Method and system for providing a payment incentive for distributing digital files over a network

• US 7,698,164 B2
• Filed: 03/10/2006
• Issued: 04/13/2010
• Est. Priority Date: 03/10/2006
• Status: Expired due to Fees

• Current Assignee: Matthew Inventions LLC
• Original Assignee: Reagan Inventions L.L.C. (Leigh M. Rothschild)
• Inventors: Rothschild, Leigh M.
• Primary Examiner(s): Myhre, James W
• Assistant Examiner(s): MITTAL, KRISHAN K
• Application Number:
  US11/373,322
• Publication Number:
  US 20070214211A1
• Time in Patent Office: 1,495 Days
• Field of Search: 705/14, 705/26, 705/1, 705/37, 705/14.1, 705/14.7, 705/14.13, 705/14.14, 705/14.15, 705/14.16, 705/14.21, 705/14.24, 705/14.34, 705/14.45, 705/14.51, 705/14.52, 707/100, 709/203
• US Class Current: 705/14.34
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0213 Consumer transaction fees
• CPC Class Codes: G06Q 30/0214 Referral reward systems
• CPC Class Codes: G06Q 30/0219 based on funds or budget
• CPC Class Codes: G06Q 30/0223 based on inventory
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0246 Traffic
• CPC Class Codes: G06Q 30/0249 based upon budgets or funds
• CPC Class Codes: G06Q 30/0253 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0254 based on statistics
• CPC Class Codes: G06Q 30/0274 Split fees
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 50/184 Intellectual property management

Abstract

A method and system for providing a payment incentive for distributing digital files over a network are provided. The method and system allow a publisher, distributor(s), and/or users to receive a payment incentive for downloading digital files on the Internet. The present disclosure creates a method and system where every party along the distribution chain will have an incentive for further distribution of the digital content file. The method includes the steps receiving by a server of a file agent at least one digital content file from a content provider; presenting the at least one digital content file for purchase; downloading the at least one digital content file to at least one user for a transaction amount; distributing a first distribution amount of the transaction amount to the content provider; and distributing a second distribution amount of the transaction amount to the at least one user.

Claims

1. A method for distributing digital content files over a network, the method comprising the steps:

receiving by a server of a file agent at least one digital content file from a content provider;

selecting a plurality of user threshold levels, the user threshold levels being indicative of the number of times the at least one digital file is downloaded by an end user;

presenting the at least one digital content file for purchase on a website of the server;

downloading the at least one digital content file to at least one end user for a fixed transaction amount;

distributing a first distribution amount of the fixed transaction amount to the content provider; and

distributing a second distribution amount of the fixed transaction amount to the at least one end user at a time of purchase by the at least one end user;

determining the number of times the at least one digital content file has been purchased and downloaded; and

upon reaching each of the plurality of user threshold levels, distributing a subsequent distribution amount to an end user of each previous user threshold level, the subsequent distribution amount being in addition to a distribution amount received for each of the previous user threshold levels,

wherein determining the subsequent distribution amount includes;

selecting a user distribution percentage;

and

determining the subsequent distribution amount by the following formula;

2. The method as in claim 1, further comprising distributing a third distribution amount of the transaction amount to the file agent of the server.

3. The method as in claim 2, wherein the presenting step includes posting a location of the at least one digital content file by a distributor and the method further comprising the step of distributing a fourth distribution amount of the transaction amount to the distributor.

4. The method as in claim 3, wherein the distribution amounts are determined by distribution percentages, further comprising the steps:

selecting the first, second, third and fourth distribution percentages by the content provider; and

approving the distribution percentages by the file agent of the server.

5. The method as in claim 3, wherein the distribution amounts are electronically negotiated between the content provider and the file agent.

6. The method as in claim 1, wherein the at least one digital content file is an audio file, a video file, a multimedia file, a text file, or a software application.

7. The method as in claim 1, wherein the downloading step further comprises:

encrypting the at least one digital file before downloading; and

transmitting a code to the at least one user for decrypting the at least one digital file after receiving the transaction amount from the at least one user.

8. The method as in claim 1, wherein the distributing step includes payment by checks, credits to bank accounts, wire transfer, issuance of cash redemption cards or payment by a payment agent.

9. The method as in claim 1, wherein the distributing step includes issuance of credits to a user account to be used for additional services provided by file agent.

10. A server for distributing digital content files over a network comprising:

a communication device for receiving at least one digital content file from a content provider; and

a processor which selects a plurality of user threshold levels, the user threshold levels being indicative of the number of times the at least one digital file is downloaded by an end user, presents the at least one digital content file for purchase on a website of the server, downloads the at least one digital content file via the communication device to at least one end user for a fixed transaction amount, distributes a first distribution amount of the fixed transaction amount to the content provider, and distributes a second distribution amount of the fixed transaction amount to the at least one end user at a time of purchase by the at least one end user, wherein

the processor determines the number of times the at least one digital content file has been purchased and downloaded and, upon reaching each of the plurality of user threshold levels, distributes a subsequent distribution amount to an end user of each previous user threshold level, the subsequent distribution amount being in addition to a distribution amount received for each of the previous user threshold levels,

wherein the processor selects a user distribution percentage, and determines the subsequent distribution amount by the following formula;

11. The server as in claim 10, wherein the processor retains a third distribution amount of the transaction amount.

12. The server as in claim 11, wherein the processor transmits a location of the at least one digital content file to a distributor and to distribute a fourth distribution amount of the transaction amount to the distributor.

13. The server as in claim 10, wherein the at least one digital content file is an audio file, a video file, a text file, a multimedia file or a software application.

14. The server as in claim 10, further comprising a storage device for storing the at least one digital content file.

15. The server as in claim 10, further comprising a storage device for storing a plurality of user accounts, each user account maintaining distributed credits for each user.

16. The server as in claim 10, wherein the processor includes at least one encryption algorithm for encrypting the at least one digital file before downloading.

17. The server as in claim 16, wherein the processor transmits a code to the at least one user via the communication device for decrypting the at least one digital file after receiving the fixed transaction amount from the at least one user.

18. A method for distributing digital content files over a network, the method comprising the steps:

providing a web site for distributing digital content files hosted by at least one server in communication with the network;

receiving by the at least one server at least one digital content file from a content provider;

selecting a plurality of user threshold levels indicative of a number of times the at least one digital content file is downloaded;

presenting the at least one digital content file on the web site for purchase;

downloading the at least one digital content file to at least one end user for a fixed transaction amount;

determining a number of times the at least one digital content file has been purchased and downloaded;

distributing a first distribution amount of the fixed transaction amount to the content provider;

distributing a second distribution amount of the fixed transaction amount to the at least one end user at a time of purchase by the at least one end user, wherein the distributing a second distribution amount includes payment by checks, credits to bank accounts, wire transfer, issuance of cash redemption cards or payment by a payment agent of the at least one server; and

distributing a third distribution amount of the fixed transaction amount to the at least one server;

wherein upon reaching each of the plurality of user threshold levels, distributing a subsequent distribution amount to an end user of each previous user threshold level, the subsequent distribution amount being in addition to a distribution amount received for each of the previous user threshold levels,

wherein determining the subsequent distribution amount includes;

selecting a user distribution percentage;

selecting a plurality of user threshold levels, the user threshold levels being indicative of the number of times the at least one digital file is downloaded; and

determining the subsequent distribution amount by the following formula;