Case 3:13-cv-00360-JAH-WMC Document 1 Filed 02/13/13 Page 1 of 6
`
`[Joseph P. Reid (SBN 211082)
`Thomas N. Millikan (SBN 234430)
`Gartman Law Group P.C.
`11622 El Camino Real, Suite 100
`San Diego, California 92130
`Telephone: (858) 461-7360
`Attorneys for Plaintiff,
`Advanced Auctions LLC
`
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF CALIFORNIA
`
`ADVANCED AUCTIONS LLC,
`
`
`
`Plaintiff,
`v.
`eBAY INC.,
`
`
`
`Defendant.
`
`'13CV0360
`WMC
`JAH
`Case No.
`PLAINTIFF ADVANCED
`AUCTIONS LLC’S COMPLAINT
`FOR PATENT INFRINGEMENT
`
`Plaintiff Advanced Auctions LLC (“Plaintiff”), by counsel, alleges as
`follows:
`
`THE PARTIES
`
`Plaintiff Advanced Auctions LLC is a limited liability company under
`1.
`the laws of the State of California, and having its principal place of business in Del
`Mar, CA, within this judicial district.
`2.
`On information and belief, Defendant eBay Inc. is a corporation
`organized under the laws of the State of Delaware, and having its principal place of
`business at 2145 Hamilton Avenue, San Jose, CA 95125 and may be served
`through National Registered Agents, Inc., 2875 Michelle Drive, Suite 100, Irvine,
`CA 92606.
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
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`Case 3:13-cv-00360-JAH-WMC Document 1 Filed 02/13/13 Page 2 of 6
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`JURISDICTION AND VENUE
`This is a civil action for patent infringement arising under the United
`3.
`States patent statutes, 35 U.S.C. § 1 et seq.
`4.
`This Court has jurisdiction over the subject matter of this action under
`28 U.S.C. §§ 1331 and 1338(a).
`5.
`Defendant eBay Inc. is subject to this Court’s personal jurisdiction
`because it does and has done substantial business in this judicial District, including
`offering its online auction site to members within this District to buy and sell
`merchandise.
`6.
`Venue is proper in this judicial District under 28 U.S.C. §§ 1391 and
`1400(b).
`CLAIM I: DIRECT INFRINGEMENT OF THE ’000 PATENT
`7.
`On September 11, 2012, the United States Patent and Trademark
`Office duly and legally issued United States Patent No. 8,266,000 (“the ’000
`Patent”), entitled “Real Time Auction with End Game.” A copy of the ’000 Patent
`is attached as Exhibit A.
`8.
`All rights, title, and interest in and to the ’000 Patent, including the
`right to sue for past infringement, have been assigned to Plaintiff.
`9.
`Defendant eBay owns and operates a website on which sellers can
`conduct online auctions via the Internet.
`10. During these online auctions, Defendant eBay’s webpages present
`bidders with information regarding the time remaining in the auction and the
`current bid amount.
`11. Before the final hour of the auction, Defendant eBay does not
`automatically update its webpages with this information. Rather, the bidder must
`manually refresh their browser to request and obtain current auction information.
`12.
`In the final hour of the auction, this information is automatically
`updated.
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
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`Case 3:13-cv-00360-JAH-WMC Document 1 Filed 02/13/13 Page 3 of 6
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`13. By owning and operating its online auction site in the foregoing way,
`Defendant eBay directly infringes one or more claims of the ’000 Patent.
`14. Defendant eBay’s direct infringement is ongoing.
`15. Defendant eBay has not sought or obtained a license to the ’000
`Patent.
`16. On February 4, 2013, counsel for Plaintiff Advanced Auctions LLC
`wrote to Emily Ward, the Associate General Counsel, Patents for Defendant eBay.
`17.
`The February 4, 2013 letter informed Ms. Ward of the ’000 Patent and
`that, “by automatically updating the time and bid amount during the final hour of
`your online auctions, eBay is infringing the ’000 patent.”
`18.
`Plaintiff’s February 4, 2013 letter asked that eBay cease and desist
`from its infringement immediately.
`19. As of February 13, 2013, eBay had not responded to the February 4,
`2013 letter.
`20. As of February 13, 2013, Defendant eBay continues to update auction
`information automatically during each auction’s final hour.
