Data processing system and method for facilitating transactions in diamonds

• US 5,950,178 A
• Filed: 07/29/1997
• Issued: 09/07/1999
• Est. Priority Date: 07/29/1997
• Status: Expired due to Term

• Current Assignee: Diamonds Net LLC
• Original Assignee: Sergio Borgato
• Inventors: Borgato, Sergio
• Primary Examiner(s): Cosimano, Edward R.
• Application Number:
  US08/902,524
• Time in Patent Office: 770 Days
• Field of Search: 705/1, 705/35, 705/37, 707/100, 707/102, 707/104
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: Y10S 707/99943 Generating database or data structure, e.g. via user interface
• CPC Class Codes: Y10S 707/99945 Object-oriented database structure processing

Abstract

A data processing system and method for facilitating transactions in precious stones such as diamonds is set forth. A host processor stores data input by a seller from a remote terminal for a stone to be sold based upon weight, cut shape, cut quality and a matrix of color and clarity. From remote terminals sellers may input data to list stones which they offer for sale with the offer price and buyers make bids. The host processor stores the data which may be remotely viewed at remote terminals which reproduce the matrix and show the lowest offer price, highest bid price and last sales price for each category of the matrix. When a bid and offer match for a listed stone, confirmation is issued to the buyer and seller to confirm the sale. A third party escrow will receive the sold stone and payment and thereafter distribute it to the receiving party.

Claims

1. A system for listing and facilitating transactions involving stones categorized by weight and at least one other characteristic relating to the gem comprising:

a host processor having a first data structure storing for each stone offered for sale data of stone weight, the characteristic, offer price and seller identification data, said processor including (i) means for arranging said data into a data matrix array wherein stone data for like weights and like characteristics is assigned to a designated category position in the array and (ii) means to compare the price to determine the lowest offer price for a stone offered for the category position and, for said lowest determined offered price, assigning said stone data to a primary offer position in the array category;

a plurality of remote terminals each including a display;

a data link between said terminals to said host processor by which a seller and a buyer may initiate communication with the host processor, said processor in response to initiation of communication adapted to issue signals to the terminal to display a matrix corresponding to said data matrix array and for each category the price from the stone data assigned to the primary position;

means for a seller of a stone to open communication with the host processor from a terminal and to input stone data for a stone to be offered for sale;

means for a buyer of a stone to open communication with the host processor from a terminal;

means to select a category position from the matrix at the display, said host processor in response to said selection displaying at least the stone data of weight and said characteristic for the stone data assigned to the primary position;

means for the buyer to communicate a bid to the host processor for at least the stone whose data is assigned to said primary position of the selected category; and

said host processor including means to compare a bid with said displayed offer price, (i) if said bid matches the offer price said processor including means to communicate over said link to the identified seller and buyer of the stone that a sale has been made and means for removing said stone data for the sold stone from the data matrix, said comparing means comparing the prices of the remaining stone data of said category to determine the lowest price for the remaining stones and assign the lowest priced remaining stone to the primary position and (ii) if the bid is lower than the displayed offer price said processor including means to store said bid in the array category and compare said bid with other stored bids to determine the highest bid for the category, said determined highest bid assigned to a primary bid position at the array category.

2. The system of claim 1 wherein said stone data includes weight and the characteristics of color and clarity, said processor including means for defining weight classes and for each weight class a data matrix array of color and clarity, said arranging means adapted to arrange said stone data by weight class into said data matrix array wherein stone data for like weights and like characteristics of color and clarity is assigned to a designated category position in the array.

3. The system of claim 1 wherein the stone data includes the weight and the characteristics of color and stone cut shape, said processor including means for defining weight classes and for at least one weight class a plurality of shape subclasses and for each shape subclass a data matrix of color and cut, said arranging means adapted to arrange said stones data by weight class, shape subclass, color and clarity into said data matrix array wherein stone data for like weights, shapes, color and clarity is assigned to a designated category position in the array.

