Case 3:13-cv-01612-JAH-WMC Document 1 Filed 07/11/13 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.
`
`'13CV1612
`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-01612-JAH-WMC Document 1 Filed 07/11/13 Page 2 of 6
`
`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-01612-JAH-WMC Document 1 Filed 07/11/13 Page 3 of 6
`
`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.
`Since February 4, 2013, Defendant eBay continues to update auction
`information automatically during each auction’s final hour.
`20. 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.
`21. Accordingly, Defendant eBay’s continuing direct infringement is
`willful.
`Plaintiff Advanced Auctions LLC has been, and continues to be,
`22.
`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
`23.
`Plaintiff Advanced Auctions LLC reincorporates and realleges the
`foregoing paragraphs as if included expressly herein.
`24.
`To participate in or monitor Defendant eBay’s online auctions,
`computer users navigate to eBay’s website.
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
`
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`Case 3:13-cv-01612-JAH-WMC Document 1 Filed 07/11/13 Page 4 of 6
`
`25. While at Defendant eBay’s website, users selecting particular auctions
`receive webpages regarding those auctions from eBay’s servers.
`26.
`Those auction webpages are, in turn, displayed on the users’
`computers.
`The auction webpages function as discussed above, namely, prior to
`27.
`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.
`28.
`Programmed to conduct online auctions in this manner, Defendant
`eBay’s webpages induce its users to infringe claims of the ’000 Patent.
`29.
`Indeed, as shown above, Defendant eBay’s auction webpages only
`function in an infringing manner.
`30.
`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.
`31.
`In addition, whenever bidders pay for their auction purchases using
`eBay’s PayPal or Bill Me Later services, eBay also collects another percentage of
`the sales price of those items.
`32. 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.
`33. On July 6, 2013, Defendant eBay had 60,671,259 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.
`34. As discussed above, Defendant eBay has been informed of the ’000
`Patent and how its auction webpages infringe.
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
`
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`Case 3:13-cv-01612-JAH-WMC Document 1 Filed 07/11/13 Page 5 of 6
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`35. 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.
`36.
`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.
`37. Defendant eBay’s continued, knowing infringement demonstrates the
`intent necessary to constitute inducement.
`38. 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.
`39.
`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;
`B.
`A permanent injunction against Defendant eBay, its officers, agents,
`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;
`
`PLAINTIFF ADVANCED AUCTIONS LLC’S
`COMPLAINT FOR PATENT INFRINGEMENT
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`Case 3:13-cv-01612-JAH-WMC Document 1 Filed 07/11/13 Page 6 of 6
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`An accounting for damages resulting from Defendant eBay’s
`C.
`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;
`F.
`Such other and further relief as this Court deems just and proper.
`
`DATED: July 11, 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-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 1 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 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) (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-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 2 of 19
`Case 3=13-CV-°1612'JAH'WMC D°°llllli|lllllllfllllllllll11111111111|11111111111111||||
`
`U800826600081
`
`(12}
`
`United States Patent
`Harris
`
`(10) Patent No.:
`
`(45) Date of Patent:
`
`US 8,266,000 B]
`Sep. 11, 2012
`
`(54)
`
`(75)
`
`(73)
`
`REAL TIME AUCTION WITII END GAME
`
`Inventor: Scott C. Harris. Rancho Santa Fe. CA
`(US)
`
`Assignee: Harris Technology. lnc._. Rancho Santa
`Fe. CA (US)
`
`(*1
`
`Notice:
`
`Subject to any disclaimer. the term ofthjs
`patent is extended or adjusted under 35
`U.S.C. 15403) by 0 days.
`
`(21)
`
`Appl. No: tztssonm
`
`(22)
`
`Filed:
`
`Sep. 12. 2010
`
`Related U.S. Application Data
`
`(60)
`
`I')ivision of application No. 12I464.7()6. filed on May
`12. 2009. which is a continuation of application No.
`09080248. filed on Feb. 9. 2001. now abandoned.
