WO2013151504A1

WO2013151504A1 - A method of licensing digital files

Info

Publication number: WO2013151504A1
Application number: PCT/SG2013/000127
Authority: WO
Inventors: Yew Chow Ben LOOI
Original assignee: Tell My Friends Pte Ltd
Priority date: 2012-04-05
Filing date: 2013-04-01
Publication date: 2013-10-10
Also published as: SG193679A1

Abstract

A method of licensing a digital file via a web link is disclosed. The method comprises receiving a request from a first purchaser (103) to purchase the digital file, assigning a unique identifier for identifying the first purchaser (103), enabling the download of a licensed copy of the digital file by the first purchaser (103), the licensed copy being associated with the unique identifier, and storing the unique identifier in association with a hierarchical index assigned to the first purchaser (103) upon purchase of the digital file. The hierarchical index is for identifying order of the purchase relative to subsequent purchases of the digital file by other purchasers, and for determining an amount to be credited into an account of the first purchaser (103) in relation to the subsequent purchases.

Description

A Method of Licensing Digital Files

Field

The present invention relates to a method of licensing digital files.

Background

With the advent of the digital age, consumers are purchasing increasingly more digital files such as e-books, music files, software apps and the like over the web. Existing business models (e.g. online music stores) for selling digital files typically involve offering a file in exchange for payment of a sum. However, there seems to be a growing trend for consumers to find means to obtain the same file for free such as through peer-to-peer (P2P) websites or other illegal web outlets (i.e. engage in digital piracy). To counter digital piracy, the distribution and sale of digital files are usually supplemented with Digital Rights Management (DRM) technologies to prevent unauthorised sharing. However, such efforts are ineffective as they may easily be circumvented using de-encryption techniques. DRM technologies are hence useful only for slowing copying of the digital files, as evident from the widely available "cracked" copies of the legitimate versions of those files. Effective enforcement is difficult, and online piracy continues to plague the digital content industries, and consequently leading to proposed political and legislative actions (e.g. the Stop Online Piracy Act (SOPA) or Protect IP Act (PIPA)) in further attempts to thwart digital piracy, which are however unpopular with the public.

Other alternative business models include "Freemium" models, in which usage of a digital product (e.g. software) is offered for free in return for being exposed to marketing and publicity ads. These business methods however do not effectively motivate the consumers to pay for licensed music or other digital files. Moreover, such business models usually generate revenue through the ads, which however may not be associated to the artists for rewarding them monetarily.

One object of the present invention is therefore to address at least one of the problems of the prior art and/or to provide a choice that is useful in the art. Summary

According to a 1^st aspect of the invention, there is provided a method of licensing a digital file via a web link. The method comprises receiving a request from a first purchaser to purchase the digital file, assigning a unique identifier for identifying the first purchaser, enabling the download of a licensed copy of the digital file by the first purchaser, the licensed copy being associated with the unique identifier, and storing the unique identifier in association with a hierarchical index assigned to the first purchaser upon purchase of the digital file. The hierarchical index is for identifying order of the purchase relative to subsequent purchases of the digital file by other purchasers, and for determining an amount to be credited into an account of the first purchaser in relation to the subsequent purchases.

Advantageously, the method may provide a new approach to intellectual property protection of digital files by incentivising responsible consumer behaviour to pay for licensed copies of the digital files through a commission scheme for those who have already purchased the licensed files. Furthermore, this method complements current approaches for countering digital piracy, which are education, legislation and enforcement. Moreover, the scheme is structured in a multi-level manner to encourage licensing of the digital files by disseminating information on the relevant authorised outlets/avenues for purchasing, rather than illegally sharing, the digital files. The method may therefore be viewed as a reward programme for positively encouraging correct consumer behaviour, rather than enforcing via threats or punishments.

Preferably, the method may further comprise receiving a request from a subsequent second purchaser to purchase the digital file, the request being associated with the unique identifier, updating the hierarchical index of the first purchaser to a new hierarchical index, and crediting the account of the first purchaser with the amount based on the new hierarchical index. More specifically, updating the hierarchical index may include assigning a highest order hierarchical index to be the new hierarchical index of the first purchaser.

