Method for retrieving vehicular collateral (US patent 6249217)

8/2/2019 Method for retrieving vehicular collateral (US patent 6249217)

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(12) United States PatentForbesIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUS006249217B1

(10) Patent No. : US 6,249,217 E1(45) Date of Patent: *Jun. 19,2001

(54) METHOD FOR RETRIEVING VEHICULARCOLLATERAL(76) Inventor: Mark P. Forbes, 27758 SantaMargarita Pkwy. , 314,Mission Viejo,CA (US) 92691( * ) Notice: Subject to any disclaimer, the term of thispatent is extended or adjusted under 35U.S.C. 154(b) by 0 days.

5,513,2445,519,6215,612,6835,629,6935,652,7075,673,3055,914,6755,929,7526,025,7746,069,570

4/1996 Joao et al.5/1996 Wortham ............3/1997 Trempala et al. ..5/1997 Janky .................7/1997 Wortham ............9/1997 Ross ...................6/1999 Tognazzini .........7/1999 Janky et al.2/2000 Forbes ................5/2000 Herring ..............

........ 340/539........ 340/989... 340/825. 31........ 340/988........ 340/990........ 340/426........ 340/426........ 340/988........ 340/426... 340/825. 49

This patent is subject to a terminal dis-claimer.

(56)4,736,2945,323,3155,450,3295,459,304

References CitedU.S. PATENT DOCUMENTS

4/1988 Gill et al. .....6/1994 Highbloom9/1995 Tanner10/1995 Eisenmann ...

... 235/379... 235/379... 340/973... 235/380

(21) Appl. No. : 09/430, 424(22) Filed: Oct. 29, 1999

Related U.S.Application Data(63) Continuation of application No. 09/103,419, filed on Jun.24, 1998, now Pat. No. 6,025,774.(51) Int. Cl. . B60R 25/10(52) U.S. Cl. .......................... 340/426; 235/384; 340/988;342/457; 701/213; 705/38(58) Field of Search ..................................... 340/426, 988,340/989, 990, 928; 342/457; 701/207, 208,213; 180/287; 705/38; 235/379, 380, 384

OTHER PUBLICATIONSLo Jack flyer of 1 page entitled Lo Jack Protects Your Car.* cited by examiner

(57) ABSTRACTIn accordance with the present invention, there is provideda method of securing collateral for a loan when indicated bya loan status wherein the collateral is a vehicle. The methodprovides for installing a transmitter within the vehicle. Thetransmitter is capable of transmitting locational data regard-ing the vehicle. The loan status is monitored for a defaultcondition. A data link is established from a base terminal tothe transmitter of the vehicle upon an occurrence of thedefault condition in the loan status. Locational data istransmitted from the transmitter of the vehicle to the baseterminal via the data link. The location of the vehicle isdetermined from the locational data transmitted to the baseterminal. Finally, the vehicle is confiscated.

15 Claims, 2 Drawing Sheets

Primary Examiner~rent A. Swarthout(74) Attorney, Agent, or Firmtetina Brunda Garred &Brucker

16RECEIVER TRANSMITTER 1012

CONTROLLER I 16


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U.S. Patent Jun. 19,2001 Sheet 1 of 2 US 6,249,217 E1

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CLIJLIII-MlLIlXLLILJJOIJJ

OCL'IOOtL

In &0


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U.S. Patent Jun. 19,2001 Sheet 2 of 2 US 6,249,217 E1p28

MAKE LOAN WITHVEHICLE AS COLLATERAL

(-28INSTALL TRANSMITTER

AND RECEIVER IN VEHICLE

-30

~34ESTABLISH DATA LINKBETWEEN BASE TERMINAL

AND TRANSMITTER/RECEIVERg36

TRANSMIT TRANSMIT REQUESTSIGNAL WITH RECEIVER

i MONITORILOADSTATUS

L

NO

NO

NO

1YES

YES

YES

p38RECEIVE TRANSMIT REQUEST

SIGNAL WITH RECEIVER

DERIVE VEHICLELOCATIONAL DATA

TRANSMIT LOCATIONALDATA FROM TRANSMITTER

~44RECEIVE LOCATIONAL

DATA AT BASE TERMINAL

NO

YES (-48DETERMINE VEHICLELOCATION USINGLOCATIONAL DATA

FIG.g48

CONFISCATE VEHICLE


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US 6,249,217 B1METHOD FOR RETRIEVING VEHICULARCOLLATERALThis is a continuation of application Ser. No. 09/103,419

filed Jun. 24, 1998, now U.S. Pat. No. 6,025,774.FIELD OF THE INVENTION

The present invention relates generally to a method ofcollateral retrieval, and more particularly to-a method ofretrieving vehicular collateral in which a transmitter isinstalled in the vehicle which provides locational data.

