United States Patent [19]
`Popolo
`
`|||||||||||||||||||||||||||||||||||
`US005715402A
`[11] Patent Number:
`5,715,402
`[45] Date of Patent:
`Feb. 3, 1998
`
`[54] METHOD AND SYSTEM FOR MATCHING
`SELLERS AND BUYERS OF SPOT METALS
`-
`[75] Inventor: Carl A. Popolo. Carlisle, Mass.
`[73] Assignee: Spot Metals Online, Bloomfield Hills.
`Mich.
`
`[21] Appl. No.: 554,899
`-
`[22] Filed:
`Nov. 9, 1995
`[51] Int. Cl* ~~~~~~~~~~~ G06F 17/60
`[52] U.S. Cl. .............
`395/237, 395/227
`[58] Field of Search ..................................... 395/201, 226,
`395/227. 237
`
`[56]
`
`References Cited
`U.S. PATENT DOCUMENTS
`4,674,044 6/1987 Kalmus et al. .
`4,677,552
`6/1987 Sibley, Jr. .
`4,799,156
`1/1989 Shavit et al. .
`4,903.201
`2/1990 Wagner.
`4,992,940 2/1991 Dworkin ................................. 395/226
`5,168,446 12/1992 Wiseman ................................. 395/237
`5,283,731
`2/1994 Lalonde et al. ......................... 395/201
`
`Primary Examiner—Gail O. Hayes
`Assistant Examiner—Steven R. Yount
`Attorney, Agent, or Firm—Brooks & Kushman P.C.
`[57]
`ABSTRACT
`A system for managing steel inventories in order to reduce
`the time and expense associated with selling prime and
`secondary steel that is no longer needed for the original
`intended application. The system permits sellers to post
`detailed specification of an item for sale and permits buyers
`to browse or search the posted inventory to locate items
`filling specific needs. A buyer may bid on part or all of an
`item posted and the seller may accept or reject any bid. The
`buyer and seller engage in an auction by electronic mail and
`optionally by facsimile. The detailed specifications of the
`item may be expressed in a variety of unit of measure.
`Regardless, of unit of measure used by a seller in posting an
`item, the system performs the necessary conversions to
`display information to an interested buyer in a unit of
`measure set by the buyer. A hierarchial menu structure
`permits ease of use in selecting available options during
`posting or bidding an item.
`
`9 Claims, 8 Drawing Sheets
`
`112
`
`POST HEM
`FOR SALE
`
`LOAD BLANK
`SHEET
`
`
`
`
`
`SELECT
`colºry | CONDITIONS
`
`QUANTITY
`
`DESC,
`T & C
`
`LOCATIO
`|ON
`
`177
`
`178
`
`180 ?º)
`
`198
`
`196
`
`170
`
`172
`
`SET
`ATTRIBUTES
`
`174
`
`PCK ATTRIBUTE
`VALUE
`
`
`
`SUB
`AITRIBUTE
`7
`
`176
`
`NO
`
`
`
`ENTER UNIT
`WEIGHT
`
`SHIPPING
`DIMENSIONS
`
`SELLER
`REFERENCE
`
`
`
`
`
`MODIFY
`ASK PRICE
`
`194
`
`186
`
`PayPal Ex.1007, p.1
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 1 of 8
`
`5,715,402
`
`PROCESSOR #1
`
`
`
`MILL #1
`
`
`
`
`
`PHONE CALL
`
`MILL #2
`
`FAX
`
`BROKER #1
`
`PHONE CALL
`
`SERVICE CENTER #1
`
`OEM #1
`
`Jºž. Z
`/2/24224.77
`
`22 24
`
`26 28
`
`30
`
`SWITCHING
`COMPUTER
`
`SWITCHING
`COMPUTER
`
`32
`
`SWITCHING
`COMPUTER
`
`34
`
`SERVERS {T_j. COMPUTERS
`
`MODEMS
`
`36
`
`PayPal Ex.1007, p.2
