Method and apparatus for offering for sale collectibles on primary and secondary markets

• US 7,797,194 B1
• Filed: 01/20/2000
• Issued: 09/14/2010
• Est. Priority Date: 01/20/2000
• Status: Expired due to Fees

• Current Assignee: Topps Sports & Entertainment
• Original Assignee: Topps Company Incorporated (Fanatics LLC (Florida))
• Inventors: Friss, Warren E., Katz, Steven J.
• Primary Examiner(s): PATEL, JAGDISH
• Application Number:
  US09/488,107
• Time in Patent Office: 3,890 Days
• Field of Search: 705/27, 705/36, 705/37, 705/26
• US Class Current: 705/26.1
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]

Abstract

A method of preparing a server is disclosed that supports a plurality of purchaser systems to transmit over the Internet orders for collectibles being offered for sale on a primary and a secondary market. The method starts by constructing at the server a purchaser history database. Then, an initial placement of a number of lots of selected collectibles are offered for sale on the primary market. Next an account is created for each purchaser transmitting an order to the server. Each account includes a record of the purchasing activity of its purchasers. Then, the lots of selected collectibles are allocated to the successful purchasers. Then at the direction of certain of the successful purchasers, selected of the allocated collectibles are offered for sale on the secondary market. Orders are received from all of the purchasers who placed orders during the offering for sale of the primary market and the offering for sale on the secondary market, and a record for each of the purchasers is created in the purchaser history database. The collectibles may comprise trading cards.

Claims

1. A method of facilitating an issuer of collectibles to manage an offering of collectibles for sale, each of the collectibles having a predetermined condition, said method comprising the steps of:

a) initially offering for sale the collectibles to potential purchasers for a period of time set by the issuer;

b) receiving orders from the ordering potential purchasers;

c) allocating the offered collectibles among selected of the ordering potential purchasers;

d) facilitating steps a), b) and c) by a programmed computer; and

e) maintaining the condition of the collectibles during steps a), b) and c), whereby the allocated collectibles are of the predetermined condition and the issuer may guarantee the condition of the allocated collectibles,

wherein step b) offers an initial offering of collectibles, and there is further included the step of offering for sale selected of the allocated collectibles on a secondary market at the direction of the purchasers of the allocated collectibles.

2. A method of facilitating an issuer of collectibles to manage an offering of collectibles for sale, each of the collectibles having a predetermined condition, said method comprising the steps of:

a) initially offering for sale the collectibles to potential purchasers for a period of time set by the issuer;

b) receiving orders from the ordering potential purchasers;

c) allocating the offered collectibles among selected of the ordering potential purchasers;

d) facilitating steps a), b) and c) by a programmed computer;

e) maintaining the condition of the collectibles during steps a), b) and c), whereby the allocated collectibles are of the predetermined condition and the issuer may guarantee the condition of the allocated collectibles; and

f) determining whether the number of ordered collectibles exceeds the predetermined number of offered collectibles and, if so, allocating the predetermined number of offered collectibles among the ordering purchasers,

wherein if said total number of collectibles exceed the predetermined number of collectibles, said step of allocating reduces the number of collectibles to be allocated to selected of the ordering purchasers in accordance with a predefined algorithm.

3. The method of managing an initial offering for collectibles as claimed in claim 2, wherein there is further included a step of maintaining a record of the purchasing activity of each purchaser, said algorithm allocating the number of collectibles to a certain purchaser as a direct function of the magnitude of said purchasing activity of the certain purchaser.

4. A method of facilitating an issuer of collectibles to manage an offering of collectibles for sale, each of the collectibles having a predetermined condition, said method comprising the steps of:

a) initially offering for sale the collectibles to potential purchasers for a period of time set by the issuer;

b) receiving orders from the ordering potential purchasers;

c) allocating the offered collectibles among selected of the ordering potential purchasers;

d) facilitating steps a), b) and c) by a programmed computer;

e) maintaining the condition of the collectibles during steps a), b) and c), whereby the allocated collectibles are of the predetermined condition and the issuer may guarantee the condition of the allocated collectibles;

f) determining whether the number of ordered collectibles exceeds the predetermined number of offered collectibles and, if so, allocating the predetermined number of offered collectibles among the ordering purchasers; and

g) providing lots of the collectibles for offering for sale.

