(12) United States Patent
`Friedland et al.
`
`US006449601B1
`US 6,449,601 B1
`Sep. 10, 2002
`
`(10) Patent N0.:
`(45) Date of Patent:
`
`(54)
`(75)
`
`(73)
`(*)
`
`(21)
`(22)
`(51)
`(52)
`(58)
`(56)
`
`DISTRIBUTED LIVE AUCTION
`
`WO
`
`WO99/ 6346 1
`
`* 12/1999
`
`......... .. G06F/17/60
`
`Inventors: Noah S. Friedland, Seattle, WA (US);
`Sky T. Kruse, Seattle, WA (US)
`
`Assignee: Amazon.com, Inc., Seattle, WA (US)
`
`Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 0 days.
`
`Appl. No.: 09/231,127
`Filed:
`Dec. 30, 1998
`
`Int. Cl.7 .............................................. .. G06F 17/00
`
`US. Cl. ....................................................... .. 705/37
`
`Field of Search .................................... .. 705/80, 37
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`
`4,789,928 A * 12/1988 Fujisaki .................... .. 364/401
`5,077,665 A 12/1991 Silverman et 81.
`5,640,569 A * 6/1997 Miller et a1. ................ .. 705/37
`5,684,863 A 11/1997 Katz
`5,696,901 A * 12/1997 Konrad ..................... .. 709/203
`5,794,207 A * 8/1998 Walker et al. .............. .. 705/23
`5,794,219 A
`8/1998 Brown
`5,818,914 A 10/1998 Fujisaki
`5,835,896 A 11/1998 Fisher et a1.
`5,845,265 A * 12/1998 Woolston ................... .. 705/37
`5,873,071 A * 2/1999 Ferstenberg et a1. ........ .. 705/37
`5,890,138 A
`3/1999 Godin et 81.
`5,905,975 A
`5/1999 Ausubel
`6,012,045 A * 1/2000 BarZilai et al. ............. .. 705/37
`
`6,018,721 A * 1/2000 AZiZ et al. . . . . .
`
`. . . .. 705/35
`
`6,023,686 A * 2/2000 Brown . . . . . . . . .
`
`. . . .. 705/37
`
`6,058,379 A * 5/2000 OdOIIl et a1.
`
`705/37
`
`FOREIGN PATENT DOCUMENTS
`
`* 12/1994
`0628920
`6/1996
`0 716 386
`* 9/1996
`0828223
`02000113070 A * 4/2000
`WO/98/34187
`8/1998
`
`OTHER PUBLICATIONS
`
`. ”, Interactive
`.
`“Cyberauctions: Going Once, going twice .
`Marketing News, v2, n13, pp. 1—2., Dialog File 636, Access
`#02771147, Jun. 1995*
`“Moai Technologies Announces LiveExchange 2.1”, PR
`NeWsWire, pp. 1—2., Dialog, File 20, Access #02803594,
`Sep. 1998*
`“Bid.com Announces WWW.dutchauction.com”, Business
`Wire, pp. 1—2, Dialog, File 16, Access #05914806, Oct.
`1998 *
`
`. sold!”,
`.
`Dunlap, Charlotte , “going once, going tWice .
`Computer Reseller NeWs, pp. 1—2, Dialog, File 15, Access
`#01544740, Dec. 1997.*
`“Auction Universe Expands to Bring Thousands More Auc
`tioneers online”, PR NeWsWire, pp. 1—2, Dialog, 16, Access
`#05889248, Oct. 1998*
`Cooper, Janine, Going going gone! Tradition gives Way to
`technology. (Sotheby’s and interactive television), Mar.
`1990*
`
`(List continued on next page.)
`
`Primary Examiner—James P. Trammell
`Assistant Examiner—Pierre E. Elisca
`(74) Attorney, Agent, or Firm—Knobbe, Martens, Olson &
`Bear LLP
`
`(57)
`
`ABSTRACT
`
`A method for distributing a live auction over the Internet to
`remote bidders. A human proxy attends the live auction in
`order to monitor the auction and compose status updates that
`are distributed to remote bidders via the Internet in real time
`to alloW the remote bidders to folloW the auction. Remote
`bidders may place bids for items that are transmitted via the
`Internet to the human proxy, Who may then submit the bids
`to the auctioneer, components that facilitate distribution of
`the live auction over the Internet include: an auction console,
`an auction sever, collector/redistributor nodes, and client
`programs.
`
`11 Claims, 22 Drawing Sheets
`
`,'
`
`CONSOLE REAL TIME AJCTION
`
`)
`
`l
`msPuw CUNSDLE SCREEN
`
`,. 2201
`
`/ Z205
`
`MESSAGE TO
`M/C'ION sewn
`
`W RESYNC
`
`3, . 2210
`
`,, 2125
`
`eBay Ex. 1003, Page 1 of 35
`
`