`21. By continuing to automatically update auction information during the
`final hours of its online auctions even after being informed of the ’000 Patent,
`Defendant eBay has demonstrated objective recklessness with respect to the ’000
`Patent.
`22. Accordingly, Defendant eBay’s direct infringement is willful.
`23.
`Plaintiff Advanced Auctions LLC has been, and continues to be,
`damaged and irreparably harmed by Defendant’s infringement, which will continue
`unless Defendant is enjoined by this Court.
`CLAIM II: INDIRECT INFRINGEMENT OF THE ’000 PATENT
`24.
`Plaintiff Advanced Auctions LLC reincorporates and realleges the
`foregoing paragraphs as if included expressly herein.
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
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`Case 3:13-cv-00360-JAH-WMC Document 1 Filed 02/13/13 Page 4 of 6
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`To participate in or monitor Defendant eBay’s online auctions,
`25.
`computer users navigate to eBay’s website.
`26. While at Defendant eBay’s website, users selecting particular auctions
`receive webpages regarding those auctions from eBay’s servers.
`27.
`Those auction webpages are, in turn, displayed on the users’
`computers.
`The auction webpages function as discussed above, namely, prior to
`28.
`the final hour of the auction, users must manually refresh their browser to request
`and obtain current time and bid information, while in the final hour of the auction,
`this information is automatically updated.
`29.
`Programmed to conduct online auctions in this manner, Defendant
`eBay’s webpages induce its users to infringe claims of the ’000 Patent.
`30.
`Indeed, as shown above, Defendant eBay’s auction webpages only
`function in an infringing manner.
`31. By conducting auctions in this infringing manner—and not any other
`manner—Defendant eBay’s auction webpages are components that have no
`substantial noninfringing uses.
`32.
`In exchange for allowing sellers to conduct auctions via its infringing
`webpages, Defendant eBay collects a percentage of the sales price of each item sold
`through such auctions.
`33. By providing such infringing auction websites lacking any substantial
`noninfringing uses, Defendant eBay has contributed to its users’ direct infringement
`of claims of the ’000 Patent.
`34. Defendant eBay’s 2012 annual report confirms that thirty-seven
`percent of eBay’s 2011 gross merchandise volume was transacted through the
`auction-style format. In each of those auctions, Defendant eBay’s webpages would
`have functioned as previously described. Accordingly, Defendant eBay’s users
`have committed significant amounts of direct infringement.
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
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`Case 3:13-cv-00360-JAH-WMC Document 1 Filed 02/13/13 Page 5 of 6
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`35. During the evening of February 11, 2013, Defendant eBay had
`65,447,292 active listings of merchandise. Many of these items are being sold
`using eBay’s infringing auction format. Accordingly, direct infringement by
`Defendant eBay’s users is continuing.
`36. As discussed above, Defendant eBay has been informed of the ’000
`Patent and how its auction webpages infringe.
`37. Despite being informed of the ’000 Patent and its method of
`infringement by Advanced Auctions’ February 4 letter, Defendant eBay continues
`to provide its infringing auction webpages to its users.
`38.
`Indeed, Defendant eBay has not done anything to modify or remove
`the automatic updating functionality of its auction webpages since receiving
`Advanced Auctions’ February 4 letter.
`39. Defendant eBay’s continued, knowing infringement demonstrates the
`intent necessary to constitute inducement.
`40. By continuing to automatically update auction information during the
`final hours of its online auctions even after being informed of the ’000 Patent,
`Defendant eBay’s indirect infringement of the ’000 Patent is also willful.
`41.
`Plaintiff Advanced Auctions LLC has been, and continues to be,
`damaged and irreparably harmed by the Defendant’s indirect infringement, which
`will continue unless Defendant is enjoined by this Court.
`JURY DEMAND
`Plaintiff demands a trial by jury on all issues.
`REQUEST FOR RELIEF
`WHEREFORE, Plaintiff Advanced Auctions LLC respectfully requests the
`following relief:
`A.
`A judgment holding Defendant eBay liable for infringement of the
`’000 Patent asserted against it;
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
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`Case 3:13-cv-00360-JAH-WMC Document 1 Filed 02/13/13 Page 6 of 6
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`A permanent injunction against Defendant eBay, its officers, agents,
`B.
