JPMorgan Chase has patented a digital payment system that could rival Bitcoin.

[mick silver]

JPMorgan Chase has patented a digital payment system that could rival Bitcoin.

The system includes digital wallets, the ability to transfer money to anyone and anonymity too, according to a patent application (http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=20130317984&OS=20130317984&RS=20130317984) filed to the U.S. Patent and Trade Office on Aug. 5. A blog on Let's Talk Bitcoin (http://letstalkbitcoin.com/jpmorgan-chase-building-bitcoin-killer/#.UqiEePRDt8F) first reported the story.


JPMorgan (JPM (http://money.cnn.com/quote/quote.html?symb=JPM&source=story_quote_link), Fortune 500 (http://money.cnn.com/magazines/fortune/fortune500/2013/snapshots/2608.html?iid=EL)) has also patented payment software that would latch onto your Internet browser and allow you to shop without pausing to fill out forms with personal financial information. And with what the bank calls its Internet Pay Anyone Account, moving funds would be anonymous and as easy as sending an email.
Related: 15 best financial sites and apps (http://money.cnn.com/gallery/pf/2013/12/11/best-financial-apps/index.html?iid=EL)
"The credit pushes can be made completely anonymously, with the recipient of the credit having no way to determine from where the credit originated," the bank says in the application.
Another aspect of the digital payment system is a virtual private lockbox. Think of it as a bank account that can only accept funds. That way, users can receive funds from anyone by publishing its digital address publicly without fear that someone can pull money out of it.
The impetus for the project is likely Bitcoin (http://money.cnn.com/infographic/technology/what-is-bitcoin/?iid=GM), the independent electronic currency created in 2009 that has gained lots of recent attention (http://money.cnn.com/2013/12/10/technology/bitcoin-currency-fred-wilson/index.html?iid=EL). But the patent application shows no mention of Bitcoin.
It does, however, say what led to its development: The modern financial system is outdated.
In the patent application, JPMorgan notes two trends that are making the old banking system obsolete. One is that merchants are establishing direct relationships with customers -- and they don't want middlemen slowing down the transfer of money. The second is that digital products are often sold in small increments for very low prices, and the currently high price of per-transaction fees don't make sense.


"A new marketplace has emerged for low dollar, high volume, real-time payments with payment surety for both consumers and producers," the bank writes in the application. http://i.cdn.turner.com/money/images/bug.gif (http://money.cnn.com/2013/12/10/technology/bitcoin-jpmorgan/?iid=EL#TOP)http://money.cnn.com/2013/12/10/tech...coin-jpmorgan/ (http://money.cnn.com/2013/12/10/technology/bitcoin-jpmorgan/)

[Ares]

Title is kind of misleading. This patent has been rejected.

http://www.zerohedge.com/news/2013-12-15/jpmorgans-bitcoin-alternative-patent-rejected-175-times

[mick silver]

it all misleading , that was below what you posted on the same page http://www.zerohedge.com/news/2013-12-10/chasing-bitcoin-jpm-preparing-unveil-its-own-electronic-currencyChase-ing Bitcoin: Is JPM Preparing To Unveil Its Own Electronic Currency?
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 12/10/2013 12:44 -0400











inShare15




If you can't beat 'em, join 'em, copy 'em, and then beat 'em. While everyone's attention has been glued to Bitcoin (and its various smaller and less viable for now alternative digital currencies), JPMorgan has submitted a patent (http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PG01&s1=20130317984&OS=20130317984&RS=20130317984)which appears to set the scene for a competing centralized network to Bitcoin. As LetsTalkBitcoin noted first (http://letstalkbitcoin.com/jpmorgan-chase-building-bitcoin-killer/#.Uqc7IuKmZL_), the "Method and system for processing internet payments using the electronic funds transfer network," states that Chase's technology is a "new paradigm." Moreover that it permits the creation of "virtual cash" (also referred to as "web cash") with a "real-time digital exchange of value."
Via eCreditDaily, (http://ecreditdaily.com/2013/12/jpmorgan-chases-proposed-web-cash-smacks-of-bitcoin-like-transactions/)

Imagine paying for some product in a transaction directly with the seller that doesn’t include a costly third-party fee or the revelation of a personal account number — the current components that comprise credit card and debit card purchases. Imagine this system with a “real-time digital exchange of value.” And imagine that you can archive all the transactions in a personal digital wallet, with its own “Internet Pay Anyone (IPA)” account and inherent safeguards built-in, something that you could call “Virtual Private Lockbox (VPL),” according to JPMorgan’s patent.