`

`US 6,449,601 B1
`Page 2
`
`OTHER PUBLICATIONS
`
`“Auction house moves for Internet business”, Internet Busi
`ness NeWs, p. 1, Dialog File 636, Access #02809791, Aug.
`1995 .*
`“Insurance Auto Auctions, Inc. Unveils Internet auction for
`salvage vehicles”, PR NeWsWire, pp. 1—2, Dialog 621,
`Access #02087129, Jan. 2000.*
`“UK’s auction channel uses interactive voice technology”,
`NeWsbytes, pp. 1—2, Dialog, File 636, Access #03768081,
`Dec. 1997.*
`“LiveBid.corn sells entire historic toWn over the Internet”,
`Business Wire, p. 1, Dialog File 16, Access No. 0587175,
`Sep. 1998.*
`
`InnerlinX Technologies selected to present LiveBid.corn at
`Red Herring Forurn, PR NeWsWire, p. 1, Dialog File 148,
`Access No. 10178492, May 1998.*
`
`DerWent—ACC—NO: 2000—431419; Handler B. A. ; Jun.
`2000.*
`
`C. Priest and M. Van Tol, “Adaptive Agents in a Persistent
`Shout Double Auction,” ACM Digital Library, pp. 11—18,
`(Oct. 1998).
`
`* cited by eXarniner
`
`eBay Ex. 1003, Page 2 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 1 0f 22
`
`US 6,449,601 B1
`
`NO MORE ITEMS IN LOT
`
`7/2
`
`7/7
`
`I],
`
`IL)’
`
`NO SUFFICIENT BIDS
`
`ONE OR MORE SUFFICIENT BIDS
`
`/ i0
`
`MORE ITEMS IN LOT
`
`NO BID ON INSUFFICIENT BID
`
`/ M’
`
`DESIRED PRICE OBTAINED
`
`/07
`
`MORE ITEMS IN LOT
`
`/04
`
`NO SUFFICIENT BIDS
`
`/06
`
`BROADCAST FOR BIDDING
`
`/ l4
`
`REGISTER
`
`F/GT/
`
`eBay Ex. 1003, Page 3 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 2 0f 22
`
`US 6,449,601 B1
`
`Z30
`
`LAST CHANCE
`
`NOTHING MORE IN LOT
`
`245
`
`NO BID
`
`225
`
`HIGHER BID 2”
`No m
`
`FAIR WARNING
`
`250
`
`242
`
`HIGHER BID
`
`HIGHER BID
`PRESOLD f2”
`
`255
`MORE ITEMS IN W
`
`INVENTORY
`‘ REDUCTION
`
`225
`
`2410
`
`—
`
`MORE ITEMS IN LOT
`
`25;
`
`SUFFICIENT BID
`
`INSUFFICIENT BID
`
`275
`
`225
`
`2/0
`/ZJ6
`OPEN FOR BIDDING NOSUFFICIENTBID TIIIEIIUIORIERIIINAIION
`0R WITHDRAWAL
`NO BID
`254
`
`Z/Z
`
`Z06
`
`OPEN FOR BIDDING
`
`2Z0
`
`2;;
`
`OPEN FOR BIDDING
`
`PREBID
`
`2”
`
`OPEN FOR PREBID
`
`RESCHEDULE
`
`l4
`
`204
`
`LOT REGISTERED
`
`REGISTER WITH AUCTION HOUSE
`
`eBay Ex. 1003, Page 4 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 3 0f 22
`
`US 6,449,601 B1
`
`MJQQ
`
`eBay Ex. 1003, Page 5 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 4 0f 22
`
`US 6,449,601 B1
`
`4/5
`
`420
`
`422
`
`424
`
`425
`
`INTERNET
`
`eBay Ex. 1003, Page 6 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 5 0f 22
`
`US 6,449,601 B1
`
`506
`REQUEST CLIENT REGISTRATION SCREEN
`
`j>
`
`5/0 USER ID:
`\PASSWORDI:
`
`596’
`RETURN REGISTRATION SCREEN
`
`DONE I:|
`
`5/2
`RESPOND TO INFORMATION REQUEST
`
`16>
`
`NAME I—_I
`ADDRESS I:I
`5/6.
`\ CITY : <5;
`STATE :
`ZIP I:I
`DONE
`
`5/4
`RETURN DATA COLLECTION SCREEN
`
