WO2006135940A1 - Secure distribution management system - Google Patents

Abstract

This invention provides novel secure distribution management system and method for the management of at least one distribution channel, comprising a remote controller for providing a transaction information between successive distributors and a communication with a server, which performs an analysis of the transaction information in order to detect diversion of goods from the distribution channel and infiltration of counterfeited and original goods without payment of customs, tax and excise duties into the distribution channel. All applicable customs, tax and excise duties can be derived from such transaction information by providing access to such transaction information by government institutions in real-time, periodically or on-demand. This system can be additionally used for dynamic advertising, as well as an interface to other sensing devices and actuators, like a security camera, a microphone, an alarm sensor and a fire detector.

Description

SECURE DISTRIBUTION MANAGEMENT SYSTEM

Technical Field

This invention relates to the field of distribution management systems for goods and services, and more particularly their secure versions.

State-of-the-art distribution management systems are local in their nature, since they are used within a single warehouse, retail shop or company and manage just one or at most two levels of distribution of goods and services, using sensing devices, print-out devices and specialized computers, usually connected by wired or wireless network to a back-office server. The other distribution levels can be managed by different methods, using other computers and a lot of paper documentation, slowing down data processing, management and decision making.

Furthermore, such management systems do not provide secure storage and transmission of transaction information for inspection by the government institutions, like: Customs, Tax and

Excise Administration, which delays collection of customs, tax and excise duties, and is a permanent possible source of data counterfeiting, as well as appropriate customs, tax and excise duties evasion.

This invention solves the problem of the integration of the distribution management system through all distribution levels, including monitoring by the appropriate government institutions, in order to prevent smuggling, bootlegging, diversion of original goods from the distribution system and infiltration into the distribution system of counterfeited and original goods without payment of customs, tax and excise duties.

Background Art

Customs, Tax and Excise Administration in some countries utilize various types of electronic copy of the ship manifest (for example, COASTS system in USA). However, such systems are neither global nor even required from all companies. A shipping method disclosed in

U.S. Patent Reg. No. 5,038,283 issued Aug. 1991 to J.E. Caveney, facilitate the efficient distribution of goods by transmitting a container packing record obtained by a bar code on an individual container, from a shipping location computer to a computer located at the shipping destination of the container.

The business transactions can be tracked via an electronic system disclosed in U.S. Patent Reg. No. 5,638,519 issued Jun. 1997 to J.E. Haluska, that includes a provider computer, at least one receiver computer and a business controller in electrical communication with the provider computer and the at least one receiver computer. A system for determining and accounting for the costs of transactions, particularly shipping goods based on an input device which is located at the shipper's (or other buyer's) premises and a central data processing facility is disclosed in U.S. Patent Reg. No. 5,222,018 issued Jun. 1993 to M.S. Sharpe et al.

A system for interactive on-line electronic marketing communications and processing of business transactions between a plurality of different types of independent users using remote terminals, including a plurality of sellers, buyers, financial institutions and freight service providers is described in U.S. Patent Reg. No. 4,799,156 issued Jan. 1989 to E. Shavit et al. A method and a system described in U.S. Patent Reg. No. 6,889,325 issued May 2005 to

W.H.M. Sipman et al. performs a transaction between at least one first party and at least one second party based on data network with a secure and trusted transaction server connecting data input/output terminals of the parties. An automatic accounting processor and method disclosed in U.S. Patent Reg. No. 6,058,375 issued May 2000 to J. Park automatically perform an accounting procedure for transaction data on a real time basis.

Fiscal cash registers and fiscal printers are mandatory in many countries to store turnover in retail business and provide appropriate reports for tax inspection. However, such systems disclosed in U.S. Patent Reg. No. 4,787,037 issued Nov. 1988 to T. Ootsuka and U.S. Patent Reg. No. 4,293,911 issued Oct. 1981 to S. Oonishi are neither networked globally nor even required at all distribution levels, and exist only in a retail level for selling goods and services to consumers.

Tracking is the systematic monitoring of the movement of goods from the place of manufacture to the place where all relevant duties have been paid. Tracing is the recreation retrospectively of the route taken by goods through the distribution channel to the point where goods were diverted into the black market. However, even in case of special markings on goods, it takes a few weeks for information to be provided to Customs, Tax and Excise Administration.

A returnable container with IC cards and Internet connection disclosed in U.S. Patent Reg.

