Method of conducting an on-line auction with bid pooling

• US 5,794,219 A
• Filed: 02/20/1996
• Issued: 08/11/1998
• Est. Priority Date: 02/20/1996
• Status: Expired due to Term

• Current Assignee: Hanger Solutions, LLC (IP Investments Group LLC)
• Original Assignee: Health Hero Network Incorporated (Robert Bosch GmbH)
• Inventors: Brown, Stephen J.
• Primary Examiner(s): TKACS, STEPHEN R
• Application Number:
  US08/603,131
• Time in Patent Office: 903 Days
• Field of Search: 705/1, 705/26, 705/27, 705/35, 705/37, 705/38, 705/39, 705/44, 395/200.47, 395/200.49, 395/200.57, 340/825.26, 340/825.27, 340/825.3, 340/825.31, 340/825.33
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H04L 12/1809 for auctioneering devices

Abstract

A method of conducting an on-line auction that permits individual bidders to pool bids during a bidding session. The auction is conducted over a computer network that includes a central computer, a number of remote computers, and communication lines connecting the remote computers to the central computer. A number of bidding groups are registered in the central computer, each bidding group having a total bid for the item being auctioned. Bids entered from the remote computers are received in the central computer, each bid including a bid amount and a bid designation. Each bid amount is contributed to the total bid of the bidding group indicated by the bid designation. The bidding group having the largest total bid at the end of the bidding session wins the item being auctioned.

Claims

1. A method of conducting an auction using a computer network, said computer network comprising a central computer, a plurality of remote computers, and a plurality of communication lines connecting said remote computers to said central computer, said method comprising the following steps:

a) registering a plurality of bidding groups in said central computer, each of said bidding groups having a total bid;

b) receiving in said central computer bids entered from said remote computers, each of said bids comprising a bid amount and a bid designation, said bid designation indicating a chosen group comprising one of said bidding groups for which said bid is intended;

c) contributing said bid amount to said total bid of said chosen group; and

d) declaring a winning group, said winning group being the one bidding group having the largest total bid at the end of said bidding session.

2. The method of claim 1, wherein said communication lines comprise internet lines, said central computer comprises a world-wide web server, and said remote computers are connected to said world-wide web server through said internet lines.

3. The method of claim 1, further comprising the step of displaying on said remote computers a graphical picture and a description of a current item being auctioned.

4. The method of claim 1, further comprising the steps of displaying said bidding groups and said total bids on said remote computers and updating said total bids in real-time after each of said bid amounts is added to one of said bid totals.

5. The method of claim 1, further comprising the step of creating bidder accounts in an account creation computer networked to said central computer, each of said bidder accounts comprising a bidder name, a bidder identification number, and a financial account number.

6. The method of claim 5, wherein said bidder accounts are created by bidders from said remote computers prior to said bidders entering said bids.

7. The method of claim 5, further comprising the step of creating registration records in a bidder database accessible to said central computer, each of said registration records comprising said bidder name and said bidder identification number.

8. The method of claim 7, further comprising the step of securing said registration records in said bidder database from access by said remote computers.

9. The method of claim 7, further comprising the steps of:

a) receiving in said central computer said bidder name and said bidder identification number with each of said bids;

b) verifying that said bidder name and said bidder identification number match an existing registration record in said bidder database prior to adding said bid amount to said total bid; and

c) recording a bid record in said bidder database, said bid record comprising said bidder name, said bidder identification number, said bid amount, and said bid designation.

10. The method of claim 9, further comprising the steps of:

a) retrieving from said bidder database winning bid records comprising said bid records whose bid designation indicates said winning group;

b) matching each of said winning bid records to a corresponding bidder account; and

c) charging said corresponding bidder account the bid amount stored in said winning bid record.

11. A method of bid pooling during a bidding session of an auction, said auction being conducted over a computer network, said computer network comprising a central computer, a plurality of remote computers, and a plurality of communication lines connecting said remote computers to said central computer, said method comprising the following steps:

a) registering a plurality of bidding groups in said central computer, each of said bidding groups having a total bid;

b) receiving in said central computer bids entered from said remote computers, each of said bids comprising a bid amount and a bid designation, said bid designation indicating a chosen group comprising one of said bidding groups for which said bid is intended; and

c) contributing said bid amount to said total bid of said chosen group.

12. The method of claim 11, wherein said communication lines comprise internet lines, said central computer comprises a world-wide web server, and said remote computers are connected to said world-wide web server through said internet lines.

13. The method of claim 11, further comprising the step of displaying on said remote computers a graphical picture and a description of a current item being auctioned.

14. The method of claim 11, further comprising the steps of displaying said bidding groups and said total bids on said remote computers and updating said total bids in real-time after each of said bid amounts is added to one of said total bids.

15. The method of claim 11, further comprising the steps of creating bidder accounts in an account creation computer networked to said central computer, each of said bidder accounts comprising a bidder name, a bidder identification number, and a financial account number.

16. The method of claim 15, wherein said bidder accounts are created by bidders from said remote computers prior to said bidders entering said bids.

17. The method of claim 15, further comprising the step of creating registration records in a bidder database accessible to said central computer, each of said registration records comprising said bidder name and said bidder identification number.

18. The method of claim 17, further comprising the step of securing said registration records in said bidder database from access by said remote computers.

19. The method of claim 17, further comprising the steps of:

a) receiving in said central computer said bidder name and said bidder identification number with each of said bids;

b) verifying that said bidder name and said bidder identification number match an existing registration record in said bidder database prior to adding said bid amount to said total bid; and

c) recording a bid record in said bidder database, said bid record comprising said bidder name, said bidder identification number, said bid amount, and said bid designation.

20. The method of claim 19, further comprising the steps of:

a) declaring a winning group comprising the bidding group having the largest total bid at the end of said bidding session;

b) retrieving from said bidder database winning bid records comprising said bid records whose bid designation indicates said winning group;

c) matching each of said winning bid records to a corresponding bidder account; and

d) charging said corresponding bidder account the bid amount stored in said winning bid record.