5. The method of managing an initial offering of collectibles as claimed in claim 4, wherein there is further provided the step of providing collectibles of different kinds, and assembling the collectibles into lots such that each lot of the collectibles are of the same kind.

6. A method of facilitating an issuer of collectibles to manage an offering of collectibles for sale, each of the collectibles having a predetermined condition, said method comprising the steps of:

a) initially offering for sale the collectibles to potential purchasers for a period of time set by the issuer;

b) receiving orders from the ordering potential purchasers;

c) allocating the offered collectibles among selected of the ordering potential purchasers;

d) facilitating steps a), b) and c) by a programmed computer;

e) maintaining the condition of the collectibles during steps a), b) and c), whereby the allocated collectibles are of the predetermined condition and the issuer may guarantee the condition of the allocated collectibles;

f) determining whether the number of ordered collectibles exceeds the predetermined number of offered collectibles and, if so, allocating the predetermined number of offered collectibles among the ordering purchasers; and

g) providing a purchaser history database for keeping a record of each purchaser that has placed an order in the course of said initial offering of the collectibles for sale and

h) updating data indicative of each collectible held in escrow in that record of the purchaser holding the escrowed collectible.

7. A method of facilitating an issuer of collectibles to manage an offering of collectibles for sale, each of the collectibles having a predetermined condition, said method comprising the steps of:

a) initially offering for sale the collectibles to potential purchasers for a period of time set by the issuer;

b) receiving orders from the ordering potential purchasers;

c) allocating the offered collectibles among selected of the ordering potential purchasers;

d) facilitating steps a), b) and c) by a programmed computer;

e) maintaining the condition of the collectibles during steps a), b) and c), whereby the allocated collectibles are of the predetermined condition and the issuer may guarantee the condition of the allocated collectibles;

f) determining whether the number of ordered collectibles exceeds the predetermined number of offered collectibles and if so, allocating the predetermined number of offered collectibles among the ordering purchasers; and

g) providing a purchaser history database for keeping a record for each purchaser that has placed an order in the course of said initial offering of the collectibles for sale; and

h) updating for each order received data indicative of said number of collectibles in that record of the purchaser placing that order.

8. A method of operating a server to receive over a network at least one order for collectibles from at least one of a plurality of potential purchasers, said server being programmed to implement said method comprising the steps of:

a) providing at the server a purchaser history database;

b) offering for sale an initial placement of a predetermined number of collectibles;

c) receiving from one of the potential purchasers at least one order for a selected number of collectibles;

d) creating in response to the received one order an account in the purchaser history database for its potential purchaser, each account including a record of the purchasing activity of its potential purchaser; and

e) making a second offering for sale at the direction of at least one purchaser of selected of allocated collectibles on a secondary market.

9. The method of operating a server as claimed in claim 8, wherein there is further included the steps of receiving orders from at least one purchaser who placed an order during said second offering for sale on said secondary market, and updating the purchaser'"'"'s record for each received order that reflects the ordering activity of the purchaser.

10. The method of operating a server as claimed in 9, wherein said ordering activity includes receiving a number of said received orders, and there is included a step of incrementing the number of orders in response to the receipt of each order.

11. A method of operating a server to receive over a network at least one order for collectibles from at least one of a plurality of potential purchasers, said server being programmed to implement said method comprising the steps of:

a) providing at the server a purchaser history database;

b) offering for sale an initial placement of a predetermined number of collectibles;

c) receiving from one of the potential purchasers at least one order for a selected number of collectibles;

d) creating in response to the received one order an account in the purchaser history database for its potential purchaser, each account including a record of the purchasing activity of its potential purchaser;

e) updating the record of the purchaser who made at least one order in the first mentioned offering with data indicative of the purchaser'"'"'s allocated collectible(s);

f) receiving bids from purchasers for selected of said collectibles during a second offering for sale on said secondary market; and

g) determining the winning bids on each collectible purchased on said secondary market and updating the record(s) of the purchaser(s) having winning bid(s) with data indicative of said purchased collectible(s).