BACKGROUND OF THE INVENTIONGenerally, vehicles such as automobiles have been

financed through a personal loan system, whereby the pur-chaser borrows money from a financial or lendinginstitution, takes title to the automobile and pays the loanbalance in monthly payments which amortize the fullamount of the loan. Typically, the financial institution retainsa lien interest against the title of the vehicle and the loan issecured by a chattel mortgage thereon. The financial insti-tution may confiscate or repossess the vehicle upon a defaultcondition of the loan, as agreed to by the purchaser or asprovided at law. It is contemplated that a default conditionmay arise where the loan payments are delinquent for apredetermined interval. Thus, the vehicle is used as collat-eral for the loan used to purchase the vehicle.Additionally, lease arrangements are entered into whereby

the lessee makes monthly rental payment, returning thevehicle to the lessor at the end of a predetermined termspecified in the lease. Title typically remains with the lessor.It is sometimes specified in the lease that the lessee may atthe lessee's option purchase the vehicle when the leaseexpires. In the event that the lessee defaults in making leasepayments, the lessor may confiscate or repossess the vehicle.Thus, upon a default condition of the loan or lease (these

terms may be used interchangeably herein) the lendinginstitution may seek to confiscate the loan collateral, i.e., thevehicle. Thus, the lending. institution will authorize repos-session personnel to confiscate the vehicle. Such confisca-tion processes may potentially require extensive resourcesand result in a time consumptive, expensive endeavor.Typically, the repossession personnel being the confiscationprocess with nothing more than the vehicle holder's lastknown billing address. Not only may such address be nolonger valid, the vehicle may not be kept or stored at suchlocation. Moreover, the individual responsible for the loanmay even be actively avoiding being located and the vehiclebeing repossessed.

SUMMARY OF THE INVENTIONIn accordance with the present invention, there is pro-vided a method of securing collateral for a loan when

indicated by a loan status wherein the collateral is a vehicle.The method provides for installing a transmitter within thevehicle. The transmitter is capable of transmitting locationaldata regarding the vehicle. The loan status is monitored fora default condition. A data link is established from a baseterminal to the transmitter of the vehicle upon an occurrenceof the default condition in the loan status. Locational data istransmitted from the transmitter of the vehicle to the baseterminal via the data link. The location of the vehicle is

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terminal is transmitted via the data link to verify the opera-tion of the transmitter. In addition, the transmitter is capableof sensing any physical tampering therewith and a tampersignal is transmitted in response to any sensed tampering viadata link. Advantageously, the transmitter may be poweredwith a rechargeable battery. Furthermore, the method of thepresent invention may provide for deactivating the vehicleand enabling a vehicle alarm upon the loan status being ina default condition. In other embodiments of the presentinvention, the transmitter may be a cellular telephone andlocational data may be based upon Global PositioningSatellite (GPS) technology.As such, based on the foregoing, the present invention

mitigates the inelficiencies and limitations associated withprior art methods of retrieving vehicular collateral.Advantageously, the method of the present invention facili-tates expedient location and confiscation of vehicular col-lateral. The transmitter allows a lending institution to virtu-ally instantaneously determine the location of acollateralized vehicle upon the loan status being in a defaultcondition. In addition, the method may utilize current GPStechnology to determine with a high degree of precision thelocation of the vehicle. Further still, the method may providefor an alarm within the vehicle to be enabled so as to furtherfacilitate location and confiscation of the vehicle. Incomparison, traditional methods of vehicular collateralretrieval typically begin with the lending institution via anagent thereof using only the last documented address for theindividual responsible for the loan. Not only may suchaddress be no longer valid, the vehicle may not be kept orstored at such location. Moreover, the individual responsiblefor the loan may even be actively avoiding being located andthe vehicle being repossessed. As such, vehicle confiscationprocess may potentially be long and costly.Additionally, the method of the present invention prefer-

ably provides for a verification process of operability of thetransmitter. As such, the lending institution is able to test theinstalled transmitter by having the transmitter periodicallysend signals. Further, the method provides for the transmitterto alert the lending institution if the transmitter is tamperedwith. Thus, the lending institution has the benefit beingconfident that there is a high probability of retrieving thevehicle, should such course of action be necessary, by beingable both verify the operability of the transmitter and havinga tamper alert system in place.Accordingly, the present invention represents a significant

advance in the art.BRIEF DESCRIPTION OF THE DRAWINGS

These, as well as other features of the present invention,will become more apparent upon reference to the drawingswherein:FIG. 1 symbolically depicts vehicle retrieval apparatus

and system configuration utilized in the preferred embodi-ment of the present invention; andFIG. 2 a flow diagram of steps of the method of the

present invention.DETAILED DESCRIPTION OF THEPREFERRED EMBODIMENT

Referring now to the drawings wherein the showings arefor purposes of illustrating a preferred embodiment of the


