce agreements among parties. It is a broad ranging and systematic solution that answers the pressing need for a secure, cost-effective, and fair electronic environment.

VDE Implementation

The preferred embodiment of the present invention includes various tools that enable system designers to directly insert VDE capabilities into their products. These tools include an Application Programmer’s Interface (“API”) and a Rights Permissioning and Management Language (“RPML”). The RPML provides comprehensive and detailed control over the use of the invention’s features. VDE also includes certain user

-20CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 interface subsystems for satisfying the needs of content providers, distributors, and users.

Information distributed using VDE may take many forms. It may, for example, be “distributed” for use on an individual’s own computer, that is the present invention can be used to provide security for locally stored data. Alternatively, VDE may be used with information that is dispersed by authors and/or publishers to one or more recipients. This information may take many forms including: movies, audio recordings, games, electronic catalog shopping, multimedia, training materials, E-mail and personal documents, object oriented libraries, software programming resources, and reference/record keeping information resources (such as business, medical, legal, scientific, governmental, and consumer databases).

Electronic rights protection provided by the present invention will also provide an important foundation for trusted and efficient home and commercial banking, electronic credit processes, electronic purchasing, true or conditionally anonymous electronic cash, and EDI (Electronic Data Interchange). VDE provides important enhancements for improving data security in organizations by providing “smart”

-21CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 transaction management features that can be far more effective than key and password based “go/no go” technology.

VDE normally employs an integration of cryptographic 5 and other security technologies (e.g. encryption, digital signatures, etc.), with other technologies including: component, distributed, and event driven operating system technology, and related communications, object container, database, smart agent, smart card, and semiconductor design technologies.

I. Overview

A. VDE Solves Important Problems and Fills Critical Needs

The world is moving towards an integration of electronic 15 information appliances. This interconnection of appliances provides a foundation for much greater electronic interaction and the evolution of electronic commerce. A variety of capabilities are required to implement an electronic commerce environment. VDE is the first system that provides many of these capabilities and therefore solves fundamental problems related to electronic dissemination of information.

-22CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Electronic Content

VDE allows electronic arrangements to be created involving two or more parties. These agreements can themselves comprise a collection of agreements between participants in a commercial value chain and/or a data security chain model for handling, auditing, reporting, and payment. It can provide efficient, reusable, modifiable, and consistent means for secure electronic content: distribution, usage control, usage payment, usage auditing, and usage reporting. Content may, for example, include:

• financial information such as electronic currency and credit;

• commercially distributed electronic information such as reference databases, movies, games, and advertising; and • electronic properties produced by persons and 20 organizations, such as documents, e-mail, and proprietary database information.

-23CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

VDE enables an electronic commerce marketplace that supports differing, competitive business partnerships, agreements, and evolving overall business models.

The features of VDE allow it to function as the first trusted electronic information control environment that can conform to, and support, the bulk of conventional electronic commerce and data security requirements. In particular, VDE enables the participants in a business value chain model to create an electronic version of traditional business agreement terms and conditions and further enables these participants to shape and evolve their electronic commerce models as they believe appropriate to their business requirements.

VDE offers an architecture that avoids reflecting specific distribution biases, administrative and control perspectives, and content types. Instead, VDE provides a broad-spectrum, fundamentally configurable and portable, electronic transaction control, distributing, usage, auditing, reporting, and payment operating environment. VDE is not limited to being an application or application specific toolset that covers only a limited subset of electronic interaction activities and participants. Rather, VDE supports systems by which such applications can be created, modified, and/or reused. As a result,

-24CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 the present invention answers pressing, unsolved needs by offering a system that supports a standardized control environment which facilitates interoperability of electronic appliances, interoperability of content containers, and efficient creation of electronic commerce applications and models through the use of a programmable, secure electronic transactions management foundation and reusable and extensible executable components. VDE can support a single electronic “world” within which most forms of electronic transaction activities can be managed.

To answer the developing needs of rights owners and content providers and to provide a system that can accommodate the requirements and agreements of all parties that may be involved in electronic business models (creators, distributors, administrators, users, credit providers, etc.), VDE supplies an efficient, largely transparent, low cost and sufficiently secure system (supporting both hardware/ software and software only models). VDE provides the widely varying secure control and administration capabilities required for:

1. Different types of electronic content,

2. Differing electronic content delivery schemes,

-25CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

3. Differing electronic content usage schemes,

4. Different content usage platforms, and

5. Differing content marketing and model strategies.

VDE may be combined with, or integrated into, many separate computers and/or other electronic appliances. These appliances typically include a secure subsystem that can enable control of content use such as displaying, encrypting, decrypting, printing, copying, saving, extracting, embedding, distributing, auditing usage, etc. The secure subsystem in the preferred embodiment comprises one or more protected processing environments, one or more secure databases, and secure component assemblies and other items and processes that need to be kept secured. VDE can, for example, securely control electronic currency, payments, and/or credit management (including electronic credit and/or currency receipt, disbursement, encumbering, and/or allocation) using such a secure subsystem.

VDE provides a secure, distributed electronic transaction management system for controlling the distribution and/or other usage of electronically provided and/or stored information. VDE

-26CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 controls auditing and reporting of electronic content and/or appliance usage. Users of VDE may include content creators who apply content usage, usage reporting, and/or usage payment related control information to electronic content and/or appliances for users such as end-user organizations, individuals, and content and/or appliance distributors. VDE also securely supports the payment of money owed (including money owed for content and/or appliance usage) by one or more parties to one or more other parties, in the form of electronic credit and/or currency.

Electronic appliances under control of VDE represent VDE ’nodes’ that securely process and control; distributed electronic information and/or appliance usage, control information formulation, and related transactions. VDE can securely manage the integration of control information provided by two or more parties. As a result, VDE can construct an electronic agreement between VDE participants that represent a “negotiation” between, the control requirements of, two or more parties and enacts terms and conditions of a resulting agreement. VDE ensures the rights of each party to an electronic agreement regarding a wide range of electronic activities related to electronic information and/or appliance usage.

-27CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Through use of VDE’s control system, traditional content providers and users can create electronic relationships that reflect traditional, non-electronic relationships. They can shape and modify commercial relationships to accommodate the evolving needs of, and agreements among, themselves. VDE does not require electronic content providers and users to modify their business practices and personal preferences to conform to a metering and control application program that supports limited, largely fixed functionality. Furthermore, VDE permits participants to develop business models not feasible with nonelectronic commerce, for example, involving detailed reporting of content usage information, large numbers of distinct transactions at hitherto infeasibly low price points, “pass-along” control information that is enforced without involvement or advance knowledge of the participants, etc.

The present invention allows content providers and users to formulate their transaction environment to accommodate:

(1) desired content models, content control models, and content usage information pathways, (2) a complete range of electronic media and distribution means,

-28CA 02373508 2002-03-07

<td> WO 98/09209</td><td> PCT/ÜS97/15243</td>

<td> (3)</td><td> a broad range of pricing, payment, and auditing strategies,</td>

<td> (4)</td><td> very flexible privacy and/or reporting models,</td>

<td> (5)</td><td> practical and effective security architectures, and</td>

<td> (6)</td><td> other administrative procedures that together with steps ( 1) through (5) can enable most “real world”</td>

<td> 10</td><td> electronic commerce and data security models, including models unique to the electronic world.</td>

VDE’s transaction management capabilities can enforce

<td> 15 (1)</td><td> privacy rights of users related to information regarding their usage of electronic information and/or appliances,</td>

<td> (2)</td><td> societal policy such as laws that protect rights of</td>

<td> 20</td><td> content users or require the collection of taxes derived from electronic transaction revenue, and</td>

-29CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 (3) the proprietary and/or other rights of parties related to ownership of distribution of, and/or other commercial rights related to, electronic information.

VDE can support “real” commerce in an electronic form, that is the progressive creation of commercial relationships that form, over time, a network of interrelated agreements representing a value chain business model. This is achieved in part by enabling content control information to develop through the interaction of (negotiation between) securely created and independently submitted sets of content and/or appliance control information. Different sets of content and/or appliance control information can be submitted by different parties in an electronic business value chain enabled by the present invention. These parties create control information sets through the use of thenrespective VDE installations. Independently, securely deliverable, component based control information allows efficient interaction among control information sets supplied by different parties.

VDE permits multiple, separate electronic arrangements to be formed between subsets of parties in a VDE supported electronic value chain model. These multiple agreements together comprise a VDE value chain “extended” agreement.

-30CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

VDE allows such constituent electronic agreements, and therefore overall VDE extended agreements, to evolve and reshape over time as additional VDE participants become involved in VDE content and/or appliance control information handling. VDE electronic agreements may also be extended as new control information is submitted by existing participants.

With VDE, electronic commerce participants are free to structure and restructure their electronic commerce business activities and relationships. As a result, the present invention allows a competitive electronic commerce marketplace to develop since the use ofVDE enables different, widely varying business models using the same or shared content.

A significant facet of the present invention’s ability to broadly support electronic commerce is its ability to securely manage independently delivered VDE component objects containing control information (normally in the form ofVDE objects containing one or more methods, data, or load module VDE components). This independently delivered control information can be integrated with senior and other pre-existing content control information to securely form derived control information using the negotiation mechanisms of the present invention. All requirements specified by this derived control information must be satisfied before VDE controlled content can

-31CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 be accessed or otherwise used. This means that, for example, all load modules and any mediating data which are listed by the derived control information as required must be available and securely perform their required function. In combination with other aspects of the present invention, securely, independently delivered control components allow electronic commerce participants to freely stipulate their business requirements and trade offs. As a result, much as with traditional, non-electronic commerce, the present invention allows electronic commerce (through a progressive stipulation of various control requirements by VDE participants) to evolve into forms of business that are the most efficient, competitive and useful.

VDE provides capabilities that rationalize the support of electronic commerce and electronic transaction management.

This rationalization stems from the reusability of control structures and user interfaces for a wide variety of transaction management related activities. As a result, content usage control, data security, information auditing, and electronic financial activities, can be supported with tools that are reusable, convenient, consistent, and familiar. In addition, a rational approach—a transaction/distribution control standard—allows all participants in VDE the same foundation set of hardware control and security, authoring, administration,

-32CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 and management tools to support widely varying types of information, business market model, and/or personal objectives.

Employing VDE as a general purpose electronic transaction/distribution control system allows users to maintain a single transaction management control arrangement on each of their computers, networks, communication nodes, and/or other electronic appliances. Such a general purpose system can serve the needs of many electronic transaction management applications without requiring distinct, different installations for different purposes. As a result, users of VDE can avoid the confusion and expense and other inefficiencies of different, limited purpose transaction control applications for each different content and/or business model. For example, VDE allows content creators to use the same VDE foundation control arrangement for both content authoring and for licensing content from other content creators for inclusion into their products or for other use. Clearinghouses, distributors, content creators, and other VDE users can all interact, both with the applications running on their VDE installations, and with each other, in an entirely consistent manner, using and reusing (largely transparently) the same distributed tools, mechanisms, and consistent user interfaces, regardless of the type of VDE activity.

-33CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

VDE prevents many forms of unauthorized use of electronic information, by controlling and auditing (and other administratinn of use) electronically stored and/or disseminated information. This includes, for example, commercially distributed content, electronic currency, electronic credit, business transactions (such as EDI), confidential communications, and the like. VDE can further be used to enable commercially provided electronic content to be made available to users in user defined portions, rather than constraining the user to use portions of content that were “predetermined” by a content creator and/or other provider for billing purposes.

VDE, for example, can employ:

(1) Secure metering means for budgeting and/or auditing electronic content and/or appliance usage;

(2) Secure flexible means for enabling compensation and/or billing rates for content and/or appliance usage, including electronic credit and/or currency mechanisms for payment means;

- 34CA 02373508 2002-03-07

<td> WO 98/09209</td><td> PCT/US97/15243</td>

<td> (3)</td><td> Secure distributed database means for storing control and usage related information (and employing validated compartmentalization and tagging schemes);</td>

<td> (4)</td><td> Secure electronic appliance control means;</td>

<td> (5)</td><td> A distributed, secure, “virtual black box” comprised of nodes located at every user (including VDE content container creators, other content providers, client users, and recipients of secure VDE content usage information) site. The nodes of said virtual black box normally include a secure subsystem having at least one secure hardware element (a semiconductor element or other hardware module for securely executing VDE control processes), said secure subsystems being distributed at nodes along a pathway of information storage, distribution, payment, usage, and/or auditing. In some embodiments, the functions of said hardware element, for certain or all nodes, may be performed by software, for example, in host processing environments of electronic appliances; -35-</td>

CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 (6) Encryption and decryption means;

(7) Secure communications means employing authentication, digital signaturing, and encrypted transmissions. The secure subsystems at said user nodes utilize a protocol that establishes and authenticates each node’s and/or participant’s identity, and establishes one or more secure host-to-host encryption keys for communications between the secure subsystems; and (8) Secure control means that can allow each VDE installation to perform VDE content authoring (placing content into VDE containers with associated control information;, content distribution, and content usage; as well as clearinghouse and other administrative and analysis activities employing content usage information.

VDE may be used to migrate most non-electronic, traditional information delivery models (including entertainment, reference materials, catalog shopping, etc.) into an adequately secure digital distribution and usage management

-36CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 and payment context. The distribution and financial pathways managed by a VDE arrangement may include:

• content creatoris), • distributors), • redistributor(s), • client administrators), • client users), • financial and/or other clearinghouse(s), • and/or government agencies.

These distribution and financial pathways may also include:

• · advertisers, • market survey organizations, and/or • other parties interested in the user usage of information securely delivered and/or stored using VDE.

Normally, participants in a VDE arrangement will employ the same secure VDE foundation. Alternate embodiments support VDE arrangements employing differing VDE foundations. Such alternate embodiments may employ procedures to ensure certain interoperability requirements are met.

- 37 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Secure VDE hardware (also known as SPUs for Secure

Processing Units), or VDE installations that use software to substitute for, or complement, said hardware (provided by Host Processing Environments (HPEs)), operate in conjunction with secure communications, systems integration software, and distributed software control information and support structures, to achieve the electronic contract/rights protection environment of the present invention. Together, these VDE components comprise a secure, virtual, distributed content and/or appliance control, auditing (and other administration), reporting, and payment environment. In some embodiments and where commercially acceptable, certain VDE participants, such as clearinghouses that normally maintain sufficiently physically secure non-VDE processing environments, may be allowed to employ HPEs rather VDE hardware elements and interoperate, for example, with VDE end-users and content providers. VDE components together comprise a configurable, consistent, secure and “trusted” architecture for distributed, asynchronous control of electronic content and/or appliance usage. VDE supports a “universe wide” environment for electronic content delivery, broad dissemination, usage reporting, and usage related payment activities.

-38CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

VDE provides generalized configurability. This results, in part, from decomposition of generalized requirements for supporting electronic commerce and data security into a broad range of constituent “atomic” and higher level components (such as load modules, data elements, and methods) that may be variously aggregated together to form control methods for electronic commerce applications, commercial electronic agreements, and data security arrangements. VDE provides a secure operating environment employing VDE foundation elements along with secure independently deliverable VDE components that enable electronic commerce models and relationships to develop. VDE specifically supports the unfolding of distribution models in which content providers, over time, can expressly agree to, or allow, subsequent content providers and/or users to participate in shaping the control information for, and consequences of, use of electronic content and/or appliances. A very broad range Of the functional attributes important for supporting simple to very complex electronic commerce and data security activities are supported by capabilities of the present invention. As a result, VDE supports most types of electronic information and/or appliance: usage control (inchiding distribution), security, usage auditing, reporting, other administration, and payment arrangements.

-39CA 02373508 2002-03-07

WO 98/09209

PCT/US97/I5243

VDE, in its preferred embodiment, employs object software technology and uses object technology to form “containers” for delivery of information that is (at least in part) encrypted or otherwise secured. These containers may contain electronic content products or other electronic information and some or all of their associated permissions (control) information. These container objects may be distributed along pathways involving content providers and/or content users. They may be securely moved among nodes of a Virtual Distribution Environment (VDE) arrangement, which nodes operate VDE foundation software and execute control methods to enact electronic information usage control and/or administration models. The containers delivered through use of the preferred embodiment of the present invention may be employed both for distributing

VDE control instructions (information) and/or to encapsulate and electronically distribute content that has been at least partially secured.

Content providers who employ the present invention may 20 include, for example, software application and game publishers, database publishers, cable, television, and radio broadcasters, electronic shopping vendors, and distributors of information in electronic document, book, periodical, e-mail and/or other forms. Corporations, government agencies, and/or individual

-40CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 “end-users” who act as storers of, and/or distributors of, electronic information, may also be VDE content providers (in a restricted model, a user provides content only to himself and employs VDE to secure his own confidential information against unauthorized use by other parties). Electronic information may include proprietary and/or confidential information for personal or internal organization use, as well as information, such as software applications, documents, entertainment materials, and/or reference information, which may be provided to other parties. Distribution may be by, for example, physical media delivery, broadcast and/or telecommunication means, and in the form of “static” files and/or streams of data. VDE may also be used, for example, for multi-site “real-time” interaction such as teleconferencing, interactive games, or on-line bulletin boards, where restrictions on, and/or auditing of, the use of all or portions of communicated information is enforced.

VDE provides important mechanisms for both enforcing commercial agreements and enabling the protection of privacy rights. VDE can securely deliver information from one party to another concerning the use of commercially distributed electronic content. Even if parties are separated by several steps in a chain (pathway) of handling for such content usage information, such information is protected by VDE through encryption and/or

-41CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 other secure processing. Because of that protection, the accuracy of such inform qtinn is guaranteed by VDE, and the information can be trusted by all parties to whom it is delivered.

Furthermore, VDE guarantees that all parties can trust that 5 such information cannot be received by anyone other than the intended, authorized, party(ies) because it is encrypted such that only an authorized party, or her agents, can decrypt it. Such information may also be derived through a secure VDE process at a previous pathway-of-handling location to produce secure

VDE reporting information that is then communicated securely to its intended recipient’s VDE secure subsystem. Because VDE can deliver such information securely, parties to an electronic agreement need not trust the accuracy of commercial usage and/or other information delivered through means other than those under control of VDE.

VDE participants in a commercial value chain can be “commercially” confident (that is, sufficiently confident for commercial purposes) that the direct (constituent) and/or “extended” electronic agreements they entered into through the use of VDE can be enforced reliably. These agreements may have both “dynamic” transaction management related aspects, such as content usage control information enforced through budgeting, metering, and/or reporting of electronic information

-42CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 and/or appliance use, and/or they may include “static” electronic assertions, such as an end-user using the system to assert his or her agreement to pay for services, not to pass to unauthorized parties electronic information derived from usage of content or systems, and/or agreeing to observe copyright laws. Not only can electronically reported transaction related information be trusted under the present invention, but payment may be automated by the passing of payment tokens through a pathway of payment (which may or may not be the same as a pathway for reporting). Such payment can be contained within a VDE container created automatically by a VDE installation in response to control information (located, in the preferred embodiment, in one or more permissions records) stipulating the “withdrawal” of credit or electronic currency (such as tokens) from an electronic account (for example, an account securely maintained by a user’s VDE installation secure subsystem) based upon usage of VDE controlled electronic content and/or appliances (such as governments, financial credit providers, and users).

VDE allows the needs of electronic commerce participants to be served and it can bind such participants together in a universe wide, trusted commercial network that can be secure enough to support very large amounts of commerce. VDE’s security and metering secure subsystem core will be present at

-43CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 all physical locations where VDE related content is (a) assigned usage related control information (rules and mediating data), and/or (b) used. This core can perform security and auditing functions (including metering) that operate within a “virtual black box,” a collection of distributed, very secure VDE related hardware instances that are interconnected by secured information exchange (for example, telecommunication) processes and distributed database means. VDE further includes highly configurable transaction operating system technology, one or more associated libraries of load modules along with affiliated data, VDE related administration, data preparation, and analysis applications, as well as system software designed to enable VDE integration into host environments and applications. VDE’s usage control . information, for example, provide for property content and/or appliance related: usage authorization, usage auditing (which may include audit reduction), usage billing, usage payment, privacy filtering, reporting, and security related communication and encryption techniques.

VDE extensively employs methods in the form of software objects to augment configurability, portability, and security of the VDE environment. It also employs a software object architecture for VDE content containers that carries protected

-44CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 content and may also carry both freely available information {e.g, summary, table of contents) and secured content control information which ensures the performance of control information. Content control information governs content usage according to criteria set by holders of rights to an object’s contents and/or according to parties who otherwise have rights associated with distributing such content (such as governments, financial credit providers, and users).

In part, security is enhanced by object methods employed by the present invention because the encryption schemes used to protect an object can efficiently be further used to protect the associated content control information (software control information and relevant data) from modification. Said object techniques also enhance portability between various computer and/or other appliance environments because electronic information in the form of content can be inserted along with (for example, in the same object container as) content control information (for said content) to produce a “published” object.

As a result, various portions of said control information may be specifically adapted for different environments, such as for diverse computer platforms and operating systems, and said various portions may all be carried by a VDE container.

-45CA 02373508 2002-03-07

WO 98/09209 PCT7US97/15243

An objective of VDE is supporting a transaction/distribution control standard. Development of such a standard has many obstacles, given the security requirements and related hardware and communications issues, widely differing environments, information types, types of information usage, business and/or data security goals, varieties of participants, and properties of delivered information. A significant feature of VDE accommodates the many, varying distribution and other transaction variables by, in part, decomposing electronic commerce and data security functions into generalized capability modules executable within a secure hardware SPU and/or corresponding software subsystem and further allowing extensive flexibility in assembling, modifying, and/or replacing, such modules (e.g. load modules and/or methods) in applications run on a VDE installation foundation.

This configurability and reconfigurability allows electronic commerce and data security participants to reflect their priorities and requirements through a process of iteratively shaping an evolving extended electronic agreement (electronic control model). This shaping can occur as content control information passes from one VDE participant to another and to the extent allowed by “in place” content control information.

This process allows users ofVDE to recast existing control

-46CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 information and/or add new control information as necessary (including the elimination of no longer required elements).

VDE supports trusted (sufficiently secure) electronic 5 information distribution and usage control models for both commercial electronic content distribution and data security applications. It can be configured to meet the diverse requirements of a network of interrelated participants that may include content creators, content distributors, client administrators, end users, and/or clearinghouses and/or other content usage information users. These parties may constitute a network of participants involved in simple to complex electronic content dissemination, usage control, usage reporting, and/or usage payment. Disseminated content may include both originally provided and VDE generated information (such as content usage information) and content control information may persist through both chains (one or more pathways) of content and content control information handling, as well as the direct usage of content. The configurability provided by the present invention is particularly critical for supporting electronic commerce, that is enabling businesses to create relationships and evolve strategies that offer competitive value. Electronic commerce tools that are not inherently configurable and interoperable will ultimately fail to produce products (and

-47CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 services) that meet both basic requirements and evolving needs of most commerce applications.

VDE’s fundamental configurability will allow a broad range of competitive electronic commerce business models to flourish. It allows business models to be shaped to maximize revenues sources, end-user product value, and operating efficiencies. VDE can be employed to support multiple, differing models, take advantage of new revenue opportunities, and deliver product configurations most desired by users. Electronic commerce technologies that do not, as the present invention does:

• support a broad range of possible, complementary revenue activities, • offer a flexible array of content usage features most desired by customers, and • exploit opportunities for operating efficiencies, will result in products that are often intrinsically more costly and less appealing and therefore less competitive in the marketplace.

Some of the key factors contributing to the configurability intrinsic to the present invention include:

- 48 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 (a) integration into the fundamental control environment of a broad range of electronic appliances through portable API and programming language tools that efficiently support merging of control and auditing capabilities in nearly any electronic appliance environment while maintaining overall system security;

(b) modular data structures;

¹⁰ (c) generic content model;

(d) general modularity and independence of foundation architectural components;

(e) modular security structures;

(£) variable length and multiple branching chains of control; and (g) independent, modular control structures in the form of executable load modules that can be maintained in one or more libraries, and assembled into control methods and models, and where such model control

-49CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/15243 schemes can “evolve” as control information passes through the VDE installations of participants of a pathway of VDE content control information handling.

