US007162446B1
`
`(12)
`
`United States Patent
`Handler
`
`(10) Patent N0.:
`(45) Date of Patent:
`
`US 7,162,446 B1
`Jan. 9, 2007
`
`(54) INTEGRATED AUCTION
`
`(75) Inventor: Brad Handler, Menlo Park, CA (US)
`_
`(73) Asslgnee: eBay Inc., San Jose, CA (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.
`
`(21) Appl. No.: 09/457,466
`
`(22) Filed:
`
`Dec. 8, 1999
`
`5,280,422 A
`5,297,031 A
`5,297,032 A
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`
`(Continued)
`
`CA
`
`FOREIGN PATENT DOCUMENTS
`2253543
`M1997
`
`Related US. Application Data
`(60) Provisional application No. 60/111,717, ?led on Dec.
`8’ 1998'
`
`(51) Int. Cl.
`(2006.01)
`G06F 17/00
`(52) US. Cl. ....... ...... ..; ......... .. 705/37; 705/27; 705/26
`(58) Field of Classi?cation Search ................ .. 705/37,
`_
`_
`705/80’ 26} 1’ 40’ 27
`See appl1cat1on ?le for complete search h1story.
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`
`(Continued)
`Primary ExamineriEhsca Pierre Eddy
`(74) Attorney Agent) or Firmischwegmans Lundberg’
`Woessner & Kluth, PA.
`
`(57)
`
`ABSTRACT
`
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`
`A method and apparatus are provided for conducting an
`integrated auction that incorporates various features of tra
`ditional and online auctions. According to one aspect of the
`present invention, the integrated auction includes a live,
`in-person auction component and an online bidding envi
`ronment component. Bidding information associated With an
`item in the online bidding environment is updated to re?ect
`a current bid associated With the item in the live, in-person
`auction. During the live, in-person auction, a bid is accepted
`from an online bidder in the online environment that re?ects
`a maximum price the online bidder is Willing to pay for the
`item. Subsequently, the system bids on behalf of the online
`bidder against one or more live bidders that are participating
`in the live, in-person auction based upon the maximum
`pnce.
`
`22 Claims, 6 Drawing Sheets
`
`INTEGFWED AUCIION mceseme
`
`m
`
`ESTABLMED MIIIMUM
`BID FOR LNE Mm"
`
`eBay Ex. 1005, Page 1 of 15
`
`

`

`US 7,162,446 B1
`Page 2
`
`US. PATENT DOCUMENTS
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`

`

`U.S. Patent
`
`Jan. 9, 2007
`
`Sheet 1 0f 6
`
`US 7,162,446 B1
`
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`
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`eBay Ex. 1005, Page 4 of 15
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`

`

`U.S. Patent
`
`Jan. 9, 2007
`
`Sheet 2 0f 6
`
`US 7,162,446 B1
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`eBay Ex. 1005, Page 5 of 15
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`

`

`U.S. Patent
`
`Jan.9,2007
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`US 7,162,446 B1
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`eBay Ex. 1005, Page 6 of 15
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`U.S. Patent
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`Jan. 9, 2007
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`eBay Ex. 1005, Page 7 of 15
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`

`

`U.S. Patent
`
`Jan.9,2007
`
`Sheet5 0f6
`
`US 7,162,446 B1
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`eBay Ex. 1005, Page 8 of 15
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`eBay Ex. 1005, Page 8 of 15
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`

`

`U.S. Patent
`
`Jan. 9, 2007
`
`Sheet 6 0f 6
`
`US 7,162,446 B1
`
`INTEGRATED AUCTION PROCESSING
`
`l
`
`f'610
`
`ESTABLISHED MINIMUM
`BID FOR LIVE AUCTION
`
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`AUCTION
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`
`eBay Ex. 1005, Page 9 of 15
`
`