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 2 of 8
`
`5,715,402
`
`
`
`
`
`
`
`NO
`
`REBOOT & WAIT
`FOR CALL
`
`
`
`START &
`|NITIALIZE
`
`44
`
`46
`
`
`
`VALID
`SUBSCRIBER
`7
`
`
`
`YES
`
`DISPLAY
`UPDATE
`
`MAIN
`MENU
`
`40
`
`42
`
`48
`
`50
`
`BUYERS
`
`SELLERS
`
`MAIL
`
`REPORTS
`
`NEWS
`PERSONAL
`SETTINGS || BULLETINS
`
`QUIT
`
`51
`
`52
`
`53
`
`54
`
`55
`
`56 57
`
`(8) () (*) (fami) (AD)
`
`PayPal Ex.1007, p.3
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 3 of 8
`
`5,715,402
`
`58
`
`59
`
`60
`
`61
`
`62
`
`63
`
`FAX
`NUMBER
`
`PRINTER
`BRAND
`
`UNITS OF
`MEASURE
`
`TIMEZONE
`
`CURRENCY
`
`|NACTIVITY
`TIMEOUT
`
`AUTO FAX
`ON BID
`
`AUTO FAX ON
`B|D REPLY
`
`COVER PAGE ON
`FAXES
`
`SALE
`T & C
`
`PURCHASE
`T & C
`
`64
`
`65
`
`66
`
`67
`
`68
`
`PayPal Ex.1007, p.4
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 4 of 8
`
`5,715,402
`
`
`
`80
`
`82
`
`84
`
`TO7
`
`SUBJECT &
`MESSAGE
`
`NO
`
`88
`
`YES
`
`86
`
`SEND
`MAIL
`
`92
`
`|N BOX
`
`94
`
`READ
`
`
`
`
`
`102
`
`
`
`DELETE,
`REPLY PRINT
`
`REPLY
`
`PRINT
`
`DELETE
`
`NO
`
`96
`
`98
`
`90
`
`YES
`
`PayPal Ex.1007, p.5
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 5 of 8
`
`5,715,402
`
`-
`
`º
`
`SELLERS
`MENU
`
`110
`
`112
`
`114
`
`116
`
`POST TEMS
`FOR SALE
`
`REVIEW ITEMS
`POSTED
`
`RETURN
`
`LOAD BLANK
`SPECSHEET
`
`LOAD EXISTING
`SPECSHEETS
`
`CHANGE SORT
`SEQUENCE
`
`134
`
`f24
`
`FILL OUT
`DESCRIPTION
`
`POST
`|TEMS
`
`f 18
`
`120
`
`122
`
`SORT
`CHOICE
`
`REFRESH
`|NDEX
`
`152
`
`154
`
`128
`
`130
`
`;
`
`
`
`VIEW
`SHEETS
`
`CHANGE TEM
`STATUS
`
`SHOWS BIDS
`ON TEM
`
`PRINT BID
`REPORT
`
`MARK ITEM
`
`ACCEPT/
`
`132
`(ºnly
`
`136
`
`YES
`
`142
`
`144
`
`140
`
`SAVE
`
`POST NEW
`
`NOTIFY
`BUYER
`
`BID REPORT
`
`0
`15
`
`PayPal Ex.1007, p.6
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 6 of 8
`
`5,715,402
`
`
`
`
`
`
`
`
`
`
`
`
`BTWS 80
`
`88 ||
`
`ZZ!
`
`10ETES
`
`PayPal Ex.1007, p.7
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 7 of 8
`
`5,715,402
`
`210 - |
`
`BUYERS
`MENU
`
`BROWSE
`|NVENTORY
`
`212
`
`228
`
`BROWSE
`|TEMS BID
`
`VIEW
`|TEM
`
`PRINT
`SPECSHEET
`
`RETURN
`
`214 ?pºn?
`
`218
`
`226
`
`216
`
`220
`
`SEARCH
`|NVENTORY
`
`SCREEN
`SORT
`
`BiD
`|TEM
`
`REVISED
`B|D
`
`230
`
`(sc) *
`
`f
`
`USER SORT
`CHOICE
`
`224
`
`REFRESH
`INDEX
`
`226
`
`gº
`
`Jºž. A?’
`
`PayPal Ex.1007, p.8
`
`

`
`U.S. Patent
`
`Feb. 3, 1998
`
`Sheet 8 of 8
`
`5,715,402
`
`240
`
`
`
`242
`
`SELECT
`SEARCH SET
`
`EDITSEARCH
`PARAMETERS
`
`
`
`
`
`
`
`SET
`COMMODITY
`
`SET GAUGE
`& WIDTH
`
`
`
`
`
`| SET PREFERRED
`SELLER
`
`244
`
`246
`
`248
`
`SEARCH
`
`
`
`REVIEW
`SELECTED ITEMS
`
`252
`
`PayPal Ex.1007, p.9
`
`

`
`1
`METHOD AND SYSTEM FOR MATCHING
`SELLERS AND BUYERS OF SPOT METALS
`
`5,715.402
`
`2
`and seller engage in an auction by electronic mail and
`optionally by facsimile. The detailed specifications of the
`item may be expressed in a variety of units of measure.