No. 6,616,055 issued Sep. 2003 to K. Okamura et al. enables its tracking between a manufacturer, a wholesaler, a warehouse and a retailer. The inventory management system described in U.S. Patent Reg. No. 4,783,740 issued Nov. 1988 to T. Ishizawa et al. comprises a central control unit, a number of terminal units assembled at each parts container, and some guide terminal units assembled at each parts container shelf. A method for tracking movement of integrated circuit devices at remotely located facilities during a manufacturing process in near real-time is disclosed in U.S. Patent Reg. No. 6,366,824 issued Apr. 2002 to B. B. Nair et al. A distribution management method and system disclosed in U.S. Patent Reg. No. 6,880,753 issued Apr. 2005 to M. Ogihara et al. provides the authentication of genuine products based on identification information received by the system. An anti- counterfeiting and tracking system described in U.S. Patent Reg. No. 6,456,729 issued Sep. 2002 to LJ. Moore is based on marking goods for authentication and tracking purposes. A system described in U.S. Patent Reg. No. 5,768,384 issued Jun. 1998 to W. Berson provides identifying, authenticating and tracking articles of manufacture throughout their manufacturing and distribution channels based on printing encrypted information on articles.

A system described in U.S. Patent Reg. No. 4,588,881 issued May 1986 to W. Pejas et al. provides monitoring the movement of goods inwards and/or outwards with the aid of characteristic markings, such as a bar code which is scanned by a reading pen connected to a terminal. A merchandise distribution control system disclosed in U.S. Patent Reg. No. 4,340,810 issued JuI. 1982 to M. Glass employs specialized preprinted or real-time printed identification labels and requires no writing by loading or shipping dock personnel.

A Radio Frequency Identification (RFID) enables goods to be identified and tracked at any point along the distribution channel. Unfortunately, RFID system cannot support tracking of services. The electronic product code (EPC) is a unique identification number assigned to each good, unlike bar code (UPC), which identifies goods category. The embedded chip sends out an identification signal, allowing it to communicate with RFID interrogators distributed along airports, seaports, highways, distribution centers, warehouses, retail stores, and even in the home, thus enabling continuous identification and tracking of goods as they move from one place to another, which might seriously affect consumer privacy. For example, RFID interrogators can be so sensitive to detect presence of all RFID tagged goods in homes and cars during passing by.

An article (books in a library) inventory control system disclosed in U.S. Patent Reg. No. 5,963,134 issued Oct. 1999 to J.H. Bowers et al. utilizes attached RFID tags having a unique serial number per each individual article. An electronic article security system for a retail store disclosed in U.S. Patent Reg. No. 5,745,036 issued Apr. 1998 to TJ. Clare monitors sold articles tagged with RFID tags having a unique or semi-unique serial number for identifying individual products. A system that utilizes radio frequency circuitry, e.g. transponders attached to a container or item to be monitored and protected in combination with an interrogator device and a computer for the monitoring, protection and control of inventory assets is described in U.S. Patent Reg. No. 5,887,176 issued Mar. 1999 to D.W. Griffith et al. A position and presence of an object in a storage area or moving vehicle can be monitored by attaching an electronic tag to the object, according to U.S. Patent Reg. No. 5,774,876 issued Jun. 1998 to L.A. Woolley et al. The following definitions are based on D. Merriman, "Understand, Measure and Combat

Tobacco Smuggling", World Bank, Economics of Tobacco Toolkit (ed. A. Yurekli et al.) 2001, "Confronting cigarette contraband", Philip Morris International, 2003. and Luk Joossens, "Tobacco smuggling" UICC, http://factsheets.globalink.org/en/smuggling.shtml.

Smuggling, bootlegging, diversion of original goods and infiltration of counterfeited or original goods without payment of customs, tax and excise duties are major worldwide global problems for governments and manufacturers of many goods, like: cigarettes, computers, consumer electronics, white goods, cars, watches, wines and spirits, mobile phones, toys, perfumes, even soaps and detergents.

Smuggling of goods can be defined as the evasion of customs, tax and excise duties or evasion of rules prohibiting the sale of such goods by circumvention of border controls. Wholesale smuggling involves the illegal transportation, usually over long distances, distribution and sale of large consignments of goods. Smuggled goods are offered for retail sale in both formal and informal markets, like: streets, pubs, bars, newsstands, etc.

Bootlegging is the legal purchase of goods in one country, illegal transportation, usually over relatively short distances (e.g., between neighboring countries or other nearby jurisdictions), and consumption or resale in another country without payment of customs, tax and excise duties.

Counterfeited goods are usually made without quality control, using inferior materials, sometimes even dangerous to human health, by breaching employment and other regulatory standards, often involving storage in inappropriate warehouses, where such goods can be further contaminated. Counterfeiters avoid research and development expenses needed to improve product quality and develop new products, as well as marketing costs by using already established consumer awareness for an original brand. Therefore, retail price of counterfeited goods can be significantly lower than the price of original goods, thus damaging market share for original goods, while the inferior quality significantly damages customers' brand perceptions. Infiltration is the introduction of counterfeited goods and goods that have been diverted from other distribution channels into the particular distribution channel and sold to consumers. Diversion of goods out of the distribution network is used in order to infiltrate the same goods into another market. Fraudulent transactions typically involve several separate buyers, acting as distribution levels between the initial purchase of goods and their disappearance from legitimate distribution network. The simplest mechanism used to make investigation difficult is passing of a consignment through an enormous number of owners in a short time, which obscure links between successive owners and make tracing of the final owner almost impossible.