`servants, employees, attorneys, parent and subsidiary corporations, assigns and
`successors in interest, and those persons in active concert or participation with it,
`enjoining them from continued acts of infringement of the ’000 Patent asserted
`against Defendant eBay;
`C.
`An accounting for damages resulting from Defendant eBay’s
`infringement of the ’000 Patent asserted against it, together with pre-judgment and
`post-judgment interest;
`D.
`A judgment holding this Action to be an exceptional case, and an
`award to Plaintiff Advanced Auctions LLC for its attorneys’ fees and costs pursuant
`to 35 U.S.C. § 285;
`E.
`A judgment finding Defendant eBay’s infringement willful, and
`ordering a trebling of damages as a result;
`Such other and further relief as this Court deems just and proper.
`
`DATED: February 13, 2013
`
`GARTMAN LAW GROUP, PC
`
`By:/S/ Joseph P. Reid
`Joseph P. Reid (SBN 211082)
`Thomas N. Millikan (SBN 234430)
`Attorneys for Plaintiff,
`ADVANCED AUCTIONS LLC
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
`
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`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 1 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 1 of 19
`
`EXHIBIT A
`
`EXHIBIT A
`
`(cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3)
`
`

`

`Case 3:13-cv-00360-JAH-WMC Docmlmflmfl 1111111 “W101” 1111111111 1111111101
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 2 of 19
`U3008266000131
`
`O
`US 8,266,000 B1
`(10) Patent No.:
`(12) Unlted States Patent
`Harris
`(45) Date of Patent:
`Sep. 11, 2012
`
`
`(54) REAL TIME AUCTION WITH END GAME
`.
`.
`('15)
`Inventor: Scott C. Harris. Rancho Santa Fe. CA
`(“51
`
`(73) Assignee: Harris Technology. Inc.. Ranclto Santa
`Fe. CA (US)
`
`( ‘ ) Notice:
`
`Subject‘ttt any disclaimer. the term ofthis
`patent is extended or adjusted under 35
`U.S.C. 1540:} by 0 days.
`
`21
`
`(
`
`)
`
`(22)
`
`A LN _:
`Pp
`0
`
`_
`.
`F'ICd-
`
`. 1
`1218801 0
`
`591" 12* 2“"
`
`Related US. Application Data
`(60} Division of application No. 121464.706. filed on May
`12. 2009. which is a continuation ofapplication No.
`091780.248. filed on Feb. 9. 2001. now abandoned.
`which is a continuation-impart of application No.
`091669-305- filed 0n 3431'- 26- 2000.
`(60) Provisional application No. 601169.128. tiled on Dec.
`8. 1999.
`
`(51)
`
`Int. Cl'
`6062 40/00
`(201101)
`705126
`(52) U.S.Cl.
`
`(58} Field 01C lassificatlon Search ............... 705135-145
`Sec application file for complete search history.
`
`(56)
`
`References Cited
`U.S. PATENT DOCUMENTS
`
`4.789.928 A
`5.700.204 A
`S.?9~1.219 A
`5.835.896 A
`5.845.365 A
`
`13.11988 Fujisaki
`1231997 Teder
`311998 Brown
`”#1998 Fishezda].
`1211998 leston
`
`5347-97" A
`5390.133 A
`5.
`.
`5333;: :1
`5.960.411 A
`5.9718342 A
`6.012.045 A
`6.021.308 A
`6.023.586 A
`2333222; 3
`6.0583319 A
`6.101.498 A
`6.113.504 A
`
`1231993 Latina?“ 81-
`1-1999 Godinetal.
`531999 A ubc
`7.1999 8111';an e1 31
`911999 Hanmanetal.
`”“1999 Noble etal.
`112000 Bardlai at :11.
`22000 Ausubel
`2-"2000 Brown
`33% tilfililtlniy
`5:71.000 mom or “L
`mono Scacretal.
`913000 Kuesters
`
`6.161.099 A
`6.199.050 Bl
`6.202.05l BI
`6.216.114 BI *
`
`[2.‘2000 Harrington etal.
`332001 Maia el :11.
`392001 Woolslon
`4.2001 Alaiactal.
`
`705:3?