`5/8
`RESPOND TO INFORMATION REQUEST
`
`:>
`
`PHONE
`522 CREDIT CARDCI
`\ BANK
`EMPLOYERS
`DONE I:
`
`<\i
`
`520
`RETURN DATA COLLECTION SCREEN
`
`524
`RESPOND To INFORMATION REQUEST
`
`TERMS & CONDITIONS
`525
`525: Wm
`WM RETURN TERMS & CONDITIONS
`Mali/1441M
`WW
`AGREE
`DISAGREE
`
`5Z6’
`RESPOND BY AGREEING OR DISAGREEING
`
`lI>
`
`502
`
`504
`
`eBay Ex. 1003, Page 7 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 6 6f 22
`
`US 6,449,601 B1
`
`602
`REQUEST AUCTION LIST FORM
`
`j>
`
`BIG IIIIITIIIII HOUSE I /I3/99 SIGN UP
`I
`606
`
`\IERRYS IIIcIIIII CIIY 2/9/99 IIIIIIIIIII EII's BID NOW3/9/99 DENIED
`ALICE'S IIIIIIouIs 3/10/99 WAITING
`
`505
`SELECT AUCTION/STATUS
`
`504
`RETURN AUCT'ON L'ST
`
`ESCROW ACCOUNT
`: 6/(7
`6/2'
`E
`\ BANK :I <i RETURN INFORMATION COLLECTION FORM
`
`6/4
`RETURN REQUESTED INFORMATION
`
`TERMS & CONDITIONS
`WW 6/5
`WWW
`RETURN TERMS & CONDITIONS
`
`Mammy
`AGREE
`DISAGREE
`I—j
`I—_—I
`
`675
`RETURN AGREEMENT OR DISAGREEMENT
`
`BIG AIICIIIIN HOUSE I / I3/99 APPROVED
`5” \IERIIY'S IIIIcIIIII cIII 2/9/99 IPPIIIIIII
`ED’S BID NOW 3/9/99 DENIED
`IIIcE‘s ANTIQUES 3/10/99 WAITING
`
`520
`
`H66’
`
`eBay Ex. 1003, Page 8 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 7 0f 22
`
`US 6,449,601 B1
`
`702
`REQUEST AUCTION LIST
`
`j>
`
`HIGAUCIION HOUSE 1/13/99 APPROVED
`
`IERRY'S I000 00 I/I/II APPROVED ED’S BID NOW 3/9/99 DENIED
`ALICE'S ANTIQUES 3/10/99 IIAIIIIIc
`
`704
`RETURN AUCTION LIST
`
`706
`SELECT AUCTION/INVENTORY
`
`:l>
`
`CHAIRS
`7/0
`\ TABLES
`DESKS
`BEDS
`
`SELECT CATEGORY
`
`KITCHEN TABLE — STEEL
`7/6 \KITCHEN TABLE — OAK
`KHCHEN TABLE _ CHERRY
`KITCHEN TABLE-PLYWOOD
`
`SELECT LOT
`
`722\ RH
`
`PLYWOOD TABLE m
`
`SELECT PRE-BID
`
`PLACE A BID FOR PIYWOOD TABLE
`7Z5\°PEN'NG 5'0
`$100
`MAXIMUM BID
`$200
`LOG-IN PASSWORD
`
`705
`RETURN LIST OF CATEGORIES
`
`7/2 W
`i>
`
`j RETURN LIST OF LOTS
`
`7/4
`
`A
`k‘ H)
`
`720
`j RETURN DESCRIPTION OF LOT
`
`II
`\ WT
`i>
`
`<I?7Z4RETURN PRE-BID FORM
`
`PLACE RRE-BID I F/GT/
`
`7Z6’
`
`eBay Ex. 1003, Page 9 of 35
`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 8 0f 22
`
`US 6,449,601 B1
`
`502
`REQUEST AUCTION LIST
`
`j>
`
`BIG AUCTION HOUSE
`»
`.505
`
`\IERRYS IIIIIIIIII IIII m BIDNOW
`ALICE'S ANTIQUES
`
`APPROVED
`
`IPPIIoIEII DENIED
`WAITING
`
`504
`RETURN AUCTION LIST
`
`506'
`SELECT AUCTION/JOIN
`
`:>
`
`PLYWOOD TABLE
`505 HIGH BID
`\ER0IIIIvE0I00ER
`ASKING PRICE:
`ACTIVE
`
`$50
`#4
`$I00
`[1m
`
`5/5
`
`PLYWOOD TABLE
`HIGH BID
`FROM
`ASKING PRICE:
`ACTIVE
`
`$100
`IIIET #5
`$150
`IEI
`
`8/0
`STATUS
`
`5/2
`STATUS
`
`PLYWOOD TABLE
`$150
`HIGH BID
`IIIET #5
`FROM
`$200
`ASKING PRICE:
`FAIR WARNING m
`REQUEST BID kj>
`
`5/5
`
`5/4
`STATUS
`
`5Z0
`REQUEST BID Ej>
`
`eBay Ex. 1003, Page 10 of 35
`
`

