WO2005036810A1

WO2005036810A1 - A method and apparatus for initiation and authentication of negotiable instruments and security documents

Info

Publication number: WO2005036810A1
Application number: PCT/IN2003/000337
Authority: WO
Inventors: Arun Subhash Barve
Original assignee: Arun Subhash Barve
Priority date: 2003-10-16
Filing date: 2003-10-16
Publication date: 2005-04-21
Also published as: AU2003290398A1

Abstract

The present invention relates to a method of initiation and authentication of negotiable instruments and security documents, such negotiable instruments and security documents comprising a unique identification parameter, a predetermined space for printing a plurality of security features and a zero co-ordinate within predetermined tolerance limits in said space. The method involves initiating the negotiable instruments using predetermined initiation data prior to circulation of the negotiable instruments, storing the initiated data in a host computing device after initiation, comparing the initiation data of the negotiable instruments with the stored data during circulation and appending a security feature to the initiation data for every transaction during circulation if the initiation data of the negotiable instrument matches with the stored data wherein the security feature represents the current status of the negotiable instrument. The device for performing the above method is also claimed.

Description

TITLE:

A METHOD AND APPARATUS FOR INITIATION AND

AUTHENTICATION OF NEGOTIABLE INSTRUMENTS AND

SECURITY DOCUMENTS.

FIELD OF INVENTION:

The present invention relates to a method and apparatus for initiation

and authentication of negotiable instruments. Particularly, the present

invention relates to the field of initiation and authentication of

negotiable instruments and various security documents such as

currency bills, pay-commands, demand drafts, certificates, cheques,

traveler cheques, stamp papers, licenses, identity cards, packaging

papers & labels and various other documents that are required to be

protected from potential counterfeiting.

BACKGROUND ART:

Attempts have been made to develop methods and apparatus for

initiating and authenticating negotiable instruments and security

documents such as currency bills, pay-commands, demand drafts,

certificates, cheques, traveler cheques, stamp papers, licenses,

identity cards, packaging papers & labels and other important

documents which are required to be protected from counterfeiting. Several devices are known in the art for determining the denomination

and authenticity of currency bills. Such devices commonly test different

properties of a presented note and based on the properties sensed,

give an indication of the denomination and/or authenticity of the

presented note.

The following are the methods known in the art for authenticating

negotiable instruments.

i) watermarking

ii) embedding UV flakes

iii) printing UV invisible inks

iv) printing magnetic inks

v) printing magnetic invisible inks

vi) embedding metal threads

vii) designing with high resolution and multicolor artwork.

viii) Using numbering patterns.

The European patent document No. EP1307840A1 discloses a system and method for authenticating documents and content thereof. A counterfeit resistant document recording medium is provided, having thereon a predefined unique document identifier and at least one security feature. The recording medium is thereafter imprinted with document content, which typically varies between documents. The document content is stored in a database, indexed by an associated document identifier. The document may then be authenticated by checking the security feature and comparing the stored document content with perceived document content.

The international patent publication No. WO03046815A1 discloses an apparatus and a method for automatically identifying and validating a document, for validating the identity of a bearer of a document, for verifying that the bearer has authorization to participate in an activity represented by the document, and for comparing information on the document against information databases to determine if there are known concerns about the document or its bearer. A document type is narrowed by initially determining the size of the document, and is then identified from amongst a group of documents by looking for colors or other characteristics at specific locations on the document only until the document is identified. The order in which document locations are looked at is dependent upon a history of the types of documents that have been identified. An identified document is verified by first looking up reference information about the document type and using that information to read specific contents and check only specific security and other features utilized on the document. The contents of a document are checked against a database to verify its contents, and other databases are checked for stolen documents, known valid documents, and prohibited travel or entry. Biometrics in databases, on documents and directly from the document bearer are compared to verify the bearer. The U.S Patent application publication No.20020087463 discloses a method for processing a negotiable instrument which involves entering at least one negotiable instrument identifier into a terminal; transmitting at least one negotiable instrument identifier from the terminal to a host computer; receiving, at the terminal, a sign from the host computer, wherein the sign indicates an authorization status of the negotiable instrument; and automatically printing a mark on a document using a printer in communication with the terminal, wherein the mark corresponds with the sign so as to indicate the authorization status of the negotiable instrument.

However, the above prior art methods and devices have the drawback

of being capable of easily duplicated due to the development in

technology and sophisticated technical analysis available today. By

mimicking the properties of a negotiable instrument that are tested by

prior art, it is often possible to have counterfeits accepted.

