I just looked at the Pictures for this patent.
Basically it describes this:
Software generates a installation code based on system pre-configuration.
ANd this installation ID is encoded.
User give this code to the company and pays money to get unlock code.
User types in code in system, system verifies the code is ligit then if ligit unlocks the system.
If code is false, or software is never registerd, software remains in demo mode.
Basically what is happening here, is the System/software makes a fingerprint of your system in a form of a serial #. and this is passed to the company, that generates a key using that serial #. As a result the keyl # can only be used on that PC.
But what this patent talks about software, not an operating system. AN operating system can monitor hardware, software only can monitor user enviroment (what the OS tells it). THis patent talks about using information from the User environment. (Time, last modification, date etc). a User environment Does not See PC hardware!!!!!!!!. But this patent was in the time of DOS where things has more access to hardware, but still in DOS there was no unique way of identifying hardware. Nothing back there has a hardware ID, bios didn't have a hardware ID. Network drivers were not common so not like the mac address was used. Also back then bios didn't have any system specific information or IDs/serials, and hard drives didn't have any specific IDs. So that is why the patent will not mention such things, as unique hardware wasn't a reality. Microsoft's solution monitors hardware, so its things one step further. (it knows when cards have been moved around, knows when drivers are installed or media is inserted, it knows when its a different motherboard even if same chip and same make)
So technically microsoft could dispute it, as there system is on the hardware level!
http://www.google.com/patents?id=K7MoAAAAEBAJ&pg=PA2&source=gbs_selected_pages&cad=1_1#PPA7,M1
sheet 1 of 12 to 6 of 12 describes this system.
sheet 7 of 12 and on describes the system build into the controller of the player. (or possibly when disk is played)
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If you think about it, creating a fingerprint and transmitting it, only to receive a new key back, is kind of like SSL. Its just a form of encrypted information back and forth. Nothing new here. It is just using the PC as the certificate in a way.
THe sad thing is this patent seems like a new cool idea back then, but now its very common place. ANd things is so different compared to back then. (very vast compared to being limited)
What is sad