`

`US. Patent
`
`S
`
`1B106,
`
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`eBay Ex. 1003, Page 11 of 35
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`eBay Ex. 1003, Page 11 of 35
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`
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`
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`
`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 10 0f 22
`
`US 6,449,601 B1
`
`LOWER-LEVEL PROTOCOL / M04
`INFORMATION
`
`STATUS MESSAGE
`
`AUCTION ID
`
`LOT ID
`
`ASK
`J HIGH BID
`/002
`HIGH BIDDER
`
`//005
`//00a
`mm
`/
`m/z
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`mm
`/
`/,0/5
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`STATUS
`
`TEXT
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`AVAILABLE INVENTORY
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`m/a
`/
`
`i020
`/
`//022
`
`F/G 70
`
`eBay Ex. 1003, Page 12 of 35
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`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 11 0f 22
`
`US 6,449,601 B1
`
`LOWER-LEVEL PROTOCOL /””4’
`INFORMATION
`
`BID MESSAGE
`
`AUCTION ID
`
`LOT ID
`
`BIDDER
`
`J BID
`//02
`DESIRED INVENTORY
`
`///05
`///05
`///0
`/
`////2
`///4
`/
`ff,”
`
`F/G //
`
`eBay Ex. 1003, Page 13 of 35
`
`

`

`US. Patent
`
`Sep.10,2002
`
`Sheet12 0f22
`
`US 6,449,601 B1
`
`
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`eBay Ex. 1003, Page 14 of 35
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`eBay Ex. 1003, Page 14 of 35
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`
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`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 13 0f 22
`
`US 6,449,601 B1
`
`C CLIENT REAL TIME AUCTION)
`
`DISPLAY AUCTION K7592
`SCREEN AND WAIT
`FOR EVENT
`
`BID
`FROM USER
`?
`
`v04
`YES
`
`//J05
`SEND BID
`MESSAGE TO
`COLECTOR/REDISTRIBUTOR
`
`I506’
`
`STATUS
`FROM AUCTION
`SERVER
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`STATUS SCREEN
`
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`TO TERMINATE
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`
`eBay Ex. 1003, Page 15 of 35
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`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 14 0f 22
`
`US 6,449,601 B1
`
`
`
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`eBay Ex. 1003, Page 16 of 35
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`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 15 0f 22
`
`US 6,449,601 B1
`
`GOLLECTOR/REDISTRIBUTOR REAL TIME AUCTIO9
`
`I572
`
`I504
`
`BID FROM USER
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`
`YES CHECK AUCTION
`ID/BID AGAINST
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`SUBMIT BID TO
`NEXT/HIGHEST :
`COLLECTOR REDISTRIBUTOR
`OR AUc ION SERVER
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`SURE AUTHORIZED
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`AUTHORIZED
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`AND PLAN CLIENT IN >
`mm cLIENT LIST
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`REMOVE CLIENT
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`
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`FROM LIST OF
`AcTIvE AUCTION IDS
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`
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`
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`
`eBay Ex. 1003, Page 17 of 35
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`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 16 0f 22
`
`US 6,449,601 B1
`
`(
`
`PROCESS STATUS
`
`)
`
`F/G 75
`
`CHECK AUCTION ID ffépj
`AGAINST ACTIvE
`AUCTIONS LIST
`
`I604
`
`AUCTION
`ID IN ACTIVE
`AUCTIONS LIST
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`
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`AGAINST CURRENT LOT
`NUMBER FOR AUCTION ID
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`
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`CONNECTED USERS
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`
`eBay Ex. 1003, Page 18 of 35
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`

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`US. Patent
`
`Sep.10,2002
`
`Sheet17 0f22
`
`US 6,449,601 B1
`
`
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`eBay Ex. 1003, Page 19 of 35
`
`eBay Ex. 1003, Page 19 of 35
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`
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`
`
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`

`

`U.S. Patent
`
`Sep. 10, 2002
`
`Sheet 18 0f 22
`
`US 6,449,601 B1
`
`@UCTION SERVER REAL TIME AUCTION
`
`F/GT 76’
`
`75”
`
`START
`/
`AUCTION FROM
`CONSOLE
`9
`
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`LIST OF ACTIVE
`AUCTIONS, SEND
`START MESSAGE TO
`COLLECTOR/REDISTRIBUTORS
`
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`BID
`FROM COLLECTOR/
`REDISTRIBUTOR
`
`BID
`
`M74
`
`//é’/6
`
`// SYNC
`FROM CONSOLE
`'?
`
`SYNC
`
`//
`END
`OF AUCTION
`
`hm’
`
`//a20
`REMOVE AUCTION ID
`FROM LIST OF ACTIVE
`AUCTIONS, SEND END OF
`AUCTION MESSAGE TO
`COLLECTOR/REDISTRIBUTORS
`
`,////\
`
`H5722
`
`TERMINATE
`'2
`
`eBay Ex. 1003, Page 20 of 35
`
`

