FORM 2
THE PATENTS ACT, 1970 [39 OF 1970]
PROVISIONAL SPECIFICATION [SEE SECTION 10 & RULE 13]
1 TITLE "
SYSTEM FOR ONLINE DISTRIBUTION OF MOVIES AND OTHER PROGRAMS FOR VIEWING
2 APPLICANT

NAME

VALUABLE TECHNOLOGIES PRIVATE LIMITED

ADDRESS

602,1ST FLOOR,
CENTRE POINT , J. B. NAGAR,
ANDHERI- KURLA ROAD
ANDHERI(E), MUMBAI-400059.
INDIA

NATIONALITY INDIA
The following specification particularly describes the nature of the invention:-

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The present invention relates generally to A SYSTEM FOR ONLINE DISTRIBUTION OF MOVIES AND PROGRAMS FOR VIEWING being an electronic commerce systems or an Exchange, and more particularly relates to a business-to-business protocol exchange for connecting global movie / theatre/ music industry, focusing on the business of film, Theatre, Plays, Musical Concerts and Stage shows, Award Functions, Special shows and the like and its distribution, marketing and exhibition.
Background of the Invention
Presently the film distribution system provides for generally the production of a fixed number of prints which are most times kept for distribution to priority centres in important cities and are either shared thereafter or transmitted to theatres in smaller towns.
The need of the hour has been to reach the ready to film to the largest audience for viewing at the same time. However, right from distribution till actual telecast in theatres the present functioning has been found to be ridden by paper work, meetings, negotiations and the like leading into many cases not reaching the film to masses at the same time. The need to centralise simultaneous management of a plurality of distribution networks and cinema halls is becoming urgent, and it satisfies the prerequisite of allowing a better use of human resources and a more rapid coordination of the distribution network and cinema halls which can be then better used for a larger number of shows or for other cultural programmes.

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The present system lacks in uniformity and is riddled with manual dealings, losses to the Producer, Distributor and Government and the substantial black marketing and illegal activities.
Salient features of the invention
• The present invention is primarily an exchange where an inventory of occupancy of any event, is traded globally and electronically in real time amongst its registered members by abiding the government rules.
• The present invention offers a unique, novel, secured and speedy mode of e-commerce to the existing channel of film production and distribution.
• On demand the The present invention can generate transactions based MIS reports and requsite documents to be submitted to respective tax authorities for each of its pyramidal hierarchy members.
• The present invention offers opportunity for producers (even for new producers who otherwise have problems) to release their movies through nation wide network of distributor and sub distributors at competitive pricing. It has option of bidding system at each sub levels. Producers can get instant (viewer ship) feedback on the performance upon launching of their films.

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• The present invention gives distributors and sub distributor market transparency in real time collection by nation wide network of exhibitors. Thus encouraging distributor to go for more territories with added revenue.
• The present invention enables exhibitor to run the first day first day show of latest movies even in small village at competitive pricing. It give exhibitor V-box office software with requisite hardware, amenities for speedy and accurate distribution of tickets.
• The present invention offers spectators choice of movies, location, schedule, class, rate and embedded movie information such as review, star cast, award etc. it helps to minimize last minute rush and black marketing of ticket.
• The present invention helps Government in prompt collecting of the otherwise evaded entertainment tax by getting real time statistical data of collection at the exhibitor end. Best part is unlike current system, government gets the tax amount in advance through the credits made by the exhibitors.
• The present invention helps a country to boost its image by keeping away social evils by maintaining IP rights. Through its network of registered members it completely eliminates screening of banned, pirated, uncensored and un-graded movies.

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• The present invention supports launching of global movies in Indian territories and in future Indian movies overseas helping globalization by generating more foreign exchange
• The present invention creates market integrity because movies traded on exchange are graded and certified , transactions are conducted by registered, trustworthy group of intermediaries, critical mass of buyers and seller, contractual terms are standardized, contracts are enforceable, low cost & risk transactions,
• The present invention provides risk transfer through futures trade.
• The present invention has underlying legal framework, clear rules and norms, accepted product standards, dispute settlement means, underlying financial mechanism, grading and inspection facility for moralebrigade of society
• The present invention provides three basic functions:

1) Price transparency -- everyone has access to a neutral reference price
2) Price discovery - market driven demand and supply fundamentals are reflected in price levels
3) reduced transaction costs -- it is easier to find buyers or supply through a centralized market place
The present invention is being built to cater to a need for standardizing the commerce platform in the film distribution business including the participation of members of

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1. The Producer: Who own the product (film)
2. The Distributor: Who buys the distribution rights for one or many "territory"
3. The Exhibitor: Who owns the theaters where the film is shown
4. The Consumer: Who buys the tickets to view the film
5. The State Government: Who earns tax revenues based on the commerce
The transaction on the present invention will be executed and valid only by its registered members who have physically submitting a legally signed document.
The entire process odf the Exchange / Invention is reproduced in the schematic drawing as under:

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The present invention involves the
Uploading of upcoming movie information, star cast and updates on the progress, tentative date of launch. This would help create hype in the market; Conducting "Auction" for distribution rights wherein the the Distributors would bid for gaining rights for each territory; assistance into Distribution Contract with distributors and View the current movie position: Running Theaters, Weekly Collection, Statistical Data e.g. per show to the Exchange. Under the said invention the . Exhibitor and Distributor agree on a "Deal". This is offline process . The Distributor then fills a Deal Form and attach a copy of the Deal Agreement and faxes it to the Exchange.. The Deal metadata is then entered into the Exchange central system. This includes the Movie, the Period of the deal, Revenue Share Terms, Taxes and number of Shows etc. Once the Deal is entered in the central system, Distributor using a login/password can view the list of Deals in an online web site. Thru this website, Distributor proof reads the Deal entered and approvesit. If there is a problem in the data entry then Distributor can reject it. . Once the Deal is approved by the distributor online, the deal information automatically gets downloaded on the Box Office Ticketing system. This Tickteing System is located at the exhibitors end. The Exhibitor again reviews the Deal and approves (or rejects) it. Once the deal is approved by Exhibitor, the Show Timing, Ticket Rates and Screen is configured in the Box Office System by the

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Exhibitor The actual sale of tickets happen At completion of each show, the sale data such as Screen Name, Ticket Count, Class Name (Balcony/Stall etc), Ticket Cost, Total Sale Amount etc gets automatically uploaded on the central system. At the end of all sale uploads for all shows, the Distributor marks the deal as "closes". Once the Deal is marked close, the deal accounting happens where in the sale amount gets distributor amongst all Stakeholders (i.e. Exhibitor, Distributor, State Government etc) Each Stake Holder have an online "account" to which the amount gets credited. The stakeholder can withdraw or remit amount to
this account.Since the actual ticket sale happens at the Exhibitor end and the physical sale cash remains at Exhibitor end, the Exhibitor has to keep a minimum balance in their account. When the deal accounting happens, the Exhibitor account is debited and the other stakeholder account is credited.
Dated this 10th day of October 2007

TO
THE CONTROLLER OF PATENTS THE PATENT OFFICE, MUMBAI