Further, the amount to be credited into the account of the first purchaser based on the hierarchical index may preferably be in accordance with a predetermined set of licensing rules. The amount to be credited may also include a proportion of a licensing fee predetermined for the digital file.

More preferably, the method may further comprise dynamically generating the web link, wherein the web link may include the unique identifier. Yet further, receiving the request from the second purchaser may also include generating the request when the second purchaser accesses the web link. Moreover, dynamically generating the web link may preferably include using a link generation engine to generate the web link.

Yet preferably, the method may further comprise assigning a unique identifier for identifying the second purchaser, and dynamically generating a new web link, which may include the unique identifier corresponding to the second purchaser. In addition, the web link or new web link may be formatted to facilitate distribution by the first purchaser or second purchaser respectively on social networking platforms.

According to a 2^nd aspect of the invention, there is provided a method of licensing a digital file associated with a unique identifier for identifying a prior purchaser and a hierarchical index of the prior purchaser. The method comprises receiving a request from a purchaser to purchase the digital file, the request including a first unique identifier, retrieving from a database based on the first unique identifier to identify prior purchasers of licensed copies of the digital file, each prior purchaser associated with respective hierarchical indexes to determine order of individual the prior purchase, updating the hierarchical indexes of the identified prior purchasers to new hierarchical indexes, crediting accounts associated with the prior purchasers with respective amount of credits based on the corresponding new hierarchical indexes, and enabling the download of a further licensed copy of the digital file by the purchaser, the further licensed copy being associated with a second unique identifier.

According to a 3^rd aspect of the invention, there is provided an apparatus for licensing a digital file, configured to perform any of the preceding methods. It should be apparent that features relating to one aspect of the invention may also be applicable to the other aspects of the invention.

These and other aspects of the invention will be apparent from and elucidated with reference to the embodiments described hereinafter.

Brief Description of the Drawings

Embodiments of the invention are disclosed hereinafter with reference to the accompanying drawings, in which:

Figure 1 is a schematic diagram illustrating a network for licensing a digital file, according to an embodiment of the invention;

Figure 2 is a flow diagram of a method for licensing the digital file based on the network of Figure 1 ;

Figures 3a to 3f show a series of data tables chronologically illustrating a scheme of tier levels for classifying purchasers of the digital file, for use by the method of Figure 2;

Figure 4 shows a data table illustrating a credits scheme for rewarding the purchasers of the digital file based on their tier levels shown in Figures 3a and 3b;

Figure 5 shows a screenshot of a software implementation of a system on the network of Figure 1 , which operates based on the method of Figure 2;

Figure 6 shows a screenshot of an account associated to a purchaser who is registered as a user of the system of Figure 5;

Figure 7 shows a screenshot of details of a music file available for licensing on the system of Figure 5; and

Figure 8 shows a screenshot of a preview page of the music file of Figure 7.

Detailed Description of Preferred Embodiments

Figure 1 shows a network 100, according to an embodiment, which includes a webstore 102 selling and licensing digital files (e.g. music files) over the web to first tier consumers 103 (i.e. defined as consumers who visit the webstore 102 directly using a typical web browser (e.g. Internet Explorer™) on a mobile communication device (e.g. a smartphone or a PC), and a social network 104. Note that only a single graphical representation of the first tier consumers 03 is shown for simplicity, but not to be construed as limiting. The first tier consumer 103 subsequently uses a method of licensing digital files, according to the first embodiment, to promote licensing of the digital files he has purchased to other downstream members in the social network 104. The other downstream members in the social network 104 include second tier consumers 106a, 106b, 106c, third tier consumers 108a, 108b, 08c, and other member entities (which are represented by series of black dots 1 10 besides the third tier consumers 108a, 108b, 108c in Figure 1 for simplicity).

