Online auction system

• US 20070027792A1
• Filed: 07/29/2005
• Published: 02/01/2007
• Est. Priority Date: 07/29/2005
• Status: Abandoned Application

• Current Assignee: Charles Smith
• Original Assignee: Charles Smith
• Inventors: Smith, Charles
• Application Number:
  US11/192,924
• Publication Number:
  US 20070027792A1
• 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

An online auction system and method that incorporates deposits into an auction model is disclosed. Remote terminals operated by potential bidders and sellers are used to access an auction server over a network. The auction server determines a deposit submitted in conjunction with an item to be auctioned by a seller and displays the amount of the deposit to potential bidders viewing an auction item record corresponding to the item. The auction server requires bidders to have submitted a sufficient deposit before a bid on an item up for auction will be registered by the auction server. If the bidder should win the auction, but fails to submit a complete payment for the item, the deposit will be forfeited and divided in a predetermined way. If the seller fails to complete the transaction, the seller'"'"'s deposit is forfeited and divided in a predetermined way.

Claims

1. A system for conducting online auctions over a computer network, the system comprising:

an auction server, the auction server containing;

a bidder database containing at least one bidder record associated with a corresponding bidder, wherein each bidder record includes a deposit amount which represents the amount of a deposit paid by that bidder; and

an item database containing at least one item record associated with an item to be auctioned; and

at least one remote terminal operatively connected to the auction server over the network, each remote terminal operative to allow a bidder to transmit a bid to the auction server;

wherein the auction server, in response to receiving a bid from a remote terminal by a bidder during an auction of an item, checks the deposit amount in the bidder record associated with that bidder against a minimum required deposit in respect of the item being auctioned and if it is determined that a sufficient deposit has been paid by the bidder the auction server registers the current bid.

2. The system of claim 1 wherein upon determining that the deposit amount does not satisfy the minimum required deposit amount in respect of the item being auctioned, the auction server transmits a request to the remote terminal for the current bidder to submit a further deposit which would increase the deposit amount in the corresponding bidder record.

3. The system of claim 1 wherein the minimum required deposit amount in respect of the item being auctioned is approximately half the amount of the current bid.

4. The system of claim 1 wherein the minimum required deposit amount in respect of the item being auctions is predetermined before the auction is started.

5. The system of claim 1 wherein the bidder records include a past infraction history and wherein when a bid is received by the auction server, the auction server checks the past infraction history and if the past infraction history indicates past auction rule infractions by the current bidder, the minimum required deposit amount in respect of the item being auctioned is increased in respect of that bidder.

6. The system of claim 5 wherein the minimum required deposit amount in respect of the item being auctioned is increased for each past infraction indicated by the past infraction history.

7. The system of claim 5 wherein the minimum required deposit amount in respect of the item being auctioned is increased by approximately one third for each past infraction indicated by the past infraction history in respect of the bidder.

8. The system of claim 7 wherein a past infraction is removed from the past infraction history for each successfully completed transaction.

9. The system of claim 1 wherein a bidder must complete a login at the remote terminal before the auction server will accept bids placed by that bidder from the remote terminal.

10. The system of claim 9 wherein the login comprises the current bidder transmitting identifying information from one of the remote terminals to the auction server and the auction server using the identifying information to access the bidder record associated with the current bidder.

11. The system of claim 1 wherein a bidder record is created by a potential bidder completing a registration, the registration comprising transmitting identifying information from one of the remote terminals to the auction server.

12. The system of claim 11 wherein the registration further comprises the auction server comparing the identifying information submitted by the potential bidder to existing bidder records in the bidder database, wherein the registration will be refused if corresponding information is found in an existing bidder record.

13. The system of claim 1 wherein the deposit provided by a bidder is seized if the current bidder retracts the current bid, by reducing the deposit amount in the corresponding bidder record by the minimum required deposit amount in respect of the item being auctioned.

14. The system of claim 1 wherein if the winning bidder in an auction fails to provide a full payment for the item the deposit provided by the winning bidder is seized by reducing the deposit amount in the corresponding bidder record in an amount to satisfy the winning bid.

15. The system of claim 1 wherein the deposit amount of a bidder record is used in relation to a single item being auctioned and wherein upon the completion of the auction of that item, if the bidder corresponding to that bidder record does not have the winning bid in the auction, then the deposit is refunded to the bidder.

16. The system of claim 1 wherein the deposit amount of a bidder record is used in relation to multiple item auctions and for each submitted bid, the deposit amount is reduced by the minimum required deposit amount.

17. A method of conducting online auctions over a computer network, where remote terminals of potential bidders are used to access an auction server computer, the method comprising:

receiving a deposit from a current bidder and storing the amount of the deposit as a deposit amount;

receiving a current bid from the current bidder on an item being auctioned;

in response to receiving the current bid, checking the deposit amount of the current bidder; and

if the deposit amount of the current bidder indicates at least a minimum required deposit amount in respect of the item being auctioned, accepting and registering the current bid; and

upon the occurrence of a predetermined auction closing condition, completing the auction of the item in accordance with auction rules based on the accepted bids in respect of the item.

18. The method of claim 17 wherein the minimum required deposit amount in respect of an item being auctioned is approximately half the amount of the current bid.

19. The method of claim 17 wherein the minimum required deposit amount in respect of an item being auctioned is predetermined before the auction starts.