`

`US. Patent
`
`Sep. 10, 2002
`
`Sheet 19 0f 22
`
`US 6,449,601 B1
`
`x4767 /9
`
`/ggz
`
`CHECK AUCTION
`ID/LOT AGAINST
`
`DATABASE
`
`/
`
`AUCTION
`ID/LOT VALID AND
`BID HIGHER
`I)
`
`YES
`
`UPDATE DATABASE
`
`AQQ?
`
`NO
`
`[9/0
`
`
`
`
`
`
`FROM
`CONSOLE
`?
`
`YES
`
`GENERATE STATUS
`MESSAGE & FORWARD
`
`TO REMOTE HDDERS
`
`Z912
`
`NO
`
`CONSOLE
`
`SEND MD TO
`
`[9/4
`
`/9/6
`
`
`
`eBay Ex. 1003, Page 21 of 35
`
`eBay Ex. 1003, Page 21 of 35
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`

`

`US. Patent
`
`Sep. 10, 2002
`
`Sheet 20 0f 22
`
`US 6,449,601 B1
`
`SYNC
`
`
`
`MAKE DATABASE
`
`
`
`
`
`ENTWES AND
`
`MEMORY UPDATES
`
`
`
`
`
`
`IMPACT
`GENERATE STATUS
`REMOTE MDDER
`
`
`MESSAGE AND SEND
`
`DISPLAYS
`TO REMOTE EDDERS
`
`
`
`
`?
`
`
`
`H67". Zfl
`
`eBay Ex. 1003, Page 22 of 35
`
`eBay Ex. 1003, Page 22 of 35
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`

`

`US. Patent
`
`Sep.10,2002
`
`Sheet21 0f22
`
`US 6,449,601 B1
`
`
`
`
`\Emsms,
`
`>mozmz
`
`
`
`
`
`\ZOEEUE
`
`
`
`22330320:87.28
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`
`
`\N“QQ
`
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`
`
`
`eBay Ex. 1003, Page 23 of 35
`
`eBay Ex. 1003, Page 23 of 35
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`
`
`

`

`US. Patent
`
`Sheet 22 0f 22
`Sep. 10, 2002
`
`
`US 6,449,601 B1
`
` FCONSOLE REAL HME AUCHON
`
`
`
`
`
`
`
`WSPLAY CONSOLE SCREEN
`
`H6? 22
`
`
`
`
`RECHVE
`
`WSPLAY ED
`
`ED FROM AUCHON
`TO CONSOLE
`
`
`SERVER
`SCREEN
`
`
`?
`
`
`RECDVE
`
`
`SEND SYNC
`
`STATUS UPDATE FROM
`MESSAGE TO
`
`
`
`CONSOLE USER
`AUCHON SERVER
`
`
`
`
`
`
`SEND START OF
`AUCHON MESSAGE
`
`TO AUCHON SERVER
`
`
`
`
`
`
`
`RECBVE
`
`SEND END OF
`AUCHON MESSAGE
`INDEAHON OF END
`
`OF AUCHON
`TO AUCHON SERVER
`
`NO
`
`REQUEST
`
`RESYNC
`
`I
`
`?
`
`I
` RESYNC
`
`
`eBay Ex. 1003, Page 24 of 35
`
`eBay Ex. 1003, Page 24 of 35
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`