It is apparent from Figure 1 that the first tier consumer 103, second tier consumers 106a, 106b, 106c, third tier consumers 108a, 108b, 108c and other member entities are organised into a hierarchical ordering structure, in which the first tier consumer 103 is at the top of the hierarchy, followed next by the second tier consumers 106a, 106b, 106c, so on and so forth. It is also to be further appreciated that the first tier consumer 103, second tier consumers 106a, 106b, 106c, third tier consumers 108a, 108b, 108c and other member entities may/may not be relationally linked to one another within the social network 104. In addition, other than the first tier consumer 103, the rest of the other downstream consumers 106a, 106b, 106c, 108a, 108b, 108c are also termed as referral buyers (or users) of the music files.

Examples of the social network 104 include popular platforms such as Facebook™, Twitter™, Youtube™, Google+™, QQ™, Weibo™ or the like, which provide effective channels for marketing and disseminating the digital files, since they are easily accessible by consumers using personal computers and mobile communication devices such as tablets or smartphones. Figure 2, which separately depicts a flow diagram of a method 200 for licensing the music file, will also be described together with Figure 1 for ease of explaining how the method 200 works in relation to the network 100. The first tier consumer 103 first purchases a music file (i.e. a song) he is interested in from the webstore 102 and digitally pays for the music file via a web transaction (i.e. defined as a file sales event), securely performed in a manner as known in the art. After when the web transaction has successfully concluded, the first tier consumer 103 is allowed to download the music file onto his personal entertainment device (e.g. an iPod™) for enjoyment. At this stage, the first tier consumer 103 is considered a licensed user of the music file, having purchased the music file through a licensed channel/outlet (i.e. the webstore 1 02). With reference to Figure 2 (which is implemented by a computer, such as a web server), at step S202, the webstore 102 then dynamically generates a URL address link (hereinafter URL link) for the music file purchased by the first tier consumer 103. The URL link generation is accomplished using server-side scripting techniques known in the art, and the URL link includes a unique index associated to the purchased music file and first tier consumer 103, which is advantageously used to track and identify a licensing referral chain (to be elaborated in subsequent steps of the method 200). The unique index is also termed as a "file sale code". In particular, the URL link is arranged to have the following syntax shown in an identifier (1 ): http:/l[Root. Webhost-Address]/[ProductPage]l[OrderCode] (1 ) wherein the "Root. Webhost-Address" field represents a destination location of the URL (e.g. www.tell-my-friends.com) which is the home server address of the webstore 102, while the "ProductPage" field represents a directory information page located on the server of the webstore 102 for the music file (e.g. QWERTYSONG) which displays a list of attributes related to the music file, including artists name, song info, song sample, retail price, commission structure, commission options and the like, and the "OrderCode" field represents the unique index (e.g. 12345abc) associated to the music file and a specific consumer who has purchased the music file. Hence, an example of the URL link, in working terms, is shown in an identifier (2): http://[www.tell-my-friends.com]/[QWERTYSONG]/[12345abc] (2)

At step S204 of the method 200, the first tier consumer 103 subsequently shares the URL link (e.g. the identifier (2)) on the social network 104 for promoting the music file to be licensed (i.e. purchased) by the second tier consumers 106a, 1 06b, 106c. The manner of sharing is by posting the URL link through an account of the first tier consumer 103 registered on the social network 103 (e.g. using sharing APIs of the social network 104), in which the visibility of the link posting (i.e. visible to only friends of the first tier consumer 103 or also to other users) depends on the specific configuration of the account.

Once any of the second tier consumers 106a, 106b, 106c wishes to obtain a copy of the music file, he clicks on the URL link posted by the first tier consumer 103, which consequently directs (i.e. through a link redirection from the web homepage of the social network 104 to that of the webstore 102) the second tier consumer 106a, 06b, 106c to the webstore 102 for purchasing the music file in a similar manner as described for the first tier consumer 103. In addition at this stage, at step S206 of the method 200, a TMF (Tell-My-Friend) Referral Link Generation Engine (hereinafter TMF engine) searches a database (not shown) of the webstore 102 using the OrderCode: "12345abc", in order to retrieve a record of past purchasers of the music file. It is to be appreciated that the depth (i.e. number) of tier levels (or otherwise known as hierarchical indexes) of past purchasers included in the retrieved record is predetermined. According to the embodiment, the depth of tier levels is configured to be limited to ten levels.