4. The system of claim 3 wherein the stone data also includes a cut grade, said processor including means for defining for at least one shape subclass at least one sub-subclass based upon cut grade, said arranging means adapted to arrange said stone data by weight, shape and cut grade classification into said data matrix array wherein stone data for like weights and like characteristics is assigned to a designated category position in the array.

5. The system of claim 1 wherein said processor is adapted to, in response to a selection by said category selection means, display for each stone in the category the weight, said characteristic and the offer price.

6. The system of claim 5 further including means for a buyer to select a stone of the displayed category and to enter a bid price matching the offer price, said processor including means for matching the bid with the stone and means to communicate over said link to the identified seller and buyer of the stone that a sale has been made and means for removing said stone data for the sold stone from the data matrix.

7. The system of claim 1 further including means for displaying at the terminal displays the bid price of data assigned to the primary bid position.

8. The system of claim 1 further including means for displaying the historical record of sales price for each category.

9. The system of claim 1 further including means for a seller to enter data concerning one or more of notations of other characteristics concerning a stone to be offered for sale selected from the group consisting of, (i) fluorescence, (ii) dark inclusions, (iii) color inclusions, (iv) symmetry, (v) finish, (vi) culet proportion, (vii) girdle proportion and (viii) table proportion, said processor including means for displaying any notation data when the stone data is displayed.

10. A system for listing and facilitating transactions involving polished diamonds categorized by weight group, cut style, cut grade, color and clarity comprising:

a host processor having a data structure storing for each diamond offered for sale data of weight, cut shape, cut grade, color and clarity, offer price and seller identification data, said processor including (i) means for arranging said data into weight group classes, cut shape subclasses and cut grade sub-subclasses and for each sub-subclass a data matrix array for color and clarity wherein data for like diamonds of the same sub-subclass, color and clarity is assigned to a designated category position in the array and (ii) means to compare the price to determine the lowest offer price for a diamond offered for the category position and, for said lowest determined offered price, assigning said data to a primary offer position in the array category;

a plurality of remote terminals each including a display;

a data link between said terminals to said host processor by which a seller and a buyer may initiate communication with the host processor, said processor in response to initiation of communication adapted to issue signals to the terminal to display for each sub-subclass a matrix corresponding to said data matrix array and for each category the price from the data assigned to the primary position;

means for a seller of a gem to communicate to the host processor from a terminal identification data to initiate communication with the host processor and to input data for a diamond to be offered for sale;

means for a buyer to communicate to the host processor from a terminal identification data to initiate communication with the host processor;

means to select a weight group, cut shape and cut grade, said processor in response to said selection adapted to issue signals to display said corresponding data matrix at the terminal display;

means for the buyer to communicate a bid to the host processor for at least the diamond whose data is assigned to said primary position of the selected category; and

said host processor including means to compare a bid with said displayed offer price, (i) if said bid matches the offer price said processor including means to communicate over said link to the identified seller and buyer of the diamond that a sale has been made and means for removing said data for the sold diamond from the data matrix, said comparing means adapted to compare the prices of the remaining data of said category to determine the lowest price for the remaining diamonds and assign the lowest priced remaining diamond to the primary position and (ii) if the bid is lower than the displayed offer price said processor including means to store said bid in the array category and compare said bid with other stored bids to determine the highest bid for the category, said determined highest bid assigned to a primary bid position at the array category.

11. The system of claim 10 wherein said processor is adapted to, in response to a selection by said category selection means, display for each diamond in the category the weight, color, clarity and the offer price.

12. The system of claim 11 further including means for a buyer to select a diamond of the displayed category and to enter a bid price matching the offer price, said processor including means for matching the bid with the diamond and means to communicate over said link to the identified seller and buyer of the diamond that a sale has been made and means for removing said data for the sold diamond from the data matrix.

13. The system of claim 10 further including means for storing at least the last sales price for a diamond of each category and means for displaying with the primary bid the last sales price.

14. The system of claim 13 further including means for displaying the historical record of sales prices for diamonds sold for each category.