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US 6,249,217 B1As a preliminary matter, it is contemplated that a lendinginstitution makes 26 a loan/lease arrangement with a bor-rower respecting a vehicle 10. The vehicle 10 is used ascollateral for the loan. Whether the vehicle 10 is purchased,leased or rented, it is understood that the party seeking to

secure, confiscate, repossess or otherwise seize the vehiclemay be a bank, savings and loan, mortgage company, creditunion, vehicle dealership, vehicle manufacturer, leasingagent, collection agency, or any other lending/financialinstitution and agents thereof. It if further understood thatthe holder or possessor of the vehicle may be the individualresponsible for payment of the vehicle loan/lease and maybe referred to as the purchaser, debtor, borrower or lessee.For purposes of the present invention, the term vehicle 10 iscontemplated to include automobiles, trucks, motor cycles,boats, house boats, airplanes, helicopters, house trailers,mobile homes, recreational vehicles, heavy machinery (suchas tractors) and other devices used for transportation.In accordance with the present invention, there is pro-

vided a method of securing vehicular collateral when indi-cated by a loan status. The loan status may have a paidcurrent condition and a default condition. When the loanstatus is in a default condition, it is contemplated that thelending institution may be entitled to confiscate or repossessthe vehicle 10.The method provides for installing 28 a transmitter 14

within the vehicle 10. The transmitter 14 is capable oftransmitting locational data regarding the vehicle 10. Theloan status is monitored 30 for a default condition 32. Uponan occurrence of the default condition 32 in the loan status,a data link is established 34 from a base terminal 20 to thetransmitter 14 of the vehicle 10. Locational data is trans-mitted 42 from the transmitter 14 of the vehicle 10 to thebase terminal 20 via the data link. The location of the vehicle10 is determined 46 from the locational data transmitted tothe base terminal 20. Thus, as early as the loan status havingentered into a default condition, the general whereabouts ofthe collateralized vehicle 10 may be known to the lendinginstitution, e.g., the base terminal 20. Finally, the methodprovides for the vehicle 10 to be confiscated 48, and thuscompleting the collateral securing process.In the preferred embodiment of the method of the present

invention, a retrieval apparatus 12 is installed 28 in thevehicle 10. The retrieval apparatus 12 is provided with thetransmitter 14, a base communication receiver 16 and acontroller 18. It is contemplated that the transmitter 14 andbase communication receiver 16 may be the same device,i.e., a transceiver. Furthermore, the transmitter 14 and basecommunication receiver 16 may take the form of a cellulartelephone or other communications device. The transmitter14 and the base communication receiver 16 are capable ofrespectively transmitting and receiving signals to and fromthe base terminal 20. Such signals are distinct electromag-netic digital signals which may be RF signal, for example.It is contemplated that the retrieval apparatus 12 need notnecessarily be provided with a base communication receiver16.Thus, the retrieval apparatus 12 may be passive in natureand may periodically or constantly transmit locational sig-nals.The transmitter 14 and base communication receiver 16

are electrically connected to a controller 18.The controller18 may be any type of digital processing device, orcomputer, such as a microprocessor. The use of a micropro-

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concealed installation of the retrieval apparatus 12 in thevehicle 10 can be achieved.In operation, the base terminal 20 may be in electricalcommunication with a computer network of the lendinginstitution. The computer network contains data respecting

the status of the loan. Upon the loan status being in a defaultcondition 32, the base terminal 20 originates and transmits36 a transmit request signal. The base communicationreceiver 16 is configured to receive the transmit requestsignal from the base terminal 20. Thus, a data link isestablished 34 between the base terminal 20 and retrievalapparatus 12 disposed within the vehicle 10. The basecommunication receiver 16 receives 38 the transmit requestsignal and the controller 18 processes the transmit requestsignal. In response, the controller 18 initiates the transmitter14 to transmit 42 locational data of the vehicle 10 to the baseterminal 20 via the data link.It is contemplated that the loan status may further have a