The TMF engine is essential to the proper functioning of the method 200 of Figure 2, in that the TMF engine is responsible for generating a personal license (associated to each purchaser) for all music files purchased from the webstore 102. To elaborate, a legal download corresponding to a music file purchase consequently results in generation of a sales record by the TMF engine, which is then used as the personal license for a purchaser to legally use the music file (within the terms and conditions as set out upon purchase). Additionally, the generated sales record may also be used as auditing/recording repositories for future enforcement checks.

Further upon file purchase, the TMF engine records a field entry within the meta- tags (or ID3 tags) of the music files, and thereafter generates a URL link based on the associated personal license to facilitate legitimate distribution of the music file via the URL link (which accordingly indicates the legal source of the music file and identifies the sharer of the link). The TMF engine also enables sharing of the location of the music file (via the URL link) through other digitally- based channels/platforms such as social networks, web pages, blogs, emails and the like. Therefore, without usage of the TMF engine, such sharing may be anonymous and untraceable, and a credits scheme shown in Figure 4 (as elaborated below) for rewarding past purchasers of a licensing referral chain may not function properly for reinforced the right consumer behaviour, in relation to legitimate consumption of the music files.

To illustrate a scheme of tier levels (i.e. hierarchical indexes) for classifying past purchasers of the music file, reference is now made to Figures 3a to 3f, which chronologically depict a series of data tables 300 with specific OrderCodes generated for the . music file bought by each new purchaser (i.e. a file sales event), and the respective tier level assigned to each past purchaser of the music file. The tier levels are also used to facilitate determination of a tier level of a new purchaser relative to all other past purchasers in the retrieved record. This corresponds to step S208 of the method 200 of Figure 2. Each subsequent tier level (in order of increasing numerical order) is hierarchically lower than the preceding one (e.g. T2 is ranked lower than T1 or T4 is ranked lower than T2), in terms of the relative order for ascertaining an appropriate (decreasing) amount of credit to be made to (e.g. bank or PayPal) accounts of past purchasers in the record, based on the credits scheme shown in Figure 4. Particularly, the rewarding of credits corresponds to step S210 of the method 200 of Figure 2. The method 200 thus actively rewards past purchasers of the licensing referral chain in promoting legal licensing of the music file to other consumers in the social network 104. Separately, it is also to be emphasised that T1 is considered the highest tier level, and a past purchaser with the highest tier level is regarded as the first tier consumer 103 of the music file in the record.

In reference to the credits scheme, each amount of credit is a proportion of an overall commission budget allocated in relation to a sale of the music file (i.e. a retail price set out for the music file). In other words, the cumulative sum of all the credits to be made to the past purchasers (in the record) is therefore equal to a predetermined proportion of the retail (or licensing) price of the music file. Moreover importantly, the credits scheme is structured such that a past purchaser with the highest tier level receives the greatest amount of credit within the licensing referral chain.

It is to be appreciated that depending on the type and nature of the digital files being sold on the webstore 102, as well as the marketing strategies (i.e. licensing rules) adopted for the specific file (e.g. based on genre), the amount of credit to be paid out varies accordingly.

Therefore in Figure 4, using an example retail price of "$1 .99" for the music file, the overall commission budget is then "$0.59" (i.e. being defined as 30% of the retail price in this case), and the amount of credit for each past purchaser in the record is computed as a proportion of "$0.59". Following on, as seen from the table 400, the past purchasers at different descending tier levels from "T1 " to "T10" consequently receives a credit of "$0.25", "$0.12", "$0.07", "$0.04", "$0.03", "$0.03", "$0.02", "$0.01", "$0.01 " and "$0.01 " (in decreasing amount) respectively. In addition, tier level "TO" is classified as a new purchaser of the music file and therefore receives no credit. Moreover, for every new copy of the music file sold by the webstore 102, a proportion of the retail price of the music file is also paid to various copyright owners in relation to the mechanical rights, distribution rights and the like for the music file. Specifically, the amounts to be paid in this respect are predetermined via a distribution license agreement.