15. The system of claim 10 further including means for a seller to enter notation data selected from the group consisting of, (i) fluorescence, (ii) dark inclusions, (iii) color inclusions, (iv) symmetry, (v) finish, (vi) culet proportion, (vii) girdle proportion and (viii) table proportion, said processor including means for displaying any notation data when the data is displayed.

16. A method for listing and facilitating transactions involving stones categorized by weight and at least one other characteristic relating to the gem comprising:

providing a host processor having a data structure storing for each stone offered for sale data of stone weight, the characteristic, offer price and seller identification data, said processor (i) arranging said data into a data matrix array wherein stone data for like weights and like characteristics is assigned to a designated category position in the array and (ii) comparing the price to determine the lowest offer price for a stone offered for the category position and, for said lowest determined offered price, assigning said stone data to a primary offer position in the array category;

linking terminals each including a display and data entry device to said host processor by which a seller and a buyer may initiate communication with the host processor, said processor in response to initiation of communication issuing signals to the terminal to display a matrix corresponding to said data matrix array and for each category the price from the stone data assigned to the primary position;

a seller of a stone communicating to the host processor from a terminal identification data to initiate communication with the host processor and inputting stone data for a stone to be offered for sale;

a buyer of a stone communicating with the host processor from a terminal identification data to initiate communication with the host processor;

the buyer communicating a bid to the host processor for at least the stone whose data is assigned to said primary position of the selected category; and

said host processor comparing the bid with said displayed offer price, (i) if said bid matches the offer price said processor confirming over said link to the identified seller and buyer of the stone that a sale has been made and removing said stone data for the sold stone from the data matrix and comparing the prices of the remaining stone data of said category to determine the lowest price for the remaining stones and assign the lowest priced remaining stone to the primary position and (ii) if the bid is lower than the displayed offer price said processor storing said bid in the array category and comparing said bid with other stored bids to determine the highest bid for the category and assigning the highest bid assigned to a primary bid position at the array category.

17. The method of claim 16 further including displaying at each category position the bid of the primary bid position.

18. A method for listing and facilitating transactions involving polished diamonds categorized by weight group, cut style, cut grade, color and clarity comprising:

providing a host processor having a data structure storing for each diamond offered for sale data of weight, cut shape, cut grade, color and clarity, offer price and seller identification data, said processor (i) arranging said data into weight group classes, cut shape subclasses and cut grade sub-subclasses and for each sub-subclass a data matrix array for color and clarity and allocating data for like diamonds of the same sub-subclass, color and clarity to a corresponding category position in the array and (ii) comparing the price to determine the lowest offer price for a diamond offered for each category position and, for said lowest determined offered price, assigning said data to a primary offer position in the array category;

linking remote terminals each having a display and data entry device to said host processor for initiating communication with the host processor, said processor in response to initiation of communication issuing signals to the terminal to display for each sub-subclass a matrix corresponding to said data matrix array and for each category the price from the data assigned to the primary offer position;

a seller of a diamond communicating to the host processor from a terminal identification data to initiate communication with the host processor and inputting data for a diamond to be offered for sale;

a buyer to communicating with the host processor from a terminal identification data to initiate communication with the host processor;

choosing a sub-subclass, said processor in response to said selection issuing signals to display said corresponding data matrix;

the buyer to communicating a bid to the host processor for at least the diamond whose data is assigned to said primary position of the selected category; and

said host processor comparing the bid with said displayed offer price, (i) if said bid matches the offer price said processor confirming to the identified seller and buyer of the diamond that a sale has been made and removing said data for the sold diamond from the data matrix and comparing the prices of the remaining data of said category to determine the lowest price for the remaining diamonds and assigning the lowest priced remaining diamond to the primary position and (ii) if the bid is lower than the displayed offer price said processor storing said bid in the array category and comparing said bid with other stored bids to determine the highest bid for the category assigning the highest bid to a primary bid position at the array category.

19. The method of claim 18 further including displaying at each category position the bid of the primary bid position.

20. The method of claim 19 further including displaying at each category the most recent sale price for a diamond that has been sold.

21. The method of claim 20 further including displaying the history of sales over time for each category.