Because of the breadth of issues resolved by the present invention, it can provide the emerging “electronic highway” with a single transaction/distribution control system that can, for a very broad range of commercial and data security models, ensure against unauthorized use of confidential and/or proprietary information and commercial electronic transactions. VDE’s electronic transaction management mechanisms can enforce the electronic rights and agreements of all parties participating in widely varying business and data security models, and this can be efficiently achieved through a single VDE implementation within each VDE participant’s electronic appliance. VDE supports widely varying business and/or data security models that can involve a broad range of participants at various “levels” of VDE content and/or content control information pathways of handling. Different content control and/or auditing models and agreements may be available on the same VDE installation. These models and agreements may control content in relationship to, for example, VDE installations and/or users in general; certain specific users, installations, classes and/or other

-50CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 groupings of installations and/or users; as well as to electronic content generally on a given installation, to specific properties, property portions, classes and/or other groupings of content.

Distribution using VDE may package both the electronic content and control information into the same VDE container, and/or may involve the delivery to an end-user site of different pieces ofthe same VDE managed property from plural separate remote locations and/or in plural separate VDE content containers and/or employing plural different delivery means.

Content control information may be partially or fully delivered separately from its associated content to a user VDE installation in one or more VDE administrative objects. Portions of said control information may be delivered from one or more sources. Control information may also be available for use by access from a user’s VDE installation secure sub-system to one or more remote VDE secure sub-systems and/or VDE compatible, certified secure remote locations. VDE control processes such as metering, budgeting, decrypting and/or fingerprinting, may as relates to a certain user content usage activity, be performed in a user’s local VDE installation secure subsystem, or said processes may be divided amongst plural secure subsystems which may be located in the same user VDE installations and/or in a network server and in the user installation. For example, a local VDE

-51CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 installation may perform decryption and save any, or all of, usage metering information related to content and/or electronic appliance usage at such user installation could be performed at the server employing secure (e.g., encrypted) communications between said secure subsystems. Said server location may also be used for near real time, frequent, or more periodic secure receipt of content usage information from said user installation, with, for example, metered information being maintained only temporarily at a local user installation.

¹⁰

Delivery means for VDE managed content may include electronic data storage means such as optical disks for delivering one portion of said information and broadcasting and/or telecommunicating means for other portions of said information.

Electronic data storage means may include magnetic media, optical media, combined magneto-optical systems, flash RAM memory, bubble memory, and/or other memory storage means such as huge capacity optical storage systems employing holographic, frequency, and/or polarity data storage techniques.

Data storage means may also employ layered disc techniques, such as the use of generally transparent and/or translucent materials that pass light through layers of data carrying discs which themselves are physically packaged together as one

-52CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 thicker disc. Data carrying locations on such discs may be, at least in part, opaque.

VDE supports a general purpose foundation for secure 5 transaction management, including usage control, auditing, reporting, and/or payment. This general purpose foundation is called “VDE Functions” (VDEFs). VDE also supports a collection of “atomic” application elements (e.g., load modules) that can be selectively aggregated together to form various

VDEF capabilities called control methods and which serve as

VDEF applications and operating system functions. When a host operating environment of an electronic appliance includes VDEF capabilities, it is called a “Rights Operating System” (ROS).

VDEF load modules, associated data, and methods form a body of •15 information that for the purposes of the present invention are called “control information.” VDEF control information may be specifically associated with one. or more pieces of electronic content and/or it may be employed as a general component of the operating system capabilities of a VDE installation.

VDEF transaction control elements reflect and enact content specific and/or more generalized administrative (for example, general operating system) control information. VDEF capabilities which can generally take the form of applications

-53CA 02373508 2002-03-07

WO9S/O9209 rcrzowmsxc (application models) that have more or less configurability which can be shaped by VDE participants, through the use, for example, of VDE templates, to employ specific capabilities, along, for example, with capability parameter data to reflect the > elements of one or more express electronic agreements between

VDE participants in regards to the use of electronic content such as commercially distributed products. These control capabilities manage the use of, and/or auditing of use of, electronic content, as well as reporting information based upon content use, and any payment for said use. VDEF capabilities may “evolve” to reflect the requirements of one or more successive parties who receive or otherwise contribute to a given set of control information. Frequently, for a VDE application for a given content model (such as distribution of entertainment on CD-ROM, content delivery from an Internet repository, or electronic catalog shopping and advertising, or some combination of the above) participants would be able to securely select from amongst available, alternative control methods and apply related parameter data, wherein such selection of control method and/or submission of data would constitute their “contribution” of control information. Alternatively, or in addition, certain control methods that have been expressly certified as securely interoperable and compatible with said application may be independently submitted by a participant as part of such a

- 54CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 contribution. In the most general example, a generally certified load modifie (certified for a given VDE arrangement and/or content class) may be used with many or any VDE application that operates in nodes of said arrangement. These parties, to. the extent they are allowed, can independently and securely add, delete, and/or otherwise modify the specification of load modules and methods, as well as add, delete or otherwise modify related information.

Normally the party who creates a VDE content container defines the general nature of the VDEF capabilities that will and/or may apply to certain electronic information. A VDE content container is an object that contains both content ( for example, commercially distributed electronic information products such as computer software programs, movies, electronic publications or reference materials, etc.) and certain control information related to the use of the object’s content. A creating party may make a VDE container available to other parties. Control information delivered by, and/or otherwise available for use with, VDE content containers comprise (for commercial content distribution purposes) VDEF control capabilities (and any associated parameter data) for electronic content. These capabilities may constitute one or more “proposed” electronic agreements (and/or agreement functions available for selection '

- 55CA 02373508 2002-03-07

WO 98/09209

PCT/OS97/15243 anri/nr use with parameter data) that manage the use and/or the consequences of use of such content and which can enact the terms and conditions of agreements involving multiple parties and their various rights and obligations.

A VDE electronic agreement may be explicit, through a user interface acceptance by one or more parties, for example by a “junior” party who has received control information from a “senior” party, or it may be a process amongst equal parties who individually assert their agreement. Agreement may also result from an automated electronic process during which terms and conditions are “evaluated” by certain VDE participant control information that assesses whether certain other electronic terms and conditions attached to content and/or submitted by another party are acceptable (do not violate acceptable control information criteria). Such an evaluation process may be quite simple, for example a comparison to ensure compatibility between a portion of, or all senior, control terms and conditions in a table of terms and conditions and the submitted control information of a subsequent participant in a pathway of content control information handling, or it may be a more elaborate process that evaluates the potential outcome of, and/or implements a negotiation process between, two or more sets of control information submitted by two or more parties. VDE also

-56CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 accommodates a semi-automated process during which one or more VDE participants directly, through user interface means, resolve “disagreements” between control information sets by accepting and/or proposing certain control information that may be acceptable to control information representing one or more other parties interests and/or responds to certain user interface queries for selection of certain alternative choices and/or for certain parameter information, the responses being adopted if acceptable to applicable senior control information.

When another party (other than the first applier of rules), perhaps through a negotiation process, accepts, and/or adds to and/or otherwise modifies, “in place” content control information, a VDE agreement between two or more parties related to the use of such electronic content may be created (so long as any modifications are consistent with senior control information). Acceptance of terms and conditions related to certain electronic content may be direct and express, or it may be implicit as a result of use of content (depending, for example, on legal requirements, previous exposure to such terms and conditions, and requirements of in place control information).

VDEF capabilities may be employed, and a VDE agreement may be entered into, by a plurality of parties without

-57CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 the VDEF capabilities being directly associated with the controlling of certain, specific electronic information. For example, nertflin one or more VDEF capabilities may be present at a VDÈ installation, and certain VDE agreements may have been entered into during the registration process for a content distribution application, to be used by such installation for securely controlling VDE content usage, auditing, reporting and/or payment. Similarly, a specific VDE participant may enter into a VDE user agreement with a VDE content or electronic . appliance provider when the user and/or her appliance register with such provider as a VDE installation and/or user. In such events, VDEF in place control information available to the user VDE installation may require that certain VDEF methods are employed, for example in a certain sequence, in order to be able to use all and/or certain classes, of electronic content and/or VDE applications.

VDE ensures that certain prerequisites necessary for a given transaction to occur are met. This includes the secure execution of any required load modules and the availability of any required, associated data. For example, required load modules and data (e.g. in the form of a method) might specify that sufficient credit from an authorized source must be confirmed as available. It might further require certain one or

-58CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/1S243 more load modules execute as processes at an appropriate time to ensure that such credit will be used in order to pay for user use of the content. A certain content provider might, for example, require metering the number of copies made for distribution to employees of a given software program (a portion of the program might be maintained in encrypted form and require the presence of a VDE installation to run). This would require the execution of a metering method for copying of the property each time a copy was made for another employee. This same provider might also charge fees based on the total number of different properties licensed from them by the user and a metering history of their licensing of properties might be required to maintain this information.

VDE provides organization, community, and/or universe wide secure environments whose integrity is assured by processes securely controlled in VDE participant user installations (nodes). VDE installations, in the preferred embodiment, may include both software and tamper resistant hardware semiconductor elements. Such a semiconductor arrangement comprises, at least in part, special purpose circuitry that has been designed to protect against tampering with, or unauthorized observation of, the information and functions used in performing the VDE’s control functions. The special purpose

59CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 secure circuitry provided by the present invention includes at least one of: a dedicated semiconductor arrangement known as a Secure Processing Unit (SPU) and/or a standard microprocessor, microcontroller, and/or other processing logic that accommodates the requirements of the present invention and functions as an

SPU. VDE’s secure hardware may he found incorporated into, for example, a fax/modem chip or chip pack, I/O controller, video display controller, and/or other available digital processing arrangements. It is anticipated that portions of the present invention’s VDE secure hardware capabilities may ultimately be standard design elements of central processing units (CPUs) for computers and various other electronic devices.

Designing VDE capabilities into one or more standard microprocessor, microcontroller and/or other digital processing components may materially reduce VDE related hardware costs by employing the same hardware resources for both the transaction management uses contemplated by the present invention and for other, host electronic appliance functions. This means that a VDE SPU can employ (share) circuitry elements of a “standard” CPU. For example, if a “standard” processor can operate in protected mode and can execute VDE related instructions as a protected activity, then such an embodiment may provide sufficient hardware security for a variety of

-60CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 applications and the expense of a special purpose processor might be avoided. Under one preferred embodiment of the present invention, certain memory (e.g., BAM, ROM, NVRAM) is maintained during VDE related instruction processing in a protected mode (for example, as supported by protected mode microprocessors). This memory is located in the same package as the processing logic (e.g. processor). Desirably, the packaging and memory of such a processor would be designed using security techniques that enhance its resistance to tampering.

The degree of overall security of the VDE system is primarily dependent on the degree of tamper resistance and concealment of VDE control process execution and related data storage activities. Employing special purpose semiconductor packaging techniques can significantly contribute to the degree of security. Concealment and tamper-resistance in semiconductor memory (e.g., RAM, ROM, NVRAM) can be achieved, in part, by employing such memory within an SPU package, by encrypting data before it is sent to external memory (such as an external RAM package) and decrypting encrypted data within the CPU/RAM package before it is executed. This process is used for important VDE related data when such data is stored on unprotected media, for example, standard host storage, such as random access memory, mass storage, etc. In

-61CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 that event, a VDE SPU would encrypt data that results from a secure VDE execution before such data was stored in external memory.

Summary of Some Important Features Provided by VDE in

Accordance With the Present Invention

VDE employs a variety of capabilities that serve as a foundation for a general purpose, sufficiently secure distributed electronic commerce solution. VDE enables an electronic commerce marketplace that supports divergent, competitive business partnerships, agreements, and evolving overall business models. For example, VDE includes features that:

s. “sufficiently” impede unauthorized and/or uncompensated use of electronic information and/or appliances through the use of secure communication, storage, and transaction management technologies. VDE supports a model wide, distributed security implementation which creates a single secure “virtual” transaction processing and information storage environment. VDE enables distributed VDE installations to securely store and communicate information and remotely control the execution processes and the

-62CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 character of use of electronic information at other VDE installations and in a wide variety of ways;

• support low-cost, efficient, and effective security 5 architectures for transaction control, auditing, reporting, and related communications and information storage. VDE may employ tagging related security techniques, the time-ageing of encryption keys, the compartmentalization of both stored control information (including differentially tagging such stored information to ensure against substitution and tampering) and distributed content (to, for many content applications, employ one or more content encryption keys that are unique to the specific VDE installation and/or user), private key techniques such as triple DES to encrypt content, public key techniques such as RSA to protect communications and to provide the benefits of digital signature and authentication to securely bind together the nodes of a VDE arrangement, secure processing of important transaction management executable code, and a combining of a small amount of highly secure, hardware protected storage space with a much larger “exposed” mass media storage

-63CA 02373508 2002-03-07

WO 98/09209 PCT/US97/I5243 space storing secured (normally encrypted and tagged) control and audit information. VDE employs special purpose hardware distributed throughout some or all locations of a VDE implementation: a) said hardware controlling important elements of: content preparation (such as causing such content to be placed in a VDE content container and associating content control information with said content), content and/or electronic appliance usage auditing, content usage analysis, as well as content usage control; and b) said hardware having been designed to securely handle processing load module control activities, wherein said control processing activities may involve a sequence of required control factors;

• support dynamic user selection of information subsets of a VDE electronic information product (VDE controlled content). This contrasts with the constraints of having to use a few high level individual, pre-defined content provider information increments such as being required to select a whole information product or product section in order to acquire or Otherwise use a portion of such product or

-64CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 section. VDE supports metering and usage control over a variety of increments (including “atomic” increments, and combinations of different increment types) that are selected ad hoc by a user and represent a collection of pre-identified one or more increments (such as one or more blocks of a preidentified nature, e.g., bytes, images, logically related blocks) that form a generally arbitrary, but logical to a user, content “deliverable.” VDE control information (including budgeting, pricing and metering) can be configured so that it can specifically apply, as appropriate, to ad hoc selection of different, unanticipated variable user selected aggregations of information increments and pricing levels can be, at least in part, based on quantities and/or nature of mixed increment selections (for example, a certain quantity of certain text could mean associated images might be discounted by 15%; a greater quantity of text in the “mixed” increment selection might mean the images are discounted 20%). Such user selected aggregated information increments can reflect the actual requirements of a user for information and is more flexible than being limited to a single, or a few, high

- 65 CA 02373508 2002-03-07

WO 98/99209 PCT/US97/15243 level, (e.g. product, document, database record) predetermined increments. Such high level increments may include quantities of information not desired by the user and as a result be more costly than the subset of information needed by the user if such a subset was available, in sum, the present invention allows information contained in electronic information products to be supplied according to user specification. Tailoring to user specification allows the present invention to provide the greatest value to users, which in turn will generate the greatest amount of electronic commerce activity. The user, for example, would be able to define an aggregation of content derived from various portions of an available content product, but which, as a deliverable for use by the user, is an entirely unique aggregated increment. The user may, for example, select certain numbers of bytes of information from various portions of an information product, such as a reference work, and copy them to disc in unencrypted form and be billed based on total number of bytes plus a surcharge on the number of “articles” that provided the bytes. A content provider might reasonably charge less for

-66CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 such a user defined information increment since the user does not require ail of the content from ail of the articles that contained desired information. This process of defining a user desired information increment may involve artificial intelligence database search tools that contribute to the location of the most relevant portions of information from an information product and cause the automatic display to the user of information describing search criteria hits for user selection or the automatic extraction and delivery of such portions to the user. VDE further supports a wide variety of predefined increment types including:

• bytes, • images, • content over time for audio or video, or any other increment that can be identified by content provider data mapping efforts, such as:

• sentences, • paragraphs, • articles, • database records, and • byte offsets representing increments of logically related information.

-67CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

VDE supports as many simultaneous predefined increment types as may be practical for a given type of content and business model.

· securely store at a user’s site potentially highly detailed information reflective of a user’s usage of a variety of different content segment types and employing both inexpensive “exposed” host mass storage for maintaining detailed information in the form of encrypted data and maintaining summary information for security testing in highly secure special purpose VDE installation nonvolatile memory (if available).

· support trusted chain of handling capabilities for pathways of distributed electronic information and/or for content usage related information. Such chains may extend, for example, from a content creator, to a distributor, a redistributor, a client user, and then may provide a pathway for securely reporting the same and/or differing usage information to one or more auditors, such as to one or more independent clearinghouses and then back to the content providers, including content creators.

-68CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

The same and/or different pathways employed for certain content handling, and related content control information and reporting information handling, may also be employed as one or more pathways for electronic payment handling (payment is characterized in the present invention as administrative content) for electronic content and/or appliance usage. These pathways are used for conveyance of all or portions of content, and/or content related control information. Content creators and other providers can specify the pathways that, partially or fully, must be used to disseminate commercially distributed property content, content control information, payment administrative content, and/or associated usage reporting information. Control information specified by content providers may also specify which specific parties must or may (including, for example, a group of eligible parties from which a selection may be made) handle conveyed information. It may also specify what transmission means (for example telecommunication carriers or media types) and transmission hubs must or may be used.

<td></td><td> CA 02373508 2002-03-07</td>

<td> WO 98/09209</td><td> PCT/ÜS97/15243</td>

<td> • 5</td><td> support flexible auditing mechanisms, such as employing “bitmap meters,” that achieve a high degree of efficiency of operation and throughput and allow, in a practical manner, the retention and ready recall of information related to previous usage activities and related patterns. This flexibility is adaptable to a wide variety of billing and security</td>

<td> 10</td><td> control strategies such as: upgrade pricing (e.g. suite purchases), pricing discounts (including quantity discounts),</td>

<td> 15</td><td> billing related time duration variables such as discounting new purchases based on the timing of past purchases, and • security budgets based on quantity of different, logically related units of electronic information used over an interval of time.</td>

<td> 20</td><td> Use of bitmap meters (including “regular” and “wide” bitmap meters) to record usage and/or purchase of information, in conjunction with other elements of the preferred embodiment of the present invention, uniquely supports efficient maintenance of usage history for: (a) rental, (b) flat fee licensing</td>

-70CA 02373508 2002-03-07

WO 98/09209 PCT/US97/I5243 or purchase, (c) licensing or purchase discounts based upon historical usage variables, and (d) reporting to users in a manner enabling users to determine whether a certain item was acquired, or acquired within a certain time period (without requiring the use of conventional database mechanisms, which are highly inefficient for these applications). Bitmap meter methods record activities associated with electronic appliances, properties, objects, or portions thereof, and/or administrative activities that are independent of specific properties, objects, etc., performed by a user and/or electronic appliance such that a content and/or appliance provider and/or controller of an administrative activity can determine whether a certain activity has occurred at some point, or during a certain period, in the past (for example, certain use of a commercial electronic content product and/or appliance). Such determinations can then be used as part of pricing and/or control strategies of a content and/or appliance provider, and/or controller of an administrative activity. For example, the content provider may choose to charge only once for access to a portion of a property,

-71CA 02373508 2002-03-07

WO 98/09209 PÇTÆJS97/15243 regardless of the number of times that portion of the property is accessed by a user.

• support “launchable” content, that is content that 5 can be provided by a content provider to an end-user, who can then copy or pass along the content to other end-user parties without requiring the direct participation of a content provider to register and/or otherwise initialize the content for use. This content goes “out of (the traditional distribution) channel” in the form of a “traveling object.” Traveling objects are containers that securely carry at least some permissions information and/or methods that are required for their use (such methods need not be carried by traveling objects if the required methods will be available at, or directly available to, a destination VDE installation).

Certain travelling objects may be used at some or all VDE installations of a given VDE arrangement since they can make available the content control information necessary for content use without requiring the involvement of a commercial VDE value chain participant or data security administrator (e.g. a control officer or network

-72CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 administrator). As long as traveling object control information requirements are available at the user VDE installation secure subsystem (such as the presence of a sufficient quantity of financial credit from an authorized credit provider), at least some travelling object content may be used by a receiving party without the need to establish a connection with a remote VDE authority (until, for example, budgets are exhausted or a time content usage reporting interval has occurred). Traveling objects can travel “out-of-channel,” allowing, for example, a user to give a copy of a traveling object whose content is a software program, a movie or a game, to a neighbor, the neighbor being able to use the traveling object if appropriate credit (e.g. an electronic clearinghouse account from a clearinghouse such as VISA or AT&amp;T) is available. Similarly, electronic information that is generally available on an Internet, or a similar network, repository might be provided in the form of a traveling object that can be downloaded and subsequently copied by the initial downloader and then passed along to other parties who may pass the object on to additional parties.

-73CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 provide very flexible and extensible user identification according to individuals, installations, by groups such as classes, and by function and hierarchical identification employing a hierarchy of levels of client identification (for example, client organization ID, client department ID, client network ID, client project ID, and client employee ID, or any appropriate subset of the above).

provide a general purpose, secure, component based content control and distribution system that functions as a foundation transaction operating system environment that employs executable code pieces crafted for transaction control and auditing. These code pieces can be reused to optimize efficiency in creation and opération of trusted, distributed transaction management arrangements. VDE supports providing such executable code in the .. form of “atomic” load modules and associated data. Many such load modules are inherently configurable, aggregatable, portable, and extensible and singularly, or in combination (along with associated data), run as control methods under the VDE transaction operating environment. VDE can

-74CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 satisfy the requirements of widely differing electronic commerce and data security applications by, in part, employing this general purpose transaction management foundation to securely process VDE transaction related control methods.

Control methods are created primarily through the use of one or more of said executable, reusable load module code pieces (normally in the form of executable object components) and associated data.

The component nature of control methods allows the present invention to efficiently operate as a highly configurable content control system. Under the present invention, content control models can be iteratively and asynchronously shaped, and otherwise updated to accommodate the needs of

VDE participants to the extent that such shaping and otherwise updating conforms to constraints applied by a VDE application, if any (e.g., whether new component assemblies are accepted and, if so, what certification requirements exist for such component assemblies or whether any or certain participants may shape any or certain control information by selection amongst optional control information (permissions record) control methods.

-75CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

This iterative (or concurrent) multiple participant process occurs as a result of the submission and use of secure, control information components (executable code such as load modules and/or methods, and/or associated data). These components may be contributed independently by secure communication between each control information influencing VDE participant’s VDE installation and may require certification for use with a given application, where such certification was provided by a certification service manager for the VDE arrangement who ensures secure interoperability and/or reliability (e.g., bug control resulting from interaction) between appliances and submitted control methods. The transaction management control functions of a VDE electronic appliance transaction operating environment interact with non-secure transaction management operating system functions to properly direct transaction processes and data related to electronic information security, usage control, auditing, and usage reporting. VDE provides the capability to manages resources related to secure VDE content

-76CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 and/or appliance control information execution and data storage.

• facilitate creation of application and/or system functionality under VDE and to facilitate integration into electronic appliance environments of load modules and methods created under the present invention. To achieve this, VDE employs an Application Programmer’s Interface (API) and/or a transaction operating system (such as a ROS) programming language with incorporated functions, both of which support the use of capabilities and can be used to efficiently arid tightly integrate VDE functionality into commercial and user applications.

• support user interaction through: (a) “Pop-Up” applications which, for example, provide messages to users and enable users to take specific actions such as approving a transaction, (b) stand-alone VDE applications that provide administrativs environments for user activities such as: end-user preference specifications for limiting the price per transaction, unit of time, and/or session, for

-77CA 02373508 2002-03-07

WO 98/09209 PCTÆJS97/15243 accessing history information concerning previous transactions, for reviewing financial information such as budgets, expenditures (e.g. detailed and/or summary) and usage analysis information, and (c)

VDE aware applications which, as a result of the use of a VDE API and/or a transaction management (for example, ROS based) programming language embeds VDE “awareness” into commercial or internal software (application programs, games, etc.) so that VDE user control information and services are seamlessly integrated into such software and can be directly accessed by a user since the underlying functionality has been integrated into the commercial software’s native design. For example, in a VDE aware word processor application, a user may be able to “print” a document into a VDE content container object, applying specific control information by selecting from amongst a series of different menu templates for different purposes (for example, a confidential memo template for internal organization purposes may restrict the ability to “keep,” that is to make an electronic copy of the memo).

78CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 • employ “templates” to ease the process of configuring capabilities of the present invention as they relate to specific industries or businesses. Templates are applications or application add-ons under the present invention. Templates support the efficient specification and/or manipulation of criteria related to specific content types, distribution approaches, pricing mechanisms, user interactions with content and/or administrative activities, and/or the like.

Given the very large range of capabilities and configurations supported by the present invention, reducing the range of configuration opportunities to a manageable subset particularly appropriate for a given business model allows the full configurable power of the present invention to be easily employed by “typical” users who would be otherwise burdened with complex programming and/or configuration design responsibilities template applications can also help ensure that VDE related processes are secure and optimally bug free by reducing the risks associated with the contribution of independently developed load modules, including unpredictable aspects of code interaction between independent modules and applications, as well as security risks

-79' CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/1S243 associated with possible presence of viruses in such modules. VDE, through the use of templates, reduces typical user configuration responsibilities to an appropriately focused set of activities including selection of method types (e.g. functionality) through menu choices such as multiple choice, icon selection, and/or prompting for method parameter data (such as identification information, prices, budget limits, dates, periods of time, access rights to specific content, etc.) that supply appropriate and/or necessary data for control information purposes. By limiting the typical (non-programming) user to a limited subset of configuration activities whose general configuration environment (template) has been preset to reflect general requirements corresponding to that user, or a content or other business model can very substantially limit difficulties associated with content containerization (including placing initial control information on content), distribution, client administration, electronic agreement implementation, end-user interaction, and clearinghouse activities, including associated interoperability problems (such as conflicts resulting from security, operating system,

-80CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 and/or certification incompatibilities). Use of appropriate VDE templates can assure users that their activities related to content VDE gn-ntainerization, contribution of other control information, communications, encryption techniques and/or keys, etc. will be in compliance with specifications for their distributed VDE arrangement. VDE templates constitute preset configurations that can normally be reconfigurable to allow for new and/or modified templates that reflect adaptation into new industries as they evolve or to reflect the evolution or other change of an existing industry. For example, the template concept may be used to provide individual, overall frameworks for organizations and individuals that create, modify, market, distribute, consume, and/or otherwise use movies, audio recordings and live performances, magazines, telephony based retail sales, catalogs, computer software, information data bases, multimedia, commercial communications, advertisements, market surveys, infomercials, games, CAD/CAM services for numerically controlled machines, and the like. As the context surrounding these templates changes or evolves,

-81CA 02373508 2002-03-07

W098/09209 PCT/US97/15243 template applications provided under the present invention may be modified to meet these changes for broad use, or for more focused activities. A given VDE participant may have a plurality of templates available for different tasks. A party that places content in its initial VDE container may have a variety of different, configurable templates depending on the type of content and/or business model related to the content. An end-user may have different configurable templates that can be applied to different document types (e-mail, secure internal documents, database records, etc.) and/or subsets of users (applying differing general sets of control information to different bodies of users, for example, selecting a list of users who may, under certain preset criteria, use a certain document). Of course, templates may, under certain circumstanres have fixed control information and not provide for user selections or parameter data entry.

• support plural, different control models regulating the use and/or auditing of either the same specific copy of electronic information content and/or differently regulating different copies (occurrences)

-82CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 of the same electronic information content.

Differing models for billing, auditing, and security can be applied to the same piece of electronic information content and such differing sets of control information may employ, for control purposes, the same, or differing, granularities of electronic information control increments. This includes supporting variable control information for budgeting and auditing usage as applied to a variety of predefined increments of electronic information, including employing a variety of different budgets and/or metering increments for a given electronic information deliverable for: billing units of measure, ^K credit limit, security budget limit and security content metering increments, and/or market surveying and customer profiling content metering increments. For example, a CD-ROM disk with a database of scientific articles might be in part billed according to a formula based on the number of bytes decrypted, number of articles containing said bytes decrypted, while a security budget might limit the use of said database to no more than 5% of the database per month for users on the wide area network it is installed on.

-83CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/1S243 • provide mechanisms to persistently maintain trusted content usage and reporting control information through both a sufficiently secure chain of handling of content and content control information and through various forms of usage of such content wherein said persistence of control may survive such use. Persistence of control includes the ability to extract information from a VDE container object by creating a new container whose contents are at least in part secured and that contains both the extracted content and at least a portion of the control information which control information of the original container and/or are at least in part produced by control information of the original container for this purpose and/or VDE installation control information stipulates should persist and/or control usage of content in the newly formed container. Such control information can continue to manage usage of container content if the container is “embedded” into another VDE managed object, such as an object which contains plural embedded VDE containers, each of which contains content derived (extracted) from a different source.

-84CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • enables users, other value chain participants (such as clearinghouses and government agencies), and/or user organizations, to specify preferences or requirements related to their use of electronic content and/or appliances. Content users, such as end-user customers using commercially distributed content (games, information resources, software programs, etc.), can define, if allowed by senior control information, budgets, and/or other control information, to manage their own internal use of content. Uses include, for example, a user setting a limit on the price for electronic documents that the user is willing to pay without prior express user authorization, and the user establishing the character of metering information he or she is willing to allow to be collected (privacy protection).

This includes providing the means for content users to protect the privacy of information derived from their use of a VDE installation and content and/or appliance usage auditing. In particular, VDE can prevent information related to a participant’s usage of electronic content from being provided to other parties without the participant’s tacit or explicit agreement.

-85CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • provide mechanisms that allow control information to “evolve” and be modified according, at least in part, to independently, securely delivered further control information. Said control information may include executable code (e.g., load modules) that has been certified as acceptable (e.g., reliable and trusted) for use with a specific VDE application, class of applications, and/or a VDE distributed arrangement. This modification (evolution) of control information can occur upon content control information (load modules and any associated data) circulating to one or more VDE participants in a pathway of handling of control information, or it may occur upon control information being received from a VDE participant. Handlers in a pathway of handling of content control information, to the extent each is authorized, can establish, modify, and/or contribute to, permission, auditing, payment, and reporting control information related to controlling, analyzing, paying for, and/or reporting usage of, electronic content and/or appliances (for example, as related to usage of VDE controlled property content). Independently delivered (from an independent source which is independent except in

-86CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 regards to certification), at least in part secure, control information can be employed to securely modify content control information when content control information has flowed from one party to another party in a sequence of VDE content control information handling. This modification employs, for example, one or more VDE component assemblies being securely processed in a VDE secure subsystem. In an alternate embodiment, control information may be modified by a senior party through use of their VDE installation secure sub-system after receiving submitted, at least in part secured, control information from a “junior” party, normally in the form of a VDE administrative object. Control information passing along VDE pathways can represent a mixed control set, in that it may include: control information that persisted through a sequence of control information handlers, other control information that was allowed to be modified, and further control information representing new control information and/or mediating data. Such a control set represents an evolution of control information for disseminated content. In this example the overall content control

-87CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 set for a VDE content container is “evolving as it securely (e.g. communicated in encrypted form and using authentication and digital signaturing techniques) passes, at least in part, to a new participant’s VDE installation where the proposed control information is securely received and handled. The received control information may be integrated (through use of the receiving parties’

VDE installation secure sub-system) with in-place control information through a negotiation process involving both control information sets. For example, the modification, within the secure sub-system of a content provider’s VDE installation, of content control information for a certain VDE content container may have occurred as a result of the incorporation of required control information provided by a financial credit provider. Said credit provider may have employed their VDE installation to prepare and securely communicate (directly or indirectly) said required control information to said content provider. Incorporating said required control information enables a content provider to allow the credit provider’s credit to be employed by a content end-user to compensate for the end-user’s

-88CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 use of VDE controlled content and/or appliances, so long as said end-user has a credit account with said financial credit provider and said credit account has sufficient credit available. Similarly, control information requiring the payment of taxes and/or the provision, of revenue information resulting from electronic commerce activities may be securely received by a content provider. This control information may be received, for example, from a government agency. Content providers might be required by law to incorporate such control information into the control information for commercially distributed content and/or services related to appliance usage. Proposed control information is used to an extent allowed by senior control information and as determined by any negotiation trade-offs that satisfy priorities stipulated by each set (the received set and the proposed set). VDE also accommodates different control schemes specifically applying to different participants (e.g., individual participants and/or participant classes (types)) in a network of VDE content handling participants.

-89CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • support multiple simultaneous control models for the same content property and/or property portion. This allows, for example, for concurrent business activities which are dependent on electronic commercial product content distribution, such as acquiring detailed market survey information and/or supporting advertising, both of which can increase revenue and result in lower content costs to users and greater value to content providers. Such control information and/or overall control models may be applied, as determined or allowed by control information, in differing manners to different participants in a pathway of content, reporting, payment, and/or related control information handling. VDE supports applying different content control information to the same and/or different content and/or appliance usage related activities, and/or to different parties in a content and/or appliance usage model, such that different parties (or classes of VDE users, for example) are subject to differing control information managing their use of electronic information content. For example, differing control models based on the category of a user as a distributor of a VDE controlled content

-90CA 02373508 2002-03-07

<td> WO 98/09209</td><td> PCT/US97/15243</td>

<td> •</td><td> object or an end-user of such content may result in different budgets being applied. Alternatively, for example, a one distributor may have the right to distribute a different array of properties than another distributor (from a common content collection provided, for example, on optical disc). An individual, and/or a class or other grouping of end-users, may have different costs (for example, a student, senior citizen, and/or poor citizen user of content who may be provided with the same or differing discounts) than a “typical” content user. support provider revenue information resulting from customer use of content and/or appliances, and/or provider and/or end-user payment of taxes, through the transfer of credit and/or electronic currency from said end-user and/or provider to a government agency, might occur “automatically” as a result of such received control information causing the generation of a VDE content container whose content includes customer content usage information reflecting secure, trusted revenue summary information and/or detailed user transaction listings (level of detail might depend, for example on type or</td>

-91CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 size of transaction—information regarding a bank interest payment to a customer or a transfer of a large (e.g. over $10,000) might be, by law, automatically reported to the government). Such summary and/or detailed information related to taxable events and/or currency, and/or creditor currency transfer, may be passed along a pathway of reporting and/or payment to the government in a VDE container. Such a container may also be used for other VDE related content usage reporting information.

• support the flowing of content control information through different “branches” of content control information handling so as to accommodate, under the present invention’s preferred embodiment, diverse controlled distributions of VDE controlled content. This allows different parties to employ the same initial electronic content with differing (perhaps competitive) control strategies. In this instance, a party who first placed control information on content can make certain control assumptions and these assumptions would evolve . into more specific and/or extensive control

-92CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 assumptions. These control assumptions can evolve during the branching sequence upon content model participants submitting control information changes, for example, for use in “negotiating” with “in place” content control information. This can result in new or modified content control information and/or it might involve the selection of certain one or more already “in-place” content usage control methods over in-place alternative methods, as well as the submission of relevant control information parameter data. This form of evolution of different control information sets applied to different copies of the same electronic property content and/or appliance results from VDE control information flowing “down” through different branches in an overall pathway of handling and control and being modified differently as it diverges down these different pathway branches. This ability of the present invention to support multiple pathway branches for the flow of both VDE content control information and VDE managed content enables an electronic commerce marketplace which supports diverging, competitive business partnerships, agreements, and evolving overall business models

-93CA 02373508 2002-03-07

WO 98/09209 PCTAJS97/15243 which can employ the same content properties combined, for example, in differing collections of content representing differing at least in part competitive products.

• enable a user to securely extract, through the use of the secure subsystem at the user’s VDE installation, at least a portion of the content included within a VDE content container to produce a new, secure object (content container), such that the extracted information is maintained in a continually secure manner through the extraction process. Formation of the new VDE container containing such extracted content shall result in control information consistent ‘ 15 with, or specified by, the source VDE content container, and/or local VDE installation secure subsystem as appropriate, content control information. Relevant control information, such as security and administrative information, derived, at least in part, from the parent (source) object’s control information, will normally be automatically inserted into a new VDE content container object containing extracted VDE content. This process typically occurs under the control framework of a

-94CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 parent object and/or VDE installation control information executing at the user’s VDE installation secure subsystem (with, for example, at least a portion of this inserted control information being stored securely in encrypted form in one or more permissions records). In an alternative embodiment, the derived content control information applied to extracted content may be in part or whole derived from, or employ, content control information stored remotely from the VDE installation that performed the secure extraction such as at a remote server location. As with the content control information for most VDE managed content, features of the present invention allows the content’s control information to:

(a) “evolve,” for example, the extractor of content may add new control methods and/or modify control parameter data, such as VDE application compliant methods, to the extent allowed by the content’s in-place control information. Such new control information might specify, for example, who may use at least a portion of the new object, and/or how said at least a portion of said extracted

-95CA 02373508 2002-03-07

WO 98/09209 PCTÆJS97/15243 content may be used (e.g. when at least a portion may be used, or what portion or quantity of portions may be used);

(b) allow a user to combine additional content with at least a portion of said extracted content, such as material authored by the extractor and/or content (for example, images, video, audio, and/or text) extracted from one or more other VDE container objects for placement directly into the new container;

(c) allow a user to securely edit at least a portion of said content while maintaining said content in a secure form within said VDE content container;

(d) append extracted content to a pre-existing VDE content container object and attach associated control information -- in these cases, user added information may be secured, e.g., encrypted, in part or as a whole, and may be subject to usage and/or auditing control

-96CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 information that differs from the those applied to previously in place object content;

(e) preserve VDE control over one or more portions of extracted content after various forms of usage of said portions, for example, maintain content in securely stored form while allowing “temporary” on screen display of content or allowing a software program to be maintained in secure form but transiently decrypt any encrypted executing portion of said program (all, or only a portion, of said program may be encrypted to secure the program).

Generally , the extraction features of the present. invention allow users to aggregate and/or disseminate and/or otherwise use protected electronic content information extracted from content container sources while maintaining secure VDE capabilities thus preserving the rights of providers in said content information after various content usage processes.

-97CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • support the aggregation of portions of VDE controlled content, such portions being subject to differing VDE content container control information, wherein various of said portions may have been provided by independent, different content providers from one or more different locations remote to the user performing the aggregation. Such aggregation, in the preferred embodiment of the present invention, may involve preserving at least a portion of the control information (e.g., executable code such as load modules) for each of various of said portions by, for example, embedding some or all of such portions individually as VDE content container objects within an overall VDE content container and/or embedding some or all of such portions directly into a VDE content container. In the latter case, content control information of said content container may apply differing control information sets to various of such portions based upon said portions original control information requirements before aggregation. Each of such embedded VDE content containers may have its own control information in the form of one or more permissions records. Alternatively, a negotiation between

-98CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 control information associated with various aggregated portions of electronic content, may produce a control information set that would govern some or all of the aggregated content portions. The VDE content control information produced by the negotiation may be uniform (such as having the same load modules and/or component assemblies, and/or it may apply differing such content control information to two or more portions that constitute an aggregation of VDE controlled content such as differing metering, budgeting, billing and/or payment models. For example, content usage payment may be automatically made, either through a clearinghouse, or directly, to different content providers for different potions.

enable flexible metering of, or other collection of information related to, use of electronic content and/or electronic appliances. A feature of the present invention enables such flexibility of metering control mechanisms to accommodate a simultaneous, broad array of: (a) different parameters related to electronic information content use; (b) different increment units (bytes, documents,

-99CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 properties, paragraphs, images, etc.) and/or other organizations of such electronic content; and/or (c) different categories of user and/or VDE installation types, such as client organizations, departments, projects, networks, and/or individual users, etc.

This feature of the present invention can be employed for content security, usage analysis (for example, market surveying), and/or compensation based upon the use and/or exposure to VDE managed content. Such metering is a flexible basis for ensuring payment for content royalties, licensing, purchasing, and/or advertising. A feature of the present invention provides for payment means supporting flexible electronic currency and credit mechanisms, including the ability to securely maintain audit trails reflecting information related to use of such currency or credit. VDE supports multiple differing hierarchies of client organization control information wherein an organization client administrator distributes control information specifying the usage rights of departments, users, and/or projects. Likewise, a department (division) network manager can function as a distributor

-100CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 (budgets, access rights, etc.) for department networks, projects, and/or users, etc.

• provide scalable, integratable, standardized control 5 means for use on electronic appliances ranging from inexpensive consumer (for example, television set-top appliances) and professional devices (and hand-held PDAs) to servers, mainframes, communication switches, etc. The scalable transaction management/auditing technology of the present invention will result in more efficient and reliable interoperability amongst devices functioning in electronic commerce and/or data security environments. As standardized physical containers have become essential to the shipping of physical goods around the world, allowing these physical containers to universally “fit” unloading equipment, efficiently use truck and train space, and accommodate known arrays of objects (for example, boxes) in an efficient manner, so VDE electronic content containers may, as provided by the present invention, be able to efficiently move electronic information content (such as commercially published properties, electronic currency and credit, and

-101CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 content audit information), and associated content control information, around the world.

Interoperability is fundamental to efficient electronic commerce. The design of the VDE foundation, VDE load modules, and VDE containers, are important features that enable the VDE node operating environment to be compatible with a very broad range of electronic appliances. The ability, for example, for control methods based on load modules to execute in very “small” and inexpensive secure sub-system environments, such as environments with very little read/write memory, while also being able to execute in large memory sub-systems that may be used in more expensive electronic appliances, supports consistency across many machines. This consistent VDE operating environment, including its control structures and container architecture, enables the use of standardized VDE content containers across a broad range of device types and host operating environments. Since VDE capabilities can be seamlessly integrated as extensions, additions, and/or modifications to fundamental capabilities of electronic appliances and host operating systems,

-102CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

VDE containers, content control information, and the VDE foundation will be able to work with many device types and these device types will be able to consistently and efficiently interpret and enforce VDE control information. Through this integration users can also benefit from a transparent interaction with many of the capabilities of VDE. VDE integration with software operating on a host electronic appliance supports a variety of capabilities that would be unavailable or less secure without such integration. Through integration with one or more device applications and/or device operating environments, many capabilities of the present invention can be presented as inherent capabilities of a given electronic appliance, operating system, or appliance application. For example, features of the present invention include:

(a) VDE system software to in part extend and/or modify host operating systems such that they possesses VDE capabilities, such as enabling secure transaction processing and electronic information storage; (b) one or more application programs that in part represent tools associated with VDE operation; and/or (c) code to be integrated into application

-103CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 programs, wherein such code incorporates references into VDE system software to integrate VDE capabilities and makes such applications VDE aware (for example, word processors, database retrieval applications, spreadsheets, multimedia presentation authoring tools, film editing software, music editing software such as MIDI applications and the like, robotics control systems such as those associated with CAD/CAM environments and NCM software and the like, electronic mail systems, teleconferencing software, and other data authoring, . creating, handling, and/or usage applications including combinations of the above). These one or more features (which may also be implemented in firmware or hardware) may be employed in conjunction with a VDE node secure hardware processing capability, such as a microcontrollers), microprocessors), other CPU(s) or other digital processing logic.

• employ audit reconciliation and usage pattern evaluation processes that assess, through certain, normally network based, transaction processing reconciliation and threshold checking activities,

-104CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 whether certain violations of security of a VDE arrangement have occurred. These processes are performed remote to VDE controlled content end-user VDE locations fay assessing, for example, purchases, and/or requests, for electronic properties by a given VDE installation. Applications for such reconciliation activities include assessing whether the quantity of remotely delivered VDE controlled content corresponds to the amount of financial credit and/or electronic currency employed for the use of such content. A trusted organization can acquire information from content providers concerning the cost for content provided to a given VDE installation and/or user and compare this cost for content with the credit and/or electronic currency disbursements for that installation and/or user. Inconsistencies in the amount of content delivered versus the amount of disbursement can prove, and/or indicate, depending on the circumstances, whether the local

VDE installation has been, at least to some degree, compromised (for example, certain important system security functions, such as breaking encryption for at least some portion of the secure subsystem and/or VDE controlled content by uncovering one or more

-105CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 keys). Determining whether irregular patterns (e.g. unusually high demand) of content usage, or requests for delivery of certain kinds of VDE controlled information during a certain time period by one or more VDE installations and/or users (including, for example, groups of related users whose aggregate pattern of usage is suspicious) may also be useful in determining whether security at such one or more installations, and/or by such one or more users, has been compromised, particularly when used in combination with an assessment of electronic credit and/or currency provided to one or more VDE users and/or installations, by some or all of their credit and/or currency suppliers, compared with the disbursements made by such users and/or installations.

• support security techniques that materially increase the time required to “break” a system’s integrity.

This includes using a collection of techniques that minimizes the damage resulting from comprising some aspect of the security features of the present inventions.

-106CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 • provide a family of authoring, administrative, reporting, payment, and billing tool user applications that comprise components of the present invention’s trusted/secure, universe wide, distributed transaction control and administration system. These components support VDE related: object creation (including placing control information on content), secure object distribution and management (including distribution control information, financial related, and other usage analysis), client internal VDE activities administration and control, security management, user interfaces, payment disbursement, and clearinghouse related functions. These components are designed to support highly secure, uniform, consistent, and standardized: electronic commerce and/or data security pathway! s ) of handling, reporting, and/or payment; content control and administration; and human factors (e.g. user interfaces).

• support the operation of a plurality of clearinghouses, including, for example, both financial and user clearinghouse activities, such as

- 107CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 those performed by a client administrator in a large organization to assist in the organization’s use of a VDE arrangement, including usage information analysis, and control of VDE activities by individuals and groups of employees such as specifying budgets and the character of usage rights available under VDE for certain groups of and/or individual, client personnel, subject to control information series to control information submitted by the client administrator. At a clearinghouse, one or more VDE installations may operate together with a trusted distributed database environment (which may include concurrent database processing means). A financial clearinghouse normally receives at its location securely delivered content usage information, and user requests (such as requests for further credit, electronic currency, and/or higher credit limit). Reporting of usage information and user requests can be used for supporting electronic currency, billing, payment and credit related activities, and/or for user profile analysis and/or broader market survey analysis and marketing (consolidated) list generation or other information derived, at least in part, from said usage

-108CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 information, this information can be provided to content providers or other parties, through secure, authenticated encrypted communication to the VDE installation secure subsystems. Clearinghouse processing means would normally be connected to specialized I/O means, which may include high speed telecommunication switching means that may be used for secure communications between a clearinghouse and other VDE pathway participants.

• securely support electronic currency and credit usage control, storage, and communication at, and between, VDE installations. VDE further supports automated passing of electronic currency and/or credit information, including payment tokens (such as in the form of electronic currency or credit) or other payment information, through a pathway of payment, which said pathway may or may not be the same as a pathway for content usage information reporting. Such payment may be placed into a VDE container created automatically by a VDE installation in response to control information stipulating the “withdrawal” of credit or electronic currency from an electronic credit or currency

-109CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 account based upon an amount owed resulting from usage of VDE controlled electronic content and/or appliances. Payment credit or currency may then be automatically communicated in protected (at least in part encrypted) form through telecommunication of a VDE container to an appropriate party such as a clearinghouse, provider of original property content or appliance, or an agent for such provider (other than a clearinghouse). Payment information may be packaged in said VDE content container with, or without, related content usage information, such as metering information. An aspect of the present invention further enables certain information regarding currency use to be specified as unavailable to certain, some, or all VDE parties (“conditionally” to fully anonymous currency) and/or further can regulate certain content information, such as currency and/or credit use related information (and/or other electronic information usage data) to be available only under certain strict circumstances, such as a court order (which may itself require authorization through the use of a court controlled VDE installation that may be required to securely access “conditionally”

-110CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 anonymous information). Currency and credit information, under the preferred embodiment of the present invention, is treated as administrative content;

• support fingerprinting (also known as watermarking) for embedding in content such that when content protected under the present invention is released in clear form from a VDE object (displayed, printed, communicated, extracted, and/or saved), information representing the identification of the user and/or VDE installation responsible for transforming the content into clear form is embedded into the released content. Fingerprinting is useful in providing an ability to identify who extracted information in clear form a VDE container, or who made a copy of a VDE object or a portion of its contents. Since the identity of the user and/or other identifying information may be embedded in an obscure or generally concealed manner, in VDE container content and/or control information, potential copyright violators may be deterred from unauthorized extraction or copying. Fingerprinting normally is embedded into

- Ill CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 unencrypted electronic content or control information, though it can be embedded into encrypted content and later placed in unencrypted content in a secure VDE installation sub-system as the encrypted content carrying the fingerprinting information is decrypted. Electronic information, such as the content of a VDE container, may be fingerprinted as it leaves a network (such as Internet) location bound for a receiving party. Such repository information may be maintained in unencrypted form prior to communication and be encrypted as it leaves the repository. Fingerprinting would preferably take place as the content leaves the repository, but before the encryption step.