Returning to Figure 3a, a "userZI ", being a new purchaser, buys a music file "QWERTYSONG" from the webstore 102 and an OrderCode of "12349vpx" is generated to be included in a URL link, formatted based on the syntax of identifier (1 ), for posting by the "userZI" on the social network 104. Thereafter, as shown in Figure 3b, a "userA2" on the social network 104 comes across the URL link posted by the "userZI ", and decides to buy the music file as well by clicking on the URL link. Upon redirection to the webstore 102, the TMF engine searches and retrieves the record of Figure 3a from the database using the OrderCode of "12349vpx". Thereafter, the TMF engine consequently generates another unique OrderCode of "12345abc" for the "userA2", inserts "userA2" as a data entry into the record as a new purchaser (i.e. "TO" tier level) of the music file, elevates the "userZI " from new purchaser (i.e. "TO" tier level) to now a tier level of "Τ , and also updates the OrderCode field to be "12345abc" (to replace the previous value of "12349vpx"). The downloading of the music file by the "userA2" is enabled by the webstore 102. In addition, a new URL link, which includes the new OrderCode of "12345abc", is generated for the "userA2" for dissemination on the social network 104. In this instance, the "userZI " obtains a credit of "$0.25" based on the "Τ tier level in accordance with Figure 4, whereas "userA2", being a new purchaser of the music file, does not get any credit.

In Figure 3c, another "userB3" on the social network 104 clicks on the URL link (with OrderCode of "12345abc", shared by the "userA2"), and makes a new purchase of the music file, the TMF engine generates another new uniquely distinct OrderCode of "12344ghj". The uniqueness of the generated OrderCode is ensured by employing hashing techniques known to skilled persons, such as time-stamping or generating an associated MD5 checksum (i.e. using the Message-Digest Algorithm). Accordingly, it is therefore also to be appreciated that, before the generation of the new OrderCode of "12344ghj", the TMF engine first retrieves the record of Figure 3b using the previous OrderCode of "12345abc", which is associated to the file purchase by "userA2". Subsequently as shown in Figure 3c, the TMF engine inserts "userB3" as a new data entry into the record as a new purchaser (i.e. "TO" tier level), elevates "userA2" and "userZI" to tier levels of "T1 " and "T2" respectively. Furthermore, the TMF engine also replaces the previous value of "12345abc" with the new value of "12344ghj" in the OrderCode field. The downloading of the music file by the "userB3" is also enabled by the webstore 102. Moreover, a new URL link, which includes the new OrderCode of "12344ghj", is generated for the "userB3" for dissemination on the social network 104. In respect of the credits rewarded, the "userA2" and "userZI " obtain a credit of "$0.25" and "$0.12" based on the "T1 " and "T2" tier levels in accordance with Figure 4, while "userB3" does not get any credit since he is a new purchaser.

Subsequently in Figure 3d, a next "userY4" on the social network 104 clicks on the URL link (with OrderCode of "12344ghj", shared by the "userB3"), and makes a new purchase of the music file, the TMF engine then generates a new OrderCode of "12346eqm", and also retrieves the record of Figure 3c using the previous OrderCode of "12344ghj", which is associated to the file purchase by "userB3". Subsequently as shown in Figure 3d, the TMF engine inserts "userY4" as a new data entry into the record as a new purchaser (i.e. "TO" tier level), elevates "userB3", "userA2" and "userZI " to tier levels of "T1", "T2", and "T3" respectively. Furthermore, the TMF engine also replaces the previous value of "12344ghj" with the new value of "12346eqm" in the OrderCode field. A new URL link, which includes the new OrderCode of "12346eqm", is generated for the "userY4" for him to post it on the social network 104. The downloading of the music file by the "userY4" is also enabled by the webstore 102. Regarding the credits rewarded, the "userB3", "userA2" and "userZI " obtain a credit of "$0.25", "$0.12", and "$0.07" each, based on the tier levels of "T1", "T2" and "T3" in accordance with Figure 4, whereas "userY4", being a new purchaser, does not receive any credit.