`
`CA
`
`5.847.971 A
`5.890.138 A
`5.905 .925 A
`5.924.083 A
`5.960.411 A
`5.978.842 A
`6.012.045 A
`6.021.398 A
`6.023.686 A
`6.026.383 A
`6.044.363 A
`6.0 58.329 A
`6.101.498 A
`6.1 13.504 A
`6.161.099 A
`6.199.050 B
`6.202.051 Bl
`6.216.114 131"
`
`12-1998 Iadner el al.
`3-1999 Godin ct a1.
`53‘ 1999 Ausubc]
`'III999 Silvcrman ct a].
`91999 1-1311:th el 2].
`1 131999 Nobie et a1.
`132000 Bamilai ct a1.
`2-2000 Atlsubel
`3-2000 Brown
`232000 Ausubel
`352000 Mari et a1.
`59'2000 Odom ct al.
`8.32000 Scacr ct al.
`9-2000 Kuestcrs
`12.52000 Harrington et al.
`3-"2001 Alaia el .11.
`332001 Woolston
`432001 Alaia et a1.
`
`(Continued)
`
`FOREIGN PA'I‘I'EINI'I~ DOCUMliN'l‘S
`2305834
`10.: 2001
`
`OTHER PUBLICATIONS
`
`"I05I3'I
`
`mm
`
`(51)
`
`(52)
`(58)
`
`(56)
`
`which is a continuation-in-part 01' application No.
`09I669.805. tiled on Sep. 26. 2000.
`
`Provisional application No. 60;If 169.728. filed on Dec.
`8. 1999.
`
`Int. (11.
`
`[2012.01]
`
`GIMQ 40/00
`705I26
`U.S. C1.
`20585—45
`Field efCIassifieation Search
`Sec application file for complete search hislory.
`
`
`
`References Cited
`
`U .S. PA’l‘liN’l‘ DOCUMENTS
`
`4389.928 A
`5.700.204 A
`5.294.219 A
`5.835.896 A
`5.845.265 A
`
`lit-"1988 Fujisaki
`13"1997 'l‘eder
`8.“ 1998 Brown
`1 1-1998 I’lshcr ct a1.
`12!]998 Wholston
`
`Prince 1).. Auction This! Your Complete Guide to the World of Unline
`Auctions. Prima Tech. pp. 136— 13?. 1999.
`
`(Continued)
`
`Thomas M I'larnmond. 111
`Primary Examiner
`(74) Attorney: Agent. or Firm — Law Office of Scott C.
`Han-is. Inc.
`
`(57)
`
`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
`forum. 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 execules those bids.
`
`26 Claims, 9 Drawing Sheets
`
`DETECT T—X
`BEFORE CLOSE
`
`CALI. END GAME
`
` DISPLAY IIEM
`
`SEND MESSAGE
`TO ALI. REGISTHEES
`
`EXHIBIT A PAGE 1
`EXHIBIT A PAGE 1
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 3 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 3 of 19
`
`US 8,266,000 B]
`
`Page 2
`
`U.S. PATENT DOCUMENTS
`Bl
`67200]
`Fisher et al.
`B1
`97200]
`Sholmm
`B1
`772002
`Dinwoodie
`Bl
`9-"2002
`Milnes e! a].
`Bl
`[272002
`Alaia el 21].
`Bl
`372003
`Gobush
`Bl
`872004
`Ewing et a].
`Bl
`172005
`Shcmcsh
`Bl
`372005
`Seymour et al.
`BZ
`572007
`Schmidt et a].
`Bl
`872007
`McConnell
`
`6.243.691
`6.285.989
`6.415.269
`6.456.232
`6.499.018
`6.533.674
`6.774.932
`6.847.939
`6.871.190
`7.220.187
`7.255.649
`
`200170032175 A1
`200270013763 Al
`200270188545 Al
`200370158804 Al
`
`[072 001 Holden el :11.
`172002 Harris
`[272002 Wiesehuegel e1 :11.
`872003 Francis 01 .11.
`
`OTHER PUBLICATIONS
`
`eBay “Frequently Asked Question about Auction 'l'ypcs.” Nov. 22.