`Regardless, of unit of measure used by a seller in posting an
`item, the system performs the necessary conversions to
`display information to an interested buyer in a unit of
`measure set by the buyer. A hierarchial menu structure
`permits ease of use in selecting available options during
`posting or bidding an item. The invention is designed to
`meet the needs of all channels in the steel processing
`community; mills, service centers, end-users, distributors
`and trading companies.
`
`TECHNICAL FIELD
`This invention relates to a method and system for con
`ducting electronic negotiations of the sale of spot metals
`such as steel and more particularly to a system permitting
`sellers of spot steel to post items defined by detailed speci
`fication sheets and permits buyers to browse or search the
`inventory database and bid on such items by electronic mail.
`BACKGROUND ART
`Currently the interchange between buyer and seller of
`excess inventories or secondary steel products is relegated to
`the personal contacts made through a network of steel
`service centers and distributors. Lacking a coordinated sys
`tem that provides the buyer with the full spectrum of
`available steel inventories, the inefficiencies associated with
`today’s system works to the disadvantage, in most cases, of
`both the buyer and seller. Buyers who have limited access to
`steel to fill spot requirements will suffer negative economic
`consequences through higher transaction prices as well as
`excessive scrap and processing losses. The seller is impacted
`by working through a middleman network which in effect
`reduces sales revenues to support a “clean floor” philosophy.
`The current process of transacting a sale of spot steel may
`be represented by the information flow depicted in the
`diagram of FIG. 1. A fragmented network of “old boy”
`relationships is employed where excess material is peddled
`to those players who have historically done business with
`providers of excess material. Consequently, neither avail
`ability nor price is optimized. Typically, the announcement
`of new material is via facsimile (fax), and interested parties
`reply to the supplier either by phone or fax. A typical fax
`might announce 10 items and provide the prospective buyer
`with only the very basic information; grade, size, available
`quantity and price. For example, using the diagram of FIG.
`1. OEM #1 may purchase material from Service Center #1,
`unaware that Mill{#2 has the same material at a more
`favorable price. In short, the current “channels” of distribu
`tion are really ruts of distribution carved over years of
`refinements to an archaic system.
`SUMMARY OF THE INVENTION
`With the foregoing in mind, it is an object of the present
`invention to provide an interactive on-line system for trading
`spot steel commodities.
`It is another object of the present invention to provide a
`computerized system for the exchange of information
`between buyer and seller of spot steel commodities.
`It is another object of the present invention to provide a
`system storing a detailed database of available steel products
`defined by a specification sheet filled out by seller of the
`product and which permits potential buyers to enter bids
`which are electronically mailed to the seller for acceptance
`or rejection.
`In accordance with the present invention a system for
`managing steel inventories is proposed to reduce the time
`and expense associated with selling prime and secondary
`steel that is no longer needed for the original intended
`application. The system permits sellers to post detailed
`specification of an item for sale and permits buyers to
`browse or search the posted inventory to locate items filling
`specific needs. A buyer may bid on part or all of an item
`posted and the seller may accept or reject any bid. The buyer
`
`10
`
`15
`
`20.
`
`25
`
`35
`
`45
`
`55
`
`65
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`Other objects and advantages of the present invention will
`be apparent from the following detailed description which
`should be read in conjunction with the drawings in which:
`FIG. 1 show a prior art method of information exchange
`between buyers and sellers of steel commodities;
`FIG. 2 is a block diagram of the present invention; and
`FIGS. 3–9 show flow diagrams of the application soft
`ware of the present invention installed on the host computer.
`DETAILED DESCRIPTION OF A PREFERRED
`MODE
`Referring now to FIG. 2 of the drawings, a block diagram
`of the interactive on-line system for trading steel commodi
`ties is generally indicated at 10. The system includes a
`plurality of computers 12 interconnected by a local area
`network 14 with servers 16. The servers include a file server
`that controls data storage devices, a fax server that controls
`fax machines, and a print server that controls various print
`ers. The computers 12 are accessible by remote dial-up
`system users or subscribers through devices 22, 24, 26, and
`28, one of the central switching computers 30, 32, and 34,
`and a bank of modems 36. The remote devices may include
`terminals, or personal computers of various type and con
`figuration. Though not shown each device includes either an
`internal or external modem and a suitable communication
`program permitting communication of data to and from the
`host computers 12.
