US007542920B1
`
`(12)
`
`United States Patent
`Lin-Hendel
`
`(10) Patent N0.:
`(45) Date of Patent:
`
`US 7,542,920 B1
`Jun. 2, 2009
`
`(54) SYSTEM FOR INTERACTIVE
`COMPUTER-ASSISTED ON-LINE AUCTIONS
`
`6,191,799 B1 *
`6,264,104 B1 *
`6,538,698 Bl *
`
`2/2001 Purdy ....................... .. 345/473
`7/2001 Jenkins et al.
`...... .. 235/383
`3/2003 Anderson ............ .. 348/333.05
`
`Inventor: Catherine Lin-Hendel, BlythsWood Dr., Los Gatos, CA (U S)
`
`95030
`
`(73) Assignee: Catherine Lin-Hendel, Los Gatos, CA
`(Us)
`
`Pinker et al. “Managing Online Auctions: Current Business and
`Research Issues”, Management Science, 2003, vol. 49, N0. 11, pp.
`1457'l484'*
`* cited by examiner
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(1)) by 542 days.
`
`_
`_
`P 1’ imary ExamineriMark Fadok
`(74) A110" "6% Agent) 0" FlrmiMorgam LeWlS & Bocklus
`LLP
`
`(57)
`
`ABSTRACT
`
`A system and method for an interactive, computer-assisted
`on-l1ne auct1on Wherem at least one array of lmages of objects
`for auction are scrolled on a display device so that a Viewer
`can View the objects, obtain detailed information regarding
`objects of interest an submit bids on those objects the Viewer
`desires to purchase. The objects in the array can be sorted into
`roWs and columns by criteria such as manufacturer, type of
`good, or time until Which bids are accepted. The system can
`include an array for objects that can currently be bid upon and
`another array for Objects that can be bid upon at a future time,
`Certain Objects of interest to a viewer can be selectively
`rotated for three-dimensional Viewing by clicking on an
`appropriate button. A Viewer can select a plurality of objects
`of interest, Wherein monitoring screens are then composed
`and d1splayed on the d1splay devlce for each selected object,
`eachmonitorin screen rovidin the Viewer With an enlar ed
`g
`P
`g
`g
`graphical representation of an object, detailed textual infor
`mation re ardin an ob-ect and infonnation re ardin the
`auc tion fofan obgec t 511C111 as’c unembi d rice timgremaiin
`t
`b .t bdl d bd b .
`.
`g’ h t
`1 g
`0 Su. H“ a 1 an a 1
`5.11 mlsslon OX‘
`6 Sys em a.S°
`provldes a system of selectlvely programmable alerts Which
`can use Visual or audible cues to alert the Viewer to some
`occurrence, such as a predetermined amount of time remain
`111% IO Submlt a bld 011 an Obie“
`
`.
`
`.
`
`.
`
`.
`
`(21) Appl. NO.Z 09/628,773
`
`(22) Filed,
`
`JUL 29, 2000
`
`Related US Application Data
`_
`_
`_
`_
`(60) PrOVlslOnal apphcanon NO- 60/146,702’ ?led on Jul'
`30> 1999~
`
`(51) Int‘ Cl‘
`(200601)
`G06Q 30/00
`(52) US. Cl. ...................................................... .. 705/26
`(58) Field of Classi?cation Search ................. .. 705/14,
`705/26, 27, 37
`See application ?le for complete search history.
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`
`l/l996 HenshaW et al. .......... .. 345/684
`5,485,l74 A *
`4/1997 Bricklin .................... .. 345/856
`5,621,430 A *
`5,835,896 A * 11/1998 Fisher et al. .
`705/37
`5,877,761 A *
`3/1999 Shoji et al. ................ .. 345/784
`5 890 138 A *
`3/l999 GOdl-n et al
`705/26
`5,892,498 A *
`4/l999 Marshall et a1‘ _
`345/684
`539703471 A 4 10/1999 Hill __________ __
`_ 705/26
`5,974,398 A * 10/1999 Hanson et al.
`705/14
`6,026,377 A *
`2/2000 Burke ........................ .. 705/27
`6,058,379 A *
`5/2000 Odom et al. ................ .. 705/37
`
`_
`
`24 Claims, 16 Drawing Sheets
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`eBay Ex. 1007, Page 1 of 23
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`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 1 0f 16
`
`US 7,542,920 B1
`
`[ nous uszmes mans seusns semen HELP nmsmm mam?