`

`US 6,449,601 B1
`
`1
`DISTRIBUTED LIVE AUCTION
`
`TECHNICAL FIELD
`
`The present invention relates to the distribution of live
`auctions over a communications medium to remote bidders,
`and, in particular, to a method for efficiently monitoring a
`live auction, distributing real-time information concerning
`the live auction to remote bidders, and collecting bids from
`remote users and submitting the collected bids at the live
`auction.
`
`BACKGROUND OF THE INVENTION
`
`During the past five years, the Internet has blossomed
`from a medium for simple data exchange and messaging to
`the fastest growing, most innovative medium for informa-
`tion exchange and commerce. Virtual shopping malls, buy-
`ing services, and other types of Internet-based retailing
`methods are being employed by an ever increasing number
`of retail merchants. In addition, a number of organizations,
`including eBayTM, provide Internet-based auctions. Sellers
`of goods and services register those goods and services with
`the auction organization, and the auction organization then
`provides information over the Internet about the goods and
`services to potential bidders. A bidder may submit a bid via
`the Internet for a particular good or service to the auction
`organization. The auction organization collects bids over a
`period of time, after which the auction organization notifies
`the highest bidder that the highest bidder has submitted the
`winning bid, notifies the seller of the identity of the winning
`bidder, and provides for an exchange of information
`between the seller and the winning bidder for execution of
`the transaction. This type of auction is known as a “silent
`auction.”
`
`With the rapid rise in popularity of Internet commerce and
`information services, and the rapid evolution of computer
`and communications technologies, great strides have been
`made in improving the timeliness, quality, quantity, and,
`perhaps most importantly, the types of information that can
`be exchanged through the Internet. Whereas ten years ago,
`the Internet was primarily used for file transfer and exchange
`of text-based messages, today the Internet is routinely used
`for distributing elaborate,
`interactive, real-time graphical
`displays, real-time audio, and real-time video. These tech-
`nological improvements greatly increase the user appeal of
`Internet-based silent auctions. The technological innova-
`tions also provide a basis for more interesting and more
`interactive Internet-based auction models. For example, it
`would be desirable to conduct live auctions over the Internet
`
`live auction is far more
`Distribution of a real-time,
`complex and technologically demanding than carrying out a
`silent auction over the Internet. Real-time live auctions are
`
`generally conducted by auctioneers in front of a live audi-
`ence. Auctions are fast-paced, and bids may be submitted by
`very concise gestures or vocal signals. The auction of a
`single item may transpire in a very short interval of time,
`often as brief as ten seconds. Thus, real-time, live auctions
`require careful and quick monitoring and interaction with
`the auction process.
`Real-time,
`live auctions comprise the auctioning of a
`sequence of lots. A lot may be a simple lot, composed of
`single good or service, or a choice or quantity lot, compris-
`ing a collection of goods and services that are auctioned
`together. Generally, a sequential inventory of the lots to be
`auctioned is prepared in advance and distributed to potential
`bidders in the form of a catalogue. However, the auctioneer
`generally has the discretion to change the sequence of lots
`
`10
`
`15
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
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`55
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`60
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`65
`
`2
`during the auction, divide choice or quantity lots into smaller
`lots, or coalesce smaller lots into larger lots. Thus, during a
`live auction event, a bidder must monitor and quickly bid on
`a desired lot, while simultaneously tracking any changes in
`the sequence or groupings of goods and services offered.
`There are a number of different types of auction styles.
`Yankee auctions begin with a low asking price, which is
`increased during the auction with each successful bid. Dutch
`auctions, by contrast, start with a high price that is decreased
`incrementally by the auctioneer until the auctioneer obtains
`a first, winning bid.
`There are different types of lots, as mentioned above.
`Choice lots include a collection of goods or services. The
`auctioneer initiates bidding on a choice lot on a per-item
`price basis, eventually establishing a price point. The high
`bidder may select which items he or she wants from the
`inventory at
`that price point. The auctioneer offers the
`remaining inventory to the floor at the price-point value. If
`any items in the lot remain unsold, the auctioneer has the
`option of re-initiating bidding on a new lot comprising the
`unsold items, or passing and moving on to the next lot.
`Quantity lots comprise many identical items. As with choice
`lots, quantity lots involve establishing price points, although
`these price points typically have minimum quantities asso-
`ciated with them. The auctioneer first establishes a minimum
`
`quantity for a quantity lot, and then initiates bidding to
`establish a per-item price point. The high bidder may select
`the minimum quantity or may select more items at that price
`point. The auctioneer offers the remaining inventory to the
`floor at
`that minimum quantity and price point. If any
`inventory remains, the auctioneer establishes a new mini-
`mum quantity for the quantity lot, and then again initiates
`bidding to establish a per-item price point. The price points
`in quantity lots typically decrease as the minimum quantity
`constraint increases, allowing the auctioneer to sell small
`numbers of units at retail-lie values and large numbers of
`units at wholesale-like values within the same lot. A par-
`ticular advantage to distributing a live auction over a com-
`munications medium, such as the Internet, is that, by bring-
`ing many thousands of Internet bidders to the auction, virtual
`bidders can have a huge impact on quantity lot pricing, with
`a far greater percentage of the inventory bid for and sold at
`retail-like values than at a conventional live event.
`
`Real-time, live auctions have far greater entertainment
`value, and may be more efficient in time, than the silent
`auctions currently conducted over the Internet. However, for
`real-time, live auctions to be distributed over the Internet,
`Internet-based solutions and methodologies must be devised
`to overcome the many complex problems associated with
`real-time,
`live auctions.
`In particular, an Internet-based
`facility for distribution of real-time, live auctions to remote
`bidders over the Internet, or a similar communications
`medium, must address the following problems: (1) a need
`for real-time monitoring and interaction with the auctioneer
`and auction audience; (2) a need for rapidly disseminating
`status information from the live auction,
`in real-time,
`to
`remote bidders; (3) a need for rapidly and efficiently col-
`lecting bids from remote bidders and presenting those bids
`to the auctioneer; (4) a need for authorizing and verifying
`remote bidders’ identities; and (5) a need for quickly deter-
`mining any changes in the sequence of lots and lot assign-
`ments that occur during the course of a live auction and
`distributing information about the changes to remote bid-
`ders.
`
`SUMMARY OF THE INVENTION
`
`The present invention relates to the distribution of real-
`time, live auctions, conducted by a live auctioneer in the
`
`eBay Ex. 1003, Page 25 of 35
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`eBay Ex. 1003, Page 25 of 35
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`