delinquent condition, wherein the loan is not paid current.The default condition is one where the loan has not beenpaid current for a predetermined interval. Thus, typicallyprior to the loan status being in a default condition, the loanstatus will be in a delinquent condition. Such a delinquentcondition may be used to trigger the transmission of atransmit request signal from the base terminal 20 to theretrieval apparatus 12 as discussed above. Thus, the methodof the present invention may further include monitoring 30the status of the loan to for a delinquent condition 50 andsubsequently establishing 34 a data link from the baseterminal 20 to the transmitter 14 upon an occurrence of thedelinquent condition. The locational data received 44 by thebase terminal 20 in response to the transmit request signalmay be stored for future use. For example, in the event thatthe retrieval apparatus 12 is later damaged or inoperable andthe loan status is in a default condition, the stored locationaldata may provide a valuable lead for the repossessionpersonnel to locate and confiscate the vehicle 10.Subsequent to the receipt of the transmit request signal bythe base communication receiver 16, the vehicle locational

data 40 is derived regarding the vehicle 10.Various methodsderiving 40 such data may be utilized. It is contemplated thatthose methods of configuring a system to derive locationaldata respecting the location of the vehicle 10 utilizing atransmitter and/or receiver are chosen from those wellknown to one of ordinary skill in the art. In a very simpleembodiment, the transmitted signals from the transmitter 14themselves provide locational data. In this respect, suchsignals provide directional data which can be used to locatethe emanating source, i.e., the transmitter 14 in the vehicle10. In such an embodiment, the base terminal 20 mayadditionally be mobile and directionally receive the trans-mitted signals. In another embodiment, the base terminal 20may be in electronic communication with a plurality ofmobile base terminals or an array of antennas which aredirectionally sensitive and thereby facilitating triangulationtechniques to locate the vehicle 10.In the preferred embodiment of the present invention,

however, Global Positioning Satellite (GPS) technology isused to derive 40 the locational data. The retrieval apparatus10 may further be provided with a GPS positioning signalreceiver 22. A GPS data link is established from a globalpositioning satellite (GPS) 24 to the GPS positioning signalreceiver 22 upon the receipt of the transmit request signal.


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US 6,249,217 B1transmitted 42, as described above. It is contemplated thatthe GPS locational data provides very precise information asto the location of the vehicle 10, and therefore facilitates theelficient determination 46 of the location and the confisca-tion 48 of the vehicle 10.In addition, the method of the present invention providesfor a system operability verification procedure. A data linkis established 34 from the base terminal to the transmitter at

predetermined intervals prior to any occurrence of a defaultcondition. The base terminal 20 originates and transmits 36a transmit request signal which is received 38 by the basecommunication receiver 16. In response, the transmitter 14of the vehicle 10 transmits 42 locational data back to thebase terminal 20. The receipt of such locational data at thebase terminal 20 successfully verifies the operation of theretrieval apparatus 12 including the transmitter 14 and thebase communications receiver 16 therein. In addition, thereceived locational data may be stored for future use shouldreference to such data be desired. In operation, such averification procedure could be followed monthly, forexample. In the event that locational data is not received bythe base terminal 20, and therefore a failed verificationoccurs, the lending institution may follow-up in contactingthe borrower, and correct any problems or defects in theretrieval apparatus 12. Thus, such a verification procedureallows to the lending institution to increase its probabilitythat the retrieval apparatus 12 will function as designed tofacilitate the securing of the collateralized vehicle 10.The method of the present invention is preferably pro-

vided with a procedure of alerting the lending institution thatthe retrieval apparatus 12 has been physically tamperedwith. In this respect, the retrieval apparatus 12 and/orcomponents thereof (e.g. , transmitter 14, base communica-tion receiver 16,GPS positioning signal receiver 22, etc.) areconfigured to be capable of sensing any physical tamperingtherewith and transmitting a tamper signal in response to anysensed tampering. Thus, the data link is established 34 fromthe base terminal 20 to the transmitter 14 upon the sensing54 of any physical tampering with the retrieval apparatus 12.It is contemplated that the method of determining whetherthe retrieval apparatus 12 has been tampered with is chosenfrom those well known to one of ordinary skill in the art andmay include electrical and electromechanical devices.Advantageously, it is contemplated that such a tamperingalert procedure increases the probability that the retrievalapparatus 12 will function properly when desired becausethe lending institution may become aware of any suchtampering prior to the loan entering into a default conditionand the mere existence of the tampering alert procedure maydeter acts of intentional damage to the retrieval apparatus.While the retrieval apparatus 12 may be solely powered

via the electrical system of the vehicle 10, the retrievalapparatus 10 is preferably additionally powered with arechargeable battery. In such a configuration, the recharge-able battery is electrically connected to a generator/alternator of the vehicle 10 and is recharged during operationof the vehicle 10. Thus, the retrieval apparatus 12 mayutilize the rechargeable battery as a back-up or alternatepower supply. Advantageously, use of a rechargeable batterymitigates against unwanted and possibly intentional deacti-vation of the retrieval apparatus 12where the vehicle batteryis disconnected or the vehicle 10 is not in use.In addition to the base communication receiver 16 being