`wwalr persona‘ trading community“
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`m: updater]: 07115199. 17530100 PDT
`
`Prior Art
`Figure 1A
`
`eBay Ex. 1007, Page 2 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 2 0f 16
`
`US 7,542,920 B1
`
`Hum: Lima; Bum 5&5; Smash H9111 Hens/£11m Sm
`Test drive lhc
`Check our the new Help section!
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`Prior Art
`Figure 1B1
`
`eBay Ex. 1007, Page 3 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 3 0f 16
`
`US 7,542,920 B1
`
`magma
`
`'
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`1
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`$111.50 2
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`Prior Art
`Figure 182
`
`eBay Ex. 1007, Page 4 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 4 0f 16
`
`US 7,542,920 B1
`
`All Items in Furniture
`Current Auctions
`For men: items in this ulegoxy, click these pages:
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`Q1/1010 Victorian Stagd g0. enggvingiml
`mmgmggwmm
`gun/10mg mwigmomn
`giggmmgmghggggjjving Room ‘Quit
`
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`00100020002000.0000P200010000:10:00
`02105001311310.0141!ggilHL?MQLQb/QIMQQQ
`Prior Art
`Figure 1B3
`
`eBay Ex. 1007, Page 5 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 5 0f 16
`
`US 7,542,920 B1
`
`._
`
`_r
`
`none. usual Euler: Sellers smut nun up w. sigh-at ilisMitE
`
`‘o to eBay magazine.
`-.-‘;._ '
`Subcm‘be now! Get your - r
`Give us your oommentsl Test drive in mm
`Free wow! Buy and sell safely with Hm.
`SUPER TURN OF CENTURY OAK VICTORIAN SECRETARY
`Item #131862095
`‘
`
`Currently
`M Quantity
`Tlmeleft
`sumo
`I
`,
`Q Ends
`
`$899.00 taming)
`1
`9 days, 0 hour: +
`07114199, 19:56:34 PDT
`07/24/99, 19:56:34 PDT
`
`First bid $99.99
`it Ofhids 16 we higton') minimum
`Location CANFIELD, OHIO
`El Woman)
`9
`Featured Category Auction
`
`Seller
`
`High bid
`Payment
`'
`Shipping
`
`ggc?egl? @551 *
`
`Emmott-1w RIB “A
`misalignment
`2219;! ll)
`Visa/MasterCard. Money Order/Cashiers Checks, Personal Checks. See item description
`for payment methods accepted
`Seller ships intenntioortlly, See item description rm- sbipping charges
`
`Seller assumes all responsibility for listing this item. You should contact the seller to resolve any
`questions before bidding Currency is dollar (5) unless otherwise noted.
`[
`Deserigtion
`
`l
`
`Reeded posts supporting shelves, stick and ball galleries, carved gingerbread, beading,
`ornate brass hardware, beveled mirror and original ?nish are the ?rst phrases that come to
`mind when I think about describing this oak secretary which is truly a show stopper. The
`drawers are all mortised (I think that's the correct word) and the 2 lower drawers lock
`with the same key as the drop front on the desk. The secretary is 67 1/2“ tall, 30“ wide
`and 14 31'8" deep. I ms told by an auctioneer ?iend that this piece could have been made
`in Sheboygan. As with all things beautitiil and old, it comes with some concerns and they
`would be, the shelf over the top drawer and the very bottom center shelf have lost a.
`portion ot'rhe ?nish, there is a 2 inch section of heading missing ?'om the left side, below
`the right hand door there is a small section of wood missing which is 1“ square, slight
`silver loss on beveled mirror, 3 "?ligree" brackets are missing from the pigeon holes, 2
`pieces of him are missing [tom the underside of the bottom shelf where the shelf meets
`the legs and the old boards on the back are loose. The tim'als on the top need tightened
`down and several piecs of trim need to be reglued. You will End a couple of scratches and
`a ring inside one ot‘rhe doors. The secretary needs a good cleaning and polishing also. I
`have tried to he very accurate listing any problems and hope I haven't missed anything.
`None of the above are critical concerns and the missing pieces can be replicated by a
`crattsman. Do not let these concerns prevent you ?'om owning one of the ?nest
`secretary's [have ever seen. I can promise you that even the most modest new secretary
`made. of pressed sawdust would cost you more than the reserve on this item. This item is
`
`Prior Art
`Figure 1C1
`
`eBay Ex. 1007, Page 6 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 6 0f 16
`
`US 7,542,920 B1
`
`REPLACEMENT SHEET
`
`out of an Estate in Euclid, Ohio. The woman was born in 1913. She was born ofSwedlsh
`immigrant parents. Her estate contained many wonder?il and very unique items. Please
`email any questions before bidding. SuellenlO has been selected as a Bronze Power
`Seller. Satisfaction guaranteed on any items sold that do not meet the item description.
