Method and apparatus for managing subscriptions

• US 7,251,617 B1
• Filed: 03/30/2000
• Issued: 07/31/2007
• Est. Priority Date: 12/28/1998
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Jorasch, James A., Mik, Magdalena, Walker, Jay S., Stevenson, Adam, Golden, Andrew P., Sammon, Russell Pratt, Gelman, Geoffrey M., Kobayashi, Michiko, Van Luchene, Andrew S.
• Primary Examiner(s): CUFF, MICHAEL A
• Application Number:
  US09/538,805
• Time in Patent Office: 2,679 Days
• Field of Search: 705/16, 705/26, 705/14
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• 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 30/018 Certifying business or products
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0231 Awarding of a frequent usage incentive independent of the monetary value of a good or service purchased, or distance travelled
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0284 Time or distance, e.g. usage of parking meters or taximeters
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]

Abstract

A subscription system allows a customer to establish a subscription to a product with any of a number of retailers by establishing the subscription through a controller or central system. In one embodiment, a subscription is established by first receiving information identifying a customer and a product. At least one retailer which offers the product is then identified, and terms of a subscription for the product are established. The established subscription is identified by a redemption identifier which is communicated to the customer. The customer is then able to redeem subscription products at the retailer by identifying the subscription using the redemption identifier.

Claims

1. A process, comprising:

receiving, from a customer, information identifying a product;

identifying, via a controller, at least a first retailer offering the product; and

determining, by the controller, based on the information identifying the product and information about the at least first retailer, terms of a subscription for the product, wherein the subscription is valid at the at least first retailer,

wherein the terms indicate that a customer is required to make a plurality of purchases of the product during a duration of the subscription,

each purchase of the plurality of purchases being for one or more units of the product,

each purchase of the plurality of purchases occurring during a respective visit to the at least first retailer, and

wherein the terms include a penalty to be assessed against the customer if the customer violates one or more terms of the subscription.

2. The process of claim 1, further comprising communicating terms of the subscription to the at least first retailer.

3. The process of claim 2, further comprising:

receiving an acceptance of the terms of the subscription from a customer; and

establishing a subscription for the product.

4. The process of claim 3, wherein the terms include information identifying a total price and wherein the customer pays the total price to a controller.

5. The process of claim 4, wherein the customer pays the total price to the controller at the end of the subscription.

6. The process of claim 4, wherein the customer pays the total price to the controller when establishing the subscription.

7. The process of claim 1, further comprising receiving information identifying a customer.

8. The process of claim 7, wherein the information identifying the customer includes at least one of:

a customer name;

a social security number;

a drivers license number;

a credit card number;

a payment account identifier;

a frequent shopper card number;

a telephone number; and

a unique identifier associated with the customer.

9. The process of claim 1, further comprising tracking fulfillment of the subscription.

10. The process of claim 9, wherein tracking fulfillment further comprises:

determining if the customer has complied with at least one term of the subscription.

11. The process of claim 10, further comprising:

applying a penalty if the customer has failed to comply with one or more terms of the subscription.

12. The process of claim 10, wherein tracking fulfillment is performed by a controller.

13. The process of claim 12, wherein tracking fulfillment further comprises:

receiving, from the at least first retailer, a transaction authorization request, the transaction authorization request including information identifying a redemption identifier and a product;

determining, based on the redemption identifier, whether the subscription is valid;

determining if the product may be redeemed under the subscription; and

communicating an authorization of the transaction to the at least first retailer if the subscription is valid for the product.

14. The process of claim 13, further comprising:

receiving a request from the at least first retailer requesting an authorization of a transaction involving the customer and a product; and

authorizing the transaction if the customer is complying with terms of the subscription.

15. The process of claim 10, wherein tracking fulfillment is performed by the at least first retailer.

16. The process of claim 15, further comprising:

transmitting subscription terms to the at least first retailer;

comparing, at the at least first retailer, transaction information involving the customer and a product with the subscription terms.

17. The process of claim 16, further comprising:

applying a penalty to the customer if comparing indicates that at least one of the subscription terms has been violated.

18. The process of claim 10, wherein tracking fulfillment is performed by the customer.

19. The process of claim 18, further comprising:

recording product purchase information on a customer device;

comparing the product purchase information with terms of the subscription stored on the customer device; and

updating subscription information on the customer device.

20. The process of claim 9, further comprising identifying settlement terms including at least a settlement amount and a settlement party, the process further comprising:

paying the settlement amount to the settlement party based on fulfillment of the subscription.