If this “web cash” system — as JPMorgan Chase calls it — seems familiar, it should. It smacks of the peer-to-peer transactions of bitcoins and other cryptocurrencies that increasingly are making the world’s biggest banks uneasy about the future of e-commerce.

The patent, first revealed by LetsTalkBitcoin.com (http://letstalkbitcoin.com/jpmorgan-chase-building-bitcoin-killer/#.UqZfyOKs18E), is a fascinating look into JPMorgan’s veiled outlook on the evolving but growing bitcoin universe, and other more widely-accepted payment systems.

JPMorgan’s proposed system offers another eerily familiar component, which seemingly mimics “blockchain,” a publicly available, permanent ledger of bitcoin transactions.

...

Without naming the virtual currency or any competing payments system by name, the bank takes a swipe at the crytocurrency model.

“None of the emerging efforts to date have gotten more than a toehold in the market place and momentum continues to build in favor of credit cards,” according to Chase’s patent application published by The United States Patent and Trademark Office (USPTO). It was filed August 5th, 2013.

...

JPMorgan Chase sees “a new marketplace” emerging for “low dollar, high volume, real-time payments with payment surety for both consumers and producers.”

As LetsTalkBitcoin.com points out, “Bitcoin has also been ballyhooed for it use with micro-payments and payments under ten dollars due to its zero to negligible fee structure.”

JPMorgan Chase: “The present invention further enables small dollar financial transactions, allows for the creation of ‘web cash’ as well as provides facilities for customer service and record-keeping.”
While naming protocols for these vitual currencies is uncertain, we can't help but think "Dimons" would be appropriate as the web cash becomes increasingly more trusted.

[mick silver]

Doesn't matter that it was rejected:
First, JPMorgan does NOT have a patent. JPMorgan has a pending patent application with claims that are potentially relevant to Bitcoin.
Second, the patent application of interest is old news. The application dates back over a decade, which precedes the advent of Bitcoin. This strongly undermines the notion that JPMorgan Chase is chasing Bitcoin’s technology.
Nevertheless, the current scenario raises the interesting question as to whether JPMorgan’s application could potentially cover Bitcoin’s technology when that application issues into a patent.
.
.
.
The application claims priority back to provisional patent applications filed as early as May 3, 1999. Accordingly, it is highly unlikely that JP Morgan filed this application with any sort of motivation to rival then-non-existant Bitcoin. However, this chronology gives rise to some interesting questions:
Could Bitcoin’s technology infringe on JPMorgan’s patent claims (when they issue)?
As discussed above, JPMorgan’s claims have not issued. (They need to be examined before they issue). However, what if the issued claims cover Bitcoin’s technology? That scenario could be a Bitcoin Killer.
http://inventingpatents.com/jpmorgan-bitcoin-killer-patent/

It's actually pretty standard in many instances - i.e. there's nothing amateurish about it. Specifically, if someone comes up with a half dozen related-but-different inventions, it may be more efficient to write one giant application than a half dozen applications that repeat parts of each other. That one giant application may then have [drumroll] 170 claims. And when you file it, you actually file one and cancel claims 21-170 in a preliminary amendment on the filing date, "somehow managing to avoid paying the excess claims fees". And then later (or at the same time), you file a divisional application and cancel claims 1-20 and claims 41-170. And another canceling claims 1-40 and 61-170. Etc.
http://slashdot.org/story/13/12/10/2117234/jpmorgan-files-patent-application-on-bitcoin-killer

[mick silver]

