Facilitating internet commerce through internetworked auctions

• US 6,202,051 B1
• Filed: 02/19/1999
• Issued: 03/13/2001
• Est. Priority Date: 04/26/1995
• Status: Expired due to Term

• Current Assignee: eBay Inc.
• Original Assignee: Mercexchange LLC
• Inventors: Woolston, Thomas G.
• Primary Examiner(s): TRAN, TONGOC
• Assistant Examiner(s): Smith, Demetra R.
• Application Number:
  US09/253,021
• Time in Patent Office: 753 Days
• Field of Search: 705/27, 705/37, 705/26, 705/35, 705/36, 705/39, 235/383, 235/381
• US Class Current: 705/26.3
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/0623 Item investigation
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Auctioning an uniquely identified item (e.g., used goods or collectibles) with a computerized electronic database of data records on the Internet includes creating a data record containing a description of an item, generating an identification code to uniquely identify the item, and scheduling an auction for the item at the computerized database of records. The item is presented for auction to an audience of participants through a worldwide web mapping module executing in conjunction with the computerized database. The data record connotes an ownership interest in the item to a seller participant on the computerized electronic database of data records. The worldwide web mapping module translates information from the data record on the computerized database of records to a hypertext markup language (HTML) format for presentation through the Internet. Bids are received on the item from participants on the Internet through an auction process that executes in conjunction with the computerized database of data records. Auctioning of the item is terminated when the auction process reaches predetermined criteria. The auction participant is notified of the high bid in the auction process. The unique identification code is provided to the auction participant with the high bid to uniquely identify the item.

Claims

1. An automated method, performed by a computer-based auction system, for enabling a seller to auction a uniquely identified item via the Internet to one or more potential buyers, the method comprising:

requiring the seller to establish a seller'"'"'s account, the seller'"'"'s account being based at least on the seller'"'"'s identity and a financial instrument associated with the seller;

receiving information from the seller including a description of an item offered for auction by the seller;

creating a data record containing a description of the item based on the information received from the seller, the data record connoting an ownership interest by the seller in the item, the data record being stored in a computerized electronic database maintained by the computer-based auction system;

generating an identification code to uniquely identify the item;

scheduling an auction for the item, the auction to be hosted by the computer-based auction system;

presenting the item for auction to an audience of participants through a worldwide web mapping module executing in conjunction with the computerized database, the worldwide web mapping module translating information from the data record to a hypertext mark up language format for presentation through the Internet;

receiving bids on the item from participants via the Internet through an auction process that executes in conjunction with the computerized database;

terminating the auction for the item when the auction process encounters predetermined criteria;

notifying a winning auction participant that the winning auction participant has entered a high bid in the auction process;

providing the unique identification code to the winning auction participant to uniquely identify the item; and

charging a fee to the seller'"'"'s account based on an amount of the high bid.

2. The method of claim 1 further comprising:

accepting payment information from an auction participant before accepting bids at the auction process from the auction participant.

3. The method of claim 2 wherein the payment information comprises credit card payment information and further comprising:

processing the credit card payment information to authorize payment before accepting a bid from the auction participant.

4. The method of claim 1 further comprising:

contracting with the seller to create a binding offer to auction the item through auction process.

5. The method of claim 1 further comprising:

providing payment instructions to the winning auction participant in the auction process.

6. An apparatus for conducting fully automated simultaneous Internet auctions, the apparatus comprising:

a computer system operationally connected to the Internet;

a process executing on the computer system for automatically establishing a seller'"'"'s account based on information received from a seller, the seller'"'"'s account being based at least on the seller'"'"'s identity and a financial instrument associated with the seller;

a storage device operationally connected to the computer system, the storage device storing a database of data records, each data record identifying an item to be auctioned by the computer system;

a data interface operationally connected to the computer system, the data interface providing electronic connectivity between the computer system and the Internet;

a worldwide web-to-database mapping module, the worldwide web-to-database mapping module providing a link between a hypertext mark up language page server and the storage device;

an electronic mail module operationally connected to the data interface and executing on the computer system, the electronic mail module providing an information link to the seller of the item for auction represented by the data record stored by the data storage device;

the computer system executing an auction program that schedules multiple simultaneous auctions of items, the auction program automatically determining an opening bid for a particular item and determining whether the particular auction is with or without reserve; and

a process executing on the computer system for automatically charging the seller'"'"'s account a fee amount corresponding to a result of the auction.