Yet further in Figure 3e, a "userV5" on the social network 104 clicks on the URL link (with OrderCode of "12344ghj", shared by the "userB3"), instead of buying through the URL link shared by the "userY4". The TMF engine consequently generates a new OrderCode of "82386xAu", and also retrieves the record of Figure 3c using the previous OrderCode of "12344ghj", which is associated to the file purchase by "userB3". As shown in Figure 3e, the TMF engine inserts "userV5" as a new data entry into the record as a new purchaser (i.e. "TO" tier level), elevates "userB3", "userA2" and "userZI " to tier levels of "T1 ", "T2", and "T3" respectively. It is to be mentioned that the records of Figures 3d and 3e are distinct and separate from each other due to the fact that they have different new purchasers (i.e. "userY4" and "userV5" respectively, which are, however, classified at the same tier level). Furthermore, the TMF engine also replaces the previous value of "12344ghj" with the new value of "82386xAu" in the OrderCode field. A new URL link, which includes the new OrderCode of "82386xAu", is generated for the "userV5" to allow him to promote the music file on the social network 104. The downloading of the music file by the "userV5" is also enabled by the webstore 02. About the amount of credits being rewarded, the "userB3", "userA2" and "userZI" obtain a credit of "$0.25", "$0.12", and "$0.07" each, based on the tier levels of "T1", "T2" and "T3" in accordance with Figure 4, whereas "userV5", being a new purchaser, is not entitled to any. In Figure 3f, another "userE6" on the social network 104 now sees and clicks on the URL link (with OrderCode of "82386xAu", shared by the "userV5"), and not through the URL link, previously posted by "userY4". The TMF engine consequently generates a new OrderCode of "54321 cbe", and also retrieves the record of Figure 3e using the previous OrderCode of "82386xAu", which is associated to the file purchase by "userV5". As shown in Figure 3f, the TMF engine inserts "userE6" as a new data entry into the record as a new purchaser (i.e. "TO" tier level), elevates the "userV5", "userB3", "userA2" and "userZI " to tier levels of "T1 ", "T2", "T3", and "T4" respectively. Further, the TMF engine replaces the previous value of "82386xAu" with the new value of "54321 cbe" in the OrderCode field. The downloading of the music file by the "userE6" is also enabled by the webstore 102. A new URL link, which includes the new OrderCode of "54321 cbe", is generated for the "userE6" to enable him to promote the music file on the social network 104. As for rewarding of the credits, the "userV5", "userB3", "userA2" and "userZI " each obtains a credit of "$0.25", "$0.12", "$0.07", and "$0.04", based on the tier levels of "T1 ", "T2", "T3", and "T4" in accordance with Figure 4, whereas "userE6", being a new purchaser (i.e. "TO" tier level), is not entitled to any. Additionally, the "userY4", although is considered a past purchaser upstream of the "userE6", does not get any credit since it is classified at the same tier level as "userV5" (by comparison of Figures 3d and 3e).

Hence, in generalising, credits are only given to past purchasers upstream of a new purchaser of the music file, the definition of upstream being that the tier levels of those consumers are of lower hierarchical order than the tier level of the new purchaser.

Accordingly, the second tier consumers 106a, 106b, 106c also promote the (same) music file to the third tier consumers 108a, 108b, 108c (for licensing) in a vis-a-vis manner as described in the foregoing passages for the first tier consumer 103 with respect to the second tier consumers 106a, 106b, 106c.

Figures 5 and 6 depict respective screenshots 500, 600 of a software implementation of the webstore 102, in which the operations are based on the method 200 of Figure 2, and an account associated to a past purchaser who is registered (either automatically when he purchases the music file or otherwise manually) as a user of the webstore 102. Particularly, the account allows the purchaser to manage the amount of credits he has accumulated so far in the webstore 102.