It frequently happens that export reports of goods from first country to the second country does not match import reports of the same goods, due to time lags between exports and the receipt of imports, misallocation of imports by country, over-invoicing of exports and willingful misrepresentation of goods, in order to evade customs, tax and excise duties, as well as rules prohibiting sales of such goods.

In most countries there are no customs, tax and excise duties on exported goods. Therefore, exporters do not have an incentive to under-represent their exports. On the other hand, many countries impose customs, tax and excise duties on goods at the point of import. Thus, importers can have a strong incentive to under-report their imports. They may bribe customs officials to misreport quantities and values; they may circumvent the usual customs inspection by entering the country illegally; or they may misrepresent one type of goods as other type of goods subject to lower customs, tax and excise duties.

The usual control procedures are based on a comparison of a bulk of export and import documentation for the same goods, which is time consuming job with very high error probability.

In the meantime, goods "lost" between export and import can be smuggled into the country designated as the destination country by the exporter, can be diverted to a third country or even smuggled back to the exporting country.

For example, recorded tobacco exports exceed recorded imports by more than one-third of exports. Since about 18% of total tobacco production is exported, D. Merriman et al. in "How big is the worldwide cigarette-smuggling problem?" pp. 365-392, Tobacco Control in

Developing Countries (ed. P. Jha et al.), London, Oxford University Press, 2000, estimate that approximately one-third, or 6% of total tobacco production, is smuggled worldwide.

Circumvention of the distribution system usually covers selling goods through unlicensed or unregulated outlets, such as on the street corner, or in an unregulated manner through mail order and/or Internet sales. The distribution network providing the ultimate sale of all goods of a major international manufacturer to consumers at retail worldwide is enormously complex, encompassing hundreds of thousands of retail outlets, as well as thousands of wholesalers, making any reasonable sized control efforts impossible. The same is true even in case of an "open book" recordkeeping regime with detailed information about significant volume customers and other key business partners, which includes: name, location, ownership structure; sales, pricing, shipping, and payment information; customer coding and market destination. Subsequent purchasers should be subject to similar requirements so that authorities can trace goods sales from manufacturer to retailer. An automated ordering system in a retail shop disclosed in U.S. Patent Reg. No. 5,168,445 issued Dec. 1992 to K. Kawashima et al. is based on an average of the past demands and the stock volume of goods. An apparatus disclosed in U.S. Patent Reg. No. 4,737,910 issued Apr. 1988 to R.H. Kimbrow provides monitoring inventory in a business or hospital and an immediate indication of the number of items in such inventory, the number of items needed to be reordered at any time to replenish the inventory to its maximum level, and the critical minimum inventory level necessitating a stock reorder to avoid depletion of stock. A method disclosed in U.S. Patent Reg. No. 4,621,325 issued Nov. 1986 to W.L. Naftzger et al. provides monitoring the receipt and stocking of batches of goods in a direct store delivery using a scanner in order to indicate any discrepancies in the receipt and stocking of goods and any trend for particular losses. Commercial systems are briefly described at http://www.laberg.com.au/warehouse.htm, http://www.digiflex.ca/proclass.html, etc.

A critical requirement for the effort to defeat contraband is a secure distribution network through which goods are manufactured, transported, and sold to consumers in accordance with all applicable fiscal and other requirements.

Disclosure of the Invention

The first object of this invention is to provide novel secure distribution management system, which detects diversion of goods from the distribution channel and infiltration of counterfeited and original goods without payment of customs, tax and excise duties, by generating secure electronic records of both the sale receipt of goods for one distributor and purchasing receipt for the same goods for the next distributor, as a confirmation from both distributors that such transaction actually occurred. All applicable customs, tax and excise duties can be derived from such electronic records by providing government institutions' access to these records.

The second object of this invention is to provide an on-line system for collecting and keeping of these electronic records, which have real-time information about all transactions of goods and services, and which performs real-time analysis of that information in order to detect diversion of goods from the distribution channel and infiltration of counterfeited and original goods without payment of customs, tax and excise duties, as well as to plan inspection.

The third object of this invention is to provide an off-line system for collecting and keeping of these electronic records, which have periodical (usually daily) information about all transactions of goods and services, and which performs periodical analysis of that information for the same reasons stated in the previous paragraph.

The fourth object of this invention is to provide an off-line system for collecting and keeping of these electronic records, sending on-demand information about all transactions of goods and services, and which performs on-demand analysis of that information for the same reasons stated in previous two paragraphs.

The fifth object of this invention is to provide novel secure distribution management system, with image reproduction system for the reproduction of a visual advertisement and/or sound reproduction system for the reproduction of a sound advertisement.

The sixth object of this invention is to provide novel secure distribution management system, with the addition of other sensing devices, like: a security camera, a microphone, an alarm sensor and a fire detector.