21. The process of claim 20, wherein the settlement amount is a price per unit of the product.

22. The process of claim 20, wherein the settlement amount is a fixed amount per subscription.

23. The process of claim 1, further comprising assigning a redemption identifier to the subscription.

24. The process of claim 23, further comprising:

communicating the redemption identifier to a customer.

25. The process of claim 24, further comprising:

communicating the redemption identifier to the at least first retailer.

26. The process of claim 24, further comprising:

communicating the redemption identifier from the customer to the at least first retailer.

27. The process of claim 1, wherein the information identifying the product includes at least one of:

a product name;

a product identifier;

a product description;

a product category;

a product group;

a service name;

a service identifier;

a service description; and

a service type.

28. The process of claim 1, wherein receiving information comprises receiving information over at least one of a network and a direct connection.

29. The process of claim 1, wherein receiving information further comprises receiving a desired price.

30. The process of claim 1, wherein the product is a plurality of products.

31. The process of claim 1, wherein the information identifying the product includes information identifying a specific brand of product.

32. The process of claim 1, wherein the information identifying a product is received from a customer and the customer is a group of individuals.

33. The process of claim 1, wherein identifying the at least first retailer further comprises:

selecting the at least first retailer from a plurality of retailers.

34. The process of claim 1, wherein the at least first retailer is a chain of retailers including a plurality of store locations.

35. The process of claim 1, wherein the at least first retailer is a specific store location.

36. The process of claim 1, further comprising identifying at least a second retailer offering the item.

37. The process of claim 1, wherein the terms include information identifying a quantity and a price.

38. The process of claim 37, wherein the price is a price per unit of the product.

39. The process of claim 37, wherein the price is equal to a retail price of the product.

40. The process of claim 37, wherein the price decreases progressively per unit of product purchased during the duration of the subscription.

41. The process of claim 37, wherein the price is the lowest price of the item occurring during the duration of the subscription.

42. The process of claim 37, wherein the price is defined by at least one of:

a retailer;

a product manufacturer;

a controller;

an entity operating a controller; and

the customer.

43. The process of claim 37, wherein the customer pays the price to the first retailer each time the customer redeems a product pursuant to the subscription.

44. The process of claim 1, wherein the terms include information identifying:

a total subscription quantity;

a subscription price;

a subscription frequency; and

the subscription duration.

45. The process of claim 44, wherein the subscription price is based on at least one of:

the total subscription quantity;

the subscription frequency; and

the subscription duration.

46. The process of claim 44, wherein the terms further include information identifying a subscription start date and a subscription end date.

47. The process of claim 1, wherein the penalty is assessed against the customer if the customer fails to comply with a term identifying a total subscription quantity.

48. The process of claim 1, wherein the penalty is assessed against the customer if the customer fails to comply with a term identifying a subscription frequency.

49. The process of claim 1, wherein the penalty is assessed against the customer if the customer fails to comply with a term identifying the subscription duration.

50. The process of claim 1, wherein the penalty is assessed against the customer by applying a penalty amount against a customer financial account.

51. The process of claim 1, wherein the penalty is assessed against the customer by applying a penalty against a frequent shopper account.

52. The process of claim 1, wherein determining terms of a subscription further includes:

presenting the customer with at least a first proposed term;

receiving at least a second proposed term from the customer; and

establishing at least one modified term of the subscription based on the at least first proposed term and the at least second proposed term.

53. The process of claim 52, wherein the at least first proposed term is based on an available subscription defined by a retailer.

54. The process of claim 1, further comprising:

receiving a modification request; and

modifying terms of the subscription if the modification request is for a permitted modification.

55. The process of claim 54, wherein the modification request is a request to replace the product with a new product.

56. The process of claim 1, in which at least one of the at least first retailer is a supermarket.

57. The process of claim 1, in which the information identifying the product comprises information about a plurality of products.

58. The process of claim 1, in which the information about the at least first retailer comprises information about a plurality of retailers.

59. The process of claim 1, in which the information identifying the product and the information about the at least first retailer are embodied in a database of available subscriptions.

60. The process of claim 1, in which the information about the at least first retailer comprises at least one term required by a retailer for a subscription.

61. An apparatus comprising:

a processor, and

a storage device that stores a program for directing the processor;

the processor being operative with the program to;

perform the method of claim 1.

62. A computer readable medium encoded with instructions for directing a processor to:

perform the method of claim 1.