Automated contract negotiator/generation system and method

• US 6,067,531 A
• Filed: 07/21/1998
• Issued: 05/23/2000
• Est. Priority Date: 07/21/1998
• Status: Expired due to Term

• Current Assignee: Rakuten, Inc. (Rakuten Group, Inc.)
• Original Assignee: MCI Communications Corporation (Verizon Communications Inc.)
• Inventors: Hoyt, Daniel M., Lee, Robin M., Lickiss, Alan L.
• Primary Examiner(s): Swann, Tod R.
• Assistant Examiner(s): THOMPSON JR, FOREST
• Application Number:
  US09/120,014
• Time in Patent Office: 672 Days
• Field of Search: 705/35, 705/4, 705/29, 707/200, 707/530, 707/531, 709/238, 709/227, 395/701
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A contract system automates negotiation and generation of contract documents by managing the work flow in a contract approval process. Multiple users, coupled by a computer network, access a contract database containing multiple contracts with multiple contract components therein. The system manages communications and security between a client system and the contract database. A client applet facilitates user input at the client system and assists in a standardization of legal phrasing and contract negotiation. The client applet enforces business rules to qualify a contract for expedited approval. Generalized templates are employed to enable rapid prototyping and creation of new contracts. A method governs the automated contract negotiation and generation process within a business organization with assistance from a graphical user interface.

Claims

1. A system for generating a contract comprising:

a contract database that is accessible by a plurality of users and stores contract component data defining said contract;

a client applet that provides access to said contract database for said plurality of users;

a first server coupled to said client applet; and

a second server coupled to said contract database and said first server that updates said contract database with modifications to said contract component data received from said client applet through said first server.

2. The system of claim 1 wherein said contract database defines a hierarchy associated with said contract comprising team members selected from said plurality of users and allocated into class levels within said hierarchy.

3. The system of claim 2 wherein said client applet has an interface that displays said contract component data and receives input from said team members to modify said contract component data.

4. The system of claim 2 wherein said contract database has a contract status field, said client applet controlling access to said contract database by one of said team members based on said contract status field and said class level of said one of said team members.

5. The system of claim 1 wherein said contract database comprises:

a contract tree table that identifies a current contract component of said contract database, a parent component of said current contract component, an order value defining an ordinal relationship between said current contract component and at least one other component associated with said parent component, and a status for said current contract component; and

a component table that defames a component ID associated with said current component.

6. The system of claim 1 wherein said contract database comprises:

one or more user data tables that define at least one of said plurality of users and at least one relationship between each defined user and said contract.

7. The system of claim 1 wherein said contract database comprises:

a query table associated with a component of said contract having question text to be displayed to said one of said plurality of users accessing said component; and

a response table associated with said query table comprising fields for storing a response to said question text from said one of said plurality of users.

8. The system of claim 7 wherein said response table comprises a User ID for indicating an identity of said one of said plurality of users that responded to said question text.

9. The system of claim 1 wherein said contract database comprises:

a point table that stores data required to calculate a total number of available points for said contract to assure that said contract conforms to predetermined contract requirements; and

one or more options tables required to allocate said total number of available points among various contract options.

10. The system of claim 9 wherein said client applet includes an available points interface that solicits input from one of said plurality of users to calculate said total number of available points.

11. The system of claim 9 wherein said client applet includes a contract options interface that solicits point allocation selections from one of said plurality of users.

12. The system of claim 1 wherein said client applet includes an interface screen corresponding to a generic template table that defines an amount of database storage required to store data associated with said interface screen.

13. The system of claim 1 further comprising a back-office computer system coupled to said second server that executes a back-office application using said contract component data stored in said contract database and communicated to said back-office system.

14. A method for negotiating a contract comprising the steps of:

providing a user-operable contract negotiator applet on a client computer;

providing access to a contract database by a first user via said contract negotiator applet, said contract database storing a plurality of contract components;

displaying information relating to a selected one of said plurality of contract components;

storing data received from said contract negotiator applet to said contract database;

submitting to a second user a contracts team list to which said second user is assigned as a team member; and

providing access to said contract database to said second user via said contract negotiator applet, responsive to said submitting step.

15. The method of claim 14 wherein the submitting step comprises the step of changing a value in a contract status field in said contract database.

16. The method of claim 14 wherein said step of providing access to said contract database by a second user via said contract negotiator applet comprises the step of presenting said second user with a list of contracts for which said second user is a team member.

17. The method of claim 14 further comprising the steps of:

receiving an approval status from said second user;

distributing said contract components to a third user;

providing access to a contract database by said third user via said contract negotiator applet, responsive to said distributing step; and

generating a summary of said contract components to said third user.