`

`US 6,449,601 B1
`
`3
`presence of an audience of bidders, to remote bidders via the
`Internet. The invention consists of four primary modules: a
`client program running on a remote computer, a network of
`collector/redistributor nodes running on the broadcaster’s
`enterprise backbone, an auction server process associated
`with a database where auction state and persistent data are
`stored, and an auction console that resides at the site of the
`live event, allowing a proxy to introduce remote bids on the
`floor and report status back to the remote audience.
`Each remote bidder interacts with a client program run-
`ning on a remote computer. The client program allows the
`remote bidder to log into a distributed live auction (“DLA”)
`system in order to register as a remote bidder for a particular
`live auction. At the time that the live auction is conducted,
`the remote bidder interacts with the client program on the
`remote computer in order to follow the course of the
`real-time,
`live auction, and to submit bids. The remote
`bidder receives status updates concerning the bidding, lot
`state, and lot sequencing from the live auction via a graphi-
`cal user interface provided on the remote computer by the
`client program, and may interact with the graphical user
`interface in order to submit bids for a particular lot.
`The collector/redistributor nodes are heirarchically inter-
`connected and serve to efficently collect and filter bids from
`a large number of remote bidders and pass potentially
`winning bids onto the auction server, and also serve to
`effeciently broadcast status messages concerning the live
`auction received from the auction server to a large number
`of remote client programs running on remote computers.
`The auction server is a centralized connection point that
`interconnects collector/redistributor nodes, on-site auction
`consoles, and a database that computationally mirrors the
`states of one or more live auctions and that stores detailed
`
`information about both on-going and upcoming auctions.
`The auction server is the focal point for collecting bids from
`remote bidders and for distributing status information about
`one or more concurrent live auctions to remote bidders.
`
`Moreover, the auction server manages extensive information
`about current and future auctions, including detailed inven-
`tory lists and lot assignments. The auction server is directly
`connected to root-level collector/redistributor nodes and is
`also connected, via the Internet,
`to one or more auction
`consoles.
`
`The auction console is a program running on a computer,
`often a laptop computer, that interacts with a human proxy
`in the audience of the live auction. The human proxy is
`notified of bids from remote bidders via the auction console
`
`program and may submit bids to the auctioneer during the
`auction process. The human proxy monitors the auction,
`reports changes in the state, such as successful bids or sales,
`as well as changes in the lot sequence or assignments via the
`auction console program to the auction server.
`The DLA solves the problems associated with distributing
`real-time,
`live auction using a combination of
`a
`technologies, communications protocols, software
`programs, human proxies, centralized databases, and auction
`management methodologies. In particular, the human proxy
`is able to monitor and interact with the auction process in
`real-time, as well as monitor and report changes in lot
`sequences and assignments. The DLA architecture provides
`an efficient extremely fast medium for distributing status
`information about an auction to a large number of remote
`bidders and for collecting bids from remote bidders and
`presenting them to the auctioneer. The present invention thus
`provides a method for bringing the excitement and time
`efficiency of a live auction to remote bidders over the
`Internet.
`
`4
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`FIGS. 1—2 are state transition diagrams illustrating a silent
`auction and a real-time, live auction, respectively.
`FIG. 3 illustrates the DLA methodology for implementing
`Internet-based live auctions.
`
`FIG. 4 illustrates the basic system architecture of the DLA
`that enables rapid, real-time provision of auction status
`information to remote bidders and rapid, real-time provision
`of remote bids from remote bidders to an DLA human proxy
`attending a live auction.
`FIGS. 5—8 illustrate the basic client/DLA transactions of
`the DLA transaction model.
`
`FIG. 9 is a representation of the graphical user interface
`displayed to the DLA human proxy by the DLA auction
`console program.
`FIG. 10 shows the contents of the status message gener-
`ated by the DLA auction console.
`FIG. 11 shows the bid message generated by the DLA
`client program during a live auction.
`FIG. 12 is a blocked diagram of the DLA client program
`FIG. 13 is a flow control diagram of that portion of the
`DLA client program concerned with supporting and facili-
`tating a client’s participation in a live auction.
`FIG. 14 is a blocked diagram of a collect/redistributor
`node.
`
`10
`
`15
`
`20
`
`25
`
`FIG. 15 is a flow control diagram that portion of the
`collector/redistributor node related to carrying out one or
`more simultaneous live auctions over the Internet via the
`
`30
`
`DLA client program.
`FIG. 16 is a flow control diagram for the routine “process
`status.”
`
`35
`
`FIG. 17 is a blocked diagram of the DLA auction server
`program.
`
`FIG. 18 is a flow control diagram for that portion of the
`DLA auction server program involved in implementing
`Internet-based live auctions.
`
`FIG. 19 is flow control program diagram of the routine
`“bid.”
`
`FIG. 20 is a flow control program diagram of the routine
`“sync.”
`FIG. 21 is a block diagram of the DLA auction console
`program.
`
`FIG. 22 is a flow control diagram in that portion of the
`DLA auction console program concerned with facilitating a
`live auction.
`
`DETAILED DESCRIPTION OF THE
`INVENTION
`
`The present invention will be described in three subsec-
`tions that follow. In the first subsection, state transition
`diagrams are used to illustrate and contrast the silent auction
`model and the real-time, live auction model. The overall
`architecture of the Internet-enabled Distributed Live Auc-
`
`tion (“DLA”) system is also presented in the first subsection.
`In the second subsection, the user interface provided to a
`remote bidder by the DLA is described, along with descrip-
`tions of messages passed between the client program and the
`DLA. In the third subsection, four basic types of compo-
`nents of the DLA are described using both block diagrams
`and flow control diagrams.
`
`Auction State Diagrams and DLA Architecture
`
`FIGS. 1—2 are state transition diagram illustrating a silent
`auction and a real-time, live auction, respectively. In FIGS.
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`eBay Ex. 1003, Page 26 of 35
`
`eBay Ex. 1003, Page 26 of 35
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`