`1999 archived at uuwwaybackmachinegrg.
`hrtp:77pagcs.ebay.c01maw7proxy-biddinghum. Feb. [999.
`
`" ciled by examiner
`
`EXHIBIT A PAGE 2
`EXHIBIT A PAGE 2
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 4 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 4 of 19
`
`US. Patent
`
`Sep. 11, 2012
`
`Sheet 1 of 9
`
`Us 8,266,000 B1
`
`
`
`
`
`;
`
`: REMOTE
`
`-:
`
`
`
`
`
`
`{NTERNET
`
`SERVER
`
`REMOTE
`
`HG“. 1
`
`200
`
`20
`
`5
`
`2N}
`
`DISPLAYITEM
`
`.
`
`DETECT TwX
`BEEQHE CLOSE
`
`
`
`
`
`CALL END GAME
`
`220
`
`
`
`SEND MESSAGE
`TO ALL REGISTHEES
`
`
`
`Fifi 2
`
`EXHIBIT A PAGE 3
`EXHIBIT A PAGE 3
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 5 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 5 of 19
`
`US. Patent
`
`Sep. 11, 2012
`
`Sheet 2 of 9
`
`Us 8,266,000 B1
`
`
`
`30 1
`
`.
`- MAXIMUM BID
`
`_:_:.;:”::EEII
`
`3m
`
`DISPLAYMAX—BID/TIME
`
`3‘20
`
`330
`
`340
`
`350
`
`360
`
`-
`
`CHANGE PROFILE
`
`3v GUI,
`
`HQ. 3
`
`TEXT ENTRY
`TIME”, MAX 810m
`
`SOMETIMES/BIDS
`AS RULES
`
`0PTFONS
`
`AS SPECIFIED TIME,
`RELEASE EfiCH RULE
`
`EXHIBIT A PAGE 4
`EXHIBIT A PAGE 4
`
`I
`
`-
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 6 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 6 of 19
`
`US. Patent
`
`Sep. 11, 2012
`
`Sheet 3 of 9
`
`US 8,266,000 B1
`
`
`
`END GAME
`
`
`
`
`400
`NEW -
`
`
`--
`
`
`402
`
`404
`
`:9
`
`__
`
`CHECK :17
`
`ASSIGN AN
`AGENNWGENT N
`
`DISPLAY W/ ICON
`
`405
`
`406
`
`
`
`
`
`
`
`
`422
`
`424
`
`GETAMOUNT
`
`DISPLAY IN ”NEW
`
`BIDDER” AREA
`(UPDATE?) BIDDER ONLY
`
`408
`
`REFRESH NEW
`
`MORE BIDDER m
`“CURRENT BIDS”AREA
`
`”9
`
`426
`
`.5
`
`0,411 AGENT WW
`
`FIG. 4
`
`EXHIBIT A PAGE 5
`EXHIBIT A PAGE 5
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 7 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 7 of 19
`
`US. Patent
`
`Sep. 11, 2012
`
`Sheet 4 of 9
`
`Us 8,266,000 B1
`
`430
` TIME FOR
`
`
`Aucnem ,»
`
`
`1E3
`
`439
`
`DISPLAV GOING
`
`-
`
`IMMUTE HAT?“
`
`434
`
`UPDATE ALL
`WAIT 20 SEC
`
`445
`
`GGING. ..