`

`1
`INTEGRATED AUCTION
`
`2
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`US 7,162,446 B1
`
`This application claims the bene?t of US. Provisional
`Application No. 60/111,717, ?led Dec. 8, 1998.
`
`COPYRIGHT NOTICE
`
`Contained herein is material that is subject to copyright
`protection. The copyright oWner has no objection to the
`facsimile reproduction of the patent disclosure by any per
`son as it appears in the Patent and Trademark Of?ce patent
`?les or records, but otherWise reserves all rights to the
`copyright Whatsoever.
`
`FIELD OF THE INVENTION
`
`The invention relates generally to the ?elds of auctioning
`and online commerce. More particularly, the invention
`relates to an integrated auction format that incorporates
`features of both Internet and traditional, real World auctions.
`
`20
`
`BACKGROUND OF THE INVENTION
`
`With the advent of online auctioning pioneered by eBay
`Inc., the assignee of the present invention, more and more
`Internet users are realiZing the ease and convenience of
`buying items online. As the leading person-to-person trading
`site, buyers are compelled to trade on eBay’s Web site due
`to the large amount of content available. Similarly, sellers
`are attracted to eBay to conduct business Where there are the
`most buyers. Ebay currently provides over tWo million neW
`auctions, and 250,000 neW items every day from Which
`users may choose.
`Auction houses that run live, real-time, on-site auctions
`(“traditional auctions”) continue to experience much suc
`cess. HoWever, geographic barriers, travel costs, and other
`constraints limit the participation in such auctions.
`It is desirable, therefore, to expand the reach of traditional
`auctions via the Internet. In particular, it Would be advan
`tageous to incorporate the best of both Internet and tradi
`tional auctions into an integrated auction format.
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`BRIEF SUMMARY OF THE INVENTION
`
`A method and apparatus are described for conducting an
`integrated auction that incorporates various features of tra
`ditional and online auctions. According to one aspect of the
`present invention, the integrated auction includes a live,
`in-person auction component and an online bidding envi
`ronment component. Bidding information associated With an
`item in the online bidding environment is updated to re?ect
`a current bid associated With the item in the live, in-person
`auction. During the live, in-person auction, a bid may be
`accepted from an online bidder in the online environment
`that re?ects a maximum price the online bidder is Willing to
`pay for the item. Subsequently, the system bids on behalf of
`the online bidder against one or more live bidders that are
`participating in the live, in-person auction based upon the
`maximum price.
`Other features of the present invention Will be apparent
`from the accompanying draWings and from the detailed
`description Which folloWs.
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`The present invention is illustrated by Way of example,
`and not by Way of limitation, in the ?gures of the accom
`panying draWings and in Which:
`FIG. 1 is a simpli?ed vieW of an exemplary client-server
`environment in Which the online portion of an integrated
`auction may occur according to one embodiment of the
`present invention.
`FIG. 2 is an exemplary online auction site screen that
`alloWs online bidders to participate in an integrated auction
`according to one embodiment of the present invention.
`FIG. 3 is an example of a computer system upon Which
`one embodiment of the present invention may be imple
`mented.
`FIG. 4 is a high level illustration of the interaction
`betWeen various devices and processes according to one
`embodiment of the present invention.
`FIG. 5 conceptually illustrates the stages of an integrated
`auction according to one embodiment of the present inven
`tion.
`FIG. 6 is a How diagram illustrating integrated auction
`processing according to one embodiment of the present
`invention.
`
`DETAILED DESCRIPTION
`
`A method and apparatus are described for carrying out an
`integrated auction that incorporates various features of tra
`ditional and online auctions. In the folloWing description, for
`the purposes of explanation, numerous speci?c details are
`set forth in order to provide a thorough understanding of the
`present invention. It Will be apparent, hoWever, to one
`skilled in the art that the present invention may be practiced
`Without some of these speci?c details. In other instances,
`Well-known structures and devices are shoWn in block
`diagram form.
`As Will be described in greater detail beloW, the present
`invention includes features that seek to enhance the tradi
`tional auctioning experience. According to one embodiment,
`an integrated auction incorporates various features of tradi
`tional and Internet auctions (also referred to as online
`auctions). In a ?rst stage of the integrated auction, e.g., the
`“pre-auction bidding stage,” a starting bid for a traditional,
`live auction may be established based upon bids received
`from online bidders. Subsequently, in a second stage of the
`integrated auction, e.g., the “live auction stage,” a live
`auction is conducted by an auction house, such as Guern
`sey’s, using the highest bid from the pre-auction bidding
`stage. During the live auction stage, bidding information is
`updated on the online auction site and online bidders may
`submit additional maximum proxy amounts. Finally, in an
`optional third stage of the integrated auction, e. g., the “proxy
`shoWdoWn stage,” if an online bidder’s maximum proxy
`price is greater than the highest bid from the live auction
`stage, then the integrated auction returns to the live auction
