Method, system and service for conducting authenticated business transactions

Abstract

The invention pertains to a method, on-line service, and system, for creating partnerships based on trust relationships over a public network, authenticating trade partners, infrastructure providers, and collaborators to each other, and providing users with an environment suitable for conducting transactions requiring a high level of trust. A service according to the invention is a persistent authentication and mediation service (PAMS) which is provided as an on-line service. One embodiment is a method for conducting authenticated business transactions involving microprocessor equipped devices over the Internet comprising: A. Providing an on-line authentication service available on the distributed network; B. Authenticating a plurality of users to said on-line authentication service using a closed authentication system to produce a plurality of authenticated users; and C. Connecting a group of at least two of said plurality of authenticated users under persistent mediation of said on-line authentication service, producing a connected group of authenticated users.

Description

[0001] This application is a continuation of application Ser. No. 09 / 875,088, which in turn claimed the benefit of Provisional Patent Application No. 60 / 229,368 filed Aug. 30, 2000, and specifically references PTO Disclosure Document No. SV01257 which was filed on Jun. 11, 2000 and PTO Disclosure Document No. SV01343 which was filed on Jan. 17, 2001.BACKGROUND OF THE INVENTION [0002] 1. Field of the Invention [0003] The invention relates to a system and method for conducting authenticated business transactions over an open multi-platform public network. [0004] 2. Description of the Prior Art [0005] The formation of the World Trade Organization and the general reduction in barriers to trade often referred to as globalization, which has taken place in the past decade, has resulted in a great expansion of international global trade. Global trade requires a special infrastructure to support transactions. Differences in customs, legal systems, language and currencies increase the complex...

AI Technical Summary

Benefits of technology

[0216] An advantage of the invention is that Business 2 benefits from an accelerated customer acquisition process. For example, Business 2 can establish an immediate approval profile. Based on the information the PAMS provides, Business 2 can immediately authorize the addition of a new customer since it can rely on the PAMS to ensure that the new customer satisfies the criteria of its immediate approval profile.

[0217] Business 2 in this example, is a browser user responding to a message received through the Discovery Portal. Business 2 could have alternatively been a Type B user such as a web site, responding in an automated manner to Business 1's messages. It could also alternatively be a Type C user such an application program, software bot, or device. If Business 2 had been a Type B user, after establishing a relationship, Business 2's web site access tables would have been updated by Business 2 to allow Business 1 access to the web site without needing to go through the typical web site sign on screens.

[0218] Business 1 does not directly access Business 2 through the PAMS as their interaction is mediated by the e-speak core

[0219] An implication of the relationship building process carried out by subsets of the PAMS membership which have formed relationships with each other, is the creation of virtual communities of trust which exist within the broader PAMS enrolled users. EXAMPLE 2 Three Businesses Collaborate

[0220] Referring to FIG. 8, Business 1 (162) and Business 2 (165), both Type A users, have created a relationship as described previously in

Problems solved by technology

Differences in customs, legal systems, language and currencies increase the complexity and risk of conducting business internationally.

The ability to leverage trusted long term relationships is certainly advantageous, but is becoming increasing difficult, especially over the Internet.

Global traders looking to quickly establish new trading relationships to increase sales or to reduce costs must either go through a time consuming process to develop the relationship over time, or incur a risk since verifying the identity of the trading partner in another country is difficult.

This level of authentication, alone, is not sufficient to satisfy the needs for large worldwide e-commerce markets.

Such systems are quite effective for authentication within a limited enterprise, but are impractical for authentication among a great many users as in global trade, because of the cost and complexity of managing the hardware keys on a large scale.

Another drawback of such a system is that there is no effective way to deal with a major breach of security without notifying users of the system, since certificates are self-authenticating.

No means is provided, however, for non-trusted entities to accomplish validation.

While providing an important improvement to the art, U.S. Pat. No. 5,815,665 has a number of deficiencies which limit its use for promoting global trade transactions.

First, the degree of authentication is limited to the security of a password, and the password is stored along with the identity of the consumer on the brokering service's database.

Second, the service is asymmetric.

Also, there is no provision for the users of the multiple service providers to interact.

These systems may provide limited access to users over a public network such as the Internet, but often involve the use of special network hardware for full access or a VPN.

These systems are only available for users with a preexisting relationship and do not provide a method for forming a secure trust relationship over a public network.

They do not provide a method to simultaneously connect arbitrary combinations of users.

The established models do not make optimal use of the Internet to promote global trade.

Also the type of transaction which can take place directly over the Internet is limited to simple transactions which are carried out in the predetermined format determined by the business owner, since the only relationship which has been established is between the user and the business and between the business and certain pre-determined infrastructure providers which have been chosen.

This limitation precludes e-commerce transactions which are much more complicated than the standard models which were previously described.

For instance, there is no way to make a deal for purchase of a commodity on the sellers Internet business site, and then “shop around” for infrastructure such as financing, shipping, and insurance specific to the unique deal between the buyer and seller.

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