`Flowcharts of the program installed on the host machine
`are shown in FIGS. 3–9, Referring initially to FIG. 3, the
`system is normally in a wait mode as indicated by the block
`38. Upon receipt of a call from a remote user, the system is
`initialized, as shown at block 40 and the user attempt to login
`at 42. If the user does not enter a valid password as
`determined by the block 44, then the system returns to the
`wait mode. Otherwise, a decision block 46 determines
`whether new system news has been posted and if so displays
`the update to the user as indicated at block 48. If not, the
`program progresses to a Main Menu indicated at the block
`50. In this menu, the following options are displayed.
`MAIN MENU
`A. BUYERS MENU
`B. SELLERS MENU
`C. MAIL MENU
`D. REPORTS
`E. PERSONAL SETTING
`F. SYSTEM NEWS
`Q. QUIT AND DISCONNECT
`Option A of the Main Menu permits a potential buyer to
`perform a number of functions associated with the purchase
`
`PayPal Ex.1007, p.10
`
`

`
`5,715,402
`
`3
`of items of inventory. These include such functions as
`browsing inventory, searching the inventory posted by
`sellers, reviewing the specification sheets of inventory items,
`bidding on items, and reviewing the status of bids previously
`made. A subroutine of the program is called by selection of
`Option A of the Main Menu, as indicated by the block 51.
`Option B of the Main Menu permits a seller to perform a
`number of function associated with the sale of items. These
`include such functions as posting a new item for sale or
`reviewing items previously posted. A subroutine of the
`program is called by selection of Option B of the Main
`Menu, as indicated by the block 52.
`Selection of Option C calls an electronic mail subroutine
`indicated by the block 53, permitting any subscriber on the
`system to communicate with any other subscriber. The mail
`subroutine 53 is also called automatically when a buyer bids
`on an item of inventory or the seller accepts or rejects the
`bid. In addition the subroutine 53 controls fax transmission
`between users as will be described further hereinafter.
`Option D of the Main Menu permits a buyer or seller to
`generate various reports by calling a subroutine indicated at
`54. Example include reporting all items bid by a buyer and
`all item posted by a seller.
`Option E of the Main Menu permits the users to set
`personal preferences applicable to various entries make by
`the user and to set user defaults, as indicated by the block.55.
`Option F of the Main Menu, calls a subroutine indicated
`at 56 that permits the user to view recent news bulletin from
`the system operator regarding system updates or changes.
`Option Q of the Main Menu terminates the remote session
`and disconnect the user from the system as indicated at block
`57.
`
`4
`menus, in order to specify which units of measure should be
`used in displaying the characteristic of the units in inventory
`to the user. Finally, the user identifies the local time zone,
`and selects the desired currency, from respective pop-up
`menus, all as indicated by blocks 58 through 62.
`The user may also establish a time interval of inactivity,
`after which the remote system is to disconnected, as indi
`cated at block 63. The user's establishes preferences relative
`to fax notification, as indicated at blocks 64, 65 and 66. A
`user may specify that when bidding on an item, a fax be sent
`automatically with the bid and may also specify that when
`accepting or rejecting a bid, a fax be sent automatically to
`the bidder. Finally, the user may enter text describing the
`terms and conditions of sale to be applicable to any item
`posted on the system, or the terms and condition of purchase
`when bidding on an item, as indicated by the blocks 67 and
`68. The appropriate terms and conditions will automatically
`be entered in the specification sheet when posting an item for
`sale, or in any bid communicated from a buyer to a seller.
`In the units of measure selection block 60, the user may
`select, with respect to size, whether all dimensions (gauge,
`width, length) of a posted item be displayed in inches or in
`millimeters. With regard to weights the user may select tons,
`pounds, kilograms, or hundredweights. With regard to prices
`the user may select a price per unit weight using the weight
`options stated above. The units of price depends on the
`currency selection. With regard to physicals the user may
`select thousand pounds/in or MegaFascals. The user may
`select the currency of various countries including the United
`States, Canada, Germany, Spain, Japan, France and Mexico.
`For example, Subscriber No. 1 might post an inventory item
`where the quantity available is specified in tons and price is
`specified in dollars per ton. Subscriber No. 2, however, may
`elect to have all inventory items presented pounds and
`dollars per hundred weight. Conversion between the units of
`measure occur dynamically in real time and, therefore,
`afford a level of user friendliness not available in prior art
`systems where no automatic conversion takes place at the
`receiving fax machines. The receiver of the fax must manu
`ally transcribe all units of measure to his own desired
`nomenclature. It should be noted however, that the unit of
`measure selections in the personal setting do not prevent the
`user from entering values in another unit of measure when
`posting an item for sale.
