Computer web-based auction platform

• US 20030105705A1
• Filed: 09/24/2002
• Published: 06/05/2003
• Est. Priority Date: 09/24/2001
• Status: Active Grant

• Current Assignee: AreUN, Inc.
• Original Assignee: AreUN, Inc.
• Inventors: Eyre, Ethan B.
• Granted Patent: US 7,475,036 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A computer auction platform that incorporates a novel concept of virtual Internet property ownership to promote the platform, increase listings and customer base. Virtual property owners may be entitled to receive a portion of the transaction revenue generated from auctions that originate from within a predefined geographic region. Virtual property owners may also have physical locations placed within the geographic region to provide escrow service between buyers and sellers. The central location may also provide assistance for those who do not have access to computers to list or bid on items on the platform.

Claims

1. A method of conducting an on-line auction, the method comprising:

organizing a geographic area into a plurality of regions;

transferring virtual property ownership rights of the plurality of regions to a plurality of owners;

establishing an auction platform that is accessible to a plurality of sellers and a plurality of buyers via a distributed computer network throughout the geographic area wherein the plurality of sellers can list items for sale and wherein the plurality of buyers can place bids on the items listed for sale;

auctioning at least one item listed by the seller to a buyer who indicates a willingness to pay the highest price for the item listed for sale;

distributing a portion of the proceeds from the transaction to one of the plurality of virtual property owners based upon the relationship between the buyer or the seller and the region of the geographic area corresponding to the virtual property.

2. The method of claim 1, wherein transferring virtual property ownership rights of the plurality of regions to a plurality of owners comprises auctioning the virtual ownership rights via the auction platform to the plurality of owners.

3. The method of claim 1, wherein auctioning at least one item listed by the seller to the buyer comprises auctioning a plurality of items.

4. The method of claim 3, further comprising accumulating a portion of each auction transaction into a fund and wherein distributing the portion of the proceeds to the plurality of virtual property owners comprises periodically distributing proceeds from the fund to the plurality of virtual property owners.

5. The method of claim 4, further comprising determining the seller'"'"'s location and assigning the proceeds to the virtual property owner based upon the seller'"'"'s location.

6. The method of claim 5, further comprising:

soliciting feedback from the buyer about the transaction; and

using the feedback as a basis for distributing the proceeds from the fund to the plurality of sellers so as to provide an incentive to the plurality of sellers to improve the transaction between the seller and the buyer.

7. The method of claim 6, wherein distributing fund to the plurality of sellers comprises distributing a portion of listing fees the platform receives from sellers for listing the items.

8. The method of claim 6, wherein credit units are distributed to the seller for each successful transaction, wherein the number of credit units distributed is based on feedback from the buyer.

9. The method of claim 8, wherein the cumulative credit units can be redeemed for shares in the fund, wherein the value of each share is based on the fund value.

10. The method of claim 4, wherein distributing proceeds from the fund to the plurality of virtual property owners comprises distributing about 35% of the proceeds from closing costs received by platform after a seller successfully sells an item.

11. The method of claim 1, further comprising establishing physical locations where the sellers and the buyers can interact with the virtual property owners.

12. A method of doing an on-line auction business, the method comprising:

establishing an auction platform that is accessible to a plurality of sellers and a plurality of buyers via a distributed computer network throughout a geographic area wherein the sellers can list items for sale and the buyers can place bids on the items for sale such that a plurality of on-line auction transactions can occur;

transferring rights to a plurality of auctioneers a virtual property whereby transactions associated with a geographic region are assigned as an asset of the virtual property rights;

distributing proceeds to the auctioneers in response to the successful completion of an on-line auction transaction.

13. The method of claim 12, wherein distributing the proceeds to the plurality of auctioneers in response to a successful completion of an on-line auction transaction comprises:

soliciting feedback from the sellers and the buyers about the transaction;

adjusting the distribution of the proceeds from the transaction that is to be provided to the auctioneer based upon the feedback from the buyers and sellers to thereby incentivize the auctioneer to improve the transaction.

14. The method of claim 12, further comprising providing a portion of the proceeds from each transaction to the auction platform to thereby provide a revenue stream to the owner of the auction platform.

15. The method of claim 12, wherein transferring rights to the plurality of auctioneers a virtual property right comprises the auction platform selling the virtual property rights to the plurality of auctioneers at a price based on the potential revenue that could be generated by the property.

16. The method of claim 12, wherein selling the virtual property rights to the plurality of auctioneers comprises auctioning the property rights via the auction platform.

17. The method of claim 13, further comprising requiring the plurality of auctioneers to provide a periodic payment to the auction platform to thereby provide an additional stream of income to the owner of the auction platform.

18. The method of claim 17, further comprising revoking the virtual property right from an auctioneer when the auctioneer fails to provide the periodic payment.

19. The method of claim 16, further comprising:

auctioning a virtual property right owned by a first auctioneer to a second auctioneer via the auction platform; and

approving the transfer from the first auctioneer to the second auctioneer only when a percentage of the transaction revenue is provided to the auction platform to thereby provide an additional stream of income to the auction platform.

20. A method of generating revenue for an online auction platform, comprising:

creating a plurality of virtual Internet properties associated with the online auction platform, wherein each virtual Internet property comprises the right to collect at least a portion of the proceeds generated from auction transactions conducted within the platform;

distributing the virtual Internet properties to a plurality of entities, wherein each entity pays a fee for at least one virtual Internet property, wherein the fee results in revenue for the online auction platform.

21. The method of claim 20, wherein generating the virtual Internet properties comprises allocating the properties according to the geographic region where the auction transactions may originate.

22. The method of claim 20, wherein distributing the virtual Internet properties to a plurality of entities comprises auctioning the properties in a manner such that each property is distributed to the highest bidder.

23. The method of claim 20, further comprising establishing a physical locations within a geographic region so as to provide a central location for buyers and sellers to interact with the virtual property owners.

24. The method of claim 23, wherein establishing the physical locations comprises establishing the physical location in a manner so as to provide additional revenue stream for virtual property owners, whereby the location provides postal service for buyers and sellers.

25. The method of claim 20, further comprising collecting listing fees from sellers who list items for sale on the platform and reallocating back at least a portion of the listing fees back to the seller in a manner that motivates the sellers to conduct more auctions on the platform.

26. The method of claim 25, wherein the sellers receive a first number of credit units for listing an item on the platform even if the transaction is unsuccessful.

27. The method of claim 25, wherein the sellers receive a second number of credit units for listing an item on the platform if the transaction is successful.

28. The method of claim 27, where the second number of credit units is determined by the buyer who purchased the item from the seller.