Encrypted repository content can be decrypted, for example in a secure VDE sub-system, fingerprint information can be inserted, and then the content can be re-encrypted for transmission. Embedding identification information of the intended recipient user and/or VDE installation into content as it leaves, for example, an Internet repository, would provide important information that would identify or assist in identifying any party that managed to compromise the security of a VDE installation or the

-112 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/1S243 delivered content. If a party produces an authorized clear form copy of VDE controlled content, including making unauthorized copies of an authorized clear form copy, fingerprint information would point back to that individual and/or his or her VDE installation. Such hidden information will act as a strong disincentive that should dissuade a substantial portion of potential content “pirates” from stealing other parties electronic information.

Fingerprint information identifying a receiving party and/or VDE installation can be embedded into a VDE object before, or during, decryption, replication, or communication of VDE content objects to receivers. Fingerprinting electronic content before it is encrypted for transfer to a customer or other user provides information that can be very useful for identifying who received certain content which may have then been distributed or made available in unencrypted form.

This information would be useful in tracking who may have “broken” the security of a VDE installation and was illegally making certain electronic content available to others.

Fingerprinting may provide additional, available

-113CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 information such as time and/or date of the release (for example extraction) of said content information. Locations for inserting fingerprints may be specified by VDE installation and/or content container control information. This information may specify that certain areas and/or precise locations within properties should be used for fingerprinting, such as one or more certain fields of information or information types. Fingerprinting information may be incorporated into a property by modifying in a normally undetectable way color frequency and/or the brightness of certain image pixels, by slightly modifying certain audio signals as to frequency, by modifying font character formation, etc.

Fingerprint information, itself, should be encrypted so as to make it particularly difficult for tampered fingerprints to be interpreted as valid. Variations in fingerprint locations for different copies of the same property; “false” fingerprint information; and multiple copies of fingerprint information within a specific property or other content which copies employ different fingerprinting techniques such as information distribution patterns, frequency and/or brightness manipulation, and encryption related

-114CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 techniques, are features of the present invention for increasing the difficulty of an unauthorized individual identifying fingerprint locations and erasing and/or modifying fingerprint information.

• provide smart object agents that can carry requests, data, and/or methods, including budgets, authorizations, credit or currency, and content. For example, smart objects may travel to and/or from remote information resource locations and fulfill requests for electronic information content. Smart objects can, for example, be transmitted to a remote location to perform a specified database search on behalf of a user or otherwise “intelligently” search remote one or more repositories of information for user desired information. After identifying desired information at one or more remote locations, by for example, performing one or more database searches, a smart object may return via communication to the user in the form of a secure “return object” containing retrieved information. A user may be charged for the remote retrieving of information, the returning of information to the user’s VDE installation, and/or the use of such information. In

-115CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 the latter case, a user may be charged only for the information in the return object that the user actually uses. Smart objects may have the means to request use of one or more services and/or resources.

Services include locating other services and/or resources such as information resources, language or format translation, processing, credit (or additional credit) authorization, etc. Resources include reference databases, networks, high powered or specialized computing resources (the smart object may carry information to another computer to be efficiently processed and then return the information to the sending VDE installation),. remote object repositories, etc. Smart objects can make efficient use of remote resources (e.g.

centralized databases, super computers, etc.) while providing a secure means for charging users based on information and/or resources actually used.

· support both “translations” of VDE electronic agreements elements into modem language printed agreement elements (such as English language agreements) and translations of electronic rights protection/transaction management modem

-116CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 language agreement elements to electronic VDE agreement elements. This feature requires maintaining a library of textual language that corresponds to VDE load modules and/or methods and/or component assemblies. As VDE methods are proposed and/or employed for VDE agreements, a listing of textual terms and conditions can be produced by a VDE user application which, in a preferred embodiment, provides phrases, sentences and/pr paragraphs that have been stored and correspond to said methods and/or assemblies. This feature preferably employs artificial intelligence capabilities to analyze and automatically determine, and/or assist one or more users to determine, the proper order and relationship between the library elements corresponding to the chosen methods and/or assemblies so as to compose some or all portions of a legal or descriptive document. One or more users, and/or preferably an attorney (if the document a legal, binding agreement), would review the generated document material upon completion and employ such additional textual information and/or editing as necessary to describe non electronic transaction elements of the agreement

-117CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 and make any other improvements that may be necessary. These features further support employing modem language tools that allow one or more users to make selections from choices and provide answers to questions and to produce a VDE electronic agreement from such a process. This process can be interactive and the VDE agreement formulation process may employ artificial intelligence expert system technology that learns from responses and, where appropriate and based at least in part on said responses, provides further choices and/or questions which “evolves” the desired VDE electronic agreement.

· support the use of multiple VDE secure subsystems in a single VDE installation. Various security and/or performance advantages may be realized by employing a distributed VDE design within a single VDE installation. For example, designing· a hardware based VDE secure subsystem into an electronic appliance VDE display device, and designing said subsystem’s integration with said display device so that it is as close as possible to the point of display, will increase the security for video

-118 CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 materials by making it materially more difficult to “steal” decrypted video information as it moves from outside to inside the. video system. Ideally, for example, a VDE secure hardware module would be in the same physical package as the actual display monitor, such as within the packaging of a video monitor or other display device, and such device would be designed, to the extent commercially practical, to be as tamper resistant as reasonable.

As another example, embedding a VDE hardware module into an I/O peripheral may have certain advantages from the standpoint of overall system throughput. If multiple VDE instances are employed within the same VDE installation, these instances will ideally share resources to the extent practical, such as VDE instances storing certain control information and content and/or appliance usage information on the same mass storage device and in the same VDE management database.

requiring reporting and payment compliance by employing exhaustion of budgets and time ageing of keys. For example, a VDE commercial arrangement and associated content control information may

-119CA 02373508 2002-03-07

WO 98/99209 PCT/ÜS97/15243 involve a content providers content and the use of clearinghouse credit for payment for end-user usage of said content. Control information regarding said arrangement may be delivered to a user’s (of said content) VDE installation and/or said financial clearinghouse’s VDE installation. Said control information might require said clearinghouse to prepare and telecommunicate to said content provider both content usage based information in a certain form, and content usage payment in the form of electronic credit (such credit might be “owned” by the provider after receipt and used in lieu of the availability or adequacy of electronic currency) and/or electronic currency. This delivery of information and payment may employ trusted VDE installation secure subsystems to securely, and in some embodiments, automatically, provide in the manner specified by said control information, said usage information and payment content. Features of the present invention help ensure that a requirement that a clearinghouse report such usage information and payment content will be observed.

For example, if one participant to a VDE electronic agreement fails to observe such information

-120CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/1S243 reporting and/or paying obligation, another participant can stop the delinquent party from successfully participating in VDE activities related to such agreement. For example, if required usage information and payment was not reported as specified by content control information, the “injured” party can fail to provide, through failing to securely communicate from his VDE installation secure subsystem, one or more pieces of secure information necessary for the continuance of one or more critical processes. F or example, failure to report information and/or payment from a clearinghouse to a content provider (as well as any security failures or other disturbing irregularities) can result in the content provider not providing key and/or budget refresh information to the clearinghouse, which information can be necessary to authorize use of the clearinghouse’s credit for usage of the provider’s content and which the clearinghouse would communicate to end-user’s during a content usage reporting communication between the clearinghouse and end-user. As another example, a distributor that failed to make payments and/or report usage information to a

-121CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/15243 content provider might find that their budget for creating permissions records to distribute the content provider’s content to users, and/or a security budget limiting one or more other aspect of their use of the provider’s content, are not being refreshed by the content provider, once exhausted or timed-out (for example, at a predetermined date). In these and other cases, the offended party might decide not to refresh time ageing keys that had “aged out.” Such a use of time aged keys has a similar impact as failing to refresh budgets or time-aged authorizations.

support smart card implementations of the present invention in the form of portable electronic appliances, including cards that can be employed as secure credit, banking, and/or money cards. A feature of the present invention is the use of portable VDEs as transaction cards at retail and other establishments, wherein such cards can “dock” with an establishment terminal that has a VDE secure sub-system and/or an online connection to a VDE secure and/or otherwise secure and compatible subsystem, such as a “trusted” financial

- 122CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 clearinghouse (e.g., VISA, Mastercard). The VDE card and the terminal (and/or online connection) can securely exchange information related to a transaction, with credit and/or electronic currency being transferred to a merchant and/or clearinghouse and transaction information flowing back to the card. Such a card can be used for transaction activities of all sorts. A docking station, such as a PCMCIA connector on an electronic appliance, such as a personal computer, can receive a consumer’s VDE card at home. Such a station/card combination can be used for on-line transactions in the same manner as a VDE installation that is permanently installed in such an electronic appliance. The card can be used as an “electronic wallet” and contain electronic currency as well as credit provided by a clearinghouse. The card can act as a convergence point for financial activities of a consumer regarding many, if not all, merchant, banking, and on-line financial transactions, including supporting home banking activities. A consumer can receive his paycheck and/or investment earnings and/or “authentic” VDE content container secured detailed information on such

-123CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 receipts, through on-line connections. A user can send digital currency to another party with a VDE arrangement, including giving away such currency.

A VDE card can retain details of transactions in a highly secure and database organized fashion so that financially related information is both consolidated and very easily retrieved and/or analyzed. Because of the VDE security, including use of effective encryption, authentication, digital signaturing, and secure database structures, the records contained within a VDE card arrangement may be accepted as valid transaction records for government and/or corporate recordkeeping requirements. In some embodiments of the present invention a VDE card may employ docking station and/or electronic appliance storage means and/or share other VDE arrangement means local to said appliance and/or available across a network, to augment the information storage capacity of the

VDE card, by for example, storing dated, and/or archived, backup information. Taxes relating to some or all of an individual’s financial activities may be automatically computed based on “authentic” information securely stored and available to said

-124CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

VDE card. Said information may be stored in said card, in said docking station, in an associated electronic appliance, and/or other device operatively attached thereto, and/or remotely, such as at a remote server site. A card’s data, e.g. transaction history, can be backed up to an individual’s personal computer or other electronic appliance and such an appliance may have an integrated VDE installation of its own. A current transaction, recent transactions (for redundancy), or all or other selected card data may be backed up to a remote backup repository, such a VDE compatible repository at a financial clearinghouse, during each or periodic docking for a financial transaction and/or information communication such as a user/merchant transaction. Backing up at least the current transaction during a connection with another party’s VDE installation (for example a VDE installation that is also on a financial or general purpose electronic network), by posting transaction information to a remote clearinghouse and/or hank·, can ensure that sufficient backup is conducted to enable complete reconstruction of VDE card internal information in the event of a card failure or loss.

-125CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • support certification processes that ensure authorized interoperability between various VDE installations so as to prevent VDE arrangements and/or installations that unacceptably deviate in specification protocols from other VDE arrangements and/or installations from interoperating in a manner that may introduce security (integrity and/or confidentiality of VDE secured information), process control, and/or software compatibility problems. Certification validates the identity of VDE installations and/or their components, as well as VDE users.

Certification data can also serve as information that contributes to determining the decommissioning or other change related to VDE sites.

• support the separation of fundamental transaction control processes through the use of event (triggered) based method control mechanisms.

These event methods trigger one or more other VDE methods (which are available to a secure VDE sub-system) and are used to carry out VDE managed transaction related processing. These triggered methods include independently (separably) and

-126CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 securely processable component billing management methods, budgeting management methods, metering management methods, and related auditing management processes. As a result of this feature of the present invention, independent triggering of metering, auditing, billing, and budgeting methods, the present invention is able to efficiently, concurrently support multiple financial currencies (e.g. dollars, marks, yen) and content related budgets, and/or billing increments as well as very flexible content distribution models.

• support, complete, modular separation of the control structures related to ( 1 ) content event triggering, (2) auditing, (3) budgeting (including specifying no right of use or unlimited right of use), (4) billing, and (5) user identity (VDE installation, client name, department, network, and/or user, etc.). The independence of these VDE control structures provides a flexible system which allows plural relationships between two or more of these structures, for example, the ability to associate a financial budget with different event trigger structures (that are put in place to enable

-127CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/1S243 controlling content based on its logical portions). Without such separation between these basic VDE capabilities, it would be more difficult to efficiently maintain separate metering, budgeting, identification, and/or billing activities which involve the same, differing (including overlapping), or entirely different, portions of content for metering, billing, budgeting, and user identification, for example, paying fees associated with usage of content, performing home banking, managing advertising services, etc. VDE modular separation of these basic capabilities supports the programming of plural, arbitrary relationships between one or differing content portions (and/or portion units) and budgeting, auditing, and/or billing control information. For example, under VDE, a budget limit of $200 dollars or 300 German Marks a month may be enforced for decryption of a certain database and 2 U.S. Dollars or 3 German Marks may be charged for each record of said database decrypted (depending on user selected currency). Such usage can be metered while an additional audit for user profile purposes can be prepared recording the identity of each filed displayed. Additionally,

- 128 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 further metering can be conducted regarding the number of said database bytes that have been decrypted, and a related security budget may prevent the decrypting of more than 5% of the total bytes of said database per year. The user may also, under VDE (if allowed by senior control information), collect audit information reflecting usage of database fields by different individuals and client organization departments and ensure that differing rights of access and differing budgets limiting database usage can be applied to these client individuals and groups. Enabling content providers and users to practically employ such diverse sets of user identification, metering, budgeting, and billing control information results, in part, from the use of such independent control capabilities. As a result, VDE can support great configurability in creation of plural control models applied to the same electronic property and the same and/or plural control models applied to differing or entirely different content models (for example, home banking versus electronic shopping).

-129CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Methods, Other Control Information, and VDE Objects

VDE control information (e.g., methods) that collectively control use of VDE managed properties (database, document, individual commercial product), are either shipped with the content itself (for example, in a content container) and/or one or more portions of such control information is shipped to distributors and/or other users in separably deliverable “administrative objects.” A subset of the methods for a property may in part be delivered with each property while one or more other subsets of methods can be delivered separately to a user or otherwise made available for use (such as being available remotely by telecommunication means). Required methods (methods listed as required for property and/or appliance use) must be available as specified if VDE controlled content (such as intellectual property distributed within a VDE content container) is to be used. Methods that control content may apply to a plurality of VDE container objects, such as a class or other grouping of such objects. Methods may also be required by certain users or classes of users and/or VDE installations and/or classes of installations for such parties to use one or more specific, or classes of, objects.

A feature of VDE provided by the present invention is that certain one or more methods can be specified as required in order

-130 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 for a VDE installation and/or user to be able to use certain and/or all content. For example, a distributor of a certain type of content might be allowed by “senior” participants (by content creators, for example) to require a method which prohibits end-users from electronically saving decrypted content, a provider of credit for VDE transactions might require an audit method that records the time of an electronic purchase, and/or a user might require a method that summarizes usage information for reporting to a clearinghouse (e.g. billing information) in a way that does not convey confidential, personal information regarding detailed usage behavior.

A further feature of VDE provided by the present invention is that creators, distributors, and users of content can select from among a set of predefined methods (if available) to control container content usage and distribution functions and/or they may have the right to provide new customized methods to control at least certain usage functions (such “new” methods may be required to be certified for trustedness and interoperability to the VDE installation and/or for of a group of VDE applications).

As a result, VDE provides a very high degree of configurability with respect to how the distribution and other usage of each property or object (or one or more portions of objects or properties as desired and/or applicable) will be controlled. Each VDE

-131CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 participant in a VDE pathway of content control information may set methods for some or all of the content in a VDE container, so long as such control information does not conflict with senior control information already in place with respect to:

(1) certain or all VDE managed content, (2) certain one or more VDE users and/or groupings of users, (3) certain one or more VDE nodes and/or groupings of nodes, and/or (4) certain one or more VDE applications and/or arrangements.

For example, a content creator’s VDE control information for certain content can take precedence over other submitted VDE participant control information and, for example, if allowed by senior control information, a content distributor’s control information may itself take precedence over a client administrator’s control information, which may take precedence over an end-user’s control information. A path of distribution participant’s ability to set such electronic content control

-132CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 information can be limited to certain control information (for example, method mediating data such as pricing and/or sales dates) or it may be limited only to the extent that one or more of the participant’s proposed control information conflicts with control information set by senior control information submitted previously by participants in a chain of handling of the property, or managed in said participant’s VDE secure subsystem.

VDE control information may, in part or in full, (a) represent control information directly put in place by VDE content control information pathway participants, and/or (b) comprise control information put in place by such a participant on behalf of a party who does not directly handle electronic content (or electronic appliance) permissions records information (for example control information inserted by a participant on behalf of a financial clearinghouse or government agency). Such control information methods (and/or load modules and/or mediating data and/or component assemblies) may also be put in place by either an electronic automated, or à semi-automated and human assisted, control information (control set) negotiating process that assesses whether the use of one or more pieces of submitted control information will be integrated into and/or replace existing control information (and/or chooses between alternative control information based upon interaction with

-133 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 in-place control information) and how such control information may be used.

Control information may be provided by a party who does 5 not directly participate in the handling of electronic content (and/or appliance) and/or control information for such content (and/or appliance). Such control information may be provided in secure form using VDE installation secure sub-system managed communications (including, for example, authenticating the deliverer of at least in part encrypted control information) between such not directly participating one or more parties’ VDE installation secure subsystems, and a pathway of VDE content control information participant’s VDE installation secure subsystem. This control information may relate to, for example, the right to access credit supplied by a financial services provider, the enforcement of regulations or laws enacted by a government agency, or the requirements of a customer of VDE managed content usage information (reflecting usage of content by one or more parties other than such customer) relating to the creation, handling and/or manner of reporting of usage information received by such customer. Such control information may, for example, enforce societal requirements such as laws related to electronic commerce.

-134CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

VDE content control information may apply differently to different pathway of content and/or control information handling participants. Furthermore, permissions records rights may be added, altered, and/or removed by a VDE participant if they are allowed to take such action. Rights of VDE participants may be defined in relation to specific parties and/or categories of parties and/or other groups of parties in a chain of handling of content and/or content control information (e.g., permissions records). Modifications to control information that may be made by a given, eligible parry or parries, may be limited in the number of modifications, and/or degree of modification, they may make.

At least one secure subsystem in electronic appliances of creators, distributors, auditors, clearinghouses, client administrators, and end-users (understanding that two or more of the above classifications may describe a single user) provides a “sufficiently” secure (for the intended applications) environment for:

1. Decrypting properties and control information;

2. Storing control and metering related information;

3. Managing communications;

-135CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

4. Processing core control programs, along with associated data, that constitute control information for electronic content and/or appliance rights protection, including the enforcing of preferences and requirements of VDE participants.

Normally, most usage, audit, reporting, payment, and distribution control methods are themselves at least in part encrypted and are executed by the secure subsystem of a VDE installation. Thus, for example, billing and metering records can be securely generated and updated, and encryption and decryption keys are securely utilized, within a secure subsystem. Since VDE also employs secure (e.g. enciypted and authenticated) communications when passing information between the participant location (nodes) secure subsystems of a

VDE arrangement, important components of a VDE electronic agreement can be reliably enforced with sufficient security (sufficiently trusted) for the intended com marri a 1 purposes. A VDE electronic agreement for a value chain can be composed, at least in part, of one or more subagreements between one or more subsets of the value chain participants. These subagreements are comprised of one or more electronic contract “compliance” elements (methods including associated parameter data) that ensure the protection of the rights of VDE participants.

-136CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

The degree of trustedness of a VDE arrangement will be primarily based on whether hardware SPUs are employed at participant location secure subsystems and the effectiveness of the SPU hardware security architecture, software security techniques when an SPU is emulated in software, and the encryption algorithm(s) and keys that are employed for securing content, control information, communications, and access to VDE node (VDE installation) secure subsystems. Physical facility and user identity authentication security procedures may be used instead of hardware SPUs at certain nodes, such as at an established financial clearinghouse, where such procedures may provide sufficient security for trusted interoperability with a VDE arrangement employing hardware SPUs at user nodes.

The updating of property management files at each location of a VDE arrangement, to accommodate new or modified control information, is performed in the VDE secure subsystem and under the control of secure management file updating programs executed by the protected subsystem. Since all secure communications are at least in part encrypted and the processing inside the secure subsystem is concealed from outside observation and interference, the present invention ensures that content control information can be enforced. As a result, the creator and/or distributor and/or client administrator and/or

-137 CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 other contributor of secure control information for each property (for example, an end-user restricting the kind of audit information he or she will allow to be reported and/or a financial clearinghouse establishing certain criteria for use of its credit for payment for use of distributed content) can be confident that their contributed and accepted control information will be enforced (within the security limitations of a given VDE security implementation design). This control information can determine, for example:

(1) How and/or to whom electronic content can be provided, for example, how an electronic property can be distributed;

(2) How one or more objects and/or properties, or portions of an object or property, can be directly used, such as decrypted, displayed, printed, etc;

(3) How payment for usage of such content and/or content portions may or must be handled; and (4) How audit information about usage information related to at least a portion of a property should be collected, reported, and/or used.

-138CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Seniority of contributed control information, including resolution of conflicts between content control information submitted by multiple parties, is normally established by:

(1) the sequence in which control information is put in place by various parties (in place control information normally takes precedence over subsequently submitted control information), (2) the specifics of VDE content and/or appliance control information. For example, in-place control ' information can stipulate which subsequent one or more piece of control from one or more parties or class of parties will take precedence over control information submitted by one or more yet different parties and/or classes of parties, and/or (3) negotiation between control information sets from plural parties, which negotiation establishes what control information shall constitute the resulting control information set for a given piece of VDE managed content and/or VDE installation.

-139 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Electronic Agreements and Rights Protection

An important feature of VDE is that it can be used to assure the administration of, and adequacy of security and rights protection for, electronic agreements implemented through the use of the present invention. Such agreements may involve one or more of:

(1) creators, publishers, and other distributors, of electronic information, (2) financial service (e.g. credit) providers, (3) users of (other than financial service providers) information arising from content usage such as content specific demographic information and user specific descriptive information. Such users may include market analysts, marketing list compilers for direct and directed marketing, and government agencies, (4) end users of content, (5) infrastructure service and device providers such as telecommunication companies and hardware

-140CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 manufacturers (semiconductor and electronic appliance and/or other computer system manufacturers) who receive compensation based upon the use of their services and/or devices, and certain parties described by electronic information.

(6)

VDE supports commercially secure “extended” value chain . electronic agreements. VDE can be configured to support the various underlying agreements between parties that comprise this extended agreement. These agreements can define important. electronic commerce considerations including:

(1) security, (2) content use control, including electronic distribution, (3) privacy (regarding, for example, information concerning parties described by medical, credit, tax, personal, and/or of other forms of confidential information), (4) management of financial processes, and

-141CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/1S243 (δ) pathways of handling for electronic content, content and/or appliance control information, electronic content and/or appliance usage information and payment and/or credit.