`item may be returned within 30 days of the auction end with prior approval by this seller.
`(This does not include buyer’s remorse.) Buyer responsible for making arrangements for
`pickup and shipping and payment of all shipping charges. Payment for secretary is due in
`7 days. MasterCard, Visa, Money Orders and Certi?ed Checks ship next business day.
`Personal checks ship a?el- check has cleared bank (10-14 days). Ohio buyers add 5.5%
`sales tax.
`-
`
`Bidding
`I’
`SUPER TURN OF CENTURY OAK VICTORIAN SECRETARY (Item #l3l862095)
`Prior Art
`Figure 1C2
`
`eBay Ex. 1007, Page 7 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 7 0f 16
`
`US 7,542,920 B1
`
`Canon: bid
`Bid increment
`Minimum m
`
`$399 .00
`S 10.00
`$909.00
`
`Registration required. eBay requires registration in order to bid. Find out how to bggqmgg
`Lggjgmigm. It‘s fast and it's free!
`
`To ?nalize your bid. you will noeil lo submit your User ID and Password in the next
`alep. You will not be asked to enter your User Ill and Howard anywhere on this
`W8‘
`
`‘
`Your maximum bid.
`
`Col-rem‘ minimum bid is‘ 5909. 00
`
`Please type only mammals and thc decimal symbol i.) if required. Do not includo
`currency symbols such as 5.
`Binding contract.
`Blocing a bid is a binding contract in many sums. Do not bid unioss you intend to
`buy ibis item at the amount ol'your bid.
`
`Proxy bidding for all bids
`Pieago bid the maximum amount you are willing to pay for this iicm. Your
`maximum amount will be lwpt secret; eBay will bid on your lnhalfas neoessaxyby
`increasing your bidby ihc cumml bid inn-omen: up imiiiyour maximum is reached
`This saves you the trouble of having no keep track of the auction as i: proceeds and
`prevents you from being outbid an the last minute unlessyour spending limil is
`cxooodod. (sccmmgmgiigg. Also, incascofa tiel'othighhiddrr,
`earlier bids take precedence, And, keep in mind that you cannot recline your maximum
`bid at a later date. Units otherwise noted, bids or: in US. dollars.
`'
`ifyou have bid on this item before, note that youroew bid must be gxeatcr than your
`previous bid.
`_
`
`
`
`Id Thmkywfvr usinsemyl g m tings
`
`
`
`mgr! gearch Bil!
`
`Mu | m
`
`Copyright 6 1995-}??? 880)’ Inc. All Rights Rtserved.
`A?mdomariusnndbmldsamllmpmpc?yofihoirrespoctivemm
`‘
`_
`Use of ihis web site oonstimlos mm oft-ins 032;: 31g: Agggmont and Pnvacv £91m:
`
`Prior Art
`Figure 1C3
`
`eBay Ex. 1007, Page 8 of 23
`
`

`

`US. Patent
`
`Jun. 2, 2009
`
`Sheet 8 0f 16
`
`US 7,542,920 B1
`
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`US. Patent
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`Jun. 2, 2009
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`Sheet 9 0f 16
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`US 7,542,920 B1
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`US. Patent
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`Jun. 2, 2009
`
`Sheet 10 0f 16
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`US 7,542,920 B1
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`US. Patent
`
`Jun. 2, 2009
`
`Sheet 11 0f 16
`
`US 7,542,920 B1
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`U.S. Patent
`
`Jun. 2, 2009
`
`Sheet 12 0f 16
`
`US 7,542,920 B1
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`eBay Ex. 1007, Page 13 of 23
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`eBay Ex. 1007, Page 13 of 23
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`US. Patent
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`Jun. 2, 2009
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`Sheet 13 0f 16
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`US 7,542,920 B1
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`eBay Ex. 1007, Page 14 of 23
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`U.S. Patent
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`Jun. 2, 2009
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`Sheet 14 0f 16
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`US 7,542,920 B1
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`eBay Ex. 1007, Page 15 of 23
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`eBay Ex. 1007, Page 15 of 23
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`U.S. Patent
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`Jun. 2, 2009
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`Sheet 15 of 16
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`US 7,542,920 B1
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`eBay Ex. 1007, Page 16 of 23
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`US. Patent
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`Jun. 2, 2009
`
`Sheet 16 0f 16
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`US 7,542,920 B1
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`eBay Ex. 1007, Page 17 of 23
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`US 7,542,920 B1
`
`1
`SYSTEM FOR INTERACTIVE
`COMPUTER-ASSISTED ON-LINE AUCTIONS
`
`PRIORITY NOTICE
`
`This Non-Provisional US. patent application claims the
`bene?t of the Jul. 30, 1999 ?ling date of Provisional US.