`
`BISPLAY <OUICK BID >
`ICON
`
`450
`
`452
`
`UPDATE ALL
`
`WAIT 20 SEC
`
`
`
`FIG. 4
`
`(Coniinyed)
`
`EXHIBIT A PAGE 6
`EXHIBIT A PAGE 6
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 8 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 8 of 19
`
`US. Patent
`
`Sep. 11,2012
`
`Sheet 5 of 9
`
`US 8,266,000 B1
`
`CURHENT
`WINNER
`
`GREEN
`FLASHING
`
`JOE BLOW
`
`STREAMING
`VIDEO OBJECT
`
`780
`
`I WAGENT
`
`COMPUTER a"
`
`IGUWGI
`
`"\jW-n—J
`
`STATISTICS
`45 PEQPLE
`
`CLICK
`
`530
`
`533')
`
`HOW MUCH
`WOULD YOU -
`LIKE TO BID
`
`
`WW 3113
`
`
`
`CUHRHBID-AGENME
`WIN_8:‘D
`
`QUICK
`
`M}N_BID
`
`USER NAME-AGENT#
`
`530
`
`NEW
`
`BIDDER
`
`FIG. 5
`
`EXHIBIT A PAGE 7
`EXHIBIT A PAGE 7
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 9 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 9 of 19
`
`US. Patent
`
`Sep. 11, 2012
`
`Sheet 6 of 9
`
`US 8,266,000 B1
`
`
`
`" AGEN? WIN
`
`420
`
`"
`
`NEW
`Bf!)
`
`
`
`5
`
`GETNEW
`
`
`MW BID WIN BID CURB. 5m
`,
`__
`,
`__
`35m TO
`ALL PARTICIPANTS
`;
`
`
`W07.
`
`
`
`5:2
`
`.
`
`
`
`
` DISPMY NEW BID :
`
`FMSH BIDDER A?"
`TOP 0F SCREEN
`
`
`
`
`
`
`
`.
`
`.. -:L:- I
`
`
`
`DISPLAY 5
`”‘OUTBID”
`
`
`
`620
`
`6
`
`5
`
` IS
`
`NEW__BID
`>
`
`
`640
`
`643
`
`;
`CALL
`AGENT MG
`
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`SET WINMBID=NEW__BID
`
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`
`EXHIBIT A PAGE 8
`EXHIBIT A PAGE 8
`
`

`

`US. Patent
`
`Sep.11,2012
`
`Sheet70f9
`
`US 8,266,000 B1
`
`EXHIBIT A PAGE 9
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`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 10 of 19
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`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 11 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 11 of 19
`
`US. Patent
`
`Sep. 11,2012
`
`SheetS 019
`
`US 8,266,000 B1
`
`$27
`
`QUICK 319
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`EXHIBIT A PAGE 10
`EXHIBIT A PAGE 10
`
`

`

`
`
`
`AUCTION-
`
`ONLY WINNING
`
`RECORD BIDS AND NAMES
`
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 12 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 12 of 19
`
`US. Patent
`
`Sep. 11,2012
`
`Sheet 9 of 9
`
`US 8,266,000 B1
`
`
`
`ANTI SNIPWG GPTIDNS
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`799
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`
`EXHIBIT A PAGE 11
`EXHIBIT A PAGE 11
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 13 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 13 of 19
`
`US 8,266,000 B]
`
`1
`REAL TIME AUCTION WITH END GAME
`
`CROSS REFERENCE TO RELATED
`APPLICATIONS
`
`This application claims the benefit ofthe U .S. Provisional
`Application No. 60f169.728 filed on Dec. 8. 1999 and U .5.
`application Ser. No. 091’669,805. filed Sep. 26. 2000.
`
`BACKGROUND
`
`The present invention describes a new paradigm for con-
`ducting an auction on a remote information server such as the
`Internet.
`
`The Internet is an extremely powerful tool for conducting
`auctions. Literally millions oi'users can simultaneously take
`part in a single auction. Auction sites such as E-bay have
`popularized the Internet auctions. Each of these auctions
`allows bidding between virtually every person who has
`access to the Internet.
`The auctions o ften last over an extended period oftimc. e.g.
`over one week. Matty of these auctions use agents which
`automaticaily handle the bidding. The bidder instructs the
`agent with infonnation about the bidder’s maximum desired
`bid. The agent will bid only tip to that amount. Moreover. the
`agent does not immediately bid its maximum amount: it only
`bids an amount when the price of the item rises to a level that
`forces 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 for otherwise. There-
`fore. people often wait until the last instant. e.g. the last
`minutes or seconds of the 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 tnay be tnost intense at that moment. Ii‘a bid is placed.