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devices may be the vehicle's horn, lights, speakers, etc. Themethod of the present invention provides for the transmittingof a vehicle alarm signal from the base terminal 20 to thebase communication receiver 16 and receiving the vehiclealarm signal with the base communication receiver 16.Thevehicle alarm signal is then communicated to the controller18 which electrically enables the vehicle alarm. Such analarm enablement step is contemplated to facilitate thedetermination of the exact location of the vehicle 10 oncevehicle repossession personnel are within personal sensoryrange of the vehicle alarm system. Thus, while the locationaldata which is used by vehicle repossession personnel mayallow such personnel to be within the generally locality ofthe vehicle 10, the sounding of the vehicle horn or illumi-nation vehicle headlamps may further facilitate finding thevehicle 10.This is especially the case where the vehicle 10is hidden or concealed within a garage, for example.The base communication receiver 16 may be furthercapable of receiving a deactivation signal from the base

terminal 20 and the controller 18 may be in electricalcommunication with any number of devices which wouldfacilitate deactivation of the vehicle 10, such the vehicleignition or fuel system. As such, it is contemplated that thebase terminal 20 may transmit a deactivation signal to thebase communication receiver 16 via the data link. Uponreceipt of the deactivation signal with the base communi-cation receiver 16, the controller 18may process such signaland initiate the deactivation of the vehicle 10. It is contem-plated that the method of deactivating the vehicle 10via theinitiation by the controller 18 is chosen from those wellknown to one of ordinary skill in the art.Additional modifications and improvements of the

present invention may also be apparent to those of ordinaryskill in the art. Thus, the particular combination of partsdescribed and illustrated herein is intended to represent onlyone embodiment of the present invention, and is notintended to serve as limitations of alternative devices withinthe spirit and scope of the invention.What is claimed is:1. A method of securing collateral for a loan when

indicated by a loan status, the collateral comprises a vehicle,a transmitter capable of transmitting locational data regard-ing the vehicle is installed within the vehicle, the methodcomprising the steps of:(a) receiving a signal in response to a change in the loanstatus;(b) establishing a data link from a base terminal to thetransmitter upon the receipt of the signal representativeof a change in the loan status;(c) transmitting locational data from the transmitter to thebase terminal via the data link; and(d) determining the location of the vehicle from thelocational data transmitted to the base terminal for usein confiscating the vehicle.2. The method of claim 1 wherein the change in the loan

status includes the loan entering into a default condition.3. The method of claim 1 wherein the change in the loanstatus includes the loan entering into a delinquent condition.4. The method of claim 1 wherein a base communicationreceiver capable of receiving a transmit request signal isinstalled within the vehicle, step (b) further comprises thesteps of:


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US 6,249,217 B1(2) receiving a transmit request signal from the baseterminal with the base communication receiver via the

data link.5. The method of claim 4 wherein step (b) further com-prises the steps of:(1) establishing the data link from the base terminal to thebase communication receiver at predetermined inter-

vals prior to any receipt of a signal in response to achange in the loan status; and

(2) receiving locational data transmitted from the trans-mitter to the base terminal via the data link to verify theoperation of the base communication receiver.6. The method of claim 1 wherein step (b) further com-prises the steps of:

(1) establishing the data link from the base terminal to thetransmitter at predetermined intervals prior to anyreceipt of a signal in response to a change in the loanstatus; and

(2) receiving locational data transmitted from the trans-mitter to the base terminal via the data link to verify theoperation of the transmitter.7. The method of claim 6 wherein step (b) further com-prises the step of:

(3) storing the locational data.8. The method of claim 1 wherein the transmitter iscapable of sensing physical tampering therewith and trans-mitting a tamper signal in response to any sensed tampering,step (b) further comprises the step of:

(1) establishing the data link from the base terminal to thetransmitter upon the sensing of any physical tamperingwith the transmitter.9. The method of claim 1 wherein the vehicle has an

alarm, a base communication receiver capable of receivinga vehicle alarm signal is installed within the vehicle, step (d)further comprises the step of:(1) transmitting a vehicle alarm signal from the baseterminal to the base communication receiver via the

data link for enabling the vehicle alarm.