Brief Description of Drawings

The other parts and the preferred embodiments of this invention will be further described in detail in connection with the accompanying drawings in which: FIG. 1 is a block diagram of a typical distribution system. FIG. 2 is a block diagram of one typical distribution channel within single country. FIG. 3 is a block diagram of one typical distribution channel between a plurality of countries. FIG. 4 is a block diagram of a secure distribution management system according to this invention. FlG. 5 is a block diagram of a remote controller with optional secure storage and transmission, printer, goods detector, card reader (POS-EFT), etc.

FIG. 6 is a block diagram of a remote controller with optional image reproduction system, sound reproduction system and a sensor for the detection of a passerby. FIG. 7 is a block diagram of a remote controller with optional security camera, a microphone, an alarm sensor and a fire detector.

Best Mode(s) for Carrying Out the Invention

Typical distribution system 1 shown in FIG. 1, comprises a plurality of distribution channels 2, one distributed channel per each distributed good or a service.

Typical distribution channel 2 within single country depicted in FIG. 2, starts from a manufacturer and continues through at least one wholesaler, at least one retailer and at least one consumer (each of them named as distributor 4 in further text).

Typical distribution channel 2 covering a plurality of countries depicted in FIG. 3, starts from a manufacturer and continues through at least one exporter in the first country, at least one importer in the second country, at least one wholesaler, at least one retailer and at least one consumer (each of them named as distributor in further text).

The conversion of state-of-the-art distribution management system into secure distribution management system according to this invention and FIG. 4, is performed by the insertion of at least one remote controller 11 (111, 112, 113, 114, 115, 116) between any two successive distributors in the distribution channel 2, in order to provide the identification of a distributor 4 (although identification of consumers can be omitted in order to protect their privacy), comprising: an identification number of a remote controller (11), a name, an address and a contact information of a seller and a buyer, their tax identification numbers, etc., as well as a type of the transaction between two distributors, comprising: sale, purchase, store, return, a declaration about damaged, destroyed and stolen goods; information about transaction between two distributors comprising: name, EAN code, TJPC code, stock volume, quantity, unit price, total price, customs, tax and excise duties of goods and services, means of the payment, date and time, transaction number, turnover per tax rate, cashier and supervisor code; vehicle related information comprising: driver's name, GPS position, vehicle condition, odometer reading, fuel level, palette number, location and business specific information, etc. A method for the management of at least one distribution channel 2 of the secure distribution management system comprises at least the following steps: providing the transaction information 3 between distributors 4 of at least one distribution channel 2 using at least one remote controller 11; and providing the communication with at least one server 10, which provides an analysis 5 of the transaction information 3.

The first method of an analysis 5 of the transaction information 3 is based on the comparison of the sale transaction information received from one distributor with the purchasing transaction information received from the next distributor in the distribution channel. For example, a number of goods sold during the particular transaction must be the same as the number of goods purchased during the same transaction. In reality these numbers do not match, especially for export and import distributors.

The second method of an analysis 5 of the transaction information 3 is based on the comparison of the purchasing transaction information received from one distributor with the sold, stored, returned, damaged, destroyed and stolen goods transaction information received from the same distributor. For example, a number of goods purchased by the analyzed distributor must be the same as the sum of the number of goods sold to the next distributor, stored in the warehouse of the analyzed distributor, returned to the previous distributor, declared as damaged, destroyed or stolen goods, etc. In reality these numbers do not match, due to diversion, infiltration and/or theft. The third method of an analysis 5 of the transaction information 3 is based on the comparison of the current transaction information received from one distributor with the previous transaction information received from the same distributor. For example, a number of goods purchased and sold through particular distributor is tracked during time period, in order to find time dependence and predict market behavior in the future. The additional prediction of volumes of particular goods can be made based on an independent assessment of demand in a given market.

The fourth method of an analysis 5 of the transaction information 3 is based on the comparison of the transaction information received from one distributor with the transaction information received from the next distributor. For example, a number of goods purchased and sold through one distributor should be proportional to the number of goods purchased and sold through any other distributor having similar business conditions during the same time period, unless particular distributor within one distribution channel 2, make business decisions fundamentally different from decisions made by the other distributors within the same distribution channel, in which case further investigation is needed. For example, in most cases, large difference between numbers of goods sold through similar retail shops in the same part of a city is clear evidence of a problem. Each of these four methods alone, or some of them combined provides possibility to detect with high probability diverted, counterfeited and original goods without payment of customs, tax and excise duties, as well as to plan inspection based on said detection.

The remote controller 11 can immediately send transaction information 3 to the server 10, thus providing an on-line system, which have real-time information about all transactions of goods and services, and which performs real-time analysis 5 of the transaction information 3.