`but not received before the instant ofthe auction end. the item
`will sell. Therefore, Internet delays can cause a product to sell
`for less money than it otherwise would have sold for.
`
`SUMMARY
`
`The present 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 di tierent kind oflive auction is
`described herein. This live auction includes certain retitle-
`
`ments which improve it for use on the Inteniet.
`This includes an identification system with each of a plu—
`rality of bidders being identifiable.
`Another aspect includes a combination of an en-linc auc-
`tion and off-line auction. with the ofi-line auction forming
`efl‘ectively a display period for the merchandise during which
`the users can place bids. and the on-line 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 amotmts ofthe bids. but also the time when
`those amounts are release. are specified.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`These and other aspects will now be described in detail
`with respect to the accompanying drawings. wherein:
`FIG. I shoWs a block diagram ofthe hardware used by the
`bidding system of the first embodiment;
`
`2
`
`FIG. 2 shows a flowchart of operation according to a first
`mode:
`FIG. 3 shows a flowchart ofthe special “agent" used in this
`auction system:
`FIG. 4 shows a flowchart of operation ofan end game:
`FIG. 5 shows a diagram of the forIJm showing the multiple
`llSCl'S
`
`1U
`
`FIGS. 6A and GB shows flowcharts ofbidding'.
`FIGS. 7A and 7B show a quick bid embodiment: and
`FIG. 8 shows an embodiment that may prevent last tninute
`bidding.
`
`DETAILED DESCRIPTION
`
`FIG. I shows a basic structure ot'a first embodiment of 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 than one computer, which
`- operate to execute a program as described herein.
`Server 100 keeps track of all the bids. and produces the
`graphical environment that is displayed on each ofthe remote
`tenninals. where only three remote tenninals: 110. 120 and
`130; are shown. Literally every computer on the Intemet
`could be included. Each of the remote t'enninals preferably
`obtains a view that is partly the same as the others. and partly
`different.
`Server 100 runs the flowchart shown in FIG. 2. The main
`
`3o
`
`35
`
`4t:
`
`45
`
`50
`
`flowchart runs the beginning part ofthe auction as a conven-
`tional Internet auction, shown generally as step 200. ‘Ihe item
`to be sold is displayed. [1 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.
`In a particularly preferred embodiment. the item is viewed
`in three dimensions. A picture of the item is shown. The
`picture of the item can be a two—dimensional picture or a
`tluee-dimcnsional picture. ll‘a tlu‘eedimensional picture is
`used. the system first 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 be
`done using the techniques described in our application
`entitled “Touch and Feel on the intemet": Ser. No. 09505.
`646.
`
`In whatever l‘onn the item is displayed. this is the period
`during which the users can see and find the items of interest.
`As conventional, this portion 0 f the auction also accepts bids,
`e.g. via a bid agent. A special bid agent can be used as
`described herein.
`
`55
`
`6t;
`
`This bid form continues until some specified time period
`(it) before auction close. c.g. one hourprior to 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 ol‘
`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 in the end game
`are sent a message. This message can be sent in a number of
`different 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 URL of the auction site. These
`two techniques are especially advantageous when the email
`or page is sent to a cellular phone of a type that allows web
`EXHIBIT A PAGE 12
`EXHIBIT A PAGE 12
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 14 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 14 of 19
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`3
`
`4
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`US 8,266,000 B]
`
`browsing. The endgame can be carried out on the cellular
`phone. by clicking on the URL that is sent.
`An automated agent can leave em 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 up
`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 account
`the realities ofsuch a system. Bidding too early in the process
`can increase the price for an item. Usually the prices in the
`early part of the auction are Ropt moderate. The bidding often
`does not reach levels approximating the actual value until
`later in the auction.
`
`The previously-used system automatically immediately
`made its bid based on current bid amount. If two people gave
`instructions to their systems. those two people would auto—
`matically and immediately bid against each other. tutti] one
`was outbid. Consequently. users olien do not place their bids
`early. to avoid starting such 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 for a maximum bid (MAX__BID) at
`step 30] .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. tuttil 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 of bid vs. time: here it shows the agent being
`authorized to bid the MA.\'__BI'D amount.