18. The method of claim 14 further comprising the steps of:

receiving an approval status from said second user; and

generating said contract comprising said contract components to said first user.

19. The method of claim 14 further comprising the steps of:

providing read access by a third user to said contract database;

providing comment access by said third user to said contract database,

storing comment data provided by said third user in said contract database;

preventing said third user from adding to said contract components; and

preventing said third user from modifying said contract components.

20. A system for automating a negotiation of a contract comprising:

a user-operable contract negotiator applet on a client computer;

means for providing access to a contract database by a first user via said contract negotiator applet, said contract database storing a plurality of contract components;

means for displaying information relating to at least one of said plurality of contract components;

means for storing data responsive to said displayed information into said contract database;

a status field in said contract database that causes said contract components to be submitted to a second user in said contract database if said status field is set to a submitted value; and

means for providing access to a contract database by said second user via said contract negotiator applet, responsive to said status field.

21. The system of claim 20 further comprising:

means for categorizing said first and second users according to user classes; and

means for controlling read and write access to said contract database according to said status field and said user classes.

22. The system of claim 20 further comprising means for recording a text field for a user comment, a user identifier for a user entering said user comment, a comment type field for associating said user comment to a contract section relating to said user comment, and a time field specifying a time of entry for said user comment.

23. A method for accessing a contract database via a contract negotiator applet comprising the steps of:

providing a web server computer that stores said contract negotiator applet;

providing a client computer coupled to said web server computer;

loading said contract negotiator applet to said client computer from said web server computer;

executing said contract negotiator applet on said client computer;

providing a contract database coupled to a broker; and

accessing said contract database by said contract negotiator applet via said broker.

24. The method of claim 23 further comprising the steps of:

providing a proxy server residing on said web server and coupled to said client computer;

initiating a central registry coupled to said proxy server;

initiating a broker coupled to said proxy server and said central registry, responsive to said step of initiating said central registry;

registering said broker in said central registry;

receiving a request to said proxy server from said contract negotiator applet for access to said broker;

obtaining from said central registry a broker reference corresponding with said broker; and

binding said contract negotiator applet to said broker.

25. The method of claim 23 further comprising the step of updating contract components in said contract database with user-supplied input received by said contract negotiator applet.

26. The method of claim 23 further comprising the steps of:

receiving an approval of a version of a contract in said contract database,

storing said approved version of said contract in said contract database; and

creating a new version of said contract in said contract database, responsive to said approval step.

27. A method for generating a contract having terms that conform to a set of predetermined contract parameters, comprising the steps of:

assigning a number of contract points to define said set of predetermined contract parameters;

assigning a number of contract points to define said set of predetermined contract parameters;

assigning said number of contract points to a total available points value;

assigning a predetermined option point value to a contract option;

receiving a selection of said contract option for inclusion in said contract; and

deducting said predetermined option point value from said total available points value to automate the generation of the contract.

28. The method of claim 27 wherein said contract has a duration and said step of assigning a number of contract points to define said set of predetermined contract parameters comprises the step of setting said number of contract points equal to a point value as a function of projected revenue over said duration of said contract.

29. The method of claim 27 wherein said contract has a duration and the step of assigning a number of contract points to define said set of predetermined contract parameters comprises the step of setting said number of contract points equal to a point value based on a combination of said duration of said contract and an annual level of said projected revenue of said contract.

30. The method of claim 27 wherein the step of assigning a predetermined option point value to a contract option comprises the step of assigning a point value to a discount option.

31. The method of claim 27 wherein the step of assigning a predetermined option point value to a contract option comprises the step of assigning a point value to a service rate cap option.

32. The method of claim 27 wherein the step of assigning a predetermined option point value to a contract option comprises the step of assigning a point value that increases with a number of countries serviced.

33. The method of claim 27 further comprising the step of receiving an approval status within an expedited time frame if, responsive to said deducting step, said total available points are not less than zero.

34. A system for automatically generating a contract among multiple users coupled to a network, said contract having a duration and terms that conform to a set of predetermined contract parameters, comprising:

a database having data defining said contract;

a first field in said database that stores a total available points value defining said set of predetermined contract parameters, said total available points value being a function of projected revenue over said duration of said contract;

a second field in said database that stores a predetermined option point value to a contract option;

a client applet that presents a user interface to allow a user to select said contract option for inclusion in said contract;

a third field in said database that stores a difference between said predetermined option point value and said total available points, responsive to said selected contract option.

35. A system for automatically generating a contract among multiple users coupled to a network, said contract having a duration and terms that conform to a set of predetermined contract parameters, comprising;

first means for storing a total available points value defining said set of predetermined contract parameters, said total available points value being a function of projected revenue over said duration of said contract;

second means for storing a predetermined option point value to a contract option;

means for selecting said contract option for inclusion in said contract;

means for deducting said predetermined option point value from said total available points, responsive to said selected contract option.