12. A method of managing an initial offering of collectibles for sale, said method carried out on a programmed computer to effect the following steps:

a) communicating an initial offering for sale to purchasers of a predetermined number of the collectibles for a predetermined period of time commencing at a certain time;

b) receiving orders from the ordering purchasers, each order indicating the numbers of collectibles ordered by its purchaser;

c) counting the number of collectibles for which orders have been received to provide a total number of ordered collectibles; and

d) comparing said total number of counted collectibles with said predetermined number of collectibles;

e) determining whether the number of ordered collectibles exceeds the predetermined number of offered collectibles and, if so, allocating the predetermined number of offered collectibles among the ordering purchasers by reducing the number of collectibles to be allocated to selected of the ordering purchasers in accordance with a predefined algorithm; and

f) said predefined algorithm increases the number of collectibles to be allocated to a certain purchaser as an inverse function of the period of time occurring between said certain time and the time when an order was received from said certain purchaser.

13. A server designed to support an initial offering by an issuer of collectibles of a limited number of the collectibles via a plurality of remote terminals, each remote terminal operable by a potential purchaser to transmit over a network to said server at least one order for the purchase of collectibles being offered for sale, each of the collectibles having an uncirculated condition, said server having a memory and being programmed to:

a) store in said memory an indication of the predetermined condition of each of, the price of each of and the limited number of the collectibles;

b) transmit to the plurality of remote terminals at least one offer for sale of the limited number of collectibles, the one offer having an indication of the predetermined condition of the one collectible, whereby at least first and second potential purchasers are enabled to actuate its remote terminal to transmit at least first and second orders for the one collectible to said server; and

c) process the transmitted first and second orders to allocate at least one of the limited number of collectibles among selected of the first and second potential purchasers and create for the successful purchaser of the one collectible a record in said memory for the collectibles allocated to the successful purchaser.

14. The server as claimed in claim 13, wherein the collectibles comprise trading cards.

15. The server as claimed in claim 13, wherein each of the collectibles with the condition comprises a trading card in mint condition.

16. The server as claimed in claim 13, wherein each of the collectibles with the condition comprises uncirculated trading cards.

17. The server as claimed in claim 13, wherein said server is programmed to respond to each order received from one of the purchasers to update said record of the one purchaser.

18. The server as claimed in claim 17, wherein said server engine updates said records of said purchaser with data indicative of the collectibles allocated during the initial placement.

19. The server as claimed in claim 18, wherein said server engine is programmed to respond to messages from certain of the purchasers to place in escrow selected of their collectibles that were allocated during the initial placement, by updating said records of said certain purchasers with data indicative of the collectibles held in escrow.

20. A method of offering for sale collectibles of a predetermined condition on a primary market and on a secondary market, said method comprising the steps of:

a) offering for sale to one or more prospective purchasers an initial placement of one or more selected collectibles on the primary market;

b) receiving orders from prospective purchasers on selected of the collectibles and allocating the one or more selected collectibles to one or more of the successful purchasers;

c) offering for sale at the direction of the one successful purchaser selected of the allocated collectibles on a secondary market; and

d) maintaining the predetermined condition of the collectibles during steps a), b) and c), whereby the allocated collectibles are of the predetermined condition; and

e) facilitating at least steps a), b) and c) by a programmed computer.

21. The method of offering for sale collectibles as claimed in claim 20, further including the step of limiting the number of collectibles of one kind to be offered for sale on the primary market.

22. The method of offering for sale collectibles as claimed in claim 20, wherein the collectibles comprise trading cards.

23. The method of offering for sale collectibles as claimed in claim 20, wherein said offering for sale on the primary market is carried out for a selected, predetermined period of time.

24. The method of offering for sale collectibles as claimed in claim 20, further including the step of predetermining said number of collectibles to be offered for sale on the primary market before said step a) of offering for sale on said primary market begins.

25. The method of offering for sale collectibles as claimed in claim 24, wherein said step of allocating counts the number of collectibles for which orders have been placed.

26. The method of offering for sale collectibles as claimed in claim 25, wherein said step of allocating further compares said number of counted collectibles with said predetermined number of collectibles.