VDE agreements may define the electronic commerce relationship of two or more parties of a value chain, but such agreements may, at times, not directly obligate or otherwise directly involve other VDE value chain participants. For example, an electronic agreement between a content creator and a distributor may establish both the price to the distributor for a creator’s content (such as for a property distributed in a VDE container object) and the number of copies of this object that this distributor may distribute to end-users over a given period of time. In a second agreement, a value chain end-user may be involved in a three party agreement in which the end-user agrees to certain requirements for using the distributed product such as accepting distributor charges for content use and agreeing to observe the copyright rights of the creator. A third agreement might exist between the distributor and a financial clearinghouse that allows the distributor to employ the clearinghouse’s credit for payment for the product if the end-user has a separate (fourth) agreement directly with the clearinghouse extending credit to the end-user. A fifth, evolving

-142CA 02373508 2002-03-07

WO 98/09209 PCT/US97/I5243 agreement may develop between all value chain participants as content control information passes along its chain of handling.

This evolving agreement can establish the rights of all parties to content usage information, including, for example, the nature of information to be received by each party and the pathway of handling of content usage information and related procedures. A sixth agreement in this example, may involve all parties to the agreement and establishes certain general assumptions, such as security techniques and degree of trustedness (for example, commercial integrity of the system may require each VDE installation secure subsystem to electronically warrant that their VDE node meets certain interoperability requirements). In the above example, these six agreements could comprise agreements of an extended agreement for this commercial value chain instance.

VDE agreements support evolving (“living”) electronic agreement arrangements that, can be modified by current and/or new participants through very simple to sophisticated “negotiations” between newly proposed content control information interacting with control information already in place and/or by negotiation between concurrently proposed content control information submitted by a plurality of parties. A given model may be asynchronously and progressively modified over

-143CA 02373508 2002-03-07

PCT/US97/15243

WO 98/09209 time in accordance with existing senior rules and such modification may be applied to all, to classes of, and/or to specific content, and/or to classes and/or specific users and/or user nodes.

A given piece of content may be subject to different control information at different times or places of handling, depending on the evolution of its content control information (and/or on differing, applicable VDE installation content control information). The evolution of control information can occur during the passing along of one or more VDE control information containing objects, that is control information may be modified at one or more points along a chain of control information handling, so long as such modification is allowed. As a result, VDE managed content may have different control information applied at both different “locations” in a chain of content handling and at similar locations in differing chains of the handling of such content. Such different application of control information may also result from content control information specifying that a certain party or group of parties shall be subject to content control information that differs from another party or group of parties. For example, content control information for a given piece of content may be stipulated as senior information and therefore not changeable, might be put in place by a content creator and might stipulate that national distributors of a given piece of their content may be permitted to make 100,000 copies

-144CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 per calendar quarter, so long as such copies are provided to boni fide end-users, but may pass only a single copy of such content to a local retailers and the control information limits such a retailer to making· no more than 1,000 copies per month for retail sales to end-users. In addition, for example, an end-user of such content might be limited by the same content control information to making three copies of such content, one for each of three different computers he or she uses (one desktop computer at work, one for a desktop computer at home, and one for a portable computer).

Electronic agreements supported by the preferred embodiment of the present invention can vary from very simple to very elaborate. They can support widely diverse information management models that provide for electronic information security, usage administration, and communication and may support:

(a) secure electronic distribution of information, for example commercial literary properties, (b) secure electronic information usage monitoring and reporting,

-145CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 (c) secure financial transaction capabilities related to both electronic information and/or appliance usage and other electronic credit and/or currency usage and administration capabilities, (d) privacy protection for usage information a user does not wish to release, and (e) “living” electronic information content dissemination 10 models that flexibly accommodate:

(1) a breadth of participants, (2) one or more pathways (chains) for: the handling of content, content and/or appliance control information, reporting of content and/or appliance usage related information, and/or payment, (3) supporting an evolution of terms and conditions incorporated into content control information, including use of electronic negotiation capabilities,

-146CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/1S243 (4) support the combination of multiple pieces of content to form new content aggregations, and (5) multiple concurrent models.

Secure Processing Units

An important part of VDE provided by the present invention is the core secure transaction control arrangement, herein called an SPU (or SPUs), that typically must be present in each user’s computer, other electronic appliance, or network.

SPUs provide a trusted environment for generating decryption keys, encrypting and decrypting information, managing the secure communication of keys and other information between electronic appliances (i.e. between VDE installations and/or between plural VDE instances within a single VDE installation), securely accumulating and managing audit trail, reporting, and budget information in secure and/or non-secure non-volatile memory, maintaining a secure database of control information management instructions, and providing a secure environment for performing certain other control and administrative functions.

A hardware SPU (rather than a software emulation) within a VDE node is necessary if a highly trusted environment

-147CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 for performing certain VDE activities is required. Such a trusted environment may be created through the use of certain control software, one or more tamper resistant hardware modules such as a semiconductor or semiconductor chipset {including, for example, a tamper resistant hardware electronic appliance peripheral device), for use within, and/or operatively connected to, an electronic appliance. With the present invention, the trustedness of a hardware SPU can be enhanced by enclosing some or all of its hardware elements within tamper resistant packaging and/or by employing other tamper resisting techniques (e.g. microfusing and/or thin wire detection . techniques). A trusted environment of the present invention implemented, in part, through the use of tamper resistant semiconductor design, contains control logic, such as a microprocessor, that securely executes VDE processes.

A VDE node’s hardware SPU is a core component of a VDE secure subsystem and may employ some or all of an electronic appliance’s primary control logic, such as a microcontroller, microcomputer or other CPU arrangement. This primary control logic may be otherwise employed for non VDE purposes such as the control of some or all of an electronic appliance’s non-VDE functions. When operating in a hardware SPU mode, said primary control logic must be sufficiently secure so as to protect

-148 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 and conceal important VDE processes. For example, a hardware SPU may employ a host electronic appliance microcomputer operating in protected mode while performing VDE related activities, thus allowing portions of VDE processes to execute with a certain degree of security. This alternate embodiment is in contrast to the preferred embodiment wherein a trusted environment is created using a combination of one or more tamper resistant semiconductors that are not part of said primary control logic. In either embodiment, certain control information (software and parameter data) must be securely maintained within the SPU, and further control information can be stored externally and securely (e.g. in encrypted and tagged form) and loaded into said hardware SPU when needed. In many cases, and in particular with microcomputers, the preferred embodiment approach of employing special purpose secure hardware for executing said VDE processes, rather than using said primary control logic, may be more secure and efficient. The level of security and tamper resistance required for trusted SPU hardware processes depends on the commercial requirements of particular markets or market niches, and may vary widely.

-149CA 02373508 2002-03-07

WO98/99209 PCT/US97/15243

Bfim.DESORIZHQH.Og THE DRAMIGS These and other features and advantages provided by the present invention(s) may be better and more completely understood by referring to the following detailed description of presently preferred example embodiments in connection with the drawings, of which:

FIGURE 1 illustrates an example of a “Virtual Distribution Environment” provided in accordance with a preferred example/embodiment of this invention;

FIGURE 1A is a more detailed illustration of an example of the “Information Utility” shown in FIGURE 1;

FIGURE 2 illustrates an example of a chain of handling and control;

FIGURE 2A illustrates one example of how rules and control information may persist from one participant to another in the Figure 2 chain of handling and control;

FIGURE 3 shows one example of different control information that may be provided;

-150CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/1S243

FIGURE 4 illustrates examples of some different types of rules and/or control information;

FIGURES 5A and SB show an example of an “object”;

FIGURE 6 shows an example of a Secure Processing Unit (“SPU”);

FIGURE 7 shows an example of an electronic appliance;

FIGURE 8 is a more detailed block diagram of an example of the electronic appliance shown in FIGURE 7;

FIGURE 9 is a detailed view of an example of the Secure Processing Unit (SPU) shown in FIGURES 6 and 8;

Figure 9A shows an example combined secure processing unit and control processing unit;

Figure 9B shows an example secure processing unit integrated with a standard CPU;

-151CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

FIGURE 10 shows an example of a “Rights Operating System” (“ROS”) architecture provided by the Virtual Distribution Environment;

FIGURES 11A-11C show examples of functional relationship(s) between applications and the Rights Operating System;

FIGURES 11D-11J show examples of “components” and 10 “component assemblies”;

FIGURE 12 is a more detailed diagram of an example of the Rights Operating System shown in FIGURE 10;

FIGURE 12A shows an example of how “objects” can be created;

FIGURE 13 is a detailed block diagram of an example the software architecture for a “protected processing environment” shown in FIGURE 12;

FIGURES 14A-14C are examples of SPU memory maps provided fay the protected processing environment shown in FIGURE 13;

-152CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

FIGURE 15 illustrates an example of how the channel services manager and load module execution manager of FIGURE 13 can support a channel;

FIGURE 15A is an example of a channel header and channel detail records shown in FIGURE 15;

FIGURE 15B is a flowchart of an example of program control steps that may be performed by the FIGURE 13 protected processing environment to create a channel;

FIGURE 16 is a block diagram of an example of a secure data base structure;

' 15 FIGURE 17 is an illustration of an example of a logical object structure;

FIGURE 18 shows an example of a stationary object structure;

FIGURE 19 shows an example of a traveling object structure;

-153CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

FIGURE 20 shows an example of a content object structure;

FIGURE 21 shows an example of an administrative object 5 structure;

FIGURE 22 shows an example of a method core structure;

FIGURE 23 shows an example of a load module structure;

FIGURE 24 shows an example of a User Data Element (UDE) and/or Method Data Element (MDE) structure;

FIGURES 25A-25C show examples of “map meters”;

FIGURE 26 shows an example of a permissions record (PERC) structure;

FIGURES 26A and 26B together show a more detailed 20 example of a permissions record structure;

FIGURE 27 shows an example of a shipping table structure;

-154CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

FIGURE 28 shows an example of a receiving table structure;

FIGURE 29 shows an example of an administrative event 5 log structure;

FIGURE 30 shows an example inter-relationship between and use of the object registration table, subject table and user rights table shown in the FIGURE 16 secure database;

FIGURE 31 is a more detailed example of an object registration table shown in FIGURE 16;

FIGURE 32 is a more detailed example of subject table 15 shown in FIGURE 16;

FIGURE 33 is a more detailed example of a user rights table shown in FIGURE 16;

FIGURE 34 shows a specific example of how a site record table and group record table may track portions of the secure database shown in FIGURE 16;

-155CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

FIGURE 34A is an example of a FIGURE 34 site record table structure;

FIGURE 34B is an example of a FIGURE 34 group record 5 table structure;

FIGURE 35 shows an example of a process for updating the secure database;

FIGURE 36 shows an example of how new elements may be inserted into the FIGURE 16 secure data base;

FIGURE 37 shows an example of how an element of the secure database may be accessed;

FIGURE 38 is a flowchart example of how to protect a secure database element;

FIGURE 39 is a flowchart example of how to back up a 20 secure database;

FIGURE 40 is a flowchart example of how to recover a secure database from a backup;

-156CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

FIGURES 41A-41D are a set of examples showing how a “chain of handling and control” may be enabled using “reciprocal methods”;

FIGURES 42A-42D show an example of a “reciprocal”

BUDGET method;

FIGURES 43A-43D show an example of a “reciprocal” REGISTER method;

FIGURES 44A-44C show an example of a “reciprocal”

AUDIT method;

FIGURES 45-48 show examples of several methods being 15 used together to control release of content or other information;

FIGURES 49, 49A-49F show an example OPEN method;

FIGURES 50, 50A-50F show an example of a READ 20 method;

FIGURES 51, 51A-51F show an example of a WRITE method;

- 157CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

FIGURE 52 shows an example of a CLOSE method;

FIGURES 53A-53B show an example of an EVENT method;

FIGURE 53C shows an example of a BILLING method;

FIGURE 54 shows an example of an ACCESS method;

FIGURES 55A-55B show examples of DECRYPT and

ENCRYPT methods;

FIGURE 56 shows an example of a CONTENT method;

FIGURES 57A and 57B show examples of EXTRACT and

EMBED methods;

FIGURE 58A shows an example of an OBSCURE method;

FIGURES 58B, 58C show examples of a FINGERPRINT method;

FIGURE 59 shows an example of a DESTROY method;

-158CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

FIGURE 60 shows an example of a PANIC method;

FIGURE 61 shows an example of a METER method;

FIGURE 62 shows an example of a key “convolution” process;

FIGURE 63 shows an example of how different keys may be generated using a key convolution process to determine a “true” key;

FIGURES 64 and 65 show an example of how protected processing environment keys may be initialized;

FIGURES 66 and 67 show example processes for decrypting information contained within stationary and traveling objects, respectively;

Figures 67A and 67B show example techniques for cracking a software-based protected processing environment;

FIGURE 68 shows an example of how a protected processing environment may be initialized;

-159CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/15243

FIGURE 69 shows an example of how firmware may be downloaded into a protected processing environment;

Figure 69A shows an example technique for distributing protected processing environment software;

Figure 69B-69C show an example installation routine for installing a software-based protected processing environment;

Figure 69D shows example techniques for embedding ciyptographic keys at random locations within structure-based protected processing environment operational materials;

Figure 69E shows example locations for PPE operational materials random modifications and/or digital fingerprints;

Figure 69F shows an example customized static storage layout for PPE operational materials;

Figure 69G shows example electronic appliance signature locations;

Figure 69H shows example sequence dependent and independent processes;

-160CA 02373508 2002-03-07

PCT/US97/1S243

WO 98/09209

Figures 691 and 69J show example static code and data storage organizations;

Figures 69K-69L together show example steps for 5 providing dynamic protection mechanisms;

Figure 69M shows an example initialization time check routine;

Figure 69N shows an example time check routine;

Figure 690 shows example time check data structures;

FIGURE 70 shows an example of multiple VDE electronic 15 appliances connected together with a network or other communications means;

Figure 70A shows how content may be prepared for printing and encrypted inside a PPE, then decrypted inside a printer;

Figure 70B shows how characters may be selected from slightly different fonts in order to place an electronic fingerprint or watermark into printed output;

-161 GA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

Figure 70C shows how characters in a font may be permuted to render a printed page unusable without the corresponding scrambled font;

FIGURE 71 shows an example of a portable VDE electronic appliance;

FIGURES 72A-72D show examples of “pop-up” displays that may be generated by the user notification and exception interface;

FIGURE 73 shows an example of a “smart object”;

FIGURE 74 shows an example of a process using “smart 15 objects”;

FIGURES 75A-75D show examples of data structures used for electronic negotiation;

FIGURES 75E-75F show example structures relating to an electronic agreement;

FIGURES 76A-76B show examples of electronic negotiation processes;

-162CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

FIGURE 77 shows a further example of a chain of handling and control;

FIGURE 78 shows an example of a VDE repository;

FIGURES 79-83 show an example illustrating a chain of handling and control to evolve and transform VDE managed content and control information;

FIGURE 84 shows a further example of a chain of handling and control involving several categories ofVDE participants;

FIGURE 85 shows a further example of a chain of distribution and handling within an organization;

Figures 86 and 86A show a further example of a chain of handling and control; and

Figure 87 shows an example of a virtual silicon container model.

MORE DETAILED DESCRIPTION

-163 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Figures 1-7 and the discussion below provides an overview of some aspects of features provided by this invention. Following this overview is a more technical “detail description” of example embodiments in accordance with the invention.

Overview

Figure 1 shows a “Virtual Distribution Environment” (“VDE”) 100 that may be provided in accordance with this invention. In Figure 1, an information utility 200 connects to communications means 202 such as telephone or cable TV lines for example. Telephone or cable TV lines 202 may be part of an “electronic highway” that carries electronic information from place to place. Lines 202 connect information utility 200 to other people such as for example a consumer 208, an office 210, a video production studio 204, and a publishing house 214. Each of the people connected to information utility 200 may be called a “VDE participant” because they can participate in transactions occurring within the virtual distribution environment 100.

Almost any sort of transaction you can think of can be supported by virtual distribution environment 100. A few of many examples of transactions that can be supported by virtual distribution environment 100 include:

-164CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 • home banking and electronic payments;

• electronic legal contracts;

• distribution of “content” such as electronic printed matter, video, audio, images and computer programs; and • secure communication of private information such as medical records and financial information.

Virtual distribution environment 100 is “virtual” because it does not require many of the physical “things” that used to be necessary to protect rights, ensure reliable and predictable distribution, and ensure proper compensation to content creators and distributors. For example, in the past, information was distributed on records or disks that were difficult to copy. In the past, private or secret content was distributed in sealed envelopes or locked briefcases delivered by courier. To ensure appropriate compensation, consumers received goods and services only after they handed cash over to a seller. Although information utility 200 may deliver information by transferring physical “things” such as electronic storage media, the virtual distribution environment 100 facilitates a completely electronic “chain of handling and control.”

VDE Flexibility Supports Transactions

-165CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Information utility 200 flexibly supports many different kinds of information transactions. Different VDE participants may define and/or participate in different parts of a transaction. Information utility 200 may assist with delivering information about a transaction, or it may be one of the transaction participants.

For example, the video production studio 204 in the upper right-hand comer of Figure 1 may create video/television programs. Video production studio 204 may send these programs over lines 202, or may use other paths such as satellite link 205 and CD ROM delivery service 216. Video production studio 204 can send the programs directly to consumers 206, 208,

210, or it can send the programs to information utility 200 which may store and later send them to the consumers, for example.

Consumers 206, 208, 210 are each capable of receiving and using the programs created by video production studio 204—assuming, that is, that the video production studio or information utility 200 has arranged for these consumers to have appropriate “rules and controls” (control information) that give the consumers rights to use the programs

Even if a consumer has a copy of a video program, she cannot watch or copy the program unless she has “rules and

-166CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 controls” that authorize use of the program. She can use the program only as permitted by the “rules and controls.”

For example, video production studio 204 might release a half-hour exercise video in the hope that as many viewers as possible will view it. The video production studio 204 wishes to receive $2.00 per viewing. Video production studio 204 may, through information utility 200, make the exercise video available in “protected” form to all consumers 206, 208, 210.

Video production studio 204 may also provide “rules and controls” for the video. These “rules and controls” may specify for example:

(1) any consumer who has good credit of at least $2.00 based on a credit account with independent financial provider 212 (such as Mastercard or VISA) may watch the video, (2) virtual distribution environment 100 will “meter” each time a consumer watches the video, and report usage to video production studio 204 from time to time, and (3) financial provider 212 may electronically collect payment ($2.00) from the credit account of each consumer

-167CA 02373508 2002-03-07

WO 98/09209 PCT/DS97/15243 who watches the video, and transfer these payments to the video production studio 204.

Information utility 200 allows even a small video 5 production studio to market videos to consumers and receive compensation for its efforts. Moreover, the videos can, with appropriate payment to the video production studio, be made available to other video publishers who may add value and/or act as repackagers or redistributors.

Figure 1 also shows a publishing house 214. Publishing house 214 may act as a distributor for an author 206. The publishing house 214 may distribute rights to use “content” (such as computer software, electronic newspapers,-the video produced '15 by publishing house 214, audio, or any other data) to consumers such as office 210. The use rights may be defined by “rules and controls” distributed by publishing house 216. Publishing house 216 may distribute these “rules and controls” with the content, but this is not necessary. Because the content can be used only by consumers that have the appropriate “rules and controls,” content and its associated “rules and controls may be distributed at different times, in different ways, by different VDE participants. The ability of VDE to securely distribute and

-168CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 enforce “rules and controls” separately from the content they apply to provides great advantages.

Use rights distributed by publishing house 214 may, for example, permit office 210 to make and distribute copies of the content to its employees. Office 210 may act as a redistributor by extending a “chain of handling and control” to its employees.

The office 210 may add or modify “rules and controls” (consistent with the “rules and controls” it receives from publishing house

214) to provide office-internal control information and mechanisms. For example, office 210 may set a maximum usage budget for each individual user and/or group within the office, or it may permit only specified employees and/or groups to access certain information.

Figure 1 also shows an information delivery service 216 delivering electronic storage media such as “CD ROM” disks to consumers 206. Even though the electronic storage media themselves are not delivered electronically by information utility

200 over lines 202, they are still part of the virtual distribution environment 100. The electronic storage media may be used to distribute content, “rules and controls,” or other information.

-169CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Example of What's Inside Information Utility 200 “Information utility” 200 in Figure 1 can be a collection of participants that may act as distributors, financial clearinghouses, and administrators. Figure 1A shows an example of what may be inside one example of information utility 200. Information utility participants 200a-200g could each be an independent organization/business. There can be any number of each of participants 200a-200g. In this example, electronic “switch” 200a connects internal parts of information utility 200 to each other and to outside participants, and may also connect outside participants to one another.

Information utility 200 may include a “transaction processor” 200b that processes transactions (to transfer electronic funds, for example) based on requests from participants and/or report receiver 200e. It may also include a “usage analyst” 200c that analyzes reported usage information.

A “report creator” 200d may create reports based on usage for example, and may provide these reports to outside participartta and/or to participants within information utility 200. A “report receiver” 200e may receive reports such as usage reports from content users. A “permissioning agent” 200f may distribute “rules and controls” granting usage or distribution permissions based on a profile of a consumer’s credit worthiness, for exam pi a

-170CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

An administrator 200h may provide information that keeps the virtual distribution environment 100 operating properly. A content and message storage 200g may store information for use by participants within or outside of information utility 200.

Example of Distributing Content’ Using A Chain of Handling and Control’

As explained above, virtual distribution environment 100 can be used to manage almost any sort of transaction. One type of important transaction that virtual distribution environment 100 may be used to manage is the distribution or communication of “content” or other important information. Figure 2 more abstractly shows a “model” of how the Figure 1 virtual distribution environment 100 may be used to proride a “chain of handling and control” for distributing content. Each of the blocks in Figure 2 may correspond to one or more of the VDE participants shown in Figure 1.

In the Figure 2 example, a VDE content creator 102 creates “content.” The content creator 102 may also specify “rules and controls” for distributing the content. These distribution-related “rules and controls” can specify who has permission to distribute the rights to use content, and how many users are allowed to use the content.

-171CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

Arrow 104 shows the content creator 102 sending the “rules and controls” associated with the content to a VDE rights distributor 106 (“distributor”) over an electronic highway 108 (or by some other path such as an optical disk sent by a delivery service such as U. S. mail). The content can be distributed over the same or different path used to send the “rules and controls.”

The distributor 106 generates her own “rules and controls” that relate to usage of the content. The usage-related “rules and controls” may, for example, specify what a user can and can’t do with the content and how much it costs to use the content. These usage-related “rules and controls” must be consistent with the “rules and controls” specified by content creator 102.

Arrow 110 shows the distributor 106 distributing rights to use the content by sending the content’s “rules and controls” to a content user 112 such as a consumer. The content user 112 uses the content in accordance with the usage-related “rules and controls.” in this Figure 2 example, information relating to content use is, as shown by arrow 114, reported to a financial clearinghouse 116. Based on this “reporting,” the financial clearinghouse 116 may generate a bill and send it to the content user 112 over a “reports and payments” network 118. Arrow 120

-172 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 shows the content user 112 providing payments for content usage to the financial clearinghouse 116. Based on the reports and payments it receives, the financial clearinghouse 116 may provide reports and/or payments to the distributor 106. The distributor 106 may, as shown by arrow 122, provide reports and/or payments to the content creator 102. The clearinghouse 116 may provide reports and payments directly to the creator 102. Reporting and/or payments may be done differently. For example, clearinghouse 116 may directly or through an agent, provide reports and/or payments to each of VDE content creators 102, and rights distributor 106, as well as reports to content user

112.

The distributor 106 and the content creator 102 may be the same person, or they may be different people. For example, a musical performing group may act as both content creator 102 and distributor 106 by creating and distributing its own musical recordings. As another example, a publishing house may act as a distributor 106 to distribute rights to use works created by an author content creator 102. Content creators 102 may use a distributor 106 to efficiently manage the financial end of content distribution.