The remote controller 11 can also store transaction information 3 before periodically sending it to the server 10, thus providing an off-line system, which have periodical (usually daily) information about all transactions of goods and services, and which performs periodical analysis 5 of the transaction information 3. The remote controller 11 can also store transaction information 3 before sending it on- demand to the server 10, upon receiving a request from the server 10, thus providing an off-line system, which have information about all transactions involving goods and services, and which performs on-demand analysis 5 of the transaction information 3.

The remote controller 11 comprises computing means 12 and communication means 13, as in FIG. 5. Computing means 12 are typically realized as: personal computer (PC); personal digital assistant (PDA); mainframe computer; point-of-sale system (POS); electronic cash register; fiscal cash register; fiscal printer; mobile phone; computing part of some communication device; etc. Communication means 13 are typically realized as wired or wireless communication device, for example: cable modem; ISDN modem; dial-up modem; wired network terminal; satellite modem; wireless modem; wireless network terminal; mobile phone; communication part of some communication device; etc. using any suitable communication mechanism, like: GSM/GPRS/UMTS; 802.11 wireless LAN; dial-up; etc. This allows for time- critical data to be wirelessly transmitted via GSM, GPRS or UMTS as needed, whilst also minimizing transmission costs with local area wireless networks for the transfer of less time- critical data. Communication can be performed through public network; proprietary (private) network; and virtual private network (VPN). The transaction information 3 can be stored in secure storage means 14 for further reading, checking and transmission, typically made using: PROM; EPROM; OTPROM; FLASH memory or EEPROM with a circuit for the erasure prevention; NVRAM; SRAM with a backup battery; DRAM with a controller and a backup battery; harddisk with access control; write once read many (WORM) optical disc (CD-R, DVD+R, DVD-R, ...); etc., in order to prevent counterfeiting of data.

Furthermore, the transaction information 3 can be stored and/or transmitted encrypted by encryption means 15 using any suitable method, like: Rivest Shamir Adelman (RSA); Data Encryption Standard (DES); Triple-Pass DES (EDE); Triple DES (3DES); RC2; RC4; RC6; Rijndmael alias Advanced Encryption Standard (AES); International Data Encryption Algorithm (DDEA); Diffie-Hellman; El Gamal; Blowfϊsh; One-time-pad; Substitution; Permutation; and Garbage-in-between; etc.

In addition to that, the authenticity of the transaction information 3 can be generated and checked by authentication means 16 using any suitable method, like: Message Digest (MD5); Secure Hash Algorithm (SHA); Keyed Hash Message Authentication Code (HMAC); Direct

Digital Signature; Arbitrary Digital Signature; Digital Signature Standard (DSS); Mutual

Authentication; Authentication with Public Key; Kerberos; X.509; Zero Knowledge Proof; etc.

The transaction information 3 can be inserted into any communication protocol by protocol means 17 using any suitable method, like: Pretty Good Privacy (PGP); Secure Shell (SSH); Security Socket Layer (SSL); Transport Layer Security (TSL); IP Security (ffsec); HyperText Transmission Protocol (HTTP); File Transfer Protocol (FTP); Secure HyperText Transmission Protocol (SHTTP); Secure File Transfer Protocol (SFTP); Secure Electronic Transaction (SET); etc.

The remote controller 11 of FIG. 5 can also optionally print sale and purchasing receipt comprising selected parts of a transaction information 3 by printing means 18, using any printer, like: a laser jet printer; an ink jet printer; a thermal printer; a matrix printer; an invoice printer; an electronic cash register; a fiscal cash register; a fiscal printer; etc.

The remote controller 11 can also optionally count and identify goods by goods detector device 19, using any suitable input device, like: a keyboard; a bar-code reader; a laser scanner; a magnetic stripe reader; an optical character recognition apparatus (OCRA); a machine vision camera; an RFID interrogator; etc.

The remote controller 11 can also optionally exchange information between at least one card reader (POS-EFT) 20, which enables reading of magnetic stripe card and contact or contactless smart card, and the appropriate server 10 (card processing company's server, distributor's server, etc.).

In addition to secure distribution management functions, the remote controller 11 of FIG. 6 can optionally receive visual advertisement 22, usually in the form of the compressed image or video signal from the appropriate server 10 (advertising agency's server, distributor's server, etc.), decompressing and reproducing it by appropriate image reproduction device 21, comprising at least one display 23, made with any suitable technology, like: a liquid crystal display (LCD); a light emitting diode display (LED); an organic polymer display (OLED); a plasma display (PDP); an electronic ink display (e-INK); an electroluminescent display (EL); a vacuum fluorescent display (VFD); a field emission display (FED); a liquid crystal on silicon display (LCOS); a digital micromirror device display (DMD); a cathode ray tube display (CRT); etc.