27. The method of offering for sale collectibles as claimed in claim 26, wherein if said counted number of collectibles exceeds said predetermined number of collectibles, said step of allocating reduces the number of collectibles to be allocated in accordance with a predefined algorithm.

28. The method of offering for sale collectibles as claimed in claim 27, wherein there is further included a step of maintaining a record of the purchasing activity of each purchaser, said algorithm allocating the number of collectibles to one or more purchasers as a direct function of said purchasing activity of the one purchaser.

29. The method of offering for sale collectibles as claimed in claim 20, wherein there is further included the step of providing lots of the collectibles for offering for sale on the primary market.

30. The method of offering for sale collectibles as claimed in claim 29, wherein there is further provided the step of providing collectibles of different kinds, and assembling the collectibles into lots such that each lot of the collectibles are of the same kind.

31. The method of offering for sale collectibles as claimed in claim 20, wherein there is further provided the step of enabling the one successful purchaser of collectibles on the primary market to elect to have an offering for sale or to facilitate an administrator to hold its purchased collectibles in escrow.

32. The method of offering for sale collectibles as claimed in claim 31, wherein the administrator holds the purchased collectibles of the successful purchasers in a benign environment.

33. The method of offering for sale collectibles as claimed in claim 31, wherein the one successful purchaser elects to offer for sale its purchased collectibles on the secondary market.

34. The method of offering for sale collectibles as claimed in claim 31, wherein the enabling step enables the one successful purchaser to request the administrator to deliver the purchased collectibles to the corresponding one successful purchaser.

35. The method of offering for sale collectibles as claimed in claim 20, wherein there is further included the steps of providing a purchaser history database for keeping a record of each purchaser that has placed an order in the course of said offering for sale on said primary market, and updating data indicative of each collectible and held in escrow in that record of the purchaser holding the escrowed collectible.

36. The method of offering for sale as claimed in claim 20, wherein each of said purchaser'"'"'s orders received in step b) includes a number of the collectibles wanted by the purchaser.

37. The method of offering for sale as claimed in claim 20, wherein there is further included the step of predefining the number of collectibles before carrying out said step of offering for sale on the primary market.

38. The method of offering for sale as claimed in claim 37, wherein there is further included the step of providing a purchaser history database for keeping a record for each purchaser that has placed an order in the course of said offering for sale on the primary market, and updating for each order data indicative of said number of collectibles in that record of the purchaser placing that order.

39. A method of facilitating an issuer of collectibles to manage an initial offering for the sale of a limited number of the collectibles of a predetermined condition, said method implemented by a computer programmed to effect the steps of:

a) storing in a memory the determined condition of and the limited number of the collectibles;

b) communicating to potential purchasers a message offering to sell the collectibles and specifying the determined condition and the limited number of collectibles offered for sale;

c) receiving orders from the ordering potential purchasers; and

d) allocating the offered collectibles among selected of the ordering potential purchasers.

40. The method of managing as claimed in claim 39, wherein there is further included the step of creating a record in the memory for each successful purchaser to which collectibles were allocated.

41. The method of managing as claimed in claim 40, wherein said creating step includes the substep of storing the determined condition of the collectibles in the record of its successful purchaser.

42. The method of managing as claimed in claim 39, wherein the collectibles comprise trading cards.

43. The method of managing as claimed in claim 39, wherein the collectibles of the predetermined condition comprise trading cards in mint condition.

44. The method of managing as claimed in claim 39, wherein the collectibles of the predetermined condition comprises uncirculated trading cards.

45. The method of facilitating an issuer of collectibles to manage the initial offering for sale of collectibles of a predetermined condition, said method comprising the steps of:

a) offering for sale the collectibles;

b) allocating selected of the offered collectibles to selected of a plurality of potential purchasers;

c) creating for each of the selected purchasers a record;

d) implementing each of said steps a), b) and c) by a programmed computer;

e) maintaining the predetermined condition of the collectibles throughout steps a) to d);

wherein the step c) maintains the condition of the collectibles by placing at least one of the plurality of collectibles in a protective casing that encloses and protects the condition of the one collectible;

further including the step of maintaining the condition of the collectibles provides at least one tamper evident casing for receiving at least one collectible;

wherein step c) further maintains the condition of the collectibles by placing a plurality of the collectibles in a benign environment;

further including the steps of communicating to at least one of the selected purchasers a message giving the selected purchaser the choice to maintain the condition of the collectibles by placing it either in the protective casing or in the benign environment.