-173CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

The “financial clearinghouse” 116 shown in Figure 2 may also be a “VDE .administrator.” Financial clearinghouse 116 in its VDE administrator role sends “administrative” information to the VDE participants. This administrative information helps to keep the virtual distribution environment 100 operating properly. The “VDE administrator” and financial clearinghouse roles may be performed by different people or companies, and there can be more than one of each.

More about Rules and Controls’

The virtual distribution environment 100 prevents use of protected information except as permitted by the “rules and controls” (control information). For example, the “rules and controls” shown in Figure 2 may grant specific individuals or classes of content users 112 “permission to use certain content.

They may specify what kinds of content usage are permitted, and what kinds are not. They may specify how content usage is to be paid for and how much it costs. As another example, “rules and controls” may require content usage information to be reported back to the distributor 106 and/or content creator 102.

Every VDE participant in “chain of handling and control” is normally subject to “rules and controls.” “Rules and controls” define the respective rights and obligations of each of the various

-174CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

VDE participants. “Rules and controls” provide information and mechanisms that may establish interdependencies and relationships between the participants. “Rules and controls” are flexible, and permit “virtual distribution environment” 100 to support most “traditional” business transactions. For example:

• “Rules and controls” may specify which financial clearinghouse! s) 116 may process payments, • “Rules and controls” may specify which participants) receive what kind of usage report, and • “Rules and controls” may specify that certain information is revealed to certain participants, and that other information is kept secret from them.

“Rules and controls” may self limit if and how they may be changed. Often, “rules and controls” specified by one VDE participant cannot be changed by another VDE participant. For example, a content user 112 generally can’t change “rules and controls” specified by a distributor 106 that require the user to pay for content usage at a certain rate. “Rules and controls” may “persist” as they pass through a “chain of handling and control,” and may be “inherited” as they are passed down from one VDE participant to the next.

-175CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Depending upon their needs, VDE participants can specify that their “rules and controls” can be changed under conditions specified by the same or other “rules and controls.” For example, “rules and controls” specified by the content creator 102 may permit the distributor 106 to “mark up” the usage price just as retail stores “mark up” the wholesale price of goods. Figure 2A shows an example in which certain “rules and controls” persist unchanged from content creator 102 to content user 112; other “rules and controls” are modified or deleted by distributor 106; and still other “rules and controls” are added by the distributor.

“Rules and controls” can be used to protect the content user’s privacy by limiting the information that is reported to other VDE participants. As one example, “rules and controls” can cause content usage information to be reported anonymously without revealing content user identity, or it can reveal only certain information to certain participants (for example, information derived from usage) with appropriate permission, if required. This ability to securely control what information is revealed and what VDE participants) it is revealed to allows the privacy rights of all VDE participants to be protected.

- 176 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Rules and Contents’ Can Be Separately Delivered

As mentioned above, virtual distribution environment 100 “associates” content with corresponding “rules and controls,” and prevents the content from being used or accessed unless a set of corresponding “rules and controls” is available. The distributor

106 doesn’t need to deliver content to control the content’s distribution. The preferred embodiment can securely protect content by protecting corresponding, usage enabling “rules and controls” against unauthorized distribution and use.

In some examples, “rules and controls” may travel with the content they apply to. Virtual distribution environment 100 also allows “rules and controls” to be delivered separately from content. Since no one can use or access protected content without “permission” from corresponding “rules and controls,” the distributor 106 can control use of content that has already been (or will in the future be) delivered. “Rules and controls” may be delivered over a path different from the one used for content delivery. Rules and controls may also be delivered at some other time. The content creator 102 might deliver content to content user 112 over the electronic highway 108, or could make the content available to anyone on the highway. Content may be used at the time it is delivered, or it may be stored for later use or reuse.

-177CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

The virtual distribution environment 100 also allows payment and reporting means to be delivered separately. For example, the content user 112 may have a virtual “credit card” that extends credit (up to a certain limit) to pay for usage of any content. A “credit transaction” can take place at the user’s site without requiring any “online” connection or further authorization. This invention can be used to help securely protect the virtual “credit card” against unauthorized use.

Rules and Contents” Define Processes

Figure 3 shows an example of an overall process based on “rules and controls.” It includes an “events” process 402, a meter process 404, a billing process 406, and a budget process 408. Not all of the processes shown in Figure 3 will be used for every set of “rules and controls.”

The “events process” 402 detects things that happen (“events”) and determines which of those “events” need action by the other “processes.” The “events” may include, for example, a request to use content or generate a usage permission. Some events may need additional processing, and others may not.

Whether an “event” needs more processing depends on the “rules and controls” corresponding to the content. For example, a user who lacks permission will not have her request satisfied (“No

- 178 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Go”). As another example, each user request to turn to a new page of an electronic book may be satisfied (“Go”), but it may not be necessary to meter, bill or budget those requests. A user who has purchased a copy of a novel may be permitted to open and read the novel as many times as she wants to without any further metering, billing or budgeting. In this simple example, the “event process” 402 may request metering, billing and/or budgeting processes the first time the user asks to open the protected novel (so the purchase price can be charged to the user), and treat all later requests to open the same novel as “insignificant events.” Other content (for example, searching an electronic telephone directory) may require the user to pay a fee for each access.

“Meter” process 404 keeps track of events, and may report usage to distributor 106 and/or other appropriate VDE participant(s). Figure 4 shows that process 404 can be based on a number of different factors such as:

(a) type of usage to charge for, (b) what kind of unit to base charges on, (c) how much to charge per unit,

-179CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 (d) when to report, and (e) how to pay.

These factors may be specified by the “rules and controls” that control, the meter process.

Rilling process 406 determines how much to charge for events. It records and reports payment information.

Budget process 408 limits how much content usage is 10 permitted. For example, budget process 408 may limit the number of times content may be accessed or copied, or it may limit the number of pages or other amount of content that can be used based on, for example, the number of dollars available in a credit account. Budget process 408 records and reports financial and other transaction information associated with such limits.

Content may be supplied to the user once these processes have been successfully performed.

Containers and Objects’

Figure 5A shows how the virtual distribution environment 100, in a preferred embodiment, may package information elements (content) into a “container” 302 so the information can’t be accessed except as provided by its “rules and controls.”

-180CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

Normally, the container 302 is electronic rather than physical. Electronic container 302 in one example comprises “digital” wformation having a well defined structure. Container 302 and its contents can be called an “object 300.”

The Figure 5A example shows items “within” and enclosed by container 302. However, container 302 may “contain” items without those items actually being stored within the container. For example, the container 302 may reference items that are available elsewhere such as in other containers at remote sites.

Container 302 may reference items available at different times or only during limited times. Some items may be too large to store within container 302. Items may, for example, be delivered to the user in the form of a “live feed” of video at a certain time.

Even then, the container 302 “contains” the live feed (by reference) in this example.

Container 302 may contain information content 304 in electronic (such as “digital”) form. Information content 304 could be the text of a novel, a picture, sound such as a musical performance or a reading, a movie or other video, computer software, or just about any other kind of electronic information you can think of. Other types of “objects” 300 (such as

-181CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 “administrative objects”) may contain “administrative” or other information instead of or in addition to information content 304.

In the Figure 5A example, container 302 may also contain “rules and controls” in the form of:

(a) a “permissions record” 808:

(b) “budgets” 308; and (c) “other methods” 1000.

Figure 5B gives some additional detail about permissions record 808, budgets 308 and other methods 1000. The “permissions record” 808 specifies the rights associated with the object 300 such as, for example, who can open the container 302, who can use the object’s contents, who can distribute the object, and what other control mechanisms must be active. For example, permissions record 808 may specify a user’s rights to use, distribute and/or administer the container 302 and its content. Permissions record 808 may also specify requirements to be applied by the budgets 308 and “other methods” 1000. Permissions record 808 may also contain security related information such as scrambling and descrambling “keys.” “Budgets” 308 shown in Figure 5B are a special type of “method” 1000 that may specify, among other things, limitations

-182CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 on usage of information content 304, and how usage will be paid for. Budgets 308 can specify, for example, bow much of the total information content 304 can be used and/or copied. The methods 310 may prevent use of more than the amount specified by a specific budget.

“Other methods’* 1000 define basic operations used by “rules and controls.” Such “methods” 1000 may include, for example, how usage is to be “metered,” if and how content 304 and other information is to be scrambled and descrambled, and other processes associated with handling and controlling information content 304. For example, methods 1000 may record the identity of anyone who opens the electronic container 302, and can also control how information content is to be charged based on “metering.” Methods 1000 may apply to one or several different information contents 304 and associated containers 302, as well as to all or specific portions of information content

304.

Secure Processing Unit (SPU)

The “VDE participants” may each have an “electronic appliance.” The appliance may be or contain a computer. The appliances may communicate over the electronic highway 108. Figure 6 shows a secure processing unit (“SPU”) 500 portion of

- 183CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 the “electronic appliance” used in this example by each VDE participant. SPU 500 processes information in a secure processing environment 503, and stores important information securely. SPU 500 may be emulated by software operating in a host electronic appliance.

SPU 500 is enclosed within and protected by a “tamper resistant security barrier” 502. Security barrier 502 separates tbe secure environment 503 from the rest of the world. It prevents information and processes within the secure environment 503 from being observed, interfered with and leaving except under appropriate secure conditions. Barrier 502 also controls external access to secure resources, processes and information within SPU 500. In one example, tamper resistant security barrier 502 is formed by security features such as “encryption,” and hardware that detects tampering and/or destroys sensitive information within secure environment 503 when tampering is detected.

SPU 500 in this example is an integrated circuit (“IC”) “chip” 504 including “hardware” 506 and “firmware” 508. SPU 500 connects to the rest of the electronic appliance through an “appliance link” 510. SPU “firmware” 508 in this example is “software” such as a “computer program(s)” “embedded” within

-184 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/1S243 chip 504. Firmware 508 makes the hardware 506 work.

Hardware 506 preferably contains a processor to perform instructions specified by firmware 508. “Hardware” 506 also contains long-term and short-term memories to store information securely so it can’t be tampered with. SPU 500 may also have a protected dock/calendar used for timing events. The SPU hardware 506 in this example may include special purpose electronic circuits that are specially designed to perform certain processes (such as “encryption” and “decryption”) rapidly and efficiently.

The particular context in which SPU 500 is being used will determine how much processing capabilities SPU 500 should have. SPU hardware 506, in this example, provides at least enough processing capabilities to support the secure parts of processes shown in Figure 3. In some contexts, the functions of SPU 500 may be increased so the SPU can perform all the electronic appliance processing, and can be incorporated into a general purpose processor. In other contexts, SPU 500 may work alongside a general purpose processor, and therefore only needs to have enough processing capabilities to handle secure processes.

- 185CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

VDE Electronic Appliance and Eights Operating System*

Figure 7 shows an example of an electronic appliance 600 including SPU 500. Electronic appliance 600 may be practically any kind of electrical or electronic device, such as:

• a computer • a T.V. “set top” control box • a pager • a telephone • a sound system • a video reproduction system • a video game player • a “smart” credit card

Electronic appliance 600 in this example may include a keyboard or keypad 612, a voice recognizer 613, and a display 614. A human user can input commands through keyboard 612 and/or voice recognizer 613, and may view information on display 614. Appliance 600 may communicate with the outside world through any of the connections/devices normally used within an electronic appliance. The connections/devices shown along the bottom of the drawing are examples:

a “modem” 618 or other telecommunications link; a CD ROM disk 620 or other storage medium or device;

-186CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 a printer 622; broadcast reception 624; a document scanner 626; and a “cable” 628 connecting the appliance with a “network.”

Virtual distribution environment 100 provides a “rights operating system” 602 that manages appliance 600 and SPU 500 by controlling their hardware resources. The operating system 602 may also support at least one “application” 608. Generally, “application” 608 is hardware and/or software specific to the context of appliance 600. For example, if appliance 600 is a personal computer, then “application” 608 could be a program loaded by the user, for instance, a word processor, a communications system or a sound recorder. If appliance 600 is a television controller box, then application 608 might be hardware or software that allows a user to order videos on demand and perform other functions such as fast forward and rewind. In this example, operating system 602 provides a standardized, well defined, generalized “interface” that could support and work with many different “applications” 608.

Operating system 602 in this example provides “rights and auditing operating system functions” 604 and “other operating system functions” 606. The “rights and auditing operating

-187 CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/15243 system functions” 604 securely handle tasks that relate to virtual distribution environment 100. SPU 500 provides or supports many of the security functions of the “rights and auditing operating system functions” 402. The “other operating system functions” 606 handle general appliance functions. Overall operating system 602 may be designed from the beginning to include the “rights and auditing operating system functions” 604 plus the “other operating system functions” 606, or the “rights and auditing operating system functions” may be an add-on to a preexisting operating system providing the “other operating system functions.” “Rights operating system” 602 in this example can work with many different types of appliances 600. For example, it can work with large mainframe computers, “minicomputers” and “microcomputers” such as personal computers and portable computing devices. It can also work in control boxes on the top of television sets, small portable pagers,“ desktop radios, stereo sound systems, telephones, telephone switches, or any other electronic appliance. This ability to work on big appliances as well as little appliances is called scalable. A ”scalable“ operating system 602 means that there can be a standardized interface across many different appliances performing a wide variety of tasks.

-188CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

The rights operating system functions 604 are servicesbased in this example. For example, rights operating system functions 604 handle summary requests from application 608 rather than requiring the application to always make more detailed ”subrequests“ or otherwise get involved with the underlying complexities involved in satisfying a summary request. For example, application 608 may simply ask to read specified information; ’’rights operating system functions 604 can then decide whether the desired information is VDEprotected content and, if it is, perform processes needed to make the information available. This feature is called transparency. Transparency makes tasks easy for the application 608.

Rights operating system functions 604 can support applications 608 that know nothing about virtual distribution environment 100. Applications 608 that are ”aware“ of virtual distribution environment 100 may be able to make more detailed use of virtual distribution environment 100.

In this example, ’’rights operating system functions 604 are event driven. Rather than repeatedly examining the state of electronic appliance 600 to determine whether a condition has arisen, the rights operating system functions 604 may respond directly to events or happenings within appliance 600.

-189CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

In this example, some of the services performed by rights operating system functions 604 may be extended based on additional components delivered to operating system 602.

Rights operating system functions 604 can collect together and use components sent by different participants at different times. The ’’components help to make the operating system 602 scalable. Some components can change how services work on little appliances versus how they work on big appliances (e.g., multi-user). Other components are designed to work with specific applications or classes of applications (e.g., some types of meters and some types of budgets).

Electronic Appliance 600

An electronic appliance 600 provided by the preferred 15 embodiment may, for example, be any electronic apparatus that contains one or more microprocessors and/or microcontrollers and/or other devices which perform logical and/or mathematical calculations. This may include computers; computer terminals; device controllers for use with computers; peripheral devices for use with computers; digital display devices; televisions; video and audio/video projection systems; channel selectors and/or decoders for use with broadcast and/or cable transmissions; remote control devices; video and/or audio recorders; media players including compact disc players, videodisc players and

- 190CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 tape players; audio and/or video amplifiers; virtual reality machines; electronic game players; multimedia players; radios; telephones; videophones; facsimile machines; robots; numerically controlled machines including machine tools and the like; and other devices containing one or more microcomputers and/or microcontrollers and/or other CPUs, including those not yet in existence.

Figure 8 shows an example of an electronic appliance 600.

This example of electronic appliance 600 includes a system bus

653. In this example, one or more conventional general purpose central processing units (”CPUs“) 654 are connected to bus 653.

Bus 653 connects CPU(s) 654 to RAM 656, ROM 658, and I/O controller 660. One or more SPUs 500 may also be connected to system bus 653. System bus 653 may permit SPU(s) 500 to communicate with CPU(s) 654, and also may allow both the CPU(s) and the SPU(s) to communicate (e.g., over shared address and data lines) with RAM 656, ROM 658 and I/O controller 660. A power supply 659 may provide power to SPU

500, CPU 654 and the other system components shown.

In the example shown, I/O controller 660 is connected to secondary storage device 652, a keyboard/display 612,614, a communications controller 666, and a backup storage device 668.

-191CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Backup storage device 668 may, for example, store information on mass media such as a tape 670, a floppy disk, a removable memory card, etc. Communications controller 666 may allow electronic appliance 600 to communicate with other electronic appliances via network 672 or other telecommunications links.

Different electronic appliances 600 may interoperate even if they use different CPUs and different instances of ROS 602, so long as they typically use compatible communication protocols and/or security methods. In this example, I/O controller 660 permits

CPU 654 and SPU 500 to read from and write to secondary storage 662, keyboard/display 612, 614, communications controller 666, and backup storage device 668.

Secondary storage 662 may comprise the same one or more non-secure secondary storage devices (such as a magnetic disk and a CD-ROM drive as one example) that electronic appliance 600 uses for general secondary storage functions. In some implementations, part or all of secondary storage 652 may comprise a secondary storage device(s) that is physically enclosed within a secure enclosure. However, since it may not be practical or cost-effective to physically secure secondary storage 652 in many implementations, secondary storage 652 may be used to store information in a secure manner by encrypting information before storing it in secondary storage 652. If information is

-192 CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 encrypted before it is stored, physical access to secondary storage 652 or its contents does not readily reveal or compromise the information.

Secondary storage 652 in this example stores code and data used by CPU 654 and/or SPU 500 to control the overall operation of electronic appliance 600. For example, Figure 8 shows that Rights Operating System (”ROS“) 602 (including a portion 604 of ROS that provides VDE functions and a portion

606 that provides other OS functions) shown in Figure 7 may be stored on secondary storage 652. Secondary storage 652 may also store one or more VDE objects 300. Figure 8 also shows that the secure files 610 shown in Figure 7 may be stored on secondary storage 652 in the form of a secure database or management file system 610. This secure database 610 may store and organize information used by ROS 602 to perform VDE functions 604. Thus, the code that is executed to perform VDE and other OS functions 604, 606, and secure files 610 (as well as VDE objects 300) associated with those functions may be stored in secondary storage 652. Secondary storage 652 may also store other information 673 such as, for example, information used by other operating system functions 606 for task management, non-VDE files, etc. Portions of the elements indicated in secondary storage 652 may also be stored in ROM 658, so long as

-193 CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 those elements do not require changes (except when ROM 658 is replaced). Portions of ROS 602 in particular may desirably be included in ROM 658 (e.g., bootstrap routines, POST routines, etc. for use in establishing an operating environment for electronic appliance 600 when power is applied).

Figure 8 shows that secondary storage 652 may also be used to store code (’’application programs) providing user application(s) 608 shown in Figure 7. Figure 8 shows that there may be two general types of application programs 608: VDE aware applications 608a, and Non-VDE aware applications 608b. VDE aware applications 608a may have been at least in part designed specifically with VDE 100 in mind to access and take detailed advantage of VDE functions 604. Because of the transparency features of ROS 602, non-VDE aware applications 608b (e.g., applications not specifically designed for VDE 100) can also access and take advantage of VDE functions

604.

SECURE PROCESSING UNIT 500

Each VDE node or other electronic appliance 600 in the preferred embodiment may include one or more SPUs 500. SPUs 500 may be used to perform all secure processing for VDE 100.

For example, SPU 500 is used for decrypting (or otherwise

- 194CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 unsecuring) VDE protected objects 300. It is also used for •managing encrypted and/or otherwise secured communication (such as by employing authentication and/or error-correction validation of information). SPU 500 may also perform secure data management processes including governing usage of,.

auditing of, and where appropriate, payment for VDE objects 300 (through the use of prepayments, credits, real-time electronic debits from bank accounts and/or VDE node currency token deposit accounts). SPU 500 may'perform other transactions related to such VDE objects 300.

SPU Physical Packaging and Security Barrier 502

As shown Figure 6, in the preferred embodiment, an SPU

500 may be implemented as a single integrated circuit ”chip“ 505 to provide a secure processing environment in which confidential and/or commercially valuable information can be safely processed, encrypted and/or decrypted. IC chip 505 may, for example, comprise a small semiconductor ”die“ about the size of a thumbnail. This semiconductor die may include semiconductor and metal conductive pathways. These pathways define the circuitry, and thus the functionality, of SPU 500. Some of these pathways are electrically connected to the external ”pins“ 504 of the chip 505.

-195 CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

As shown in Figures 6 and 9, SPU 500 may be surrounded by a tamper-resistant hardware security barrier 502. Part of this security barrier 502 is formed by a plastic or other package in which an SPU ”die“ is encased. Because the processing occurring within, and information stored by, SPU 500 are not easily accessible to the outside world, they are relatively secure from unauthorized access and tampering. All signals cross barrier 502 through a secure, controlled path provided by BIU 530 that restricts the outside world’s access to the internal components within SPU 500. This secure, controlled path resists attempts from the outside world to access secret information and resources within SPU 500.

It is possible to remove the plastic package of an IC chip and gain access to the ”die.“ It is also possible to analyze and ”reverse engineer the ”die“ itself (e.g., using various types of logic analyzers and microprobes to collect and analyze signals on the die while the circuitry is operating, using acid etching or other techniques to remove semiconductor layers to expose other layers, viewing and photographing the die using an electron microscope, etc.) Although no system or circuit is absolutely impervious to such attacks, SPU barrier 502 may include additional hardware protections that make successful attacks exceedingly costly and time consuming. For example, ion

-196CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 implantation and/or other fabrication techniques may be used to make it very difficult to visually discern SPU die conductive pathways, and SPU internal circuitry may be fabricated in such a way that it ’’self-destructs when exposed to air and/or light.

SPU 500 may store secret information in internal memory that loses its contents when power is lost. Circuitry may be incorporated within SPU 500 that detects microprobing or other tampering, and self-destructs (or destroys other parts of the SPU) when tampering is detected. These and other hardware10 based physical security techniques contribute to tamperresistant hardware security barrier 502.

To increase the security of security barrier 502 even further, it is possible to encase or include SPU 500 in one or more further physical enclosures such as, for example: epoxy or other potting compound; further module enclosures including additional self-destruct, self-disabling or other features activated when tampering is detected; further modules providing additional security protections such as requiring password or other authentication to operate; and the like. In addition, further layers of metal may be added to the die to complicate acid etching, micro probing, and the like; circuitry designed to zeroize memory may be included as an aspect of self-destruct processes; the plastic package itself may be designed to resist

-197CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 chemical as well as physical attacks; and memories internal to SPU 500 may have specialized addressing and refresh circuitry that shuffles the location of bits to complicate efforts to electrically determine the value of memory locations. These and other techniques may contribute to the security of barrier 502.

In some electronic appliances 600, SPU 500 may be integrated together with the device microcontroller or equivalent or with a device I/O or communications microcontroller into a common chip (or chip set) 505. For example, in one preferred embodiment, SPU 500 may be integrated together with one or more other CPU(s) (e.g., a CPU 654 of an electronic appliance) in

x. a single component or package. The other CPU(s) 654 may be any centrally controlling logic arrangement, such as for example, a microprocessor, other microcontroller, and/or array or other parallel processor. This integrated configuration may result in lower overall cost, smaller overall size, and potentially faster interaction between an SPU 500 and a CPU 654. Integration may also provide wider distribution if an integrated SPU/CPU component is a standard feature of a widely distributed microprocessor line. Merging an SPU 500 into a main CPU 654 of an electronic appliance 600 (or into another appliance or appliance peripheral microcomputer or other microcontroller) may substantially reduce the overhead cost of implementing

-198CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/15243

VDE 100. Integration considerations may include cost of implementation, cost of manufacture, desired degree of security, and value of compactness.

SPU 500 may also be integrated with devices other than

CPUs. For example, for video and multimedia applications, some performance and/or security advantages (depending on overall design) could result from integrating an SPU 500 into a video controller chip or chipset. SPU 500 can also be integrated directly into a network communications chip or chipset or the like. Certain performance advantages in high speed communications applications may also restât from integrating an SPU 500 with a modem chip or chipset. This may facilitate incorporation of an SPU 500 into communication appliances such as stand-alone fax machines. SPU 500 may also be integrated into other peripheral devices, such as CD-ROM devices, set-top cable devices, game devices, and a wide variety of other electronic appliances that use, allow access to, perform transactions related to, or consume, distributed information.