In addition to secure distribution management functions, the remote controller 11 of FIG. 6 can optionally receive sound advertisement 25, usually in the form of the compressed audio signal from the appropriate server 10 (advertising agency's server, distributor's server, etc.), decompress it and reproducing it by an appropriate sound reproduction device 24, which comprises at least one loudspeaker 26, made with any technology, like: an electrodynamic loudspeaker; an electrostatic loudspeaker; a flat panel loudspeaker (NXT); an inflated membrane loudspeaker; etc. The remote controller 11 can also detect a presence of a passerby using sensor for the detection of a passerby 27, like: an ultrasound sensor; an infrared sensor; an optical sensor; a floor pressure sensor; etc. and reproduce sound advertisement 25 only during the presence of a passerby, while playing music or any radio station otherwise.

In addition to secure distribution management functions, the remote controller 11 of FIG. 7 can optionally accept data from any other additional sensor 28, which detects physical values at the location of the remote controller 11. For example, the remote controller 11 can send selected or all frames from a security camera 29, usually in the form of the compressed image or video signal to the appropriate server 10 (security company's server, distributor's server, etc.), which will store it and/or decompress it for analysis and viewing, in order to detect possible intrusion and send security team to the location of the security camera 29. In addition to secure distribution management functions, the remote controller 11 of FIG. 7 can optionally send selected or all information from a microphone 30, usually in the form of compressed audio to the appropriate server 10 (security company's server, distributor's server, etc.), which will store them and/or decompress them for analysis and listening, in order to detect possible intrusion and send security team to the location of the microphone 30.

In addition to secure distribution management functions, the remote controller 11 of FIG. 7 can optionally send selected or all information from an alarm sensor 31, usually in the form of raw data to the appropriate server 10 (security company's server, distributor's server, etc.), which will store them and immediately analyze them, in order to detect possible intrusion and send security team to the location of the alarm sensor 31.

In addition to secure distribution management functions, the remote controller 11 of FIG. 7 can optionally send selected or all information from a fire detector 32, usually in the form of the raw data to the appropriate server 10 (fire brigade's server, distributor's server, etc.), which will store them and immediately analyze them, in order to detect fire and send firemen to the location of the fire detector 32. There are many other possibilities to add functionalities of the remote controller 11 and the server 10, thus providing truly multifunctional system, with fast return of an investment.

Industrial Applicability

Besides preferable embodiments defined in the description and the claims, there is an enormous amount of data that can be collected with a remote terminal from a distribution channel and additional sensors, as well as send to appropriate actuators. The requirement that all distributors use this solution enables creation of a secure distribution management system that prevents diversion and infiltration of goods by controlling every link in distribution channels, no matter how diverse and complex they are and at same time facilitate law enforcement against those operating outside of it, while promoting free movement of goods. The application of this invention provides increase of revenues of governments and companies by reduction of smuggling, bootlegging and a minimization of customs, tax and excise duties evasion, without imposing undue burdens on manufacturers, exporters, importers, wholesalers, retailers, while keeping privacy of consumers.

Although the preferred embodiments of the present invention are described and illustrated, those skilled in the art can perform various modifications and design equivalents of this invention. According to the above description, the present invention is intended to cover all such modifications and equivalents within the scope of the following claims.

Claims

1. A secure distribution management system (1) for the management of at least one distribution channel (2), comprising: at least one remote controller (11) for providing a transaction information (3) between successive distributors (4) of at least one distribution channel (2) and the communication with at least one server (10), and at least one said server (10) for providing the communication with at least one said remote controller (11) and an analysis (5) of said transaction information (3).

2. The secure distribution management system of claim 1, wherein said transaction information (3) is selected from a group consisting of: an identification number of a remote controller (11); a name of the seller; an address of the seller; a contact information of the seller; a tax identification number of the seller; a name of the buyer; an address of the buyer; a contact information of the buyer; a tax identification number of the buyer; selling as a type of the transaction; purchasing as a type of the transaction; storing as a type of the transaction; returning as a type of the transaction; declaration about damaged goods as a type of the transaction; declaration about destroyed goods as a type of the transaction; declaration about stolen goods as a type of the transaction; a name of a good or a service; an EAN code of a good or a service; a UPC code of a good or a service; a stock volume; a quantity of a good or a service; an unit price of a good or a service; a total price of a good or a service; a customs duty of a good or a service; a tax duty of a good or a service; an excise duty of a good or a service; means of the payment; date and time of a transaction; transaction number; turnover per each tax rate; a cashier's code; a supervisor's code; a driver's name; a GPS position; a vehicle condition; an odometer reading; a fuel level; a palette number; and a location and business specific information.

3. The secure distribution management system of claim 1, wherein the distributor (4) is selected from a group consisting of: a manufacturer; an exporter; an importer; a wholesaler; a retailer; and a consumer.

4. The secure distribution management system of claim 1, wherein said analysis (5) of the transaction information (3) is defined by an entity selected from a group consisting of: a government; a customs administration; a tax administration; an excise administration; a distributor; an advertising company; a card processing company; a security company; and a fire department.