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10.The method of claim 1wherein a base communicationreceiver capable of receiving a vehicle deactivation signal isinstalled within the vehicle, step (d) further comprises thestep of:

(1) transmitting a deactivation signal from the base ter-minal to the base communication receiver via the datalink for deactivating the vehicle.11. The method of claim 1 wherein a GPS positioning

signal receiver is installed within the vehicle and the trans-mitted locational data is based upon a received GPS posi-tioning signal.12. The method of claim 1 wherein the transmitter is acellular phone.13.The method of claim 1 wherein the base terminal ismobile.14. The method of claim 13 wherein step (d) furthercomprising the step of:

(1)moving the base terminal to determine the location ofthe vehicle.15. A method of securing collateral for a loan whenindicated by a loan status, the collateral comprises a vehicle,a transmitter capable of transmitting locational data regard-ing the vehicle is installed within the vehicle, the methodcomprising the steps of:

(a) receiving a signal in response to a change in the loanstatus;(b) establishing a data link from a base terminal to thetransmitter upon the receipt of the signal representativeof the loan status being in a default condition;(c) transmitting locational data from the transmitter to the

base terminal via the data link; and(d) determining the location of the vehicle from thelocational data transmitted to the base terminal for use

in confiscating the vehicle.


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IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUS006249217C I112) EX PARTE REEXAMINATION CERTIFICATE (8304th)United States Patent 110) Number: US 6,249,217 C1Forbes 145) Certificate Issued: Jun. 7, 2011

154) METHOD FOR RETRIEVING VEHICULARCOLLATERAL175) Inventor: Mark P. Forbes, Mission Viejo, CA1US)

5,225,842 A5,257, 195 A5,276,728 A5,311,197 A5,323,152 A

7/1993 Brown et al.10/1993 HirataI/1994 Pagliaroli et al.5/1994 Sorden et al.6/1994 Morita

173) Assignee: Calamp Data Com, Inc. , Oxnard, CA1US)1Continued)

FOREIGN PATENT DOCUMENTSReexamination Request:No. 90/010, 661, Sep. 23, 2009

EPGBWOWO

02420992279478WO95/13943WO95/17686

10/1987I/19955/19956/1995Reexamination Certificate for:Patent No. : 6,249,217Issued: Jun. 19,2001Appl. No. : 09/430, 424Filed: Oct. 29, 1999

Related U.S.Application Data163) Continuation of application No. 09/103,419, filed on Jun.24, 1998, now Pat. No. 6,025,774.151) Int. Cl.860R 25/00 12006.01)tx01S 5/14 12006.01)152) U.S.Cl. ................... 340/426. 19; 340/988; 235/384;342/457; 701/213; 705/38158) Field of ClassiTication Search ........................ NoneSee application file for complete search history. 157) ABSTRACT

OTHER PUBLICATIONSDeclaration ofGallin Chen, 8 pgs.Affidavit of James Bass, I pg.Affidavit of William C. Kennedy, 2 pgs.Affidavit of Kenneth Westerlage, 2 pgs.Elite Logistics Inc ELOG Quarterly Roport of FinancialCondition; Form IOQSB, Item 2 Management's Discussionand Analysis of Financial Condition and Results of Opera-tion, printed Jan. 25, 2008 from http: //sec. edgar~nline. corn/2001/04/0000950134 103308/Section 8, 9 pages.

1Continued)Primary Examiner Sam Rimell

156)

3,580,353 A4,398,172 A4,736,294 A4,887,004 A4,891,650 A5,014,206 A5,032,845 A5,119,504 A5,221,925 A5,223,844 A

5/19718/19834/198812/1989I/19905/19917/19916/19926/19936/1993

ThompsonCarroll et al.Gill et al.Kraaij et al.ShefferScribner et al.VelascoDurboraw, HICrossMansell et al.

References CitedU.S. PATENT DOCUMENTS

In accordance with the present invention, there is provided amethod of securing collateral for a loan when indicated by aloan status wherein the collateral is a vehicle. The methodprovides for installing a transmitter within the vehicle. Thetransmitter is capable of transmitting locational data regard-ing the vehicle. The loan status is monitored for a defaultcondition. A data link is established from a base terminal tothe transmitter of the vehicle upon an occurrence of thedefault condition in the loan status. Locational data is trans-mitted from the transmitter of the vehicle to the base termi-nal via the data link. The location of the vehicle is deter-mined from the locational data transmitted to the baseterminal. Finally, the vehicle is confiscated.