Following on, Figures 7 and 8 are screenshots 700, 800 showing relevant details of a music file available for licensing on the webstore 102, and a corresponding preview page for the music file, so that a user showing an interest to purchase the song in the music file may listen to a short sample of the song. It is also to be highlighted that an example of the (encrypted) URL link generated by the TMF engine according to the syntax of the identifier (1 ) is given as "http://www.tell-my-friends.eom/music/order/1#. T3E42GsaOMQ.facebook" in the address bar of the browser depicted in the screenshots 700, 800. Advantages of using the method 200 of Figure 2 include providing a new approach to the intellectual property protection of digital files by incentivising responsible consumer behaviour to pay for licensed copies of the digital files through a commission scheme for those who have already purchased the licensed files. The method complements the current approaches for countering digital piracy, being education, legislation and enforcement. In particular, the scheme is structured in a multi-level manner to encourage licensing of the digital files by disseminating information on the relevant authorised outlets/avenues for purchasing, as opposed to illegally sharing, the digital files. This new approach may thus be seen as a reward programme to positively encourage correct consumer behaviour, rather than enforcing using threats or punishments, characterised by the present unsuccessful approaches.

Moreover, the method 200 may provide an effective means to unlock the inherent monetary value of information, which is considered to be a large and unlimited valuable resource. It is to be appreciated that while information is digitally stored as binary codes, the unique combinations and permutations of those codes add value in transforming them into music, videos, e-books, games, apps/software and knowledge for public consumption. More beneficially, the method 200 may potentially help to recover a significant portion of revenues lost annually to piracy. For example, a new study predicts losses to the creative industries due to piracy to reach as much as€240 billion in retail revenue in the coming years.

Further, the method 200 of this embodiment is enabled using technologies including social networking services, database programming, web programming, and a multi-tier reward scheme. In particular, by tracking the login accounts of customers who have purchased the digital files via corresponding referral links, each referral link may then also be tracked, so that revenue from each sales event is subsequently shareable with other customers who have assisted in promoting the digital files on the social network platforms. Therefore, by using the speed, reach and pervasiveness of social network platforms, the method 200 of Figure 2 advantageously provides an innovative solution for influencing consumer behaviour and countering digital piracy. The described embodiment(s) should however not be construed as limitative. For instance, in the described embodiment, music files are mentioned as an example of the digital files. However, it should also be apparent that the method 200 of Figure 2 is equally applicable to other types of digital files transactable via electronic commerce such as e-books, software, digital images, website templates, manuals in electronic formats or any item that can be electronically stored in a file or multiple files, as understood by a skilled person. Additionally, the embodiment is also applicable to users operating wired communication devices, such as personal computers, laptops, netbooks or the like, who may also similarly participate in the social network-based MLM to obtain the credits reward, as long as they have assisted in promoting licensing of the digital files.

With respect to the depth of tier levels, it may flexibly be defined to be at any number of levels, as long as there is sufficient commission budget allocated (in relation to a sale of the music file) for paying out to the past purchasers in a licensing referral chain. Take for example a case in which the allocated commission budget for a music file is it may then subsequently allow the depth of tier levels to be set at hundred levels, where each past purchaser of the respective tier consequently receiving a credit of "$0.01 " for every new purchase referral successfully made within the referral chain. Yet furthermore, in relation to the structure of the credit scheme, where a past purchaser with the highest tier level receives the greatest amount of credit, the structure may also be defined in a reverse order or be varied based on the marketing strategies adopted by an owner of the webstore 102. For example, the top two tiers (i.e. "T1" and "T2") in the licensing referral chain may receive a same amount of credits payout, or alternatively the second tier (i.e. "T2") may be defined to be higher than the first tier (i.e. "T1") for receiving more credits. Nonetheless, it is to be emphasised that the most logical approach is still the one defined in the main embodiment, so that past purchasers of the music file may actively be motivated to promote licensing of the music file through social networking platforms. It is to be further appreciated that the difference between the approach in the main embodiment versus other variation approaches is that if higher credits are paid out in later stages, the quantum of commissions earned is greater since the credit amount increases much more when there are more past purchasers within a referral chain (i.e. the exponential factor is thus higher).