5. The secure distribution management system of claim 1, wherein said analysis (5) of the transaction information (3) is selected from a group consisting of: a comparison of the sale transaction information received from one distributor (4) with the purchasing transaction information received from the next distributor in the distribution channel (2); a comparison of the purchasing transaction information received from one distributor (4) with the sold, stored, returned, damaged, destroyed and stolen goods transaction information, received from the same distributor; a comparison of the current transaction information received from one distributor (4) with the previous transaction information received from the same distributor; a comparison of the transaction information received from one distributor (4) with the transaction information received from another distributor; a detection of diverted goods or services from the distribution channel (2) based on at least one of said comparisons; a detection of counterfeited and original goods without payment of customs, tax and excise duties in the distribution channel (2) based on at least one of said comparisons; and a planning of inspection based on at least one of said detections.

6. The secure distribution management system of claim 1, wherein said remote controller (11) comprises: at least one computing means (12) for providing the transaction information (3) between distributors, and at least one communication means (13) for providing the communication with at least one said server (10).

7. The secure distribution management system of claim 6, wherein said computing means (12) is selected from a group consisting of: a personal computer (PC); a personal digital assistant (PDA); a mainframe computer; a point-of-sale system (POS); an electronic cash register; a fiscal cash register; a fiscal printer; a mobile phone; and a computer part of any communication device.

8. ₅ The secure distribution management system of claim 6, wherein said communication means (13) is selected from a group consisting of: a cable modem; an ISDN modem; a dial-up modem; a wired network terminal; a satellite modem; a wireless modem; a wireless network terminal; a mobile phone; and a communication part of any communication device.

9. The secure distribution management system of claim 1, wherein said communication is selected from a group consisting of: a communication through a public network; a communication through a private network; and a communication through a virtual private network (VPN).

10. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one secure storage means (14) for a storage of at least a part of the transaction information (3).

11. The secure distribution management system of claim 10, wherein said secure storage means (14) is selected from a group consisting of: PROM; EPROM;

OTPROM;

FLASH memory with circuits for the erasure prevention;

EEPROM with circuits for the erasure prevention;

NVRAM with circuits for the erasure prevention; SRAM with a backup battery and circuits for the erasure prevention;

DRAM with a controller, a backup battery and circuits for the erasure prevention; harddisk with an access control; and write once read many (WORM) optical disc.

12. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises encryption means (15) for the encryption of at least a part of the transaction information (3)-

13. The secure distribution management system of claim 12, wherein said encryption means (15) performs method selected from a group consisting of:

Rivest Shamir Adelman (RSA);

Data Encryption Standard (DES);

Triple-Pass DES (EDE); Triple DES (3DES);

RC2;

RC4; RC6;

Rijndmael alias Advanced Encryption Standard (AES); International Data Encryption Algorithm (IDEA); Diffie-Hellman; El Gamal;

Blowfish; One-time-pad; Substitution; Permutation; and Garbage-in-between.

14. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises authentication means (16) for the authentication of at least a part of the transaction information (3).

15. The secure distribution management system of claim 14, wherein said authentication means (16) performs method selected from a group consisting of:

Message Digest (MD5); Secure Hash Algorithm (SHA);

Keyed Hash Message Authentication Code (HMAC);

Direct Digital Signature;

Arbitrary Digital Signature;

Digital signature standard (DSS); Mutual Authentication;

Authentication with Public Key;

Kerberos;

X.509; and

Zero Knowledge Proof.

16. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one protocol means (17) for the insertion of at least a part of the transaction information (3) into a communication protocol.

17. The secure distribution management system of claim 16, wherein said protocol means (17) performs method selected from a group consisting of:

Pretty Good Privacy (PGP);

Secure Shell (SSH);

Security Socket Layer (SSL);

Transport Layer Security (TSL); IP Security (EPsec);

HyperText Transmission Protocol (HTTP);

File Transfer Protocol (FTP);

Secure HyperText Transmission Protocol (SHTTP);

Secure File Transfer Protocol (SFTP); and Secure Electronic Transaction (SET).

18. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one printing means (18) for printing out at least a part of said transaction information (3).

19. The secure distribution management system of claim 18, wherein said printing means (18) is selected from a group consisting of: a laser jet printer; an ink-jet printer; a thermal printer; a matrix printer; an invoice printer; an electronic cash register; a fiscal cash register; and a fiscal printer.

20. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one goods detector device (19) for counting and identifying goods.

21. The secure distribution management system of claim 20, wherein said goods detector device (19) is selected from a group consisting of: a keyboard; a bar-code reader; a laser scanner; a magnetic stripe reader; an optical character recognition apparatus (OCRA); a machine vision camera; and an RFID interrogator.

22. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one card reader (POS-EFT) (20) for card payments.

23. The secure distribution management system of claim 22, wherein said card reader (POS-EFT) (20) is selected from a group consisting of: a magnetic card reader; a contact smart card reader; and a contactless smart card reader.

24. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one image reproduction device (21) for reproduction of a visual advertisement (22).