`Patent Application Ser. No. 60/146,702.
`
`COPYRIGHT NOTICE
`
`Contained herein is material that is subject to copyright
`protection. The copyright oWner has no objection to the fac
`simile reproduction of the patent disclosure by any person as
`it appears in the Patent and Trademark Of?ce patent ?les or
`records, but otherWise reserves all rights to the copyright
`Whatsoever.
`
`BACKGROUND OF THE INVENTION
`
`The present invention relates to novel methods and appa
`ratus for conducting, presenting, monitoring, and tracking
`auctions on-line, for pure Internet auctions, and real-time
`presentation of physical auctions. The methods and apparatus
`disclosed in this application can also be use in all on-line
`object and catalogue presentations and other E-commerce
`sales and advertising channels and mechanisms.
`
`DESCRIPTION OF RELATED ART
`
`Traditional physical auctions of goods and services take
`place as events With de?ned time periods, at de?ned and
`limited physical locations Where the buyers, on-lookers, com
`missioned sellers, sellers, trained auctioneers, and the goods
`gather. In some instances, With pre-arranged facility, remote
`buyers can be linked at real-time to the auction, via private or
`public radio, television, or telephone netWork, and call-in
`bids remotely over telephone connections. The real-time
`broadcast or narroWcast of an auction through radio, televi
`sion, or telephone netWorks can be costly, and access is usu
`ally limited to speci?c locations/rooms With the relays or
`connections. Therefore, the conventional physical auction
`events are considered restricted to a limited buyer audience
`Who can either physically attend the auction at location, dur
`ing that speci?c time frame, or be present at a remotely linked
`facility also at that speci?c time frame. The costly, time
`speci?c physical gathering of a “live” auction event is only
`WorthWhile or feasible for both the auctioneer’s and the buy
`ers’ sides, if, and only if there is a large number of items to be
`sold. HoWever, only one item can be “auctioned” at a time, in
`a physical live auction event. Thus, each item has a very
`limited time allotment to be on the auction stage.
`Some items stimulate more interest than others in an unpre
`dictable Way in a time limited physical live auction event. The
`buyers come to, and leave the event also in someWhat of
`unpredictable Ways, it is dif?cult for a live auction event to
`publish and commit to a ?xed item-by-item schedule in a
`catalogue ahead of the event. Therefore, buyers do not knoW
`What item Would be auctioned at What time frame, and What
`items Would be auctioned next even While at the auction.
`Buyers do travel to the location; frequently to miss the items
`most interested, unless he or she is Willing to arrive on-time,
`and commit to sit through the entire auction event Without
`breaks. Wealthy collectors or dealers often go through the
`previeW, note the interested items manually, and give instruc
`tions as to the highest price they Would be Willing to pay for
`each item to hired professional buyers/bidders to attend the
`
`20
`
`25
`
`30
`
`35
`
`40
`
`45
`
`50
`
`55
`
`60
`
`65
`
`2
`event and do the bidding. The process is manual, labor inten
`sive, and someWhat risky for both the hiring collectors and
`their hired buyers.
`The neW Internet “cyber” Auction format, on the other
`hand, alloWs buyers, sellers, and spectators to broWse and
`search for information, descriptions, and auction status of
`goods, and submit bids Without geographical or strict time
`limitations. All items, independently, can be “auctioned” dur
`ing the same time period, in parallel, and simultaneously. The
`duration for each “item” in “open auction” is largely de?ned
`by the oWner of the item or his agent, and independent of other
`items. The duration is measured in days or Weeks, rather than
`the minutes as custom and necessary in a physical live auc
`tion. The beginning and ending times of “open auctions” are
`published individually in each item’s entry. Data entry is left
`to the oWners of objects With templates provided by the sites.
`The sites has no organiZed data on What objects may become
`available for auction, and do not publish up-coming auctions.