`MAIL MENU (OPTION C)
`A user may communicate with other system users via
`electronic mail, by selecting Option C of the Main Menu.
`Selection of Option C calls the subroutine 53, shown in
`greater detail in FIG. 5, which displays an Electronic Mail
`Main Menu 74. From this menu, a user may send or read
`mail as indicated by the blocks 76 and 78, respectively. If the
`user selects to send mail, as determined by the decision
`block 80, then a mail message template is presented on
`screen, permitting the user to select a recipient from a
`subscriber list as indicated at block 82. After identifying the
`recipient, the user may identify the subject matter of the
`message and then enter the message as shown in block 84.
`After completion of the message, the user has the option of
`saving and sending the mail or of canceling the mail
`message as determined by the decision block 86. If the user
`elects not to send the message, then the program returns to
`the Mail Main Menu at 74. If the mail is to be sent then
`subroutine at block 88 is called. The user has the option of
`also sending a fax copy of the message to the recipient as
`indicated by the decision block 90. If mail has been sent to
`the user, the system will notify the user at the Main Mail
`
`5
`
`10
`
`15
`
`20
`
`25
`
`30
`
`35
`
`45
`
`50
`
`55
`
`PERSONAL SETTINGS (OPTION E)
`Referring now to FIG. 4, the personal preferences sub
`routine 55 which is called by selecting Option E of the Main
`Menu, is shown in greater detail. Upon initiation of the
`subroutine 55 a partially completed entry form is displayed
`to the user as shown below.
`
`SUBSCRIBER:
`
`BILL TO:
`
`Mr. James Roe
`President
`The Roe Group
`321 Elm St.
`Mytown, U.S.A.
`PRINTER:
`
`Timezone:
`Currency:
`
`Mr. John Doe
`President
`Acme Steel Co.
`123 Main St.
`Anytown, U.S.A.
`VOICE PHONE:
`FAX:
`UOM Sizes
`UOM Weights
`UOM Prices
`UOM Physicals
`Auto-disconnect time interval?
`Fax you upon bid on your item?
`Fax you when your bid is accepted or rejected?
`Cover Sheet on Fax to you?
`Terms and Conditions of Sale:
`
`The user's name, address and voice phone number, and
`billing address as well as a user number are entered by the
`system manager when the user subscribes to the service. The
`user enters a fax number if one is available. The voice and
`fax numbers are compared by the system to determined
`whether a fax can be sent while the user is on-line. The user
`identifies the printer connected with the user's remote
`system, from a pop-up menu of supported printers. The user
`selects default units of measure, from respective pop-up
`
`65
`
`PayPal Ex.1007, p.11
`
`

`
`5,715,402
`
`6
`-continued
`
`ATTRIBUTE
`
`PHONE
`FAX
`
`SPEC SHEET for NEW ITEM
`CONTENTS
`
`800-123-4567
`800-890-1234
`
`10
`
`20
`
`25
`
`5
`Menu with a flashing indicator of the number of unread
`messages received. If the user selects the read option, an
`in-box of received messages is displayed, as indicated at
`block 92. At this point, the user may select and read any one
`of the messages in the in-box, as indicated at block 94 and
`may either reply, print or delete any message as indicated by
`the blocks 96.98 and 100, as determined by the decision
`block 102. If a reply to the message is selected, then the send
`message subroutine is called at block 84 in order to send an
`electronic mail message and/or a fax copy to the party.
`SELLERS MENU (OPTION B)
`Selection of Option B of the Main Menu calls the sub
`routine shown in FIG. 6 which initially displays a SELLERS
`MENU indicated by the block 110. The SELLERS MENU
`permits the user to perform function of interest to a seller of
`steel by calling subroutines as indicated in blocks 112–116.
`SELLERS MENU
`A. POST AN ITEM FOR SALE
`B, REVIEW ITEMS POSTED
`C. RETURN TO THE MAIN MENU,
`Upon selection of Option A of the SELLERS MENU, a
`Specification Sheet (SpecSheet) is displayed, as indicated at
`block 118. The SpecSheet requires the user to enter a
`detailed description of the item for sale, as indicated at block
`120. After completion of the SpecSheet, the user has the
`option of posting the item, or returning to the seller's menu,
`as indicated at block 122. Posting the item, adds the item to
`the inventory database stored at the host computer location.