SPU 500 Internal Architecture

Figure 9 is a detailed diagram of the internal structure within an example of SPU 500. SPU 500 in this example includes a single microprocessor 520 and a limited amount of

-199 CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 memory configured as ROM 532 and RAM 534. In more detail, this example of SPU 500 includes microprocessor 520, an encrypt/deciypt engine 522, a DMA controller 526, a real-time clock 528, a bus interface unit (”BIU“) 530, a read only memory (ROM) 532, a random access memory (RAM) 534, and a memory management unit (”MMU“) 540. DMA controller 526 and MMU 540 are optional, but the performance of SPU 500 may suffer if they are not present. SPU 500 may also include an optional pattern matching engine 524, an optional random number generator 542, an optional arithmetic accelerator circuit 544, and optional compression/decompression circuit 546. A shared address/data bus arrangement 536 may transfer information between these various components under control of microprocessor 520 and/or DMA controller 526. Additional or alternate dedicated paths 538 may connect microprocessor 520 to the other components (e.g., encrypt/decrypt engine 522 via line 538a, real-time clock 528 via line 538b, bus interface unit 530 via line 538c, DMA controller via line 538d, and memory management unit (MMU) 540 via line 538e).

The following section discusses each of these SPU components in more detail.

-200CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

Microprocessor 520

Microprocessor 520 is the brain“ of SPU 500. In this example, it executes a sequence of steps specified by code stored (at least temporarily) within ROM 532 and/or RAM 534.

Microprocessor 520 in the preferred embodiment comprises a dedicated central processing arrangement (e.g., a RISC and/or CISC processor unit, a microcontroller, and/or other central processing means or, less desirably in most applications, process specific dedicated control logic) for executing instructions stored in the ROM 532 and/or other memory. Microprocessor 520 may be separate elements of a circuitry layout, or may be separate packages within a secure SPU 500.

In the preferred embodiment, microprocessor 520 normally handles the most security sensitive aspects of the operation of electronic appliance 600. For example, microprocessor 520 may manage VDE decrypting, encrypting, certain content and/or appliance usage control information, keeping track of usage of VDE secured content, and other VDE usage control related functions.

Stored in each SPU 500 and/or electronic appliance secondary memory 652 may be, for example, an instance of ROS 602 software, application programs 608, objects 300 contai ni ng

-201 CA 02373508 2002-03-07

WO 98/09209 PC17US97/15243

VDE controlled property content and related information, and management database 610 that stores both information associated with objects and VDE control information. ROS 602 includes software intended for execution by SPU microprocessor

520 for, in part, controlling usage of VDE related objects 300 by electronic appliance 600. As will be explained, these SPU programs include ”load modules for performing basic control functions. These various programs and associated data are executed and manipulated primarily by microprocessor 520.

Real Time Clock (RTC) 528

In the preferred embodiment, SPU 500 includes a real time clock circuit (”RTC“) 528 that serves as a reliable, tamper resistant time base for the SPU. RTC 528 keeps track of time of day and date (e.g., month, day and year) in the preferred embodiment, and thus may comprise a combination calendar and clock. A reliable time base is important for implementing time based usage metering methods, time aged decryption keys, and other time based SPU functions.

The RTC 528 must receive power in order to operate. Optimally, the RTC 528 power source could comprise a small battery located within SPU 500 or other secure enclosure.

However, the RTC 528 may employ a power source such as an

-202CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 externally located battery that is external to the SPU 500. Such an externally located battery may provide relatively uninterrupted power to RTC 528, and may also maintain as non-volatile at least a portion of the otherwise volatile RAM 534 within SPU 500.

In one implementation, electronic appliance power supply 659 is also used to power SPU 500. Using any external power supply as the only power source for RTC 528 may significantly reduce the usefulness of time based security techniques unless, at minimum, SPU 500 recognizes any interruption (or any material interruption) of the supply of external power, records such interruption, and responds as may be appropriate such as disabling the ability of the SPU 500 to perform certain or all

VDE processes. Recognizing a power interruption may, for example, be accomplished by employing a circuit which is activated by power failure. The power failure sensing circuit may power another circuit that includes associated logic for recording one or more power fail events. Capacitor discharge circuitry may provide the necessary temporary power to operate this logic. In addition or alternatively, SPU 500 may from time to time compare an output of RTC 528 to a clock output of a host electronic appliance 600, if available. In the event a discrepancy is detected, SPU 500 may respond as appropriate, including

-203CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 recording the discrepancy and/or disabling at least some portion of processes performed by SPU 500 under at least some circumstances.

If a power failure and/or ETC 528 discrepancy and/or other event indicates the possibility of tampering, SPU 500 may automatically destroy, or render inaccessible without privileged intervention, one or more portions of sensitive information it stores, such as execution related information and/or encryption key related information. To provide farther SPU operation, such destroyed information would have to be replaced by a VDE clearinghouse, administrator and/or distributor, as may be appropriate. This may be achieved by remotely downloading update and/or replacement data and/or code. In the event of a disabling and/or destruction of processes and/or information as described above, the electronic appliance 600 may require a secure VDE communication with an administrator, clearinghouse, and/or distributor as appropriate in order to reinitialize the RTC 528. Some or all secure SPU 500 processes may not operate until then.

It may be desirable to provide a mechanism for setting and/or synchronizing PTC 528. In the preferred embodiment, when communication occurs between VDE electronic appliance

- 204CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

600 and another VDE appliance, an output of RTC 528 may be compared to a controlled RTC 528 output time under control of the party authorized to be senior and controlling. In the event of a discrepancy, appropriate action may be taken, including resetting the RTC 528 of the junior controlled participant in the communication.

SPU Encrypt/Decrypt Engine 522

In the preferred embodiment, SPU encrypt/decrypt engine 10 522 provides special purpose hardware (e.g., a hardware state machine) for rapidly and efficiently encrypting and/or decrypting data. In some implementations, the encrypt/decrypt functions may be performed instead by microprocessor 520 under software control, but providing special purpose enciypt/decrypt hardware engine 522 will, in general, provide increased performance.

Microprocessor 520 may, if desired, comprise a combination of processor circuitry and dedicated encryption/decryption logic that may be integrated together in the same circuitry layout so as to, for example, optimally share one or more circuit elements.

Generally, it is preferable that a computationally efficient but highly secure bulk encryption/decryption technique should be used to protect most of the data and objects handled by SPU 500. It is preferable that an extremely secure

-205CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 eacryption/decryption technique be used as an aspect of authenticating the identity of electronic appliances 600 that are establishing a communication channel and securing any transferred permission, method, and administrative information.

In the preferred embodiment, the encrypt/decrypt engine 522 includes both a symmetric key encryption/decryption circuit (e.g. DES, Skipjack/Clipper, IDEA, RC-2, RC-4, etc.) and an antisymmetric (asymmetric) or Public Key (”PK“) encryption/decryption circuit. The public/private key 10 encryption/decryption circuit is used principally as an aspect of secure communications between an SPU 500 and VDE administrators, or other electronic appliances 600, that is between VDE secure subsystems. A symmetric encryption/decryption circuit may be used for bulk encrypting and decrypting most data stored in secondary storage 662 of electronic appliance 600 in which SPU 500 resides. The symmetric key encryption/decryption circuit may also be used for encrypting and decrypting content stored within VDE objects 300.

DES or public/private key methods may be used for all encryption functions. In alternate embodiments, encryption and decryption methods other than the DES and public/private key methods could be used for the various encryption related

-206CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 functions. For instance, other types of symmetric encryption/decryption techniques in which the same key is used for encryption and decryption could be used in place of DES encryption and decryption. The preferred embodiment can support a plurality of decryption/encryption techniques using multiple dedicated circuits within encrypt/decrypt engine 522 and/or the processing arrangement within SPU 500.

Pattern Matching Engine 524

Optional pattern matching engine 524 may provide special purpose hardware for performing pattern matching functions.

One of the functions SPU 500 may perform is to validate/authenticate VDE objects 300 and other items. Validation/authentication often involves comparing long data strings to determine whether they compare in a predetermined way. In addition, certain forms of usage (such as logical and/or physical (contiguous ) relatedness of accessed elements) may require searching potentially long strings of data for certain bit patterns or other significant pattern related metrics. Although pattern matching can be performed by SPU microprocessor 520 under software control, providing special purpose hardware pattern matching engine 524 may speed up the pattern matching process.

-207CA 02373508 2002-03-07

WO 98/09209 PCT/US97/1S243

Compression/Decompression Engine 546

An optional compression/decompression engine 546 may be provided within an SPU 500 to, for example, compress and/or decompress content stored in, or released from, VDE objects 300. Compression/decompression engine 546 may implement one or more compression algorithms using hardware circuitry to improve the performance of compression/decompression operations that would otherwise be performed by software operating on microprocessor 520, or outside SPU 500.

Decompression is important in the release of data such as video and audio that is usually compressed before distribution and whose decompression speed is important. In some cases, information that is useful for usage monitoring purposes (such as record separators or other delimiters) is hidden under a compression layer that must be removed before this information can be detected and used inside SPU 500.

Random Number Generator 542

Optional random number generator 542 may provide specialized hardware circuitry for generating random values (e.g., from inherently unpredictable physical processes such as quantum noise). Such random values are particularly useful for constructing encryption keys or unique identifiers, and for initializing the generation of pseudo-random sequences.

-208CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

Random number generator 542 may produce values of any convenient length, including as small as a single bit per use. A random number of arbitrary size may be constructed by concatenating values produced by random number generator 542. A cryptographically strong pseudo-random sequence may be generated from a random key and seed generated with random number generator 542 and repeated encryption either with the encrypt/decrypt engine 522 or cryptographic algorithms in SPU 500. Such sequences may be used, for example, in private headers to frustrate efforts to determine an encryption key through cryptoanalysis.

Arithmetic Accelerator 544

An optional arithmetic accelerator 544 may be provided within an SPU 500 in the form of hardware circuitry that can rapidly perform mathematical calculations such as multiplication and exponentiation involving large numbers. These calculations can, for example, be requested by microprocessor 520 or encrypt/decrypt engine 522, to assist in the computations required for certain asymmetric encryption/decryption operations. Such arithmetic accelerators are well-known to those skilled in the art. In some implementations, a separate arithmetic accelerator 544 may be

-209CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 omitted and any necessary calculations may be performed by microprocessor 520 under software control.

DMA Controller 526

DMA controller 526 controls information transfers over address/data bus 536 without requiring microprocessor 520 to process each individual data transfer. Typically, microprocessor 520 may write to DMA controller 526 target and destination addresses and the number of bytes to transfer, and DMA controller 526 may then automatically transfer a block of data between components of SPU 500 (e.g., from ROM 532 to RAM 534, between encrypt/decrypt engine 522 and RAM 534, between bus interface unit 530 and RAM 534, etc. ). DMA controller 526 may have multiple channels to handle multiple transfers simultaneously. In some implementations, a separate DMA controller 526 may be omitted, and any necessary data movements may be performed by microprocessor 520 under software control.

Bus Interface Unit (BIU) 530

Bus interface unit (BIU) 530 communicates information between SPU 500 and the outside world across the security barrier 502. BIU 530 shown in Figure 9 plus appropriate driver software may comprise the appliance link 510 shown in Figure

-210CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

6. Bus interface unit 530 may be modelled after a USART or PCI bus interface in the preferred embodiment. In this example, BTU 530 connects SPU 500 to electronic appliance system bus 653 shown in Figure 8. BIU 530 is designed to prevent unauthorized access to internal components within SPU 500 and their contents. It does this by only allowing signals associated with an SPU 500 to be processed by control programs running on microprocessor 520 and not supporting direct access to the internal elements of ail SPU 500.

Memory Management Unit 540

Memory Management Unit (MMU) 540, if present, provides hardware support for memory management and virtual memory management functions. It may also provide heightened security by enforcing hardware compartmentalization of the secure execution space (e.g., to prevent a less trusted task from modifying a more trusted task). More details are provided below in connection with a discussion of the architecture of a Secure Processing Environment (”SPE“) 503 supported by SPU 500.

MMU 540 may also provide hardware-level support functions related to memory management such as, for example, address mapping.

-211CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

SPU Memory Architecture

In the preferred embodiment, SPU 500 uses three general kinds of memory:

(1) internal ROM 532;

(2) internal RAM 534; and (3) external memory (typically RAM and/or disk supplied by a host electronic appliance).

The internal ROM 532 and RAM 534 within SPU 500 provide a secure operating environment and execution space.

Because of cost limitations, chip fabrication size, complexity and other limitations, it may not be possible to provide sufficient memory within SPU 500 to store all information that an SPU needs to process in a secure manner. Due to the practical limits on the amount of ROM 532 and RAM 534 that may be included within SPU 500, SPU 500 may store information in memory external to it, and move this information into and out of its secure internal memory space on an as needed basis. In these cases, secure processing steps performed by an SPU typically must be segmented into small, securely packaged elements that may be paged in“ and paged out of the limited available internal memory space. Memory external to an SPU 500 may not be secure. Since the external memory may not be secure,

SPU 500 may encrypt and cryptographically seal code and other

-212CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 information before storing it in external memory. Similarly,

SPU 500 must typically decrypt code and other information obtained from external memory in encrypted form before processing (e.g., executing) based on it. In the preferred embodiment, there are two general approaches used to address potential memory limitations in a SPU 500. In the first case, the small, securely packaged elements represent information contained in secure database 610. In the second case, such elements may represent protected (e.g., encrypted) virtual memory pages. Although virtual memory pages may correspond to information elements stored in secure database 610, this is not required in this example of a SPU memory architecture.

The following is a more detailed discussion of each of these three SPU memory resources.

SPU Internal ROM

SPU 500 read only memory (ROM) 532 or comparable purpose device provides secure internal non-volatile storage for certain programs and other information. For example, ROM 532 may store kernel programs such as SPU control firmware 508 and, if desired, encryption key information and certain fundamental load modules. The ’’kernel programs, load module information, and encryption key information enable tbe

-213CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 control of certain basic functions of the SPU 500. Those components that are at least in part dependent on device configuration (e.g., POST, memory allocation, and a dispatcher) may be loaded in ROM 532 along with additional load modules that have been determined to be required for specific installations or applications.

In the preferred embodiment, ROM 532 may comprise a combination of a masked ROM 532a and an EEPROM and/or equivalent flash memory 532b. EEPROM or flash memory

532b is used to store items that need to be updated and/or initialized, such as for example, certain encryption keys. An additional benefit of providing EEPROM and/or flash memory 532b is the ability to optimize any load modules and library functions persistently stored within SPU 500 based on typical usage at a specific site. Although these items could also be stored in NVRAM 534b, EEPROM and/or flash memory 532b may be more cost effective.

Masked ROM 532a may cost less than flash and/or

EEPROM 532b, and can be used to store permanent portions of SPU sofcware/firmware. Such permanent portions may include, for example, code that interfaces to hardware elements such as the RTC 528, encryption/decryption engine 522, interrupt

-214CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 handlers, key generators, etc. Some of the operating system, library calls, libraries, and many of the core services provided by SPU 500 may also be in masked ROM 532a. In addition, some of the more commonly used executables are also good candidates for inclusion in masked ROM 532a. Items that need to be updated or that need to disappear when power is removed from SPU 500 should not be stored in masked ROM 532a.

Under some circumstances, RAM 534a and/or NVRAM 534b (NVRAM 534b may, for example, be constantly powered conventional RAM) may perform at least part of the role of ROM

532.

SPU Internal RAM

SPU 500 general purpose RAM 534 prorides, among other things, secure execution space for secure processes. In the preferred embodiment, RAM 534 is comprised of different types of RAM such as a combination of high-speed RAM 534a and an NVRAM (”non-volatile RAM) 534b. RAM 534a may be volatile, while NVRAM 534b is preferably battery backed or otherwise arranged so as to be non-volatile (i.e., it does not lose its contents when power is turned off).

-215CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

High-speed RAM 534a stores active code to be executed and associated data structures.

NVRAM 534b preferably contains certain keys and 5 summary values that are preloaded as part of an initialization process in which SPU 500 communicates with a VDE administrator, and may also store changeable or changing information associated with the operation of SPU 500. For security reasons, certain highly sensitive information (e.g., certain load modules and certain encryption key related information such as internally generated private keys) needs to be loaded into or generated internally by SPU 500 from time to time but, once loaded or generated internally, should never leave the SPU. In this preferred embodiment, the SPU 500 non-volatile random access memory (NVRAM) 534b may be used for securely storing such highly sensitive information. NVRAM 534b is also used by SPU 500 to store data that may change frequently but which preferably should not be lost in a power down or power fail mode.

NVRAM 534b is preferably a fiash memory array, but may in addition or alternatively be electrically erasable programmable read only memory (EEPROM), static RAM (SRAM), bubble memory, three dimensional holographic or other

-216CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 electro-optical memory, or the like, or any other writable (e.g., randomly accessible) non-volatile memory of sufficient speed and cost-effectiveness.

SPU External Memory

The SPU 500 can store certain information on memory devices external to the SPU. If available, electronic appliance 600 memory can also be used to support any device external portions of SPU 500 software. Certain advantages may be gained by allowing the SPU 500 to use external memory. As one example, memory internal to SPU 500 may be reduced in size by using non-volatile read/write memory in the host electronic appliance 600 such as a non-volatile portion of RAM 656 and/or ROM 658.

Such external memory may be used to store SPU programs, data and/or other information. For example, a VDE control program may be, at least in part, loaded into the memory and communicated to and decrypted within SPU 500 prior to execution. Such control programs may be re-encrypted and communicated back to external memory where they may be stored for later execution by SPU 500. Kernel programs and/or some or all of the non-kernel load modules may be stored by SPU 500 in memory external to it. Since a secure database 610

-217CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 may be relatively large, SPU 500 can store some or all of secure database 610 in external memory and call portions into the SPU 500 as needed.

As mentioned above, memory external to SPU 500 may not be secure. Therefore, when security is required, SPU 500 must encrypt secure information before writing it to external memory, and decrypt secure information read from external memory before using it. Inasmuch as the encryption layer relies on secure processes and information (e.g., encryption algorithms and keys) present within SPU 500, the encryption layer effectively extends the SPU security barrier 502 to protect information the SPU 500 stores in memory external to it.

SPU 500 can use a wide variety of different types of external memory. For example, external memory may comprise electronic appliance secondary storage 652 such as a disk; external EEPROM or flash memory 658; and/or external RAM 656. External RAM 656 may comprise an external nonvolatile (e.g. constantly powered) RAM and/or cache RAM.

Using external RAM local to SPU 500 can significantly improve access times to information stored externally to an SPU.

For example, external RAM may be used:

-218CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 • to buffer memory image pages and data structures prior to their storage in flash memory or on an external hard disk (assuming transfer to flash or hard disk can occur in significant power or system failure cases);

• provide encryption and decryption buffers for data being released from VDE objects 300.

• to cache ’’swap blocks and VDE data structures currently in use as an aspect of providing a secure virtual memory environment for SPU 500.

• to cache other information in order to, for example, reduce frequency of access by an SPU to secondary storage 652 and/or for other reasons.

Dual ported external RAM can be particularly effective in improving SPU 500 performance, since it can decrease the data movement overhead of the SPU bus interface unit 530 and SPU microprocessor 520.

Using external flash memory local to SPU 500 can be used to significantly improve access times to virtually all data structures. Since most available flash storage devices have limited write lifetimes, flash storage needs to take into account the number of writes that will occur during the lifetime of the flash memory. Hence, flash storage of frequently written temporary items is not recommended. If external RAM is non-219CA 02373508 2002-03-07

WO 98/09209 volatile, then transfer to flash (or hard disk) may not be necessary.

PCT/ÜS97/15243

External memory used by SPU 500 may include two 5 categories:

external memory dedicated to SPU 500, and • memory shared with electronic appliance 600.

For some VDE implementations, sharing memory (e.g., electronic appliance RAM 656, ROM 658 and/or secondary storage 652) with CPU 654 or other elements of an electronic appliance 600 may be the most cost effective way to store VDE secure database management files 610 and information that needs to be stored external to SPU 500. A host system hard disk secondary memory 652 used for general purpose file storage can, for example, also be used to store VDE management files 610. SPU 500 may be given exclusive access to the external memory (e.g., over a local bus high speed connection provided by BIU 530). Both dedicated and shared external memory may be provided.

SPU Integrated Within CPU

As discussed above, it may be desirable to integrate CPU 654 and SPU 500 into the same integrated circuit and/or device.

-220CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243

SPU 500 shown in Figure 9 includes a microprocessor 520 that may be similar or identical to a standard microprocessor available off-the-shelf from a variety of manufacturers.

Similarly, the SPU DMA controller 526 and certain other microprocessor support circuitry may be standard implama-nfafirms available in off-the-shelf microprocessor and/or microcomputer chips. Since many of the general control and processing requirements provided by SPU 500 in the preferred embodiment can be satisfied using certain generic CPU and/or microcontroller components, it may be desirable to integrate SPU VDE functionality into a standard generic CPU or microcontroller chip. Such an integrated solution can result in a very cost-effective dual mode component that is capable of performing all of the generic processing of a standard CPU as well as the secure processing of an SPU. Many of the control logic functions performed by the preferred embodiment SPU can be performed by generic CPU and/or micro-controller logic so that at least a portion of the control logic does not have to be duplicated. Additional cost savings (e.g., in terms of reducing manufacturing costs, inventory costs and printed circuit board real estate requirements) may also be obtained by not requiring an additional, separate physical SPU 500 device or package.

Figure 9A shows one example architecture of a combination CPU/SPU 2650. CPU/SPU 2650 may include a standard

-221 CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 microprocessor or microcontroller 2652, a standard bus interface unit. (BIU) 2656, and a standard (optional) DMA controller 2654, as well as various other standard I/O controllers, computation circuitry, etc. as may be found in a typical off-the-shelf microprocessor/microcontroller. Real time clock 528 may be added to the standard architecture to give the CPU/SPU 2650 access to the real time clock functions as discussed above in connection with Figure 9. Real-time clock 528 must be protected from tampering in order to be secure. Such protections may include internal or external backup power, an indication that its power (and thus its operation) has been interrupted, and/or an indication that the external clock signait s ) from which it derives its timinghave been interfered with (e.g., sped up, slowed down). Similarly, an encrypt/decrypt engine 522. pattern matching engine 524, compression/decompression engine 546 and/or arithmetic accelerator 544 may be added if desired to provide greater efficiencies, or the functions performed by these components could be provided instead by software executing on microprocessor 2652. An optional memory management unit 540 may also be provided if desired. A true random number generator 542 may be provided also if desired. Connections shown between mode interface switch 2658 and other components can carry both data and control information, specifically control information that determines what security-222CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 relevant aspects of the other components are available for access and/or manipulation.

In addition, secure ROM 532 and/or secure RAM 534 may 5 be provided within CPU/SPU 2650 along with a mode interface switch 2658a, 2658b. Mode interface switch 2658 selectively provides microprocessor 2652 with access to secure memory 532,

534 and other secure components (blocks 522, 546, 524, 542, 544, 528) depending upon the mode CPU/SPU 2650 is operating in.

CPU/SPU 2650 in this example may operate in two different modes:

• an SPU mode, or • a normal mode.

In the normal mode, CPU/SPU 2650 operates substantially identically to a standard off-the-shelf CPU while also protecting the security of the content, state, and operations of security-relevant components included in CPU/SPU 2650.

Such security-relevant components may include the secure memories 532, 534; the encrypt/decrypt engine 522, the optional pattern-matching engine 524, random number generator 542, arithmetic accelerator 544, the SPU-not-initialized flag 2671, the secure mode interface switch 2658, the real-time clock 528, the DMA controller 2654, the MMU 540, compress/decompress block

-223CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

546, and/or any other components that may affect security of the operation of the CPU/SPU in SPU mode.