`
`1‘ "““lm‘em
`FOREIGN PATENT DOCUMENTS
`305334
`101.200]
`
`CA
`
`OTHER PUBLICATIONS
`Prince 1).. Auction 'l'his'. You: Complete Guide to the World ot‘onttne
`Auctim- Pfim Twh- PP- 136- '31 1999-
`(Continued)
`
`'Ihomas M Hammond. 111
`Primary Examiner
`('14) Attorney. Agent. or Frrm— Law Oflice of Scott C.
`Harris. 1m;
`
`(5?)
`
`ABSTRACT
`
`A real time auction system operates in a non real time mode.
`and an end game mode in which the users are placed in a
`for-um. In both modes the users are capable of placing bids
`along with times when those bids should be executed. An.
`agent treats the bids as secret until the time. and then at the
`time executes those bids.
`
`26 Claims. 9 Drawing Sheets
`
`DISPLAY 115M
`
`0E1ECT T—X
`BEFORE CLOSE
`
`TO ALL HEGLGTREES
`
`CALL END GAME
`
`SEND MESSAGE
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:20)
`EXHIBIT A PAGE 1
`
`

`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 3 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 3 of 19
`
`US 8,266,000 B1
`Page 2
`
`U.S.PAI'HN'I‘IXX‘UMPNI‘S
`,
`.
`520‘” “She'd”
`9:200l Shoham
`“#2002 Dinwoodie
`9:200}! Milnesela].
`."l
`[2'2002 Maia el al.
`3.533;: gimhfl al.
`[.2005 smjl
`3.2005 Seymour eta].
`5-200? Schmidt 9! a].
`85200? McConnell
`
`633-6“ B‘
`6.235.989 Bl
`6.415.269 81
`6.456.232 Bl
`6.499.0l8 Bl
`2:?ng 3:
`5.341939 13:
`6.571.190 B1
`1220A?! BE
`7.255.649 Bi
`
`2001-0032375 m I0-2001 Holdcncia].
`2001-0013703 m
`|.'2002 Harris
`200290188543 m [2.200; Wicschuegci m1.
`-,
`,-
`.1
`.
`-
`.0030158804 Al
`3-003 franctsctal.
`
`OTHER PUBLICATIONS
`eBay “Frequently Asked Question about Auction Types." Row. 22.
`1999 archived at Mtwaybackrnachmemg.
`hnp:-'v'pagcs_ebay.com’aw-proxy-biddinghlml. Feb. 1999.
`_
`' cued by examiner
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:21)
`EXHIBIT A PAGE 2
`
`

`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 4 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 4 of 19
`
`US. Patent
`
`Sep. 11. 2012
`
`Sheet l on
`
`US 8,266,000 B1
`
`
`
`
`
`
`
`- R
`
`EMOTE
`
`
`
`REMOTE
`
` INTERNET SERVER
`
`
`
`
`
`
`200
`
`
`
`
`205
`
`210
`
`
`
`220
`
`
`
`FIG. 1
`
`DISPLAYITEM
`
`DETECT T—X
`BEFORE CLOSE
`
`CALL END GAME
`
`SEND MESSAGE
`TO ALL REGISTREES
`
`FIG. 2
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:22)
`EXHIBIT A PAGE 3
`
`
`
`
`;
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`

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`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 5 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 5 of 19
`
`US. Patent
`
`Sep. 11, 2012
`
`Sheet 2 019
`
`US 8,266,000 Bl
`
`
`
`MAXIMUM BID
`
`30 1
`
`310
`
`DISPLAY MAX-BIDITIME
`
`320
`
`330
`
`340
`
`350
`
`CHANGE PROFILE
`
`BY GUI.
`
`FIG. 3
`
` TEXT ENTRY
`
`TIME”, MAX 311)“
`
`
`
`
`
`
`
`SOMETIMESIBIDS
`AS RULES
`
`OPTIONS
`
`360
`
`AS SPECIFIED TIME,
`RELEASE EACH RULE
`
`1
`.
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:23)
`EXHIBIT A PAGE 4
`
`

`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 6 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 6 of 19
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`US. Patent
`
`Sep. 11,2012
`
`Sheet 3 of9
`
`US 8,266,000 Bl
`
`402
`
`404
`
`CHECK ID
`
`;
`
`5
`.