`The process of filling out a SpecSheet, as indicated by
`block 120, is shown in greater detail in FIG. 7. A SpecSheet
`is a two-column browseable form, an example of which is
`shown below. Initially the SpecSheet is blank except for
`default data automatically entered from the personal settings
`of the user.
`
`The first section of the left column of the form shows various
`attributes of the item offered for sale, and the right column
`shows the value of that attribute.
`An item, by definition, is a single entity of steel where all
`attribute values for that entity are the same. A seller can post
`any quantity (composed of one or more coils or lifts), but all
`attribute values of commodity code, size, price, condition,
`terms and location must be the same. If, for example, a seller
`is posting two coils of steel with different gauges, then those
`two coils must be posted as separate items. If all attribute
`values for the two coils are the same, then the seller may post
`both coils as one item, and will itemize the coil weights on
`the SpecSheet. When the user highlights a row and presses
`the ENTER key on the keyboard of the remote device, a
`pop-up list or mini-form appears that permits the seller to
`select from a list of predefined choices or enter a response
`on the form.
`The selection and entry of commodity and attributes is
`controlled by the blocks 170–176 in FIG. 7. Positioning the
`highlight bar on the line designated PRODUCT, and press
`ing the ENTER key on the keyboard, calls the subroutine
`indicated at 170. This subroutine causes a pop-up list of
`COMMODITIES to appear, one of which must be selected
`by highlighting and pressing the ENTER key. The commod
`ity list, for example, may include:
`COMMODITIES LIST
`1. HOT ROLLED
`2. COLD ROLLED
`3. HOT-DIPPED GALVANIZED
`4. ELECTRO GALVANIZED
`5. ZINCROMETAL
`6. ALUMINIZED
`7. PRE-PAINTED CR, HR, GZ
`8, BLACK PLATE
`9. TIN PLATE
`10.CHROME PLATE
`After one of the commodities is selected, the next few lines
`of attributes of the SpecSheet are specifically applicable to
`the commodity previously selected as indicated at block
`172. All attributes don't apply to all commodities, and
`therefore the attributes are not displayed until the commod
`ity is selected. For each of the attributes that are presented,
`a list of possible values for the attribute appears when the
`appropriate row is highlighted and the ENTER key is
`pressed. The user selects one of the values as indicated at
`block 174. In many cases, the selection made will produce
`a new list of values that further define the value selected as
`indicated by the decision block 176 (see the example below).
`In general, the product attribute selections are arranged in a
`hierarchy that allows selection of the appropriate value by
`making more and more detailed selections from the lists that
`appear. When the hierarchy goes no deeper, the user is
`returned to the SpecSheet, and the fully expanded attribute
`value will be shown on the sheet. In the example sheet
`shown above, the commodity HOT-DIPPED GALVA
`NIZED has an QUALITY attribute which may be selected
`from a list displayed to the seller containing the following
`entries:
`
`30
`
`35
`
`SPEC SHEET for NEW ITEM
`
`ATTRIBUTE
`
`CONTENTS
`
`PRODUCT:
`QUALITY
`
`GZ = HOT-DIPPED GALVANIZED
`DDQSK-FS, Deep Drawing Quality,Special
`Rilled
`SAE/AISI 1006, UNS G10060;
`CHEMISTRY
`Regular Spangle;
`SURFACE FINISH
`Oil;
`SURF TrEAT
`AZ55, 55 OZAFT TOTAL BOTH SIDES
`COATWEIGHT
`PRIME
`SALE CONDITION
`0.3600" min × 24.0000" × COIL
`SIZE GXWXL
`1 COIL
`No OF UNITS
`23,000.0000 Lb
`AVAIL QUANTITY
`23,0877 $WCW
`ASKING PRICE
`$5,310.17
`ITEM VALUE
`Delivered
`FOB
`Tu 07 Nov 95 (End of business day)
`BIDS BY DATE
`OWNER ACCOUNT OOOO14
`NAME
`Mr John Doe
`COMPANY
`Acme Software
`ADDRESS
`123 Main St.
`CITY/ST/ZIP
`Anytown, MI 48075 U.S.A.
`PHONE
`810-123-4567
`FAX
`810-890-1234
`ADDITIONAL DESC
`TERMS/COND
`Post/Date/Time
`PHYSICAL LOCAT
`
`CITY/STATE/zip
`ATTENTION
`
`Mon 30Octºs 15:22 EST
`Acme Software
`123 Main St.