46. The method of managing the offering of collectibles for sale as claimed in claim 45, wherein the message gives the selected purchaser the further choice of offering for sale its allocated collectibles to other purchasers.

47. A server for facilitating an issuer of collectibles to manage an initial offering of the collectibles of a determined condition for sale, said server having a memory and being programmed to:

a) store the determined condition of the collectibles that are offered for sale;

b) transmit over a network from the server to selected of a plurality of potential purchaser stations an initial offering for a predetermined time of a limited number of the collectibles for sale and bearing an indication of the condition of the collectibles;

c) allocating in response to orders transmitted to the server from the responding purchasers selected of the collectibles among selected of the responding purchasers; and

d) creating a record in the memory for each of the selected purchasers.

48. The server for managing the offering of collectibles of a determined condition for sale as claimed in claim 47, wherein the server is further programmed to facilitate an administrator to maintain at least the limited number of collectibles in the determined condition during the offering for sale of the collectibles, and the message comprises a guarantee made by the administrator that the limited number of collectibles initially offered for sale are of the determined condition indicated by the message.

49. The server for managing the offering of collectibles of a determined condition for sale as claimed in claim 47, wherein the server is further programmed to store the number of the collectibles allocated to a selected purchaser into the record of that purchaser.

50. The server for managing the offering of the collectibles of a determined condition for sale as claimed in claim 47, wherein the server is programmed to receive and process commands from the selected purchasers to which at least one collectible was allocated to place its allocated one collectible for sale to other potential purchasers.

51. The server for managing the offering of the collectibles of a predetermined condition for sale as claimed in claim 50, wherein the server is programmed to receive a command from the one selected purchaser to which the one collectible was allocated to transmit the allocated collectible to the selected purchaser in a protective case, whereby the condition of the allocated collectible is maintained.

52. A method of managing the initial offering for sale of collectibles, the method comprising the steps of:

a) keeping the collectibles of a predetermined condition in a protective environment;

b) initially offering for sale to potential purchasers the collectibles on an initial market;

c) determining the successful purchasers of the collectibles in the initial market; and

d) provide each successful purchaser the option to remove its collectibles, in the same predetermined condition, from the protective environment or to continue to keep the collectibles in the protective environment;

at least said steps b)-d) being implemented by a programmed computer.

53. The method of managing as claimed in claimed in claim 52, wherein if a successful purchaser opts to remove its collectibles, the collectibles to be removed are disposed in a protective housing.

54. A method of facilitating at least one administrator to manage the sale of at least one collectible to at least first and second purchasers on a primary market and a secondary market respectively, the method comprising the steps of:

a) determining the condition of the one collectible;

b) facilitating the administrator to introduce the one collectible for sale on the primary market;

c) effecting the sale of the one collectible on the primary market to the first purchaser;

d) facilitating the first purchaser to offer for sale the purchased one collectible on the secondary market;

e) effecting the sale of the one collectible from the first purchaser to the second purchaser on the secondary market;

f) implementing steps b)-e) by a programmed computer; and

g) maintaining the condition of the one collectible throughout the primary and secondary markets, whereby the one administrator may guarantee the determined condition of the one collectible to at least the first and second purchasers.

55. The method of facilitating at least one administrator as claimed in claim 54, wherein step f) of maintaining the condition comprises the step of keeping the one collectible in a benign environment.

56. The method of facilitating at least one administrator as claimed in claim 54, wherein step f) comprises the step of encapsulating the one collectible in a protective housing.

57. The method of facilitating at least one administrator as claimed in claim 56, wherein there is a second administrator, the second administrator having a secondary market, and there is further included the step of determining whether the protective housing has been tampered with and, if not, facilitating the second administrator to offer the one collectible of the determined condition for sale on the secondary market of the second administrator.

58. The method of facilitating at least one administrator as claimed in claim 56, wherein the one administrator continues to guarantee the condition of the one collectible as long as the protective housing remains in tact.