`
`;
`
`ADD TO PARTICIPANTS
`LIST
`
`ASS/GM AN
`AGENDAGENT #
`
`DISPLAY W/ ICON
`
`405
`
`406
`
`
`
`
`
`
`
`422
`
`GETAMOUNT
`
`DISPLAY IN “NEW
`BIDDER” AREA
`(UPDATE?) BIDDER ONLY
`-
`-
`
`
`
`408
`
`
`”0
`
`REFRESH NEW
`
`424
`
`.
`'
`MDRE BIDDER TO
`“CURRENT BIDS ” AREA '
`
`426
`
`CALL AGENT WIN
`
`;
`
`FIG; 4
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:24)
`EXHIBIT A PAGE 5
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`

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`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 7 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 7 of 19
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`U.S. Patent
`
`Sep. 11, 2012
`
`Sheet 4 of9
`
`US 8,266,000 Bl
`
` °€330
`
`
`TIME FOR
`AUCTION
`EXPIRED .-
`
`?
`
`' YES
`
`430
`
`.
`
`DISPLAY GOING
`
` IMMUTE HA’YT _
`
`
`
`FIG. 4
`
`(Continued)
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:25)
`EXHIBIT A PAGE 6
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`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 8 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 8 of 19
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`US. Patent
`
`Sep. 11, 2012
`
`Sheet 5 of‘)
`
`US 8,266,000 Bl
`
`CURRENT
`WINNER
`
`GREEN
`FLASHING
`
`J05 BLOW
`
`STREAMING
`VIDEO OBJECT
`
`DUDE]
`
`100
`
`NEW
`
`STATISTICS
`46 PEOPLE
`
`CLICK
`
`530
`
`COMPUTER
` 500/
`WW BID
`
`HOW MUCH
`WOULD YOU
`LIKE TO BID
`
`QUICK
`
`CURH_BID-AGENT#
`WIN_BID
`
`MIN_BID
`USER NAME-AGENT#
`
`5 70
`
`NEW
`
`BIDDER
`
`FIG. 5
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:26)
`EXHIBIT A PAGE 7
`
`

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`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 9 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 9 of 19
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`US. Patent
`
`Sep. 11,2012
`
`Sheet 6 on
`
`US 8,266,000 B]
`
`AGENT WIN
`
`..
`
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`
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`
`
`
`
`
`..
`
`__
`
`'
`
`GET NEW
`no MW 3m, wwflszacumfim
`SEND TO
`ALL PARTICIPANTS
`’MDERATH .
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`.
`
`.
`
`5’4
`
`
`
`532
`
`UPDATE ALL
`
`
`
`
`530
`
`SET-
`CURB. 3:03am 3/0
`
`
`
`
` DISPLAY NEW BID
`FLASH BIDDER AT
`
`
`TOP OF SCREEN
`
`
`
`
`620
`
`DISPLAY
`"0mm" '
`
`625
`
`CURB. BID '
`
`NEWWBID.
`
`[5
`NEW BID
`—
`WEED
`
`
`
`
`
`
`
`.
`
`CALL
`AGENTMG
`
`
`
`
`
`SET WlNflBID = NEW_BID
`
`;
`
`SET_MW_BID = WIN_BID + we _
`
`FIG. 6.4
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:27)
`EXHIBIT A PAGE 8
`
`

`

`m
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 10 of 19
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`EXHIBIT A PAGE 9
`
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`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 11 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 11 of 19
`
`US. Patent
`
`Sep. 11,2012
`
`Sheet 8 on")
`
`US 8,266,000 B]
`
`327
`
`QUICK BID
`
`CLICK
`
`QUICK BID
`AMOUNT IS
`Sfl CK?
`
`
`
`Y
`N
`
`
`
`FIG. 75
`
`
`
`I N
`
`
`
`QUICK WIN
`AMOUNT IS
`@ OK?
`
`QUICK WIN BID
`
`CLICK
`
`FIG. 7B
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:20)(cid:19)
`EXHIBIT A PAGE 10
`
`

`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 12 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 12 of 19
`
`U.S. Patent
`
`Sep. 11. 2012
`
`Sheet 9 019
`
`US 8,266,000 Bl
`
`799
`
`ANTI SNIPING OPTIONS
`TIME
`
`
`
`
`
`
`ONLY WINNING _
`BIDDERS
`
`AUCTION-
`HECORD BIDS AND NAMES
`
`80?
