Data processing system for conducting a modified on-line auction

• US 6,366,891 B1
• Filed: 04/07/2000
• Issued: 04/02/2002
• Est. Priority Date: 02/08/2000
• Status: Expired due to Fees

• Current Assignee: Vanberg & Dewulf
• Original Assignee: Vanberg & Dewulf
• Inventors: Feinberg, Donald A.
• Primary Examiner(s): Poinvil, Frantzy
• Assistant Examiner(s): AKERS, GEOFFREY R
• Application Number:
  US09/545,562
• Time in Patent Office: 725 Days
• Field of Search: 705/37, 705/26
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• 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 data processing system is disclosed that can be used to conduct a modified auction. A minimum value is determined for an item to be auctioned. Potential bidders are provided the opportunity to buy the rights to bid on the item. When the total proceeds from selling the rights to bid on the item become equal to or greater than the minimum value for the item, an auction is performed for the item. In one embodiment, only those entities that purchased the rights to bid may participate in the auction, and the auction is designed to prevent the auction price from becoming too high.

Claims

1. A method for conducting a modified on-line auction process, comprising the steps of:

storing, in a computer system, a threshold value for auctioning an item;

receiving requests at said computer system to purchase rights to bid for said item;

fulfilling said requests to purchase rights to bid using said computer system;

determining a sum of an aggregate of said purchases of rights to bid using said computer system; and

conducting an on-line auction for said item only if said sum of said aggregate of said purchases of rights to bid is at least equal to said threshold value, said step of conducting being performed by said computer system, said auction has a final price, said aggregate of said purchases of rights to bid being used to allow said final price to be lower than a market price for said item.

2. A method according to claim 1, wherein:

said auction is limited to only accepting bids from entities who purchased said rights to bid.

3. A method according to claim 1, wherein:

said auction has a maximum bid increment.

4. A method according to claim 1, wherein:

said auction is limited in time.

5. A method according to claim 1, wherein said step of conducting an on-line auction includes the steps of:

receiving a plurality of bids at said computer system;

accepting bids of said plurality of bids from bidders who purchased rights to bid;

determining a highest bid; and

reporting said highest bid.

6. A method according to claim 1, wherein:

said auction is limited to only accepting bids from entities who purchased said rights to bid; and

said auction has a maximum bid increment and is limited in time in order to prevent said final price from being greater than or equal to said market price.

7. A method according to claim 1, further comprising the step of:

sending notifications of said auction to entities whose request to purchase rights to bid have been fulfilled.

8. A method according to claim 1, wherein:

said step of conducting said auction includes a step of transacting a sale of said item.

9. A method for conducting a modified on-line auction process, comprising the steps of:

receiving requests at a computer system to purchase bid rights for an item;

fulfilling said requests to purchase said bid rights using said computer system;

storing a threshold for said bid rights for said item;

determining whether an aggregate of said fulfilled requests to purchase said bid rights satisfies said threshold; and

conducting an on-line auction for said item only if said aggregate of said fulfilled requests to purchase said bid rights satisfies said threshold, said step of conducting includes accepting bids for said item at said computer system only from entities who purchased said bid rights, said auction has a final price, said aggregate of said fulfilled requests being used to allow said final price to be lower than a market price for said item.

10. A method according to claim 9, wherein said auction includes the steps of:

said auction has a maximum bid increment and is limited in time in order to prevent said final price from being greater than or equal to said market price.

11. A method according to claim 9, wherein:

said threshold includes a minimum number of purchases of said bid rights.

12. A method according to claim 9, wherein:

said threshold includes a minimum amount of value received for said bid rights.

13. A method for participating in a modified auction, comprising the steps of:

receiving auction information at a first computer from a second computer;

sending a first request to purchase rights to bid from said first computer to said second computer;

receiving information at said first computer that an auction for an item will start, said information communicated only after a determination that a set of requests to purchase rights to bid satisfy a threshold for said auction, said set of requests to purchase said rights to bid include said first request, said auction has a final price, said set of requests being used to allow said final price to be lower than a market price for said item; and

participating in said auction using said first computer.

14. A method according to claim 13, wherein:

said auction is limited in time and has a maximum incremental bid in order to prevent said final price from being greater than or equal to said market price.

15. A method according to claim 13, further comprising the steps of:

receiving information at said first computer that said request to purchase rights to bid was fulfilled.

16. A method according to claim 15, wherein:

said step of sending a request is performed on behalf of a first entity; and

said step of participating in said auction is performed one behalf of said first entity contingent on fulfilling said request to purchase rights to bid.

17. One or more processor readable storage devices having processor readable code embodied on said processor readable storage devices, said processor readable code for programming one or more processors to perform a method comprising the steps of:

receiving requests to purchase rights to bid for an item;

fulfilling said requests to purchase said rights to bid; and

conducting an auction for said item only if a threshold for an aggregate of said rights to bid for said item has been met, said step of conducting an auction includes accepting bids for said item at said computer system only from entities who purchased said rights to bid, said auction has a final price, said aggregate of said rights to bid being used to allow said final price to be lower than a market price for said item.

18. One or more processor readable storage devices according to claim 17, wherein:

said auction has a maximum bid increment and is limited in time in order to prevent said final price from being greater than or equal to said market price.

19. One or more processor readable storage devices according to claim 17, wherein:

said threshold is a minimum price; and

said threshold has been met if a sum of said aggregate of said purchases of said rights to bid is equal to or greater than said minimum price.

20. One or more processor readable storage devices according to claim 19, wherein:

said step of accepting bids is only performed for a predetermined amount of.

21. A system for conducting a modified auction on a network, comprising:

a processor;

a communication interface in communication with said processor and said network; and

a storage device in communication with said processor, said storage device stores program code for programming said processor to perform a method comprising the steps of;

receiving requests to purchase rights to bid for an item,

fulfilling said requests to purchase said rights to bid,

determining whether an aggregate of said fulfilled requests to purchase said rights to bid satisfies a threshold for auctioning said item, and

conducting an auction for said item only if said aggregate of said fulfilled requests to purchase said rights to bid satisfies said threshold for auctioning said item, said auction has a final price, said aggregate of said fulfilled requests being used to allow said final price to be lower than a market price for said item.

22. An apparatus according to claim 21, wherein:

said step of conducting a limited auction includes accepting bids for said item only from entities who purchased said rights to bid.

23. An apparatus according to claim 21, wherein:

said threshold is a minimum price for selling said item.

24. An apparatus according to claim 21, further comprising:

an auction database in communication with said processor;

a bidder database in communication with said processor; and

a bid purchase database in communication with said processor.

25. An apparatus according to claim 21, wherein:

said auction has a maximum bid increment and is limited in time in order to prevent said final price from being greater than or equal to said market price.