Thus there exists a need for developing methods and apparatus for

initiating and authenticating negotiable instruments which would

overcome the drawbacks associated with the prior art and find solution

to the problem of counterfeiting of negotiable instruments.

OBJECTS OF THE INVETION

The objects and advantages of the present invention are set out herein

below: An object of the present invention is to provide a method and

apparatus for initiation and authentication of negotiable instruments

wherein the negotiable instruments are passed through a closed loop

system for accurate identification of only authentic negotiable

instrument and thereby not allowing counterfeit negotiable instruments

to be authenticated negotiable instruments.

An object of the present invention is to provide a method and

apparatus for initiation and authentication of negotiable instruments

wherein a physical dynamic status is imparted to the negotiable

instruments every time the negotiable instruments is presented for

transaction and thereby enabling circulation of negotiable instrument

through a highly secure channel.

BRIEF DESCRIPTION OF DRAWINGS:

To complement the description that is being given and in order to

promote a better understanding of the characteristics of the invention

in accordance with a practical embodiment of the same and as an

integral part of the said description a set of drawings accompany it in

which, in an illustrative and non-restrictive way, the following are

represented :-

Fig.1 is the block diagram illustrating the closed loop system according

to the present invention. Fig. 2 is the closed loop flow diagram illustrating the method of

initiation of negotiable instruments according to the present invention.

Fig. 3 illustrates the Authentication method of the negotiable

instrument according to the present invention.

DISCLOSURE OF THE INVENTION

A detailed description of the preferred embodiments and the best

mode for practicing the invention are described herein:

The present invention discloses a method and apparatus for initiation

and authentication of negotiable instruments. Particularly, the present

invention relates to the field of initiation and authentication of

negotiable instruments and various security documents such as

currency bills, demand drafts, university certificates, cheques, traveler

cheques, stamp papers, licenses, identity cards, pass ports, packaging

papers & labels and documents which are required to be protected

from potential counterfeiting.

The negotiable instruments may also include currency bills, pay-

commands, passports, driving licenses, identity cards, alien residence

cards, etc.

In this application, the term negotiable instrument is used herein for the

purposes of illustration only. The term negotiable instruments with

reference to this invention also refers to security documents, packaging labels and all documents which are required to be protected

from counterfeiting.

Preferably, each negotiable instrument according to the present

invention comprises a unique identification parameter.

In accordance with one aspect of the present invention, the unique

identification parameter may be a serial number printed in currency

bills.

In accordance with another aspect of the present invention, the unique

identification parameter may be an image such as photograph printed

in passports.

Alternatively, the negotiable instruments may have any other number

or plurality of images or symbols, barcode, bitmap image which

uniquely identifies each negotiable instrument.

If no unique identification parameter is available in the negotiable

instrument, then a new unique identification parameter will be

generated by a host computing device according to the present

invention.

Referring to the drawings Fig.1 & 2 and particularly to Fig.2, there is

shown a process flow diagram wherein a method of initiating a

negotiable instrument is illustrated and in the embodiment shown, the

following steps are performed. The first stage of the initiation process is the acceptance of the design

of a negotiable instrument for processing by the method according to

the present invention. For acceptance of the negotiable instrument for

processing, the following design parameters are required to be present

in the negotiable instrument.

t a predetermined space for printing a plurality of security features;

(M) clearly printed start mark hereinafter referred to as zero coordinate; and

(n predetermined tolerance limits for the zero co-ordinate.

Only when the above parameters are present in the negotiable

instrument, the negotiable instrument is accepted for processing by the

method according to the present invention.

In this application, zero co-ordinate refers to the beginning or starting

location of which co-ordinates will be stored in the database and will be

referred to as and when required.

Further references of the security features will be with respect to

starting location co-ordinates.

In accordance with one aspect of the present invention, the

acceptance of the negotiable instrument is done manually. Alternatively, acceptance may also be carried out using automated

devices the use of which may be obvious to a person skilled in the art.

Once the design is accepted, the accepted design pertaining to the

space, position and its tolerance along with the image of the negotiable

instrument is stored in a host computing device.

In the embodiment shown, the zero co-ordinate and the unique

identification parameter of the negotiable instrument are scanned by a

scanning and printing device hereinafter referred to as S & P device.

In accordance with one aspect of the present invention, the S & P

device referred to herein may be operative to scan and print data on

the space provided in the negotiable instrument.