20. The method of claim 17 wherein if the current bidder has past infractions of the auction rules the minimum required deposit amount in respect of an item being auctioned is increased in respect of that bidder.

21. The method of claim 20 wherein the minimum required deposit amount in respect of an item being auctioned is increased in respect of a particular bidder for each previous past auction rules infraction by that bidder.

22. The method of claim 17 wherein the current bidder must complete a login at a remote terminal before the auction server will accept bids transmitted by that bidder from the remote terminal.

23. The method of claim 17 comprising seizing the deposit by reducing the deposit amount by the minimum required deposit amount in respect of the item being auctioned if a bidder retracts an otherwise acceptable or previously accepted bid.

24. The method of claim 17 wherein upon completion of the auction of an item the winning bidder is provided with a predetermined time period to submit a payment in respect of the auction and if the payment is not submitted within the predetermined time period, the deposit is forfeited in at least the amount of the minimum required deposit amount in respect of the item.

25. The method of claim 17 wherein upon completion of the auction of an item the winning bidder is provided with a predetermined time period to submit a payment in respect of the auction and if the payment is not submitted within the predetermined time period the seller is provided with the option of choosing another bid as the winning bid and the deposit of the original winning bidder is refunded.

26. A system for conducting online auctions over a computer network, the system comprising:

an auction server containing an item database containing at least one item record associated with an item to be auctioned; and

at least one remote terminal operatively connected to the auction server over the network, each remote terminal operative to allow a seller to send the particulars of an item to be auctioned, including submitting a seller deposit in respect of that item, to the auction server resulting in the creation of an item record in the item database;

wherein during an auction of an item from the item database by the auction server, the seller deposit amount in respect of the item being auctioned is displayed to potential bidders using remote terminals to access the auction server to participate in the auction.

27. The system of claim 26 wherein the seller deposit must meet a predetermined minimum threshold before the auction server will post the current item for auction.

28. The system of claim 26 wherein a seller must complete a login at a remote terminal before the auction server will accept the posting of an item to the item database by the seller.

29. The system of claim 28 wherein the login comprises the current seller transmitting identifying information to the auction server and the auction server using the identifying information to access a seller record associated with the current seller.

30. The system of claim 26 wherein a seller record is created by a potential seller completing a registration, the registration comprising the seller transmitting identifying information from one of the remote terminals to the auction server.

31. The system of claim 30 wherein the registration further comprises the auction server comparing the identifying information submitted by the potential seller to existing seller records, wherein the registration will be declined if corresponding information is found in an existing seller record.

32. The system of claim 26 wherein upon completion of an auction of an item from the item database the seller deposit is seized if the seller fails to ship the item to the winning bidder within a predetermined time period.

33. A method of conducting online auctions over a computer network, where remote terminals of potential bidders and potential sellers are used to access an auction server computer, the method comprising:

the auction server receiving from a current seller a posting of an item to be auctioned and a seller deposit and creating an auction item record associated with the item and storing a seller deposit amount in the auction item record;

allowing potential bidders using remote terminals to access the current auction item record and display the seller deposit amount;

conducting the auction in accordance with a set of auction rules; and

upon completion of the auction, if the current seller fails to ship the item to the winning bidder within a predetermined period of time, seizing the seller deposit.

34. A method of conducting auctions over a network, where remote terminals of potential bidders and potential sellers are used to access an auction server computer, the method comprising;

the auction server receiving a posting of an item to be auctioned and a seller deposit and creating an auction item record associated with the item and storing a seller deposit amount in the current auction item record;

allowing a potential bidder using a remote terminal to access the auction item record associated with the item and viewing the seller deposit amount;

the auction server receiving a current bid on the item from a current bidder and in response to receiving the current bid, checking a bidder deposit amount in a bidder record associated with the current bidder and registering the current bid if the bidder deposit amount is at least a minimum required deposit amount in respect of the item being auctioned; and

upon an occurrence of a predetermined auction closing condition, completing the auction of the item in accordance with a set of auction rules based on the accepted bids in respect of the item.

35. The method of claim 34 wherein the minimum required deposit amount in respect of an item being auctioned is approximately half of the current bid.

36. The method of claim 34 wherein the minimum required deposit amount in respect of an item being auctioned is predetermined before the auction starts.

37. The method of claim 34 further comprising seizing the seller deposit if the seller fails to ship the item to the winning bidder within a predetermined time period from the completion of the auction.

38. The method of claim 34 further comprising seizing the deposit of a bidder who retracts an otherwise acceptable or accepted bid.

39. The method of claim 34 wherein upon completion of the auction of an item the winning bidder is provided with a predetermined time period to submit a payment in respect of the auction and if the payment is not submitted within the predetermined time period, the buyer deposit is forfeited in at least the amount of the minimum required deposit amount in respect of the item.

40. The method of claim 34 wherein upon completion of the auction of an item the winning bidder is provided with a predetermined time period to submit a payment in respect of the auction and if the payment is not submitted within the predetermined time period the seller is provided with the option of choosing another bid as the winning bid.

41. The method of claim 34 comprising at the end of the auction, the auction server selecting a winning bid transmitted by a winning bidder and the current seller shipping the item to the winning bidder, wherein if the winning bidder upon receiving the item refuses to accept the item, the item is transported to a receiving point and an arbitration is conducted on the sufficiency of the refusal of the winning bidder.