`Anytown, MI 48075 U.S.A.
`Mr John Doe
`
`45
`
`50
`
`55
`
`65
`
`PayPal Ex.1007, p.12
`
`

`
`7
`QUALITY LIST
`0, DON'T KNOW, DOES NOT APPLY
`1. CQ, COMMERCIAL QUALITY
`2. DQ, DRAWING QUALITY
`3. DQAK/DQSK, DRAWING QUALITY, KILLED
`4. DDQSK-FS, DEEPDRAWING QUALITY, SPECIAL
`KILLED
`5. DDQSK-ELC, DEEP DRAWING QUALITY, SPE
`10
`CIAL KILLED
`6. X, LOW ALLOY
`7. D. DUAL PHASE
`Selecting Quality attribute #4 produces the following list of
`Chemistry attributes.
`CHEMISTRY LIST
`0. DON'T KNOW, DOES NOT APPLY
`1. SAE/AISI 1006, UNS G10060
`2. SAE/AISI 1008, UNS G10080
`3. SAE/AISI 1009, UNS G100.90
`4. SAE/AISI 1010, UNS G10100
`5. SAE/AISI 1012, UNS G10120
`6. SAE/AISI 1015, UNS G10150
`7. SAE/AISI 1016, UNS G10160
`8. SAE/AISI 1017, UNS G10170
`9. SAE/AISI 1018. UNS G10180
`10. SAE/AISI 1019, UNS G10190
`Selecting Chemistry attribute #1 produces the following list
`of Surface Finish attributes.
`
`15
`
`20
`
`25
`
`30
`
`35
`
`SURFACE FINISH LIST
`0. DON'T KNOW, DOES NOT APPLY
`1. REGULAR SPANGLE
`2. MINIMUM SPANGLE
`3. EXTRA SMOOTH (TEMPER ROLLED)
`4. CRITICAL SURFACE
`Selecting Surface Finish attribute #1 produces the following
`list of Surface Treatment attributes.
`SURFACE TREATMENT LIST
`0. DON'T KNOW, DOES NOT APPLY
`45
`1. STANDARD PASSIVATION (CHEMICAL
`TREATMENT)
`2. OIL
`3. PRELUE COATING-CONVENTIONALTYPE
`50
`4. PHOSPHATIZED (PAINT BOND OR
`BONDERIZED)
`Selecting Surface Treatment attribute #2 produces the fol
`lowing list of Coat Weight attributes.
`COAT WEIGHT LIST
`0. DON'T KNOW, DOES NOT APPLY
`1, 2-SIDE GALVANIZED, FREE ZINC & IRON
`2. AZ55, 0.55 OZ/FT TOTAL BOTH SIDES
`The attribute selections, in this example, are completed by
`selection of Coat Weight attribute #1. The various attributes
`conform to AISI standards and a brief description of each
`selection in the hierarchial listing is displayed at the time the
`selection is required.
`After selecting the values for the attributes, the SALE
`65
`CONDITION line is highlighted and selected. The possible
`SALE CONDITION selection are:
`
`55
`
`5,715,402
`
`5
`
`1. PRIME
`2. SECONDARY
`3. LIMITED WARRANTY.
`Selection of the SIZE attribute of the SpecSheet calls the
`subroutine indicated at block 178, and a pop-up mini-form
`is displayed, which permits entry of the GAUGE, WIDTH
`and LENGTH dimensions of the steel sheet, and the pre
`ferred unit of measure (UOM) for the dimensions. After
`entering the gauge (thickness), the user is prompted to enter
`N for Nominal gauge, or M for Minimum gauge in accor
`dance with AISI definitions. If the item to be posted is
`cut-length or blanks, the width and length of the strip is
`entered. If the item is a coil, a zero length is entered. Finally,
`the unit of measure that goes with the numeric values
`entered is specified. The default selection in the English/
`Metric pop-up box is the default that was set in the Personal
`Settings option from the Main Menu.
`The quantity of the item to be posted is entered by
`highlighting and selecting the AVAIL QUANTITY lines
`which calls the subroutine indicated at block 180 and
`displays a list of materials as follows:
`1. COIL
`2. CUT LENGTH
`3. SLAB
`4. BLANKS
`5. IRREGULAR
`6. OFFALL
`All units for an item must be of the same form. If the user
`wishes to post one coil and one slab, these two units must be
`posted as separate items even if all other attributes of the two
`units are the same. After identifying the form and available
`quantity of the material, the user may enter the weight of
`each item through a pop-up entry form, as indicated at 182.