Other exemplary embodiments of the S & P device may include

individual devices for scanning and printing the implementation of

which in combined form is also contemplated by this invention and

which may be considered obvious to a person skilled in the art.

The S & P device may also have utilities and attachments such as

electronic photographic camera (digital) and input and output devices

which is also contemplated by this invention.

After scanning of the zero co-ordinate within predetermined tolerance

limits, by the S & P device, the host computing device orders the S & P

device to print the unique identification parameter, a randomly generated matching parameter for unique identification parameter of

every negotiable instrument and security feature with reference to the

zero co-ordinate in the space identified in the negotiable instrument.

A quality control check is performed wherein the host computing

device orders the S & P device to rescan the negotiable instrument to

ascertain the correctness and quality of printing of the unique

identification parameter, the randomly generated matching parameter

and the security feature in the space identified on the negotiable

instrument thus forming a closed loop system as shown in Fig. 1.

The scanned data is encrypted and sent to host computing device for

decision wherein the printing operation is decided to be successful by

the host computing device if the unique identification parameter, the

randomly generated matching parameter and the security feature are

printed to predetermined accuracy. After successful printing operation,

the host computing device orders the S & P device to deliver the

negotiable instrument for circulation and thus the initiation process is

said to be complete for the negotiable instrument as shown in Fig. 2.

The host computing device decides that the printing operation is

unsuccessful if the unique identification parameter, the randomly

generated matching parameter and the security feature are not printed

to predetermined accuracy. In this case, the host computing device

database is updated and the S & P device re-prints the unique identification parameter, the randomly generated matching parameter

and the security feature in a new position of which data is also

updated.

In accordance with one embodiment of the present invention, such re¬

printing is allowed for a predetermined number of times. If the number

of times of re-printing exceeds the limit, then the negotiable instrument

is barred followed by shredding or incineration or any other predefined

business rule for barring the negotiable instrument. Furthermore, the

host computing device database is updated accordingly.

According to one embodiment of the present invention, initiation may

be carried out to a batch of negotiable instruments.

Alternatively, initiation may be carried out continuously in conjunction

with the mass production line of negotiable instruments.

Referring to Fig 3, in the embodiment shown and in accordance with

one aspect of the present invention, the initiated negotiable

instruments are allowed for circulation wherein the present invention

proposes a method and apparatus for authentication of negotiable

instruments during circulation wherein the initiated negotiable

instruments bearing the unique identification parameter, the matching

parameter and initial security feature are tracked in a closed loop for

authenticity for every time the negotiable instrument is presented for

transaction. The term transaction used herein in this application possesses a

meaning which is particular to the type of negotiable instrument.

For example, for negotiable instruments such as currency bills, the

transaction represents buying or selling of goods in exchange of

money at which time, authenticity of the currency bills may be required

to be verified.

For example, for documents such as university certificates, the

transaction represents submission of the certificate for employment or

registration in employment exchange at which time, the authenticity of

the certificate may be required to be checked.

Once the negotiable instruments start circulating, the authentication of

the negotiable instruments are carried out by the method and

apparatus proposed by the present invention.

Accordingly, the S & P device is used to scan the data of the

negotiable instrument after a handshaking protocol with the host

computing device, encrypt the scanned data and forward the encrypted

data to the host computing device.

The validity of the negotiable instrument is decided by comparing the

data scanned, encrypted and forwarded by the S & P device with the

corresponding initiated data stored in the host computing device. Once

the data forwarded by the S & P device matches with the initiated data, then the host computing device confirms the validity of the negotiable

instrument and orders the S & P device to append the randomly

generated security feature to the negotiable instrument and the

accuracy of printing of new security feature is checked. This process is

called re-initiation.

In accordance with one aspect of the present invention, security

feature may have any shape and size and may be printed using a

magnetic or non-magnetic ink which may be visible or invisible but

within the capability limits of scanning of S & P Device.

On execution of printing of security feature by the S & P device, the

negotiable instrument is allowed for recirculation.

A new security feature is printed every time the negotiable instrument

is circulated. Thus, the new security feature represents the current

changed (dynamised) status of the negotiable instrument.

According to the present invention, the new security feature is printed

in the space allotted in the negotiable instrument.

The security features may be in any form either visible or invisible

which may be obvious to a person skilled in the art.