7. The apparatus of claim 6 further comprising:

a transaction processing module connected to the data interface, the transaction processing module receiving payment information from participants of the multiple simultaneous auctions.

8. The apparatus of claim 7 further comprising:

an accounting module connected to the transaction processing module, the accounting module maintaining the sellers'"'"' accounts for sellers in the multiple simultaneous Internet auctions.

9. The apparatus of claim 6 further comprising:

a tracking code generator module connected to the data interface, the tracking code generator module generating tracking codes to uniquely track items for auction.

10. A method, performed by a computer-based auction system, for auctioning used goods and collectibles using a computerized electronic database of data records maintained by the auction system, the method comprising:

requiring a seller to establish a seller'"'"'s account, the seller'"'"'s account being based at least on the seller'"'"'s identity and a financial instrument associated with the seller;

creating a data record containing a description of a unique used or collectable good, the data record connoting an ownership interest by the seller in the unique used or collectable good;

entering in the data record a reserve price for the unique used or collectable good;

scheduling an auction for the unique used or collectable good, the auction being hosted by the computer-based auction system;

presenting the used or collectable good for auction to an audience of participants through a worldwide web mapping module executing in conjunction with the computerized electronic database of records, the worldwide web mapping module translating information from the data record to a hypertext mark up language for presentation via the Internet to the audience of participants;

receiving bids at the auction system via the Internet for the unique used or collectable good from participants;

terminating the auction for the unique used or collectable good when an auction process reaches a predetermined termination point;

debiting the seller'"'"'s account for a fee amount corresponding to a result of the auction; and

notifying a winning auction participant of a successful high bid.

11. An apparatus for conducting fully automated simultaneous Internet auctions, the apparatus comprising:

a computer system operationally connected to the Internet;

a process executing on the computer system for automatically establishing a seller'"'"'s account based on information received from a seller, the seller'"'"'s account being based at least on the seller'"'"'s identity and a financial instrument associated with the seller;

a storage device operationally connected to the computer system, the storage device storing a data record in a database of data records, wherein the data record identifies an item to be auctioned by the computer system via the Internet;

a data interface operationally connected to the computer system, the data interface providing electronic connectivity between the computer system and the Internet;

a worldwide web-to-database mapping module, the worldwide web-to-database mapping module providing a link between a hypertext mark up language page server and the storage device;

an electronic mail module operationally connected to the data interface and executing on the computer system, the electronic mail module providing an information link to the seller of the item for auction represented by the data record stored by the storage device;

the computer system executing an auction program that schedules multiple simultaneous auctions of items, the auction program automatically determining an opening bid for a particular item and determining whether the particular auction is with or without reserve, the auction program providing auction results via the electronic mail module to the seller and a highest bid auction participant; and

a process executing on the computer system for automatically charging the seller'"'"'s account a fee amount corresponding to a result of the auction.

12. A computer-implemented method of facilitating Internet-based auctions, the method comprising:

requiring a seller to establish a seller'"'"'s account, the seller'"'"'s account being based at least on the seller'"'"'s identity and a financial instrument associated with the seller;

initiating an Internet-based auction for an item offered by the seller; and

debiting the seller'"'"'s account for a fee amount corresponding to a result of the auction.

13. The method of claim 12 wherein requiring the seller to establish a seller'"'"'s account comprises:

receiving account information from seller, the received account information comprising identity information and financial instrument information;

verifying the account information received from the seller; and

establishing a seller'"'"'s account for the seller.

14. The method of claim 12 wherein the financial instrument comprises a credit card, a debit card or a debit account.

15. The method of claim 12 further comprising receiving item information from the seller, the received item information comprising a description of an item offered for auction by the seller.