`At (FIG. 1, Jul. 15, 1999), the largest Internet auction site,
`millions of objects are “auctioned” at any given time. Search
`for goods is accomplished through broWsing the extensive
`category trees/paths (FIG. 1A), or entering item type or name
`through a “search” function. The auction item list obtained
`through category broWsing is astoundingly large, on the order
`of hundreds to thousands of items, over many tens of Web
`pages (each can be more than one physically printed page),
`listed With an abbreviated one-line entry or a thumbnail entry
`for each item. FIGS. 1B1 and 1B2 are 2 pages of a list of
`“Featured” furniture auction items, and FIG. 1B3 is the 1“
`page of 37 pages of 1761 furniture items being auctioned on
`the site on Jul. 15, 1999. Note that the right most column
`indicates the “ending time” of the auctions, mostly ending
`around July 22 through July 25, a ten day auction time span,
`impossible to accommodate in conventional “live” auctions,
`Which measure auction time for each item in minutes. Choos
`ing items out of such a large list can only be accomplished by
`reading through tens or hundreds of one-line abbreviated
`descriptions of each item, and choosing one item from the list
`to vieW the more detailed information about the item, one-at
`a-time. Once an item is thus chosen, the broWser/buyer clicks
`on the line or thumbnail entry of the item on the list (see FIG.
`1B2, item 122 on the page), and Waits for its descriptions to be
`sent to the screen from the remote site server (FIGS. 1C1
`through 1C3.) If the buyer Wishes to vieW more items from the
`list of hundreds of items, it can only be done, again, one-at
`a-time, by clicking “back” to the list, and choose another
`item, click on the item, Wait for page doWnload, thus repeat
`ing. When the buyer is vieWing information about one inter
`ested item, the information for other items previously vieWed
`are gone from the screen. The buyer must print all information
`of every item, before clicking “back” to the list to access
`information of another item. The comparison betWeen similar
`or interested items can only be reasonably done by reading the
`volume of printout pages of these items. At the mean time, the
`auction status and current high-bid of some items may have
`already changed. Although such process is tedious and time
`consuming, for many people, it is still preferred over making
`the effort required to attend a conventional physical “live”
`auction.
`Bidding is entered electronically on a bidding screen that
`usually folloWs the bidding information, object description,
`and photograph(s) of the object. For a single item auction, the
`bid entered at any given time must “beat” the current highest
`bid to be relevant and logged into bidding history as the
`updated highest bid. For a “Dutch Auction,” Where multiple
`numbers of an identical item are auctioned, the bid must be
`higher than the current loWest valid bid. Every “current high
`
`eBay Ex. 1007, Page 18 of 23
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`

`

`US 7,542,920 B1
`
`3
`est bid” is there to be outbid before the “auction time” is still
`open. It is highly desirable to a serious buyer to monitor the
`bidding status, and bid only When “closing” time comes near.
`With the current state of the art in online auction, such
`monitoring is accomplished through manually logging onto
`the site at any particular time, go to the pages Where a par
`ticular item of interest is described, look up the bidding status
`of that particular item, and the closing time of this particular
`auction. Set an alarm clock for certain intervals before its
`“closing time,” for ?nal check, Which could be days later. At
`any moment betWeen the time you last manually checked the
`auction status, and the time of the alarm, the auction status can
`only be updated by manually and periodically logging on to
`the site, and going to the particular pages describing the item,
`one item at a time. If the buyer is interested in a number of
`items, the process is extremely tedious, time consuming, and
`unreliable. One can enter a bid, request email noti?cation
`from the site When the bid is “outbid” by another buyer.
`HoWever, this is a one-time only noti?cation. To be noti?ed
`again, one must enter another bid that beats the current high
`est bid, and risking buying the object at that price, or to be
`outbid again.
`For a physical live auction event, there is no Way to monitor
`the event other than being physically present.
`FIGS. 2A-2B are screen prints of and FIGS. 3A, and 3B are
`screen prints of illustrating the tWo sites’ identical formats to.
`This universal Internet Auction Format is used With very
`minor variations on the theme in all state-of-the-art auction
`sites. Basically, the home pages of the auction sites contain a
`primary category listing, a “featured” listing, a “search” entry
`box, and some informational/promotional icons, textual
`descriptions, and links. Clicking on a category title on the
`primary category list brings the next page containing the
`listing of the next level of categories under that particular
`category, and a list of the “featured” items in that category.
`Clicking on one “featured” title brings information about that
`one particular “featured” item. Similarly, clicking on brief
`descriptions of promotional or informational entries and
`icons brings more detailed information about the entry. Click
`ing on a subcategory brings the listing of the next level sub
`categories and the “featured” items in that subcategory, until
`the particular category path is exhausted. Then, a