In this example, CPU/SPU 2650 operating in the normal·' mode controls mode interface switch 2658 to effectively disconnect (i.e., block unsecure access to) the security-relevant components, or to the security-relevant aspects ofthe operations of such components as have a function for both normal and SPU mode. In the normal mode, for example, microprocessor 2652 could access information from standard registers or other internal RAM and/or ROM (not shown), execute instructions in a normal way, and perform any other tasks as are provided within a standard CPU - but could not access or compromise the contents of secure memory 532,534 or access blocks 522, 524,

542, 544, 546. In this example normal mode, mode interface switch 2658 would effectively prevent any access (e.g., both read and write access) to secure memory 532, 534 so as to prevent the information stored within that secure memory from being compromised.

When CPU/SPU 2650 operates in the SPU mode, mode interface switch 2658 allows microprocessor 2652 to access secure memory 532, 534, and to control security-relevant aspects of other components in the CPU/SPU. The SPU mode in this

-224CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 example requires all instructions executed by microprocessor 2652 to be fetched from secure memory 532, 534 -- preventing execution based on mixed secure and non-secure instructions.

In the SPU mode, mode interface switch 2658 may, in one example embodiment, disconnect or otherwise block external accesses carried over bus 652 from outside CPU/SPU 2650 (e.g., DMA accesses, cache coherency control accesses) to ensure that the microprocessor 2652 is controlled entirely by instructions carried within or derived from the secure memory 532, 534.

Mode interface switch 2658 may also disconnect or otherwise block access by microprocessor 2652 to some external memory and/or other functions carried over bus 652. Mode interface switch 2658 in this example prevents other CPU operations/instructions from exposing the contents of secure memory 532, 534.

In the example shown in Figure 9A, the mode control of mode interface switch 2658 is based on a mode control signal provided by microprocessor 2652. In this example, microprocessor 2652 may be slightly modified so it can execute two new instructions:

-225CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • enable ’SPU* mode instruction, and • disable ’SPU’ mode instruction.

When microprocessor 2652 executes the enable ’SPU* mode instruction, it sends an appropriate mode” control signal to mode interface switch 2658 to switch the interface switch into the SPU mode of operation. When microprocessor 2652 executes the disable ’SPU¹ mode instruction, it sends an appropriate mode control signal to mode interface switch 2658 to disable the SPU mode of operation.

When CPU/SPU 2650 begins operating in the SPU mode (based on microprocessor 2652 executing the enable SPU” mode instruction), mode interface switch 2658 forces microprocessor 2652 to begin fetching instructions from secure memory 532, 534 (e.g., beginning at some fixed address) in one example. When CPU/SPU 2650 begins operating in this example SPU mode, mode interface switch 2658 may force microprocessor 2652 to load its registers from some fixed address in secure memory 532, 534 and may begin execution based on such register content. Once operating in the SPU mode, microprocessor 2652 may provide encryption/decryption and other control capabilities based upon the code and other content of secure memory 532, 534 needed to provide the VDE

-226CA 02373508 2002-03-07

WO 98/09209 PCT/US97/1S243 functionality of SPU 500 described above. For example, microprocessor 2652 operating under control of information within secure memory 532, 534 may read encrypted information from bus 652 via bus interface unit 2656, write decrypted information to the bus interface unit, and meter and limit decryption of such information based on values stored in the secure memory.

At the end of secure processing, execution by microprocessor 2652 of the disable SPU mode instruction may cause the contents of all registers and other temporary storage locations used by microprocessor 2652 that are not within secure memory 532, 534 to be destroyed or copied into secure memory 532, 534 before opening mode interface switch 2658. Once mode interface switch 2658 is open, the microprocessor 2652 no longer has access to secure memory 532, 534 or the information it contained, or to control or modify the state of any other security-relevant components or functions contained within CPU/SPU 2650 to which access is controlled by mode interface switch 2658.

Whenever CPU/SPU 2650 enters or leaves the SPU mode, the transition is performed in such a way that no information contained in the secure memory 532, 534 or derived

-227CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 from it (e.g., stored in registers or a cache memory associated with microprocessor 2652) while in the SPU mode can be exposed by microprocessor 2652 operations that occur in the normal mode. This may be accomplished either by hardware mechanisms that protect against such exposure, software instructions executed in SPU mode that clear, reinitialize, and otherwise reset during such transitions, or a combination of both.

In some example implementations, interrupts may be 10 enabled while CPU/SPU 2650 is operating in the SPU mode similarly interrupts and returns from interrupts while in the SPU mode may allow transitions from SPU mode to normal mode and back to SPU mode without exposing the content of secure memory 532, 534 or the content of registers or other memory associated with microprocessor 2652 that may contain information derived from secure mode operation.

In some example implementations, there may be CPU/SPU activities such as DMA transfers between external memory and/or devices and secure memory 532, 534 that are initiated by microprocessor 2652 but involve autonomous activity by DMA controller 2654 and, optionally, encrypt/decrypt engine 522 and/or compress/decompress engine 546. In such implementations, mode interface switch 2658 and its associated

-228CA 02373508 2002-03-07

WO 98/09209 PCT/US97/1S243 control signals may be configured to permit such pending activities (e.g. DMA transfers) to continue to completion even after CPU/SPU 2650 leaves SPU mode, provided that upon completion, all required clearing, reinitialization, and/or reset activities occur, and provided that no access or interference is permitted with the pending activities except when CPU/SPU 2650 is operating in SPU mode.

In an additional example embodiment, encryption/decryption logic may be connected between microprocessor 2652 and secure memory 532, 354. This additional encryption/decryption logic may be connected in parallel to mode interface switch 2658. The additional encryption/decryption logic may allow certain accesses by microprocessor 2652 to the secure memory 532, 534 when CPU/SPU 2650 is operating in the normal mode. In this alternate embodiment, reads from secure memory 532, 534 when CPU/SPU 2650 is operating in the normal mode automatically result in the read information being encrypted before it is delivered to microprocessor 2652 (and similarly, and writes to the secure memory may result in the written information being decrypted before it is deposited into the secure memory). This alternative embodiment may permit access to secure memory 532, 534 (which may in this example store the information in

-229CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 “clear form) by microprocessor 2652 when CPU/SPU 2650 is operating in the non-secure normal mode, but only reveals the secure memory contents to microprocessor 2652 in unencrypted form when the CPU/SPU is operating in the SPU mode. Such access may also be protected by cryptographic authentication techniques (e.g., message authentication codes) to prevent modification or replay attacks that modify encrypted data stored in secure memory 532, 534. Such protection may be performed utilizing· either or both of software and/or hardware cryptographic techniques.

All of the components shown in Figure 9A may be disposed within a single integrated circuit package. Alternatively, mode interface switch 2658 and secure memory 532, 534, and other security-relevant components might be placed within an integrated circuit chip package and/or other package separate from the rest of CPU/SPU 2650. In this two-package version, a private bus could be used to connect microprocessor 2652 to the mode interface switch 2658 and associated secure memory 532,

534. To maintain security in such multi-package versions, it may be necessary to enclose all the packages and their interconnections in an external physical tamper-resistant barrier.

- 230 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/1S243

Initialization of Integrated CPU/SPU

Instructions and/or data may need to be loaded into

CPU/SPU 2650 before it can operate effectively as an SPU 500.

This may occur during the manufacture of CPU/SPU 2650 or subsequently at a CPU/SPU initialization facility. Security of such initialization may depend on physical control of access to the CPU/SPU components), on cryptographic means, or on some combination of both. Secure initialization may be performed in plural steps under the control of different parties, such that an initialization step to be performed by party B is preconditioned on successful performance of a step by party A. Different initialization steps may be protected using different security techniques (e.g. physical access, cryptography i.

In this example, switch 2658 may expose an external control signal 2670 that requests operation in SPU” mode rather than normal mode after a power-on reset. This signal would be combined (e.g., by a logical AND 2672) with a non-volatile storage element 2671 internal to CPU/SPU 2650. If both of these signals are asserted, AND gate 2672 would cause CPU/SPU 2650 to begin operating in SPU mode, either executing existing instructions from an address in SPU memory 532, executing instructions from main memory 2665 or otherwise external to the

- 231 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

CPU/SPU. The instructions thus executed would permit arbitrary initialization and other functions to be performed in SPU mode without necessarily requiring any instructions to be previously resident in the SPU memory 532.

Once initialized, the SPU would, under control of its initialization program, indicate to switch 2658 that the flag 2671 is to be cleared. Clearing flag 2671 would permanently disable this initialization capability because no mechanism would be provided to set flag 2671 back to its initial value.

If flag 2671 is clear, or control signal 2670 is not asserted, CPU/SPU 2650 would behave precisely as does microprocessor 2652 with respect to power-on reset and other external conditions. Under such conditions, only execution of the enable

SPU mode instruction or otherwise requesting SPU mode under program control would cause SPU mode to be entered.

Additionally, a mechanism could be provided to permit microprocessor 2652 and/or control signal 2672 to reinitialize the flag 2671. Such reinitialization would be performed in a manner that cleared secure memory 532, 534 of any security-relevant information and reinitialized the state of all security-relevant components. This reinitialization mechanism would permit CPU/SPU 2650 to be initialized several times, facilitating testing

-232CA 02373508 2002-03-07

PCT/US97/15243

WO 98/09209 and/or re-use for different applications, while protecting all security-relevant aspects of its operation.

In the preferred embodiment, CPU/SPU 2650 would, when 5 SPU mode has not yet been established, begin operating in SPU mode by fetching instructions from secure non-volatile memory 532, thereby ensuring a consistent initialization sequence and preventing SPU dependence on any information held outside CPU/SPU 2650. This approach permits secret initialization information (e.g., keys for validating digital signatures on additional information to be loaded into secure memory 532, 534) to be held internally to CPU/SPU 2650 so that it is never exposed to outside access. Such information could even be supplied by a ' hardware mask used in the semiconductor fabrication process.

CPU/SPU Integrated With Unmodified Microprocessor

Figure 9B shows an additional example embodiment, in which a completely standard microprocessor 2652 integrated circuit chip could be transformed into a CPU/SPU 2650 by adding an SPU chip 2660 that mediates access to external I/O devices and memory. In such an embodiment, the microprocessor 2652 would be connected to the SPU chip 2660 by a private memory bus 2661, and all three such components

-233 CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 would be contained within hardware tamper-resistant barrier 502.

In this embodiment, SPU chip 2660 may have the same 5 secure components as in Figure 9, i.e., it may have a

ROM/EEPROM 532, a RAM 532, an RTC 528, an (optional) encryption/decryption engine 522, an (optional) random number generator (RNG) 542, an (optional) arithmetic accelerator 544, and a (optional) compression/decompression engine 546, and a (optional) pattern matching circuit 524. Microprocessor 520 is omitted from SPU chip 2660 since the standard microprocessor 2650 performs the processing functions instead. In addition, SPU chip 2660 may include a flag 2671 and AND gate logic 2672 for the initialization purposes discussed above.

¹⁵

In addition, SPU chip 2660 includes an enhanced switch 2663 that provides the same overall (bus enhanced) functionality performed by the switch 2658 in the Figure 9A embodiment.

Enhanced switch 2663 would perform the functions of a bus repeater, mediator and interpreter. For example, enhanced switch 2663 may act as a bus repeater that enables microprocessor 2652’s memoiy accesses made over internal memory bus 2661 to be reflected to external memoiy bus 2664

-234CA 02373508 2002-03-07

WO 98/09209 PCT/ÜS97/15243 and performed on main memory 2665. Enhanced switch 2663 may also act as a bus repeater similarly for internal I/O bus 2662 to external I/O bus 2665 in the event that microprocessor 2652 performs I/O operations distinctly from memory operations;

Enhanced switch 2663 may also perform the function of a mediator for microprocessor control functions 2666 {e.g., non-maskable interrupt, reset) with respect to externally requested control functions 2667. Enhanced switch 2663 may also provide mediation for access to SPU-protected resources such as ROM 532, RAM 534, encrypt/decrypt engine 522 (if present), random number generator 542 (if present), arithmetic accelerator 544 (if present), pattern matching engine 524 (if present), and real-tirne clock 528 (if present). Enhanced switch 2663 may also act as an interpreter of control signals received from microprocessor 2652 indicating entry to, exit from, and control of SPU mode.

Switch 2663 in this example recognizes a specific indication (e.g., an instruction fetch access to a designated address in the secure memory 532) as the equivalent to the enable ’SPLP mode instruction. Upon recognizing such an indication, it may isolate the CPU/SPU 2650 from external buses and interfaces 2664, 2665, and 2667 such that any external activity, such as DMA cycles, would be held until the switch

-235CA 02373508 2002-03-07

WO 98/09209 PCT/US97/152x

2663 permits access again. After this, switch 2663 permits a single access to a specific location in secure memory 532 to complete.

The single instruction fetched from the designated location performs a control operation (a cache flush, for example), that can only be performed in microprocessor 2652’s most privileged operating mode, and that has an effect visible to switch 2663. Switch 2663 awaits the occurrence of this event, and if it does not occur within the expected number of cycles, does not enter

SPU mode.

Occurrence of the control operation demonstrates that microprocessor 2652 is executing in its most privileged normal mode and therefore can be trusted to execute successfully the enter ’SPU* mode sequence of instructions stored in secure memory 532. If microprocessor 2652 were not executing in its most privileged mode, there would be no assurance that those instructions would execute successfully. Because switch 2663 isolates microprocessor 2652 from external signals (e.g., interrupts) until SPU mode is successfully initialized, the entry instructions can be guaranteed to complete successfully.

- 236 CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243

Following the initial instruction, switch 2663 can enter partial SPU mode, in which a restricted area of ROM 532 and RAM 534 may be accessible. Subsequent instructions in secure memory 532 may then be executed by microprocessor 2652 to place it into a known state such that it can perform SPU functions - saving any previous state in the restricted area of RAM 534 that is accessible. After the known state is established, an instruction may be executed to deliver a further indication (e.g., a reference to another designated memory location) to switch 2663, which would enter SPU mode, if this further indication is not received within the expected interval, switch 2663 will not enter SPU mode. Once in SPU mode, switch 2663 permits access to all of ROM 532, RAM 534, and other devices in SPU chip 2660.

The instructions executed during partial SPU mode must be carefully selected to ensure that no similar combination of instructions and processor state could result in a control transfer out of the protected SPU code in ROM 532 or RAM 534. For example, internal debugging features of microprocessor 2652 must be disabled to ensure that a malicious program could not set up a breakpoint later within protected SPU code and receive control. Similarly, all address translation must be disabled or reinitialized to ensure that previously created MMU data

-237CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 structures would not permit SPU memory accesses to be compromised. The requirement that the instructions for partial SPU mode run in the microprocessor 2652’s most privileged mode is necessary to ensure that all its processor control functions can be effectively disabled.

The switch 2663 provides additional protection against tampering by ensuring that the expected control signals occur after an appropriate number of clock cycles. Because the partial

SPU initialization sequence is entirely deterministic, it is not feasible for malicious software to interfere with it and still retain the same timing characteristics, even if malicious software is running in microprocessor 2652’s most privileged mode.

Once in SPU mode, switch 2663 may respond to additional indications or signals generated by microprocessor 2652 (e.g., references to specific memory addresses) controlling features of SPU mode. These might include enabling access to external buses 2664 and 2665 so that SPU-protected code could reference external memory or devices. Any attempts by components outside CPU/SPU 2650 to perform operations (e.g., accesses to memory, interrupts, or other control functions) may be prevented by switch 2663 unless they had been explicitly enabled by instructions executed after SPU” mode is entered.

-238CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

To leave SPU mode and return to normal operation, the instructions executing in SPIT' mode may provide a specific indication to switch 2663 (e.g., a transfer to a designated memory address). This indication may be recognized by switch 2663 as indicating a return to normal mode, and it may again restrict access to ROM 532, RAM 534, and all other devices within SPU chip 2660, while re-enabling external buses and control lines 2664, 2665, and 2667. The instructions executed subsequently may restore the CPU state to that which was saved on entry to

SPU mode, so that microprocessor 2652 may continue to perform functions in progress when the SPU was invoked.

In an alternate embodiment, the entry into SPU mode may be conditioned on an indication recognized by switch 2663, but the switch may then use a hardware mechanism (e.g., the processor’s RESET signal) to reinitialize microprocessor 2562. In such an embodiment, switch 2663 may not implement partial SPU mode, but may instead enter SPU mode directly and ensure that the address from which instructions would be fetched by microprocessor 2652 (specific to microprocessor 2652’s architecture) results in accesses to appropriate locations in the SPU memory 532. This could reduce the complexity of the SPU mode entry mechanisms in switch 2663, but could incur, an

- 239 CA 02373508 2002-03-07

WO 98/09209 additional processing

PCT/US97/15243 cost from using a different reinitialization mechanism for microprocessor 2652.

SPU chip 2660 may be customized to operate in 5 conjunction with a particular commercial microprocessor. In this example, the SPU may be customized to contain at least the specialized enter SPU mode” instruction sequences to reinitialize ithe processor’s state and, to recognize special indications for SPU control Operations. SPU chip 2660 may also be made electrically compatible with microprocessor 2652’s external bus interfaces. This compatibility would permit CPU/SPU 2650 to be substituted for microprocessor 2652 without change either to software or hardware elsewhere in a computer system.

In other alternate embodiments, the functions described above for SPU chip 2600, microprocessor 2652, and internal buses 2661, 2662, and 2666 could all be combined within a single integrated circuit package, and/or on a single silicon die. This could reduce packaging complexity and/or simplify establishment of the hardware tamper-resistant barrier 502.

-240CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243

The hardware configuration of an example of electronic appliance 600 has been described above. The following section describes an example of the software architecture of electronic appliance 600 provided by the preferred embodiment, including the structure and operation of preferred embodiment Rights

Operating System (ROS) 602.

Rights Operating System 602

Rights Operating System (ROS) 602 in the preferred embodiment is a compact, secure, event-driven, services-based, component oriented, distributed multiprocessing operating system environment that integrates VDE information security control information, components and protocols with traditional operating system concepts. Like traditional operating systems,

ROS 602 provided by the preferred embodiment is a piece of software that manages hardware resources of a computer system and extends management functions to input and/or output devices, including communications devices. Also like traditional operating systems, preferred embodiment ROS 602 provides a coherent set of basic functions and abstraction layers for hiding the differences between, and many of the detailed complexities of, particular hardware implementations. In addition to these characteristics found in many or most operating systems, ROS 602 provides secure VDE transaction management and other

- 241 CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 advantageous features not found in other operating systems.

The following is a non-exhaustive list of some of the advantageous features provided by ROS 602 in the preferred embodiment:

Stradar.dizedJnteife££· provides-ooherent set of-basic fractions • the same application can run on many different platforms Event driven • eases functional decomposition • extendible • accommodates state transition and/or process oriented events • simplifies task management • simplifies inter-process communications

Services based • allows simplified and transparent scalability • simplifies multiprocessor support • hides machine dependencies • eases network management and support

Component Based Architecture • processing based on independently deliverable secure components

-242CA 02373508 2002-03-07

WO 98/09209

PCT/ÜS97/1S243 • component model of processing control allows different sequential steps that are reconfigurable based on requirements • components can be added, deleted or modified (subject to permissioning) « foil control information over pre-defined and user-defined application events • events can be individually controlled with independent executables

Secure • secure communications • secure control functions • secure virtual memory management • information control structures protected from exposure • data elements are validated, correlated and access controlled • components are encrypted and validated independently • components are tightly correlated to prevent unauthorized use of elements • control structures and secured executables are validated prior to use to protect against tampering • integrates security considerations at the I/O level • provides on-the-fly decryption of information at release time

-243CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • enables a secure commercial transaction network • flexible key management features Scalaeble • highly scalaeble across many different platforms · supports concurrent processing in a multiprocessor environment • supports multiple cooperating processors • any number of host or security processors can be supported • control structures and kernel are easily portable to various host platforms and to different processors within a target platform without recompilation • supports remote processing • Remote Procedure Calls may be used for internal OS communications

Highly Integratable • can be highly integrated with host platforms as an additional operating system layer • permits non-secure storage of secured components and information using an OS layer ”on top of“ traditional OS platforms • can be seamlessly integrated with a host operating system to provide a common usage paradigm for transaction management and content access

-244CA 02373508 2002-03-07

WO 98/09209

PCT/US97/15243 • integration may take many forms: operating system layers for desktops (e.g., DOS, Windows, Macintosh.); device drivers and operating system interfaces for network services (e.g, Unix and Netware); and dedicated component drivers for low end set tops are a few of many examples • can be integrated in traditional and real time operating systems

D-is.tiibutgri • provides distribution of control information and reciprocal control information and mechanisms • supports conditional execution of controlled processes within any VDE node in a distributed, asynchronous arrangement • controlled delegation of rights in a distributed environment • supports chains of handling and control • management environment for distributed, occasionally connected but otherwise asynchronous networked database • real time and time independent data management • supports agent processes

Transparent • can be seamlessly integrated into existing operating . systems

-245CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 • can support applications not specifically written to use it Network friendly • internal OS structures may use RPCs to distribute processing · subnets may seamlessly operate as a single node or independently

General Background Regarding Operating Systems

An ’’operating system provides a control mechanism for organizing computer system resources that allows programmers to create applications for computer systems more easily. An operating system does this by providing commonly used functions, and by helping to ensure compatibility between different computer hardware and architectures (which may, for example, be manufactured by different vendors). Operating systems also enable computer peripheral device manufacturers to far more easily supply compatible equipment to computer manufacturers and users.

Computer systems are usually made up of several different hardware components. These hardware components include, for example:

a central processing unit (CPU) for executing instructions;

-246CA 02373508 2002-03-07

WO 98/09209 PCT/US97/15243 an array of main memory cells (e.g., RAM or ROM) for storing instructions for execution and data acted upon or parameterizing those instructions; and one or more secondary storage devices (e.g., hard disk drive, floppy disk drive, CD-ROM drive, tape reader, card reader, or flash memory) organized to reflect named elements (a file system) for storing images of main memory cells.

Most computer systems also include input/output devices such as keyboards, mice, video systems, printers, scanners and communications devices.

To organize the CPU’s execution capabilities with available RAM, ROM and secondary storage devices, and to provide commonly used functions for use by programmers, a piece of software called an operating system is usually included with the other components. Typically, this piece of software is designed to begin executing after power is applied to the computer system and hardware diagnostics are completed.

Thereafter, all use of the CPU, main memory and secondary memory devices is normally managed by this operating system software. Most computer operating systems also typically include a mechanism for extending their management functions

-247CA 02373508 2002-03-07

WO 98/09209 PCTAJS97/15243 to I/O and other peripheral devices, including commonly used functions associated with these devices.

By managing the CPU, memory and peripheral devices 5 through the operating system, a coherent set of basic functions and abstraction layers for hiding hardware details allows programmers to more easily create sophisticated applications. In addition, managing the computer’s hardware resources with an operating system allows many differences in design and equipment requirements between different manufacturers to be hidden. Furthermore, applications can be more easily shared with other computer users who have the same operating system, with significantly less work to support different manufacturers’ base hardware and peripheral devices.

ROS 602 is an Operating System Providing Significant Advantages

ROS 602 is an operating system. It manages the resources of electronic appliance 600, and provides a commonly used set of functions for programmers writing applications 608 for the electronic appliance. ROS 602 in the preferred embodiment manages the hardware (e.g., CPU(s), memoryfies), secure RTC(s), and encrypt/decrypt engines) within SPU 500.

ROS may also manage the hardware (e.g., CPU(s) and

- 248 DEMANDES OU BREVETS VOLUMINEUX

LA PRÉSENTE PARTIE DE CETTE DEMANDE OU CE BREVETS COMPREND PLUS D’UN TOME.

CECI EST LE TOME 1 DE 4

NOTE: Pour les tomes additionels, veillez contacter le Bureau Canadien des Brevets.

JUMBO APPLICATIONS / PATENTS

THIS SECTION OF THE APPLICATION / PATENT CONTAINS MORE THAN ONE VOLUME.

THIS IS VOLUME 1 OF 4

NOTE: For additional volumes please contact the Canadian Patent Office.