Recent media attention for Bitcoin suggests that JPMorgan Chase has patented rival technology seeking to compete with Bitcoin. This is not true for a few reasons.
First, JPMorgan does NOT have a patent. JPMorgan has a pending patent application with claims that are potentially relevant to Bitcoin.
Second, the patent application of interest is old news. The application dates back over a decade, which precedes the advent of Bitcoin. This strongly undermines the notion that JPMorgan Chase is chasing Bitcoin’s technology.
Nevertheless, the current scenario raises the interesting question as to whether JPMorgan’s application could potentially cover Bitcoin’s technology when that application issues into a patent.
No Patent for JPMorgan— Only a Patent Application.The news media appears to confusion a patent with a patent application.
The accompanying CNN article noted that JPMorgan Chase “has patented a digital payment system that could rival Bitcoin.” CNN’s article continues to explain that the digital payment system ”includes digital wallets, the ability to transfer money to anyone and anonymity too.”
The Telegraph (http://www.telegraph.co.uk/technology/news/10510933/JPMorgan-files-patent-for-bitcoin-killer-currency.html) also reported on the story. The Telegraph ran the following headline: ”JPMorgan files patent for ‘bitcoin killer’ currency.” The Telegraph further explained: “The largest bank in the US, JPMorgan, has filed a patent for an electronic currency with many similarities to bitcoin.”
JPMorgan Chase does not have a patent. They only have a patent application. This is an important distinction. Anyone can file a patent application for a new technology. That application matures into a patent only after it is examined by a patent examiner during a multi-year process calledpatent prosecution (http://inventingpatents.com/services/patent-prosecution/). During patent prosecution, the applicant and the examiner argue about the claims and eventually agree on a set of claims that defines a patentable (http://inventingpatents.com/can-patent/) invention.
JP Morgan’s Patent Application is only at the very beginning stages of patent prosecution. It is waiting to be examined at the United States Patent and Trademark Office. The application of interest is US Patent Application Number 13/958,881 (https://www.google.com/patents/US20130317984?dq=13/958881&hl=en&sa=X&ei=JJmoUsOdCYTVkAX2cQ&ved=0CDcQ6AEwAA). This is not an issued patent. CNN, the Telegraph, and other news organizations are probably reporting on the patent application because it published on Nov 28, 2013. Apparently that makes it a current event in the eyes of the media.
JPMorgan’s ‘Bitcoin Killer’ Patent Application is Old News.Notably, the application is old news–more than a decade old. The “Bitcoin killer” application is actually a continuation of an early patent application that was filed on Feb. 3, 2000. The application claims priority back to provisional patent applications filed as early as May 3, 1999. Accordingly, it is highly unlikely that JP Morgan filed this application with any sort of motivation to rival then-non-existant Bitcoin. However, this chronology gives rise to some interesting questions:
Could Bitcoin’s technology infringe on JPMorgan’s patent claims (when they issue)?
As discussed above, JPMorgan’s claims have not issued. (They need to be examined before they issue). However, what if the issued claims cover Bitcoin’s technology? That scenario could be a Bitcoin Killer.
JPMorgan’s Pending ClaimsJPMorgan’s current patent application has three independent claims. One example is reproduced below in blue. The other claims (along with the description) can be accessed by following the link to JP Morgan’s Patent Application (https://www.google.com/patents/US20130317984?dq=13/958881&hl=en&sa=X&ei=JJmoUsOdCYTVkAX2cQ&ved=0CDcQ6AEwAA).
Example Claim:
155. A computer-implemented method of providing an anonymous payment from a mobile device to a payee device to enable an electronic payment between a payer and a payee without provision of an account number or name from the payer, the method comprising:
storing, in a computer memory at a host server, payer information and instructions; and
accessing the computer memory using a computer processor to retrieve the payer information and instructions and executing the instructions to perform steps including:
receiving at the host server, a bill payment message from the payee, the bill payment message including a transaction ID;
transmitting the transaction ID to the payer, the transaction ID permitting the payer to initiate transmission of a payment amount;
generating a payment authorization message from the payer, the payment authorization message including a payment amount to be tendered to the payee and the transaction ID, the transaction ID allowing identification of the payment, thereby enabling redemption of the payment amount after the payee receives the transaction ID; and
transferring the payment amount from an account associated with the payer to an account associated with the payee. ... http://inventingpatents.com/jpmorgan-bitcoin-killer-patent/