`
`
`
` DE TEC T
`
`ENDGAME
`
`?
`
`820
`
`
`
`
`825
`
`
`NEW BID
`A1117/
`
`CONTINUE 0’” “ST COMPARE TO LIST
`”ST
`SNIPING
`
`
`
`ACTION
`OI? PHgVIOUS
`
`
`
`
`
`
`FIG. 8
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:20)(cid:20)
`EXHIBIT A PAGE 11
`
`

`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 13 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 13 of 19
`
`US 8.266.000 B!
`
`2
`
`FIG. 2 shows a flowchart ofoperation according to a first
`mode:
`
`FIG. 3 shows a flowchart o fthe special "agent" used in this
`auction system:
`l: 10‘. 4 shows a flowchart of operation of an end game;
`FIG. 5 shows a diagram of the litmtn showing the multiple
`users
`
`U:
`
`FIGS. 6A and EB shows llowcharts ol'hidding;
`FIGS. 7A and 7B show a quick bid embodiment: and
`FIG. 8 shows an embodiment that may prevent last minute
`bidding.
`
`DETAILED DESCRIPTION
`
`1
`REAL TIME AUCTION WITH END GAME
`
`CROSS REFERENCE TO RELATED
`APPLICATIONS
`
`This application claims the benelit oflhe lJ.S. Provisional
`Application No. 60!] 69.728 filed on Dec. 8. 1999 and US.
`application Ser. No. 09t669.805. filed Sep. 26. 2000.
`
`[BACKGROUND
`
`The present invention describes a new Introdigm for con-
`ducting an auction on a remote intormation server such as the
`Internet.
`The Internet is an extremely powerful tool for conducting
`auctions. Literally mi lliotts of users can simultaneously take
`part
`in a single auction. Auction sites such as H-bay have
`popularized the Internet auctions. Each of these auctions
`allows bidding between virtually every person who has
`access to the Internet.
`The auctions often lost over an extended period 0 ftitue. cg.
`over one week. Many of these auctions use agents which
`automatically handle the bidding. 'lhc bidder instructs the
`agent with information about the bidder‘s maximum desired
`bid. The agent will bid only up to that amount. Moreover. the
`agent does not immediately bid its maximum amount: it only
`bids on amount when the price tiI'tlte item rises to a level that
`[bones the agent to bid in order to keep the high bid.
`It has been found that the most serious and competitive
`bidding can occur at the end of the auction. Conversely.
`bidding. early in the auction tends to cause the product to sell
`for more money than it would have sold tor otherwise. There-
`fore. people often wait until the last instant. e.g.
`the last
`minutes or seconds ofthe auction. before bidding.
`Auction sites such as E-bay often have fixed times for the
`auction ending. the auction ends at that moment. even if
`bidding maybe most intense at that moment. 1 fa bid is placed.
`btlt not received before the instant o l'tlte auction end. the item
`will sell. 'l'hercforc. Internet delays can cause a product to sell
`liar less money than it otherwise would have sold for.
`
`SUMMARY
`
`-
`
`“H
`
`4n
`
`FIG. I shows a basic structurcofa first embodiment ol‘the
`bidding system. The bidding. is actually carried out within a
`virtual environment created by the central “server" computer
`100. The server may be more titan one computer. which
`operate to execute a program as described herein.
`Server 100 keeps track ofall the bids. and produces the
`graphical environment that is displayed on each ofthe remote
`terminals. where only three remote terminals: 110. 120 and
`I30: are shown. Literally every computer on the Internet
`_‘ could be included. Each of the remote terminals preferably
`obtains a view that is partly the same as the others. and partly
`different.
`Sewer 100 runs the flowchart shown in FIG. 2. The main
`flowchart runs the beginning part of the auction as a conven-
`tional Internet auction. shown generally as step 200. The item
`to be sold is displayed. 11 is listed in some kind of index. or
`under a category. This can be thought of as the advertising
`part. Using an analogy to a real auction. this is the portion of
`the auction where the items can be viewed.
`to a particularly prelinred embodiment. the item is viewed
`in three dimensions. A picture of the item is shown. The
`picture of the item can he a nae-dimensional picture or a
`three-dimensional picture. ifa three-dimensional picture is
`used. the system lirst displays a two-dimensional “splash" of
`the image while the system is loading the three-dimensional
`information. The three-dimensional information is then used
`to enable viewing the item three-dimensionally. This can he
`done using the techniques described in our application
`entitled "Touch and Feel on the lntemet“: Ser. No. 09505.