`until the proxy price has been met. Advantageously, in this
`manner, the reach of traditional auctions may be expanded
`via the Internet.
`In the preferred embodiment, the steps of the present
`invention are embodied in machine-executable instructions.
`The instructions can be used to cause a general-purpose or
`special-purpose processor Which is programmed With the
`instructions to perform the steps of the present invention.
`Alternatively, the steps of the present invention might be
`performed by speci?c hardWare components that contain
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`US 7,162,446 B1
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`3
`hardwired logic for performing the steps, or by any combi
`nation of programmed computer components and custom
`hardWare components.
`The present invention may be provided as a computer
`program product Which may include a machine-readable
`medium having stored thereon instructions Which may be
`used to program a computer (or other electronic devices) to
`perform a process according to the present invention. The
`machine-readable medium may include, but is not limited to,
`?oppy diskettes, optical disks, CD-ROMs, and magneto
`optical disks, ROMs, RAMs, EPROMs, EEPROMs, magnet
`or optical cards, ?ash memory, or other type of media/
`machine-readable medium suitable for storing electronic
`instructions. Moreover, the present invention may also be
`doWnloaded as a computer program product, Wherein the
`program may be transferred from a remote computer (e.g.,
`a server) to a requesting computer (e.g., a client) by Way of
`data signals embodied in a carrier Wave or other propagation
`medium via a communication link (e.g., a modem or net
`Work connection).
`
`Client-Server Environment
`FIG. 1 is a simpli?ed vieW of an exemplary client-server
`environment, such as the World Wide Web (the Web), in
`Which the online portion of an integrated auction may take
`place. The architecture of the Web folloWs a conventional
`client-server model. The terms “client” and “server” are
`used to refer to a computer’s general role as a requester of
`data (the client) or provider of data (the server). Web clients
`105 and Web servers 110 communicate using a protocol such
`as HyperText Transfer Protocol (HTTP). In the Web envi
`ronment, Web broWsers reside on clients and render Web
`documents (pages) served by the Web servers. The client
`server model is used to communicate information betWeen
`clients 105 and servers 110. Web servers 110 are coupled to
`the Internet 100 and respond to document requests and/or
`other queries from Web clients 105. When a user selects a
`document by submitting its Uniform Resource Locator
`(URL), a Web broWser, such as Netscape Navigator or
`Internet Explorer, opens a connection to a server 110 and
`initiates a request (e. g., an HTTP get) for the document. The
`server 110 delivers the requested document, typically in the
`form of a text document coded in a standard markup
`language such as HyperText Markup Language (HTML).
`
`Exemplary Online Auctioning Site Interface
`FIG. 2 is an exemplary online auction site screen that
`alloWs online bidders to participate in an integrated auction.
`According to one embodiment, When an online bidder
`requests to vieW items associated With an integrated auction,
`screen 200 is presented With a textual list of items 205. In
`this example, each item 210 includes a hypertext link 215
`having a title (or brief description) of the item for sale, an
`indication 220 of Whether or not an image of the item is
`available, the current minimum bid 230, the number of bids
`received 240, and an auction ending date and/or time 250.
`Responsive to the selection of the hypertext link 215, a
`subsequent screen (not shoWn) may prompt the online
`bidder to enter his/her maximum bid for the item 210. As
`Will be described further beloW, by providing a maximum
`bid amount, a proxy bidding system may bid on behalf of the
`online bidder as necessary by increasing the online bidder’s
`bid by the current bid increment until the maximum is
`reached. Advantageously, in this manner, the online bidder
`need not keep track of the auction as it proceeds and is
`assured he/ she Will not be outbid at the last minuteiunless
`the maximum speci?ed is exceeded.
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`4
`Exemplary Computer System
`A computer system 300 representing an exemplary server
`in Which features of the present invention may be imple
`mented Will noW be described With reference to FIG. 3.
`Computer system 300 comprises a bus or other communi
`cation means 301 for communicating information, and a
`processing means such as processor 302 coupled With bus
`301 for processing information. Computer system 300 fur
`ther comprises a random access memory (RAM) or other
`dynamic storage device 304 (referred to as main memory),
`coupled to bus 301 for storing information and instructions
`to be executed by processor 302. Main memory 304 also
`may be used for storing temporary variables or other inter
`mediate information during execution of instructions by
`processor 302. Computer system 300 also comprises a read
`only memory (ROM) and/or other static storage device 306
`coupled to bus 301 for storing static information and instruc
`tions for processor 302.
`A data storage device 307 such as a magnetic disk or
`optical disc and its corresponding drive may also be coupled
`to computer system 300 for storing information and instruc
`tions. Computer system 300 can also be coupled via bus 301
`to a display device 321, such as a cathode ray tube (CRT) or
`Liquid Crystal Display (LCD), for displaying information to
`a computer user. Typically, an alphanumeric input device
`322, including alphanumeric and other keys, may be coupled