`This entry form includes the following fields for entry of
`data:
`1. UNITS
`2. WEIGHT
`3. UOM
`4. DIMENSION
`5. REFERENCE NUMBER
`The nominal weight for the unit being sold is entered into the
`form using a unit of measure most convenient for the seller.
`The unit of measure used by the seller is also identified
`through a pop-up menu on the form. The seller may also
`enter a phrase that describes the physical dimensions of the
`unit, as indicated at 184. Typically, these dimensions are
`important from a shipping and handling standpoint. For
`example, the seller might signify the inside and outside
`diameters of the coil (and a buyer would know that the width
`of the sheet is the other important dimension). For a lift, the
`seller might specify the height, width and length of a
`bundled lift. The seller also enters a seller internal reference
`number, as indicated at 186. The internal reference number
`identifies the particular unit such as a coil identification
`number or other mill identification. This reference number is
`useful should it be necessary to correlate the seller's internal
`documentation.
`As stated before, an item can be composed of several
`units, as long as each of the units have the same attributes
`of commodity, chemistry, size, price, etc. But as a conve
`nience to those situations where a particular lot of steel may
`be composed of individual units that can be sold separately,
`the system allows the seller to itemize the individual units,
`and buyers can bid on these individual units. In short, if the
`item being sold can be divided and sold in distinct and
`
`PayPal Ex.1007, p.13
`
`

`
`5,715,402
`
`separate portions or units, then the seller may itemize those
`portions in the SpecSheet (instead of posting a new item for
`each of the individual units), as determined by the decision
`block 188.
`The system assigns each posted unit an initial Status of
`AVAILABLE for sale. As bids and other inquiries develop
`on individual units, the seller changes the status of each unit
`to one or more of the following categories:
`1. COMMITTED (the unit is committed to a buyer but the
`sale has not yet been consummated and the seller
`wishes to discontinue further bids).
`2. SOLD (the unit has been sold to another subscriber.
`This status removes the unit quantity from the total
`available quantity of the item so that the main Inven
`tory browse correctly reflects how much steel is left to
`buy).
`3. REMOVED (the unit quantity is removed from the total
`available for sale because the item was sold off-line or
`has become unavailable for sale for some other reason).
`The ASKING PRICE of the item is calculated by calling
`the subroutine at block 190 which displays the spreadsheet
`shown below.
`
`ASKING PRICE
`
`(A)
`(B)
`(C)
`(D)
`(E)
`
`(F)
`
`Nº OF UnitS:
`TOTAL WEIGHT.
`ASKING UNIT PRICE:
`ASKING TOTAL VALUE:
`FEE:
`
`ROLL FEE INTO ASK.
`
`l
`23000.0000 pounds
`230877 $/hundredweight
`$5,310.17
`0.60%
`$31.86
`No.
`
`10
`C—ONE MONTH FROM TODAY
`D–SPECIFIC I)ATE
`This entry permits the seller to either leave the offer open
`ended as to time or to require that all bids or inquiries be
`received before a certain date.
`The next section of the SpecSheet contains information
`regarding the seller and is entered by the system from the
`Personal Settings data of the seller for the benefit of a
`potential buyer. If the steel being posted is located other that
`at the address stated in this section, the seller can highlight
`the PHYSICAL LOCATION line of the SpecSheet and call
`the subroutine, indicated at block 196. When a blank Spec
`Sheet is initially displayed, the PHYSICAL LOCATION
`section defaults to the seller's billing location. If the steel is
`actually located elsewhere, the seller edits these lines on the
`SpecSheet. The point of specifying the location of the steel
`is primarily for the benefit of a potential buyer.
`Selecting the ADDITIONAL DESCRIPTION field calls
`the subroutine at block 198 which opens a text box that
`permits the seller to further describe the item for sale in the
`seller's own terminology. For example, if the item has
`exceptional hardness properties the Rockwell B measure
`ments might be entered in this section. The first line of the
`ADDITIONAL DESCRIPTION text appears at the bottom
`of the Inventory screen and is viewable by buyers when
`browsing the inventory. The first line should therefore
`provide a concise summary of the item for sale.
`Selecting the TERMS AND CONDITIONS OF SALE
`line also calls the subroutine at block 198 which opens a text
`entry box that initially contains the seller's standard Terms
`& Conditions entered via the PERSONAL SETTING.
`Option E of the MAINMENU. The Terms & Co