`immediately. This
`profile. however. can be changed. Step 320 shows one tech-
`nique in which 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 graphical system can be easily edited on many
`different platforms. e.g.. a cellular phone that allows web
`browsing.
`At any point. instead of using the graphical user interface,
`the user can select, e.g._. right click. on a portion of the line.
`and use a text entry system. Step 330 shows a textual inter-
`face. The user can enter information. e.g..
`AT TIME t].
`
`
`
`ALLOW A m‘tlhflm 13
`n or $xi . where the underlined informa-
`tion is entered.
`However entered. the maximum bids and the times at
`which those maximum bids are allowed to be released. are
`stored at 340. This information is entered as a function of
`
`ll]
`
`3U
`
`35
`
`4t:
`
`45
`
`50
`
`55
`
`6t;
`
`up to $20. a later bid may actually bid against the agent’s
`previous bid. and force the agent up to its maximum. This
`system enables overriding previous bids placed with the
`agent.
`in order to allow placing a higher bid.
`In sortie
`instances, that overriding can be allowed. for example. only
`when a higher bid is desired.
`The ability to cancel a previously-entered rule.
`Contact information to contact (at step 220) during the end
`game. andlor a request to enter the end game.
`Authorization to automatically raise the bid for a reserve
`auction.
`
`Other options are possible.
`Each of these options are preferably written as rules that
`drive the automated bidding program.
`These rules written by the agent are kept secret until the
`time they are executed. Each of the rules includes an execute
`time. For example. for the bid rules shown in step 330. each
`rule starts with at time tI . do x. The present application con-
`templates placing multiple difl‘erent bidftime combinations in
`this way. For example. a first one cottld allow bidding up to
`$xl at time t«l hour: and a larger bid of up to 3x2 at time t-l/z
`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.
`After 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 ini'omiation as described herein.
`Therefore. before the specified times. the rtlles are abso-
`lutely secret. No one except the bidder can [ind these rules.
`After the time. the contents of the rules can be known to the
`server. The disclosure provided herein describes how these
`bids allow faster bid processing. e.g. bid rejection and the like.
`Step 360 shows the agent generally carrying out a time pro-
`cessing routine. At the specified time. each rtlle e.g. bid. is
`released.
`
`For rules such as reserve handling. the time ol‘release is the
`auction end.
`As described above. at the specified time. AUCTION_END—X.
`the end game routine is called. and the auction form changes.
`The end game is shown in FIG. 4. Step 400 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-registered user logs in to the auction‘s
`website. The flowchart shows verifying the identity of the
`new bidder at step 402. Once the identity is verified. e.g.. by
`username and password. the user is added to the participants
`list for the end game at step 404.
`The endgame is carried out in a graphical forum. Each user
`is shown in the forum. along with other users. The forum 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.
`
`time. and hence can be stored as rules. for example. A rule
`might read:
`At time ALIC'TION_END—0:30 (30 minutes before auction
`end), bid up to 810.
`Option entry is carried out at step 350. Options can include:
`()verriding previous bids during the end game. This can be
`important with an agent. Ifthe agent has been instructed to bid
`EXHIBIT A PAGE 13
`EXHIBIT A PAGE 13
`
`In this embodiment. the user signs in. and thereafter can
`place bids without entering their namefpassword. This is dif-
`ferent from otheronline auction paradigms. in which each bid
`requires the user’s namefpassword. This is more diificult for
`the user. and also slows down the operation. In this paradigm,
`a session key can be established after login. so that the com-
`munication occurs over a secure channel.
`
`

`

`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 15 of 19
`Case 3:13-cv-01612-JAH-WMC Document 1-2 Filed 07/11/13 Page 15 of 19
`
`I;
`
`US 8,266,000 BI
`
`6
`
`The check ID step of step 402 can be user verification by
`any means. One such verification is specific to ttse with a
`web-browsing cellular telephone. The