`to bus 301 for communicating information and/or command
`selections to processor 302. Another type of user input
`device is cursor control 323, such as a mouse, a trackball, or
`cursor direction keys for communicating direction informa
`tion and command selections to processor 302 and for
`controlling cursor movement on display 321.
`A communication device 325 is also coupled to bus 301
`for accessing remote servers via the Internet, for example.
`The communication device 325 may include a modem, a
`netWork interface card, or other commercially available
`netWork interface devices, such as those used for coupling to
`an Ethernet, token ring, or other type of netWork. In any
`event, in this manner, the computer system 300 may be
`coupled to a number of clients and/or other servers via a
`conventional netWork infrastructure, such as a company’s
`Intranet and/or the Internet, for example.
`
`System OvervieW
`FIG. 4 is a high level illustration of the interaction
`betWeen various devices and processes according to one
`embodiment of the present invention. According to the
`embodiment depicted, an online auction site 400 may com
`prise one or more listing servers 410. In this example, the
`listing servers 410 include a listing management process
`415, a proxy bidding process 425, and a live auction
`interface 430. Clients 470 interact With the listing manage
`ment process 415 and the proxy bidding process 425 to vieW
`information about items for sale and submit proxy prices,
`respectively.
`The listing management process 415 interacts With online
`bidders and provides them With information about the items
`in Which they are interested. The listing management pro
`cess 415 may support a text-based item listing format, such
`as that depicted in FIG. 2, and/or a GalleryTM presentation
`format that includes thumbnail images of the items for sale
`as described in co-pending US. patent application Ser. No.
`09/ 177,726, entitled “Information Presentation and Manage
`ment in an Online Trading Environment” and as signed to the
`assignee of the present invention (GALLERY is a trademark
`of eBay Inc. of San Jose, Calif.).
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`US 7,162,446 B1
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`5
`The proxy bidding process 425 tracks the maximum
`amounts that online bidders are Willing to pay for the items
`210. Based upon the maximum amounts provided, the proxy
`bidding process 425 automatically submits bids on behalf on
`the online bidders as other bidders (online or on-site bidders)
`increase the bid price.
`The live auction interface 430 provides an interface by
`Which online bids may be communicated to the on-site
`bidders and live bids may be communicated to the proxy
`bidding process 425 and updated on various online auction
`site screens.
`While, in order to facilitate explanation, the listing servers
`410 are generally discussed as if they Were a single device,
`in actuality, the listing servers 410 may comprise multiple
`physical and/or logical devices connected in a distributed
`architecture, and the various functions performed may actu
`ally be distributed among multiple devices. For example,
`any function can be implemented on any number of
`machines or on a single machine. Also, any process may be
`divided across multiple machines.
`Exemplary Stages of an Integrated Auction
`FIG. 5 conceptually illustrates the stages of an integrated
`auction according to one embodiment of the present inven
`tion. In this example, an integrated auction comprises three
`separate and distinct stages: a pre-auction bidding stage 530,
`a live auction stage 540, and a proxy shoWdoWn stage 550.
`Bidding results may be fed from one stage to the next and
`the results from a previous stage may serve as the ?oor for
`the folloWing stage. For example, an initial round of online
`bidding 530 taking place over a predetermined period of
`time may establish a starting bid 510 for the live auction
`stage 540. At the conclusion of the live auction stage 540, if
`one or more online bidders have submitted maximum proxy
`prices that are greater than the ?nal bid from the live auction
`stage 540, the proxy shoWdoWn stage 550 is triggered in
`Which the live auction continues until the maximum proxy
`price has been met.
`Integrated Auction FloW
`Referring noW to the How diagram of FIG. 6, exemplary
`integrated auction processing Will noW be described. At step
`610, a minimum bid for the live auction stage 540 is
`established by an online auction site 400. For example, one
`or more online bidders may submit maximum bid amounts
`to the proxy bidding process 425 to have the proxy bidding
`process 425 bid on their behalf. Other bidders may choose
`to monitor the pre-auction bidding stage 530 and periodi
`cally submit bids. When the predetermined time period for
`the pre-auction bidding stage 530 expires, the highest bid is
`presented to the auction house via the live auction interface
`430. In this manner, the starting bid for the live auction stage
`540 is established in a neW and exciting Way, thereby
`creating additional hype about the auction. At step 620, the
`auction house conducts a live auction starting the bidding at
`the dollar amount provided by the online auction site 400.
`During the live auction, live bids by the on-site bidders may
`be communicated to the online bidders via the live auction
`interface 430. Additionally, the online bidders may be pro
`vided With teleconferencing or other means of monitoring
`the progress of the live auction 540. At any rate, at the
`conclusion of the live auction, the ?nal bid is input into the
`live auction interface 430. At step 630, a determination is
`made Whether or not to perform a proxy shoWdoWn. If one
`or more online bidders have submitted a maximum p