Verifiable device assisted service usage billing with integrated accounting, mediation accounting, and multi-account

Patent No. US8666364 (titled "Verifiable device assisted service usage billing with integrated accounting, mediation accounting, and multi-account") on Sep 13, 2012. The application was issued on Mar 4, 2014.

What is this patent about?

’364 is related to the field of wireless network management and device-assisted service control. Specifically, it addresses the challenges of managing network capacity and service costs as mobile data demand outpaces infrastructure growth. The technology focuses on empowering wireless devices to participate in the monitoring and enforcement of service policies, allowing for more granular control over data usage than traditional network-centric approaches.

The underlying idea behind ’364 is to distribute service policy enforcement from the core network down to the end-user device itself. By using on-device software agents that interface directly with applications, the system can identify specific service activities—such as video streaming or social media—and apply different data usage rules depending on which wireless network the device is currently using. This allows for a highly flexible management model where a user can specify how they want to conserve data on expensive or congested networks while maintaining full access on others.

The claims of ’364 focus on a wireless device equipped with multiple modems and a specialized application interface agent. This agent is designed to communicate with software components associated with specific service activities to apply network-specific policies. The device is configured to receive user input that defines aspects of these policies, detect when it is connected to a specific network, and then identify and control data communications for a particular activity based on that network connection. Crucially, the policy allows for different levels of control for the same activity across different wireless networks.

In practice, the invention works by monitoring data traffic at the application layer before it is encrypted or packetized by the standard networking stack. This literal or virtual tagging of traffic allows the device to distinguish between a high-bandwidth video stream and a low-bandwidth text message. When a user connects to a metered or restricted network, the device-side agent can automatically throttle, block, or redirect only the specific high-usage activities identified by the user or the service provider, rather than shutting down all network access.

This approach differs from prior solutions by moving the intelligence of deep packet inspection and traffic shaping from expensive network gateways to the device. Traditional systems often struggle to manage encrypted traffic or provide granular user-level choices without significant network overhead. By utilizing a device-based service processor, ’364 enables real-time, verifiable service control that respects user privacy and network neutrality, as the user can directly influence which applications are prioritized or restricted to manage their own service costs.

How does this patent fit in bigger picture?

Technical Landscape

In the late 2000s when ’364 was filed, mobile data consumption was beginning to surge due to the proliferation of diverse networked devices, at a time when network capacity was typically implemented using centralized core infrastructures like EVDO, HSPA, and early LTE. During this era, systems commonly relied on deep packet inspection (DPI) and traffic shaping profiles managed within the core network rather than distributed device-side control, which created significant scalability constraints for service providers. Hardware and software constraints of the period made the granular management of individual application traffic and real-time billing mediation non-trivial, often forcing providers to rely on flat-rate billing or coarse usage limits that failed to account for specific service activities or multi-device account structures.

Prosecution Position

The disclosed invention represents a meaningful technical advancement by shifting service policy implementation from the core network to a distributed architecture involving a device-resident service processor and a network-based service controller. This architectural shift addresses the technical problem of core network congestion and the inability to provide granular, verifiable billing for diverse service activities, such as ambient services, sponsored traffic, or machine-to-machine communications. By integrating device-assisted monitoring with a verifiable heartbeat and synchronization mechanism, the system enables the capability to classify and control traffic at the application and transaction level even when encrypted. This integration achieves the technical effect of reducing backhaul and core infrastructure costs while ensuring billing integrity through a multi-layered verification process that compares device-reported usage against network-based measures.

Claims

This patent contains a total of 30 claims, with claim 1 serving as the sole independent claim. The independent claim focuses on a wireless device equipped with multiple modems and a user interface that utilizes specialized agents and memory to manage network-specific service policies, specifically enabling the control and reduction of data usage for particular service activities on one wireless network differently than on another based on user input. The dependent claims serve to further define the system by specifying various software components, detailing methods for traffic shaping, blocking, or throttling data flows, outlining notification and reporting mechanisms through the user interface, and identifying specific conditions or activity types, such as background updates or roaming, that trigger policy enforcement.

Key Claim Terms New

Definitions of key terms used in the patent claims.

Term (Source)Support for SpecificationInterpretation
Application interface agent
(Claim 1)
The application interface agent identifies application level traffic and appends service identification tags to assist in access control, traffic shaping, or service type dependent billing. It can passively inspect traffic at a point in the software stack between the applications and the standard networking stack API, such as the sockets API. It may also interact with application programs to arrange settings like compression or file transfer options to aid in policy implementation.A software component that acts as an intermediary between device applications and the networking stack to identify, inspect, or modify traffic at the application layer to enforce service policies.
First service activity
(Claim 1)
Service activity refers to any service usage or traffic usage associated with an application, a network communication end point (URL/IP), a traffic content type, or a transaction. It is used to decompose overall service usage into finer sub-categories that can be verifiably monitored, controlled, and monetized. Examples include email, web browsing, media streaming, or machine-to-machine networking services.A specific sub-category of data traffic or device usage—such as a particular application, destination URL, content type, or transaction—that represents less than the total aggregate data usage of the device.
First service policy
(Claim 1)
A service policy includes a set of one or more service policy settings for the device for a service on the network, such as access control, traffic control, and billing system settings. These policies allow for managing service consumption in a refined manner to satisfy network neutrality or reduce user service costs. The policy can be adapted by agents to achieve higher-level service usage goals based on the specific network connected to.A set of access, traffic, or billing rules specific to a first wireless network (e.g., a WWAN) designed to restrict or manage data usage for specific sub-categories of service activities differently than on a second network (e.g., a WLAN).
Intended, attempted, or successful data communication
(Claim 1)
The service processor agents perform functions including service allowance or denial, application access control, and traffic control. The application interface agent intercepts or inspects traffic between applications and the network stack to implement these policies. This allows the system to identify and process service usage events before, during, or after they occur on the network.Any stage of a network data transfer—from the initial request by an application to the completed transmission—that is identified by the device agents for policy enforcement.
User input specifying at least an aspect of the first service policy
(Claim 1)
User preference feedback is collected to set service control policies that provide the user with their selected balance of cost and service capability. This includes approval for the level of traffic information shared and choices on how service usage is managed down to control costs. The user's responses to presented options are recorded and used to configure the billing and policy control agents accordingly.Data received via the device's user interface reflecting a user's choice or preference regarding how their data usage is managed, throttled, or billed on a specific network.

Litigation Cases New

US Latest litigation cases involving this patent.

Case NumberFiling DateTitle
4:25-cv-09558Nov 5, 2025Google LLC v. Headwater Research LLC
3:25-cv-07591Sep 5, 2025Apple Inc v. Headwater Research LLC
5:25-cv-07453Sep 3, 2025Google LLC v. Headwater Research LLC

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US8666364

Application Number
US13615249A
Filing Date
Sep 13, 2012
Publication Date
Mar 4, 2014
External Links
Slate, USPTO , Google Patents