36. The system of claim 35 further comprising means for receiving an approval status within an expedited time frame if, responsive to said deducting step, said total available points are not less than zero.

37. A method of generating a contract comprising the steps of:

defining a hierarchy of users having a first class of users and a second class of users;

assigning said hierarchy of users to a contract initiator;

inputting a proposed contract into a contract negotiation system from said contract initiator;

assigning to a proposed contract said hierarchy of users assigned to said contract initiator;

distributing via said contract negotiation system said proposed contract to members of said first and second classes of users of said hierarchy;

submitting said proposed contract to said second class of users with at least one approval from said first class of users;

receiving at least one approval from said second class of users, responsive to the step of submitting said proposed contract to said second class of users; and

generating a contract-based document, responsive to said receiving step.

38. The method of claim 37 wherein the step of generating a contract-based document comprises the step of generating a contract summary to one of said second class of users that comprises information used to draft said contract.

39. The method of claim 37 wherein the step of generating a contract-based document comprises the step of generating said contract to one of said contract initiator.

40. The method of claim 37 wherein the step of assigning a hierarchy of users comprises the step of selecting said hierarchy of users from a list of available users associated with each class.

41. A process for managing user access to a sharable contract database, said method comprising the steps of:

providing said sharable contract database of editable data defining a contract as a plurality of discrete contract components;

assigning a class level to each user in a hierarchy of users having access to said sharable contract database;

assigning to said contract a contract status indicator that is stored in said sharable contract database and indicates a negotiation status of said contract that is capable of changing during said process;

generating a dynamic user access mode based on said class level and said contract status indicator; and

preventing a user in said hierarchy of users from changing said contract status indicator, based on said dynamic user access mode.

42. The method of claim 41 further comprising the step of preventing a user in said hierarchy of users from modifying one of said plurality of discrete contract components, based on said dynamic user access mode.

43. The method of claim 41 further comprising the step of tracking previous versions of one of said modified discrete contract components.

44. The method of claim 41 further comprising the step of associatively tracking an identity of a user who modifies one of said modified discrete contract components.

45. An automated contract negotiation system, having a plurality of users coupled to a communication network, for managing user access to a contract, said system comprising:

a sharable contract database of editable data defining said contract as a plurality of discrete contract components that has a class level assigned to each user in a hierarchy of user having access to said sharable contract database;

a contract status indicator field in said sharable contract database that indicates a negotiation status of said contract and is capable of changing during an automated contract negotiation process;

a client applet for providing access to said sharable contract database to said plurality of users;

a first server coupled to said client applet;

a second server coupled to said sharable contract database and said first server that updates said sharable contract database; and

at least one database field in said sharable contract database that indicates a dynamic user access mode based on said class level and said contract status indicator field, said dynamic user access mode being capable of preventing a user in said hierarchy of users from changing said editable data in said sharable contract database.

46. A program storage medium, readable by a computer, tangibly embodying a program of instructions executable by said computer for generating a contract having terms that conform to a set of predetermined contract parameters, the program comprising instructions for:

assigning a number of contract points to define said set of predetermined contract parameters;

assigning said number of contract points to a total available points value;

assigning a predetermined option point value to a contract option;

receiving a selection of said contract option for inclusion in said contract;

deducting said predetermined option point value from said total available points value; and

displaying said total available points value, responsive to said deducting step to generate a contract among multiple users coupled to a network from said selection of contract option.

47. A computer program for executing a computer process, said computer program being readable from a storage medium by a computing system and encoding a program of instructions for negotiating an contract, said computer process comprising the steps of:

providing a user-operable contract negotiator applet on a client computer;

providing access to a contract database by a first user via said contract negotiator applet, said database storing a plurality of contract component tables;

displaying information relating to a selected one of said plurality of contract components

storing data received from said contract negotiator to said contract database;

submitting said contract components to a second user in said contract database; and

providing access to a contract database by said second user via said contract negotiator applet, responsive to said submitting step.

48. A method of creating a contract type within a contract negotiator system comprising multiple users coupled to a network, the method comprising the steps of:

providing a first generalized template and a second generalized template that define database storage in a contract database;

defining at least one contract component of said new contract including said first generalized template;

defining a contract tree including said at least one contract component;

storing display data in said first generalized template;

displaying said displaying data in an applet;

receiving response data in said applet; and

storing said response data in said second generalized template to create said contract within said contract negotiator system.

49. The method of claim 48 wherein the step of defining at least one contract component comprises the steps of:

assigning a data type indicator to said second generalized contract template; and

associating said second generalized template to said at least one contract component according to said data type indicator of said second generalized template.