25. The secure distribution management system of claim 22, wherein said image reproduction device (21) comprises at least one display (23) selected from a group consisting of: a liquid crystal display (LCD); a light emitting diode display (LED); an organic polymer display (OLED); a plasma display (PDP); an electronic ink display (e-INK); an electroluminescent display (EL); a vacuum fluorescent display (VFD); a field emission display (FED); a liquid crystal on silicon display (LCOS); a digital micromirror device display (DMD); and a cathode ray tube display (CRT).

26. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one sound reproduction device (24) for reproduction of a sound advertisement (25).

27. The secure distribution management system of claim 26, wherein said sound reproduction device (24) comprises at least one loudspeaker (26) selected from a group consisting of: an electrodynamic loudspeaker; an electrostatic loudspeaker; a flat panel loudspeaker (NXT); and an inflated membrane loudspeaker.

28. The secure distribution management system of claim 26, wherein said remote controller (11) further comprises at least one sensor for the detection of a passerby (27).

29. The secure distribution management system of claim 28, wherein said sensor for the detection of a passerby (27) is selected from a group consisting of: an ultrasound sensor; an infrared sensor; an optical sensor; and a floor pressure sensor.

30. The secure distribution management system of claim 1, wherein said remote controller (11) further comprises at least one additional sensor (28) for the detection of physical quantities at a location of said remote controller (11).

31. The secure distribution management system of claim 30, wherein said additional sensor (28) is selected from a group consisting of: a security camera (29) ; a microphone (30); an alarm system (31); and a fire detector (32).

32. A method for the management of at least one distribution channel (2) of the secure distribution management system, comprising the steps of: providing a transaction information (3) between distributors (4) of at least one distribution channel (2) using at least one remote controller (11), providing the communication between said remote controller (11) and at least one server (10), and providing an analysis (5) of the transaction information (3) using said server (10).

33. The method of claim 32, wherein said analysis (5) of the transaction information (3) comprises the steps of: comparison of the sale transaction information received from one distributor (4) with the purchasing transaction information received from the next distributor in the distribution channel (2); and detection of diverted, counterfeited and original goods without payment of customs, tax and excise duties based on said comparison.

34. The method of claim 32, wherein said analysis (5) of the transaction information (3) comprises the steps of: comparison of the purchasing transaction information received from one distributor (4) with the sold, stored, returned, damaged, destroyed and stolen goods transaction information received from the same distributor; and detection of diverted, counterfeited and original goods without payment of customs, tax and excise duties based on said comparison.

35. The method of claim 32, wherein said analysis (5) of the transaction information (3) comprises the steps of: comparison of the current transaction information received from one distributor (4) with the previous transaction information received from the same distributor; and detection of diverted, counterfeited and original goods without payment of customs, tax and excise duties based on said comparison.

36. The method of claim 32, wherein said analysis (5) of the transaction information (3) comprises the steps of: comparison of the transaction information received from one distributor (4) with the transaction information received from another distributor; and detection of diverted, counterfeited and original goods without payment of customs, tax and excise duties based on said comparison.

37. The method of claim 32, further comprising the step of sending the transaction information (3) to said server (10), immediately after its generation.

38. The method of claim 32, further comprising the step of storing and periodically sending the transaction information (3) to said server (10).

39. The method of claim 32, further comprising the step of storing and sending the transaction information (3) to said server (10) upon receiving a request from the server (10).

40. The method of claim 32, further comprising the step of storing of at least a part of the transaction information (3) into storage means (14).

41. The method of claim 32, further comprising the step of encrypting of at least a part of the transaction information (3) using encryption means (15).

42. The method of claim 32, further comprising the step of authentication of at least a part of the transaction information (3) using authentication means (16).

43. The method of claim 32, further comprising the step of inserting of at least a part of the transaction information (3) into a protocol using protocol means (17).

44. The method of claim 32, further comprising the step of printing of at least a part of the transaction information (3) using printing means (18).

45. The method of claim 32, further comprising the step of counting and identifying goods using goods detector device (19).

46. The method of claim 32, further comprising the step of sending information from at least one card reader (POS-EFT) (20) to said server (10).

47. The method of claim 32, further comprising the step of reproducing at least one visual advertisement (22) using at least one display (23) of at least one image reproduction device (21).

48. The method of claim 32, further comprising the step of reproducing sound using at least one loudspeaker (26) of at least one sound reproduction device (24).

49. The method of claim 48, wherein a sound is selected from a group consisting of: a music in the absence of a passerby; and a sound advertisement (25) in the presence of a passerby, based on a sensor for the detection of a passerby (27).

50. The method of claim 32, further comprising the step of sending image signal from a security camera (29) to said server (10).

51. The method of claim 32, further comprising the step of sending sound signal from a microphone (30) to said server (10).

52. The method of claim 32, further comprising the step of sending data from an alarm sensor (31) to said server (10).

53. The method of claim 32, further comprising the step of sending data from a fire detector (32) to said server (10).