[mick silver]

https://www.google.com/patents/US20130317984?dq=13/958881&hl=en&sa=X&ei=JJmoUsOdCYTVkAX2cQ&ved=0CDcQ6AEwAAMethod and system for processing internet payments using the electronic funds transfer network
US 20130317984 A1
ABSTRACT
Embodiments of the invention include a method and system for conducting financial transactions over a payment network. The method may include associating a payment address of an account with an account holder name, the account residing at a financial institution and the associated payment address of the account configured to allow withdrawals by the account holder only and to allow a plurality of deposits to be made at different times. The method further includes freely publishing the payment address and making it available to users of an internet portal or search engine. The method further includes receiving data over a network identifying a deposit to be made to the account, assigning the deposit to the account using the payment address, and notifying the payer of the assignment. At least one directory is used for associating the account holder with the payment address.


Publication number
US20130317984 A1


Publication type
Application


Application number
US 13/958,881


Publication date
Nov 28, 2013


Filing date
Aug 5, 2013


Priority date
May 3, 1999


Also published as
US20130191278 (https://www.google.com/patents/US20130191278?dq=13/958881&ei=JJmoUsOdCYTVkAX2cQ)


Inventors
Denis O'Leary (https://www.google.com/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Denis+O%27Leary%22), Vincent D'Agostino (https://www.google.com/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Vincent+D%27Agostino%22), S. Richard Re (https://www.google.com/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22S.+Richard+Re%22), Jessica Burney (https://www.google.com/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Jessica+Burney%22), Adam Hoffman (https://www.google.com/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Adam+Hoffman%22)


Original Assignee
Jpmorgan Chase Bank, N.A. (https://www.google.com/search?tbo=p&tbm=pts&hl=en&q=inassignee:%22Jpmorgan+Chase+Bank,+N.A.%22)


Export Citation
BiBTeX (https://www.google.com/patents/US20130317984.bibtex), EndNote (https://www.google.com/patents/US20130317984.enw), RefMan (https://www.google.com/patents/US20130317984.ris)


Classifications (https://www.google.com/patents/US20130317984?dq=13/958881&hl=en&sa=X&ei=JJmoUsOdCYTVkAX2cQ&ved=0CDcQ6AEwAA#classifications) (4)







External Links: USPTO (https://www.google.com/url?id=B3LjCAABERAJ&q=http://appft1.uspto.gov/netacgi/nph-Parser%3FSect1%3DPTO1%26Sect2%3DHITOFF%26d%3DPG01% 26p%3D1%26u%3D/netahtml/PTO/srchnum.html%26r%3D1%26f%3DG%26l%3D50%26s1%3D20130 317984.PGNR.&usg=AFQjCNGTVjW7O4nMpJTo-Ynn2XsqCb3AOQ), USPTO Assignment (https://www.google.com/url?id=B3LjCAABERAJ&q=http://assignments.uspto.gov/assignments/q%3Fdb%3Dpat%26pub%3D20130317984&usg=AFQjCNFzNy97x0U7yVreBg8JIYHDUEnNaQ), Espacenet (https://www.google.com/url?id=B3LjCAABERAJ&q=http://worldwide.espacenet.com/publicationDetails/biblio%3FCC%3DUS%26NR%3D2013317984A1%26KC%3DA1%26F T%3DD&usg=AFQjCNGjY2BEkGcBBKgUBBqJmpnUwdOgBw)


this is only part of this page it full of info on jp morgan

[Ares]

They can definitely try. But it will have to compete with a decentralized competitor. But we all know their mode of operation. Legislate competition out of existence, and force people to use your product. It's how the health insurance industry got everyone by the barrel of a gun to buy insurance for health care....

[mick silver]

what get me that we all know good and well that they own the goverment , they have bought and pay for. App. - ‎Filed Aug 5, 2013 - ‎Published Nov 28, 2013 - ‎Denis O'Leary (https://www.google.com/search?biw=1152&bih=647&tbm=pts&tbm=pts&q=ininventor:%22Denis+O%27Leary%22) - ‎Jpmorgan Chase Bank, N.A. (https://www.google.com/search?biw=1152&bih=647&tbm=pts&tbm=pts&q=inassignee:%22Jpmorgan+Chase+Bank,+N.A.%22)
US 20130317984 A1. Abstract. Embodiments of the invention include a method and system for conducting financial transactions over a ...