O (( RO/-- "3- '-I I"-""II""""""I

,-"10-rz~ CONTROLLER~


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US 6,249,217 C1Page 2

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OTHER PUBLICATIONSAbout Teletrac, printed Jan. 25, 2008, from http: //www. tele-trac. net/about, 2 pgs.Teletrac Vehicle Tracking Solutions, Stolen VehicleRecovery and Mobile Information System, printed Jan. 25,2008 from http: //www/teletrac. net/teletracer, 3 pgs.Motorola to unveil CreataLink pager and carinder, printedJan. 25, 2008 from http: //chronicle. augusta. corn/stories/121197/tech carpager. s, 2 pgs.Motorola's CreataLink 2 XT TwoW. . . , printed Jan. 25,2008 from http: //findarticles. corn/p/particles/mi moBFP/is 1999 Sep 13/al 55747, 6 pgs.How OnStar Works, printed Jan. 9, 2008 from http: //auto.howstuffworkds. corn/onstarl. I, 4 pgs.How OnStar Works, Statistics, printed Jan. 9, 2008 fromhttp: //auto. howstuffworks. corn/onstar2, 5 pgs.OnStar: 10 years after, printed Jan. 9, 2008 from http: //find-articles. corn/p/articles/mi mOKJI/is 2 118/ai n1608. 6pgs.

The Global Positioning System: A Shared National Asset,GPS Applications and Requirements, printed Jan. 7, 2008from hhttp://www. nap. edu/openbook, php?record id=4920&page, 11 pgs.Rappaport et al. , "Position Location Using Wireless Com-munications on Highways of the Future", IEEE Communi-cations Magazine, Oct. 1996, pp. 331."Passtec/Passtime Eliminate Delinquencies", printed Jan.23, 2008 from http: //www. dealermark. corn/index/php?op-tion=com content&task=view&id=311&itemi, 4 pgs.Green; "Car sellers turn to technology to secure payment,Badisk buyers get second chance", Oct. 2002, printedfrom http: //www. promptpay. co.uk/se union ews. .., 3 pgs.Knight Ridder News, "Devices can halt cars with tardy pay-ments", Oct. 5, 2005, printed from http: //www. billings-gazette. corn/newdex php/newdex. php? display=rednews/2005/10/04 build/business, 3 pgs.Mysan. de Lifestyle News, IfYou Don't Pay On Time YouCan't Start Your Car, printed Jan. 22, 2008 from http: //www. sekurusontime. corn/DNNImages/mysan, 2 pgs.Munoz, "Latepay penalty: You walk", Orange County Reg-ister, Nov. 21, 2002, printed from http: //www. sekuruson-time. corn/DNNImages/register, 3 pgs.Barlas, "ForAvid Drivers, It's Light, Gears, Action", Inves-tor's Business Daily, printed Jan. 22, 2008 from http: //www. sekurusontime. corn/DNNImages/investor, I pg.Inc. , The Magazine for Growing Companies, "TechnologyForYour Own Good Innovation", printed Jan. 22, 2008 fromhttp: //www. sekurusontime. corn/DNNImages/inc. , I pg.Box, "No Credit? No problem", The Dallas Morning News,Dec. 19, 2005, printed from http: //sekurusontime. corn/DN-NImages/union 2, 5 pgs.Go forth et al. , "Device remind car owner when payment duedisables vehicle it it's missed", Akron Beacon Journal,printed Jan. 22, 2008 from http: //www. sekurusontime. corn/DNNImages/beackcon, 3 pgs.St. Petersburg Times, "Late with a Payment? No wonder carwon't start", Jul. 23, 2005, printed from http: //www. sekuru-sontime. corn/DDNImages/stpters, 2 pgs.Mccoy, "Device Keeps Device on Credit Highway", TheOklahoman, Jun. 22, 2005, printed from http: //www. sekuru-sontime. corn;DNNImages/oklahoman, 2 pgs.On Time Customer Testimonials, printed Jan. 22, 2008 fromhttp://www. sekursontime.