`

`US 6,449,601 B1
`
`5
`1 and 2, states are represented by labeled ovals, such labeled
`oval 102 in FIG. 1, and state transitions are represented by
`directed line segments, such as directed line segment 104 in
`FIG. 1. In both FIGS. 1 and FIG. 2, state transition diagram
`for the registration and auctioning of a single lot are shown.
`In FIG. 1, a lot enters the “lot registered” state 102
`through a registration transition 103. The lot may be regis-
`tered by a seller through an interactive Internet-based web
`page, by mail, by telephone, or by some other communica-
`tions means. Alot transitions, via transition 106, from the lot
`registered state 102 to the state is active 105 when the silent
`auction organization broadcasts, or makes available, the lot
`for bidding. While in the active state, bids may be submitted
`for the lot by remote bidders via transition 107. In FIG. 1,
`two different transitions 108—109 are shown leading from
`the active state 105 to the inactive state 110. A transition
`
`from the active state to the inactive state may occur upon the
`expiration of a defined bidding period or, in other words, via
`a timeout 108. Under some silent auction models, other
`transitions from the active state 105 to the inactive state 110
`
`may be possible, including receipt of a bid that meets some
`desired price via transition 109. From the inactive state,
`transitions lead to the active state 105, the state “sold” 111,
`the state “finish” 112, and the lot registered state 102. If no
`bids that meet some minimum price are received while the
`lot is in the active state 105, then, following transition to the
`inactive state 110, the lot may transition to the finish state via
`transition 113 when no provision has been made to auto-
`matically re-register the lot. Alternatively, the lot may tran-
`sition to the lot registered state 102 via transition 114 when
`a provision has been made to automatically re-register the
`lot. Similarly,
`there may be an automatic provision to
`resubmit a lot that has not yet received a sufficient bid back
`to the active state 105 via transition 115 for an additional
`
`period of time. If one or more sufficient bids are received for
`the lot while the lot is in the active state 105, then, following
`transition to the inactive state 110, the lot transitions via
`transition 116 to the sold state 111. If the lot contains only
`a single item or service, or the winning bidder chooses all the
`items in the lot, then the lot transitions from the sold state
`111 to the finish state 112 via transition 117. If, on the other
`hand, there are more items in the lot not chosen by the
`winning bidder, then the lot may transition either back to the
`active state 105 via transition 118 or back to the lot regis-
`tered state 102 via transition 104. A given silent auction
`implementation may include more or fewer states than the
`number of states shown in FIG. 1, and may include either
`more or fewer state transitions than the state transitions
`shown in FIG. 1. FIG. 1 is intended to illustrate the states
`
`inhabited by a lot during a generalized silent auction.
`Certain features of the state transition diagram shown in
`FIG. 1 provide for relatively easy implementations of
`Internet-based silent auction systems. Foremost among these
`features is the relatively limited and non-time critical tran-
`sitions available to a lot once the lot first reaches the active
`
`state 105. The lot may transition out of the active state 105
`either following expiration of a timer or following submis-
`sion of a sufficiently high bid. Note that, in specific imple-
`mentations of silent auction systems, additional transitions
`may be possible. However, in all cases, the nature of these
`transitions leaves