New security feature are printed for a predetermined number of times

on a negotiable instrument. Once the space allotted in the negotiable instrument gets exhausted, then the negotiable instrument is barred for

further circulation.

It may be obvious to a person skilled in the art to have an arrangement

wherein a warning message is issued well before exhaustion of the

allotted space thereby indicating the user for replacement of the

negotiable instrument through authorised channels.

If the host computing device decides invalidity for the negotiable

instrument, then the negotiable instrument is barred for re-circulation

and is subjected to predetermined appropriate action.

The host computing device database is updated irrespective of

whether or not the negotiable instrument is valid.

In accordance with one embodiment of the present invention, the ink

used to print the security feature on the negotiable instrument is a

permanent ink.

The apparatus for initiation and authetication of negotiable instruments

comprises a host computing device, a device for scanning and printing

(S & P device) connected to the host computing device via an internet

line or any other means which is capable of establishing

communication between the host computing device and the S & P

device. The host computing device in coordination with the S & P device

initiates the negotiable instruments by the method proposed by the

present invention. The initiated negotiable instruments are allowed to

circulate.

Furthermore, while the negotiable instruments are in circulation, in

order to prevent counterfeit negotiable instruments from being

circulated the host computing device in co-ordination with the S & P

device keeps the record of the negotiable instruments by the method

according to the present invention.

Thus, while there have been shown and described and pointed out

fundamental novel features of the present invention as applied to

preferred embodiments thereof, it will be understood that various

omissions and substitutions and changes in the form and details of the

methods described may be made by those skilled in the art without

departing from the spirit of the present invention. For example, it is

expressly intended that all combinations of those elements and/or

method steps which perform substantially the same function in

substantially the same way to achieve the same results are within the

scope of the invention. Substitutions of elements from one described

embodiment to another are also fully intended and contemplated. It is

possible to introduce variations, in the whole or its parts, in the shape,

materials and disposal, provided that said variations do not substantially alter the characteristics of the invention that are indicated

by claims appended hereto.

Claims

1. A method of initiating and authenticating of negotiable instruments and security documents such negotiable instruments and security documents comprising a unique identification parameter, a predetermined space for printing a plurality of security features and a zero co-ordinate within predetermined tolerance limits in said space, comprising :

(i). initiating the negotiable instruments using predetermined initiation data prior to circulation of the negotiable instruments;

(ii) storing the initiated data in a host computing device after initiation;

(iii). comparing the initiation data of the negotiable instruments with the stored data for authentication during circulation; and

(iv) appending a security feature to the initiation data for every transaction during circulation, if the initiation data of the negotiable instrument matches with the stored data wherein the security feature represents the current status of the negotiable instrument.

2. The method according to claim 1 wherein the initiation method of negotiable instruments comprises the steps of: (i). scanning and identifying the position of the zero co-ordinate in response to predetermined tolerance limits;

(ii). generating a random matching parameter for every unique identification parameter of the negotiable instruments;

(iii). printing the unique identification parameter, randomly generated matching parameter and a security feature with reference to the zero co-ordinate in the space; and

(iv). rescanning the negotiable instrument to ascertain the correctness and quality of printing of the unique identification parameter, randomly generated matching parameter and the security feature in said space whereby updating rescanned information thereby carrying out the initiation operation in a closed loop system.

3) The method according to claim 1 wherein the unique identification parameter, random matching parameter and the security feature are printed with reference to zero co-ordinate in the space identified in the negotiable instrument.

4) The method according to any one of the foregoing claims wherein the security feature is a signature printed using a visible or invisible ink.

5) The method according to any one of the foregoing claims wherein the unique identification parameter is selected from the group consisting of serial number, label number, bit map image, bar code etc. An apparatus for initiation and authentication of negotiable instruments by the method according to any one of the foregoing claims comprising:

(i). a scanning and printing device coupled to a host computing device for initiating and / or reinitiating the negotiable instruments;

(ii) said host computing device capable of generating a random matching parameter for every unique identification parameter and random security feature of the negotiable instrument;

(iii) said scanning and printing device capable of:

(a), scanning the position of the zero co-ordinate in response to the tolerance limits;

(b). printing the unique identification parameter, randomly generated matching parameter and a security feature with reference to the zero co-ordinate in the space in response to the order from the host computing device and

(c). rescanning the negotiable instrument to ascertain the correctness and quality of printing of the unique identification parameter, randomly generated matching parameter and the security feature in said space thereby carrying out the initiation in a closed loop system.