16. The method of claim 15 wherein the received item information further comprises an item category designated by the seller.

17. The method of claim 15 further comprising creating a data record based on the received item information.

18. The method of claim 12 wherein initiating the auction for the seller'"'"'s item comprises:

receiving item information from the seller, the received item information including a description of an item offered for auction by the seller;

creating a data record based on received item information;

mapping the created data record to an Internet-compatible format; and

presenting the item to one or more potential bidders.

19. The method of claim 18 further comprising:

receiving at least one bid from the one or more potential bidders; and

terminating the auction upon occurrence of a predetermined event.

20. The method of claim 19 wherein the predetermined event comprises a lapse of a time duration.

21. The method of claim 19 wherein the predetermined event comprises the receipt of a final high bid.

22. The method of claim 19 wherein the predetermined event comprises receiving a bid that meets a seller-specified reserve price.

23. The method of claim 12 wherein debiting the seller'"'"'s account comprises:

automatically calculating the fee amount based on a result of the auction; and

automatically charging the calculated fee amount to the seller'"'"'s financial instrument associated with seller'"'"'s account.

24. The method of claim 12 wherein the fee amount is based, at least in part, on a final sales price of the item.

25. The method of claim 12 wherein the fee amount is based on a percentage of a final sales price of the item.

26. The method of claim 12 wherein the fee amount represents a seller'"'"'s commission paid to an entity hosting the Internet-based auction.

27. The method of claim 12 wherein the fee amount is based on one or more parameters other than final sales price of the item.

28. The method of claim 12 wherein debiting the seller'"'"'s account occurs upon conclusion of the auction.

29. The method of claim 12 wherein debiting the seller'"'"'s account occurs prior to conclusion of the auction.

30. The method of claim 12 wherein debiting the seller'"'"'s account is independent of a sales transaction between the seller and a buyer of the item.

31. The method of claim 12 wherein the seller must establish a seller'"'"'s account before the seller is allowed to initiate auctions.

32. The method of claim 12 further comprising:

after establishing a seller'"'"'s account, receiving item information from the seller describing an item to be auctioned;

prior to initiating an auction, automatically generating a data record corresponding to the seller'"'"'s item to be auction; and

wherein the Internet-based auction for the item offered by the seller is initiated automatically based on the automatically generated data record.

33. The method of claim 12 wherein the computer-implemented method of facilitating Internet-based auctions is performed by a computer-based auction system under a first entity'"'"'s control, and wherein the method further comprises:

requiring the seller to establish the seller'"'"'s account comprises verifying the seller'"'"'s identity and the financial instrument information;

receiving information from a computer system independently operated by the seller, the received information describing an item to be auctioned; and

wherein the Internet-based auction for the seller'"'"'s item is initiated while the item remains outside of the first entity'"'"'s possession.

34. The method of claim 33 wherein the Internet-based auction for the seller'"'"'s item is initiated while the item remains outside of the first entity'"'"'s control.

35. The method of claim 33 wherein the Internet-based auction for the seller'"'"'s item is initiated while the item remains in the seller'"'"'s possession and control.

36. A computer-based auction system for facilitating Internet-based auctions, the auction system comprising:

(a) a computer system in communication with the Internet and capable of executing a plurality of substantially simultaneous processes;

(b) one or more processes executing on the computer system to perform the following;

(i) establish a seller'"'"'s account based on information received from a seller, the seller'"'"'s account being based at least on the seller'"'"'s identity and a financial instrument associated with the seller;

(ii) initiate an auction instance based on information received from the seller describing an item offered for auction by the seller; and

(iii) charge the seller'"'"'s account a fee amount based on the initiated auction instance.

37. The auction system of claim 36 wherein the initiated auction instance comprises an independent auction instance executing substantially simultaneously with a plurality of other auction instances.

38. The auction system of claim 36 wherein the one or more processes executing on the computer system are capable of automatically generating a plurality of independent auction instances that execute substantially simultaneously.