`' 646.
`to whatever form the item is displayed. this is the period
`during which the users can see and lind the items of interest.
`As conventional. this portion ot‘thc auction also accepts bids.
`eg. via a bid agent. A special bid agent can be used as
`described herein.
`This bid form continues until some specified time period
`(it) before auction close. eg. one hour priorto auction closing.
`Step 205 shows detecting that predetermined time. shown as
`time t-x. The auction mode changes to a mode that indicates
`the higher energy and interest associated with this portion of
`the auction. Step 210 shows calling the “end game“. which is
`the routine that runs this higher energy portion of the auction.
`This changes the auction mode to a more interactive atmo-
`sphere.
`At step 220. all of the people who have registered for the
`auction and indicated a desire to participate itt the end game
`are sent a message. This message can be sent in a number of
`dificrent ways. An e-mail can be sent to each person on the
`list. Pager numbers can also be contacted to leave an alpha-
`‘ numeric page indicating the URI- 01' the auction site. These
`two techniques are especially advantageous when the email
`or page is sent to a cellular pltone ofa type that allows web
`
`'lhe prosettt invention recognizes that the standard model
`of Internet auctions is actually flawed. Auctions should be
`carried out more like a real live auction. While live auctions
`are known in the Internet art. a ditTcrent kind oflive auction is
`described herein. This live auction includes certain refine-
`ments which improve it for use on the Internet.
`This includes an identification system with each of a plu-
`rality ol'bidders being identifiable.
`Another aspect includes a combination ofan tin-line auc-
`tion and off-line auction. with the ol‘l'nline auction forming
`elTectively a display period for the merchandise during which
`the users can place bids. and the on-linc auction forming a .'
`final bidding period for the goods during which the goods are
`actually sold.
`Another aspect is an agent for use in an online auction. in
`which not only the amounts ofthe bids. but also the time W hen
`those amounts are release. are specified.
`BRIEF DESCRIPTION 01" THE DRAWINGS
`
`5(-
`
`6|.
`
`These and other aspects will now be described in detail
`with respect to the accompanying drawings. wherein:
`FIG. 1 shows a block diagram of the hardware used by the
`bidding system of the first embodiment:
`
`(cid:40)(cid:59)(cid:43)(cid:44)(cid:37)(cid:44)(cid:55)(cid:3)(cid:36)(cid:3)(cid:51)(cid:36)(cid:42)(cid:40)(cid:3)(cid:20)(cid:21)
`EXHIBIT A PAGE 12
`
`

`

`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 14 of 19
`Case 3:13-cv-00360-JAH-WMC Document 1-2 Filed 02/13/13 Page 14 of 19
`
`US 8,266,000 Bl
`
`4
`
`3
`
`up to 520. a later bid may actually bid against the agent‘s
`previous bid. and force the agent up to its maximum. This
`system enables overriding previous bids placed with the
`agent.
`in order to allow placing a higher bid.
`In some
`instances. that overriding can be allowed. for example. only
`when a higher bid is desired.
`The ability to cancel a previously-entered rule.
`Contact information to contact [at step 220] during the end
`game. andfor a request to enter the end game.
`Author-nation to automatically raise the bid [or a reserve
`auction.
`
`so
`
`1-:
`
`3|]
`
`35
`
`4t:
`
`45
`
`Other options are possible.
`Each of these options are preferably written as rules that
`drive the automated bidding program.
`These rules written by the agent are kept secret until the
`time they are executed. Each of the rules includes an execute
`time. For example. for the bid rules shown in step 330. each
`rule starts with at time 1.. do x. The present application con-
`templates placing multiple difi'erent bidi’timc combinations in
`this way. For example. a first one could allow bidding up to
`W at time t-l hour; and a larger hid ol‘up to 5x2 at time 1-le
`hour.
`Prior to this time to execute. the main process running on
`the server computer cannot obtain the contents of the rule.
`Only the person who made the rule can read the rule.
`filter the time 11- the agent will bid up to the maximum
`amount specified. not placing any bid until the time specified.