Moreover, the first tier consumer 103, second tier consumers 106a, 106b, 106c, third tier consumers 108a, 108b, 108c, and other member entities 1 10 are not restricted to being represented only by individual (personal) purchasers (i.e. a natural person); each of them may also be other types of entities, as feasibly known to skilled person, such as a business corporation, a group of individuals, a partnership-type of corporation or the like. As such, instead of generating the personal license (which is linked to a natural person) as described in the main embodiment, the TMF engine may thus in this instance generate other forms of appropriate licenses, depending on the nature of the entity purchasing the music files.

While the invention has been illustrated and described in detail in the drawings and foregoing description, such illustration and description are to be considered illustrative or exemplary, and not restrictive; the invention is not limited to the disclosed embodiments. Other variations to the disclosed embodiments can be understood and effected by those skilled in the art in practising the claimed invention.

Claims

1 . A method of licensing a digital file via a web link, comprising:

receiving a request from a first purchaser to purchase the digital file;

assigning a unique identifier for identifying the first purchaser;

enabling the download of a licensed copy of the digital file by the first purchaser, the licensed copy being associated with the unique identifier; and storing the unique identifier in association with a hierarchical index assigned to the first purchaser upon purchase of the digital file,

wherein the hierarchical index is for identifying order of the purchase relative to subsequent purchases of the digital file by other purchasers, and for determining an amount to be credited into an account of the first purchaser in relation to the subsequent purchases.

2. The method of claim 2, further comprising:

receiving a request from a subsequent second purchaser to purchase the digital file, the request being associated with the unique identifier;

updating the hierarchical index of the first purchaser to a new hierarchical index; and

crediting the account of the first purchaser with the amount based on the new hierarchical index.

3. The method of claim 2, wherein updating the hierarchical index includes assigning a highest order hierarchical index to be the new hierarchical index of the first purchaser.

4. The method of any preceding claim, wherein the amount to be credited into the account of the first purchaser based on the hierarchical index is in accordance with a predetermined set of licensing rules.

5. The method of any preceding claim, wherein the amount to be credited includes a proportion of a licensing fee predetermined for the digital file.

6. The method of any preceding claim, further comprising dynamically generating the web link, wherein the web link includes the unique identifier.

7. The method of claim 6, wherein receiving the request from the second purchaser includes generating the request when the second purchaser accesses the web link.

8. The method of claim 6, wherein dynamically generating the web link includes using a link generation engine to generate the web link.

9. The method of any of claims 2 to 8, further comprising assigning a unique identifier for identifying the second purchaser, and dynamically generating a new web link, which includes the unique identifier corresponding to the second purchaser.

10. The method of any preceding claim, wherein the web link or new web link is formatted to facilitate distribution by the first purchaser or second purchaser respectively on social networking platforms.

1 1. A method of licensing a digital file associated with a unique identifier for identifying a prior purchaser and a hierarchical index of the prior purchaser, the method comprising:

receiving a request from a purchaser to purchase the digital file, the request including a first unique identifier;

retrieving from a database based on the first unique identifier to identify prior purchasers of licensed copies of the digital file, each prior purchaser associated with respective hierarchical indexes to determine order of individual the prior purchase;

updating the hierarchical indexes of the identified prior purchasers to new hierarchical indexes;

crediting accounts associated with the prior purchasers with respective amount of credits based on the corresponding new hierarchical indexes; and enabling the download of a further licensed copy of the digital file by the purchaser, the further licensed copy being associated with a second unique identifier.

12. An apparatus for licensing a digital file, configured to perform the method of any preceding claim.

13. The apparatus according to claim 12, wherein the apparatus is a web server.