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default, 2 pgs.Zaccone, News, Views & Analysis Blogs by Allison Zac-cone, printed Jan. 22, 2008 from http: //www. ai~online. corn/Adv/questionnaire/view. php?id=172&search, 3 pgs.Kumler, "Dealers put halt to free rides", Oct. 25, 2004,reviewjournal. corn, printed from http: //www. reviewjournal.corn/lvrj home/20004/Oct 5Mon/business/25043467. 1,4 pgs.Kimberlin, "Can't make your car payment? They you can' tget it started", The Virginian Pilot, Nov. 28, 2005, printedfrom http: //www. payteck. cc.news, 21 pgs.Sekurus Inc. , Executive Team, printed Jan. 22, 2008 fromhttp: //www. sekurus. corn/executiveteam/tabid/137/default, 3pgs.Statewide Auto Broker Q&A, May 17, 2002, I pg.Illinois Title Lenders Q&A, Aug. 8, 2002, I pg.PacTel Teletrac, Transceiver Installation Guide, May 20,1993,31 pgs.


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US 6,249,217 C1IEXPARTEREEXAMINATION CERTIFICATEISSUED UNDER 35 U.S.C. 307THE PATENT IS HEREBYAMENDED ASINDICATED BELOW.

Matter enclosed in heavy brackets [ ] appeared in thepatent, but has been deleted and is no longer a part of thepatent; matter printed in italics indicates additions madeto the patent.AS A RESULT OF REEXAMINATION, IT HAS BEENDETERMINED THAT:

15Claim 11 is cancelled.Claims 1 and 15 are determined to be patentable as

amended.2I3

Claims 2-10 and 12-14, dependent on an amended claim,are determined to be patentable.New claims 16-26 are added and determined to be patent-

able. 251.A method of securing collateral for a loan when indi-

cated by a loan status, the collateral comprises a vehicle, atransmitter capable of transmitting locational data regardingthe vehicle is installed within the vehicle, the method com-prising the steps of:(a) receiving a signal in response to a change in the loanstatus;(b) establishing a data link from a base terminal to thetransmitter upon the receipt of the signal representative 35of a change in the loan status;(c) transmitting locational data from the transmitter to thebase terminal via the data link; and(d) determining the location of the vehicle from the loca-tional data transmitted to the base terminal for use inconfiscating the vehicle;

wherein a GPS positioning signal receiver is installedwithin the vehicle and the transmitted locational data isbased upon a received GPSpositioning signal.15.A method of securing collateral for a loan when indi-cated by a loan status, the collateral comprises a vehicle, atransmitter capable of transmitting locational data regarding

the vehicle is installed within the vehicle, the method com-prising the steps of:(a) receiving a signal in response to a change in the loanstatus;(b) establishing a data link from a base terminal to thetransmitter upon the receipt of the signal representativeof the loan status being in a default condition;

(c) transmitting locational data from the transmitter to thebase terminal via the data link; and(d) determining the location of the vehicle from the loca-tional data transmitted to the base terminal for use inconfiscating the vehicle;

wherein a GPS positioning signal receiver is installedwithin the vehicle and the transmitted locational data isbased upon a received GPSpositioning signal.l6. The method of claim l, wherein the loan status iscontained on a computer network.l 7. The method ofclaim l6, wherein the base terminal is

in electrical communication with the computer network18. The method of claim l, further comprising establish-ing a data link from a global positioning satellite (GPS) tothe GPSpositioning signal receiver upon receipt ofa trans-mit request signal.l9. The method of claim 4, wherein the transmittercapable of transmitting locational data regarding thevehicle, the base communication receiver, and the GPSposi-tioning signal receiver are included within a retrieval appa-ratus that further comprises a controller electrically con-nected to the transmitter and the base communicationreceiver.20. The method ofclaim l9, further comprising poweringthe retrieval apparatus with a rechargeable battery.2l. The method of claim 9, wherein the transmittercapable of transmitting locational data regarding thevehicle, the base communication receiver, and the GPSposi-tioning signal receiver are included within a retrieval appa-ratus that further comprises a controller electrically con-nected to the transmitter and the base communicationreceiver.22. The method ofclaim 2l, wherein:the controller is in electrical communication with anaudio device; and

enabling the vehicle alarm comprises the base communi-cation receiver communicating the vehicle alarm signalto the controller which electrically enables the audiodevice.23. The method ofclaim 22, wherein the audio device is avehicle horn.24. The method ofclaim 22, wherein the audio device is aspeaker.25. The method ofclaim 2l, wherein:

the controller is in electrical communication with a visualdevice; and

enabling the vehicle alarm comprises the base communi-cation receiver communicating the vehicle alarm signalto the controller which electrically enables the visualdevice.26. The method ofclaim 25, wherein the visual device is a

light.

Method for retrieving vehicular collateral (US patent 6249217)

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