`However. since the time for the rule has passed. the server at
`that point knows certain information about the contents of the
`rule. and can use that infomtation as described herein.
`'l‘herctore. before the specified times. the rules are abso-
`lutely secret. No one except the bidder can find these rules.
`After the time. the contents of the rules can be known to the
`server. The disclosure pmvided herein describes how these
`bids allow faster bid processing. e.g. bid rejection and the like.
`Step 36!) shows the agent generally carrying out a time pro-
`cessing routine. At the specified time. each rule e.g. bid. is
`released.
`For rules such as reserve handling. the time ofrelease is the
`auction end.
`x.
`As described above. at the speci lied time. Al |{' lit in __t:xt)
`the end game rottlinc is called. and the auction form changes.
`The end game is shown in FIG. 4. Step 4th detects a new
`bidder entering the end game. As described above, this can be
`done by the bidder signifying their intention to enter the end
`game. or can be an automatically—created pop up window
`when a previously~rcgislered user logs in to the auction‘s
`website. The flowchart shows verifying the identity of the
`. new bidder at step d02. Once the identity is verified. e.g.. by
`ttsemante and password. the user is added to the participants
`list for the end game at step 40-1.
`The endgame is carried out in a graphical forum. Each user
`is shown in the forum. along with other users. The tor-tun 500
`is shown in FIG. 5. Once the new user has been added at step
`404. the user is displayed in the forum. with an icon indicating
`the user's status. The status can include credit rating or other
`information. The user is initially displayed in the new bidder
`area 510. Step 406 illustrates displaying the new user in the
`new bidder area.
`In this embodiment. the user signs in. and thereafter can
`place bids without entering their nnmerpassword. This is dif-
`l‘ercnt from other onliue auction paradigms. in which mch bid
`requires the user‘s namefpassword. This is more difficult for
`the user. and also slows down the operation. In this paradigm.
`a session key can be established after login. so that the com-
`n'tunieation occurs over a secure channel.
`
`3
`browsing. The endgame can be carried out on the cellular
`phone. by clicking on the URL that is sent.
`An automated agent can leave an audio message (voice
`mail) on a person‘s normal telephone. indicating that the end
`game has started.
`After an endgame has started. and while still in progress. a
`user can log into the auction site. The user enters their name
`and password. as conventional. Upon entering their name and
`password. the user receives an indication. e.g. via a pop tip
`window with a prompt. that the end game for this auction is in
`progress. The pop up window can take them directly into the
`end game environment.
`The special agent program used herein takes into amount
`the realities of such a system. Bidding too early in the process
`can increase the price for an item. Usually the prices in the
`early pan of the auction are kept moderate. The bidding often
`does not teach levels approximating the actual value until
`later in the auction.
`The previously-used system automatically immediately
`made its bid based on current bid amount. Iftwo people gave
`instructions to their systems. tltose two people would auto-
`matically and immediately hid against each other. until one
`was outbid. Consequently. users often do not place Lheir bids
`early. to avoid starting suclt a bidding war.
`The present application describes an agent which avoids
`this issue by using a time profile. The agent allows setting
`bids.
`including maximum bids. and also setting times at
`which those maximum bids will be provided.
`Another operation describes a graphical user interface sim-
`plifying that operation.
`The flowchart shown in FIG. 3 represents the agent man»
`ager {AGENT_MG).
`The user is first prompted fora maximum bid (MAX_3ID)31
`step .101. That maximum bid indicates the maximum that the
`agent will be authorized to bid on the item. The agent will not
`bid any amount. however. tutti] authorized to do so.
`At step 310. a graphical representation of times and the
`maximum bid is displayed. The graph can initially show any
`desired profile ofbid vs. time: here it shows the agent being
`authorized to bid the MAX_ BID amount. immediately. This
`profile. however. can be changed. Step 320 shovvs one tech-
`nique i It w hich the graph is edited. The user may. for example.
`not allow any bids until the end game or allow a very moderate
`bid initially. and more bids in the end game. The profile as
`edited in step 320 shows no bids being authorized until a time
`y. That time y can be determined with precision by resting the
`cursor over a time. and waiting for a “screen tip" to be dis-
`played. This graphica] system can be easily edited on many
`different platforms. cg. a cellular phone that allows web
`browsing.
`At any