Personal Property Tracking for Remote Collateral Verification
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Solution Overview
Problem
Existing systems for tracking personal property are inadequate due to its mobility, leading to issues such as difficulty in confirming ownership, tracking stolen items, and inefficiencies in using personal property as collateral for loans, as well as challenges in verifying the existence of insured items.
Innovation Solution
A system and method for tracking personal property using communication interfaces in devices to connect with a tracking system, enabling verification and recording of ownership, location, and liens through a blockchain-based record system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If personal property is used as collateral without physical transfer to the lender, then the borrower can continue to use the collateral and the lender reduces storage costs, but the lender cannot physically verify the collateral's existence and location
Solution Approach 1:
The patent introduces a tracking system with unique identifiers (such as RFID tags, GPS devices, or communication interfaces) as an intermediary between the collateral and the lender. This intermediary enables remote monitoring and verification of the collateral's location and status without requiring physical possession, thus resolving the contradiction between ease of operation and verification reliability.
Solution Approach 2:
The patent replaces the mechanical system of physical collateral transfer and storage with an electronic/telecommunications-based tracking system. By substituting physical verification mechanisms with electronic monitoring (such as GPS tracking, RFID scanning, or network-connected verification), the system enables reliable collateral verification while allowing the borrower to retain physical possession and use of the collateral.
2Reliability
If the lender requires physical possession of the collateral, then the lender can verify the collateral's existence, but the borrower cannot use the collateral and the lender incurs storage and tracking costs
Solution Approach 1:
The tracking system acts as an intermediary that enables the lender to verify collateral existence remotely through electronic means (such as receiving location data from GPS devices or status information from network-connected devices). This eliminates the need for physical possession while maintaining verification reliability, thereby allowing the borrower to continue using the collateral productively.
Solution Approach 2:
The patent substitutes the mechanical approach of physical storage and manual verification with electronic monitoring systems. The collateral is equipped with tracking devices that automatically report status and location to the lender, replacing the need for physical possession and manual inventory checks, thus enabling both reliable verification and continued collateral utilization.
3Adaptability or versatility
If personal property can be moved freely, then the borrower has mobility and usage flexibility, but the lender cannot track the property's location and status
Solution Approach 1:
The patent introduces tracking devices (such as GPS receivers, RFID tags, or network-connected communication interfaces) as intermediaries attached to or integrated with the personal property. These intermediaries continuously transmit location and status information to the lender's system, enabling the property to move freely while maintaining real-time information availability to the lender.
Solution Approach 2:
The tracking system implements a feedback mechanism where the personal property automatically reports its location and status information to the lender. This continuous feedback loop ensures that the lender receives real-time updates about the movable property's whereabouts and condition, eliminating information loss while preserving the borrower's mobility and usage flexibility.
4Reliability
If traditional title systems are used for personal property, then ownership can be registered, but the systems cannot track the property's movement or verify its current status
Solution Approach 1:
The patent introduces an electronic tracking system as an intermediary layer that supplements traditional title registration systems. While the title system records ownership rights, the tracking system (with devices attached to or communicating with the personal property) provides real-time information about the property's location, status, and possession, thereby preventing information loss about current property state.
Solution Approach 2:
The tracking system serves multiple functions simultaneously: it tracks location, verifies possession status, provides security monitoring, and maintains communication between borrower and lender. This multi-functional approach enhances the traditional title system by adding dynamic tracking capabilities without replacing the fundamental ownership registration function.
Data Source
AI summary
A tracking and recording system is provided for tracking and documenting personal property. Personal property, such as electronic or “IOT” devices having a communication interface, are placed in communication with a tracking system which receives information from those items of personal property and utilizes that information to verify the location and/or existence of the property. A record of the personal property may also be created which includes information which identifies the property, liens, transfers of ownership, and verifications of the location of the property. The record may comprise a block chain of information regarding the property.