39. The auction system of claim 36 wherein the initiated auction instance is specific to a particular item or to a lot of related items.

40. The auction system of claim 36 wherein the initiated auction instance is specific to a particular seller.

41. The auction system of claim 36 wherein the initiated auction instance corresponds to a plurality of unrelated items.

42. The auction system of claim 36 wherein the initiated auction instance corresponds to a plurality of unrelated sellers.

43. The auction system of claim 36 wherein the fee amount charged to the seller'"'"'s account represents a seller'"'"'s commission.

44. The auction system of claim 36 wherein the fee amount charged to the seller'"'"'s account depends on a final sales price of the item being auctioned.

45. The auction system of claim 44 wherein the fee amount charged to the seller'"'"'s account comprises a percentage of the final sales price of the item being auctioned.

46. The auction system of claim 36 wherein the financial instrument associated with the seller comprises a credit card, a debit card or a debit account.

47. The auction system of claim 36 wherein initiating an auction instance comprises:

automatically generating a data record corresponding to the seller'"'"'s item to be auctioned; and

automatically initiating the auction instance based on the automatically generated data record.

48. The auction system of claim 36 wherein:

the computer-based auction system is under a first entity'"'"'s control;

the information describing the item offered for auction is received from a computer system independently operated by the seller; and

the auction instance for the seller'"'"'s item is initiated while the item remains outside of the first entity'"'"'s possession.

49. The auction system of claim 48 wherein the auction instance for the seller'"'"'s item is initiated while the item remains outside of the first entity'"'"'s control.

50. The auction system of claim 48 wherein the auction instance for the seller'"'"'s item is initiated while the item remains in the seller'"'"'s possession and control.

51. A computer-implemented method of conducting Internet-based auctions, the method comprising:

receiving account information from a seller, the received account information identifying the seller and a financial instrument associated with the seller;

automatically establishing a seller'"'"'s account based on the received account information, the seller'"'"'s account being associated with the seller from whom the account information was received;

receiving item information from the seller, the received item information comprising a description of an item to be offered for auction by the seller;

automatically generating a data record corresponding to the item to be offered for auction based on the received item information;

automatically mapping the generated data record to an Internet-compatible presentation format;

automatically initiating an auction for the item, the initiation of the auction including making available for presentation via the Internet the mapped Internet-compatible presentation format;

receiving via the Internet at least one bid for the item from one or more bidders;

automatically terminating the auction upon occurrence of one or more predetermined events;

automatically notifying a winning bidder of winning the item at a final bid price;

automatically calculating a fee amount to be charged the seller based on the final bid price; and

automatically debiting the seller'"'"'s account for the calculated fee amount.

52. An automated method, performed by a computer-based auction system, for conducting multiple simultaneous person-to-person auctions via a computer auction system connected to a data packet network via the word wide web in a fully automated, topically arranged system that can be searched by topical categories, and wherein sellers and buyers are automatically and immediately notified via email when an auction is completed, the computer-based auction system being under the control of a first entity, the method comprising:

establishing a seller'"'"'s account in the computer-based auction system wherein the seller, via an independently operated seller'"'"'s computer system, specifies a financial instrument against which a seller'"'"'s commission may be automatically charged by the computer-based auction system;

after establishing the seller'"'"'s account, receiving via the data packet network from the seller a description of an item offered for auction, the received description including a category selected from a list of categories provided by the auction system;

in response to receiving a description of an item for auction from a seller, generating a unique tracking identifier for the item;

displaying, in response to a search request from a buyer, the description of the item for auction in a presentation format via the world wide web, the display including advertisements that generate revenue for the auction system;

automatically auctioning the item for auction posted by the seller, the auction being conducted while the item for auction remains outside of the first entity'"'"'s possession;

receiving at least one bid for the item for auction from at least one bidder via a world wide web interface;

automatically calculating a seller'"'"'s commission based on the final bid price for the item for auction; and

automatically charging the seller via the seller'"'"'s account the calculated seller'"'"'s commission.