US 6,915,271 BL
`(io) Patent No.:
`a2) United States Patent
`
`Meyeretal.
`(45) Date of Patent:
`Jul. 5, 2005
`
`US006915271B1
`
`5,557,721 A
`(54) METHOD AND SYSTEMFOR DELIVERING
`9/1996 Vite et al. oer 705/14
`5,606,602 A *
`REDEEMING DYNAMICALLY AND
`2/1997 Johnson etal.
`379/115
`
`5,621,812 A
`ADAPTIVELY CHARACTERIZED
`.
`4/1997 Deaton et al.
`382/100
`
`5,675,662 A
`r
`....
`10/1997 Deaton et al.
`382/137
`5,710,886 A
`COMPUTERNeTWORK ES ONA
`1/1998 Christensen ct al
`. TOS/14
`
`5,715,314 A
`......
`382/254
`2/1998 Payne et al.
`
`
`
`
`; ‘6/1998_Goldenet al, / 5,761,648 A .. 705/14
`
`
`6/1998 Toader oecceccssccccessse 705/10
`Inventors: Carl Meyer, Saratoga, CA (US);
`5.774.869 A
`(75)
`6/1998 Storey ceeccsssessseesssesesees 705/14
`AnthonyN. Hoeber, Saratoga, CA
`5,774,870 A
`(US); Erik A. Kay, Los Altos, CA
`5,794,210 A
`8/1998 Goldhaberet al.
`.. 705/14
`(US); Stephen W. Bartlett, Los Altos,
`5,806,045 A
`9/1998 Biorgeet al.
`.....
`. 705/14
`CA (US)
`5,855,008 A
`12/1998 Goldhaberctal.
`. TOS/14
`5,907,830 A
`5/1999 Engel et al. oe 705/14
`
`
`FOREIGN PATENT DOCUMENTS
`
`11/1996
`0679980 A
`W/1997 eee GO6E/17/16
`0809202 A
`2/1998
`0822535
`8/1995
`WO 95/21428
`12/1996
`WO 9639668
`F/1997
`WO 97/23838
`5/1998
`WO 98/19224
`OTHER PUBLICATIONS
`
`(73) Assignee: CAwS) Engine, Inc., Saratoga,
`
`(*) Notice:
`
`Subject to any disclaimer, the term ofthis
`patent is extended or adjusted under 35
`US.C, 154(b) by 849 days.
`
`.
`21) Appl. No.: 09/263,166
`(22) Tiled:
`Mar.5, 1999
`
`EP
`[P
`EP
`WO
`WO
`Wo
`WO
`
`(60)
`
`References Cited
`U.S. PATENT DOCUMENTS
`2/1988 Mindrumetal. ............. 705/14
`we TOS/L4
`12/1988 Johnsonet al.
`..
`
`11/1989 Nichthergeret al.
`.. TOS5/14
`10/1991 Schultz et al. sees 705/14
`
`3/1992 Hoartyet al... 725/120
`12/1992 Off et al.
`......
`
`+ 705/14
`6/1993 Hoartyetal
`- 725/119
`2/1994 TIolman ........
`
`- 348/473
`6/1994 Hoartyetal. .
`wee 725/34
`” D575
`8/1995 Wilkins...
`
`. 235/383
`10/1995 Stein elal.
`3/1996 Clarke oe
`
`
`
`
`
`
`
`
`
`
`
` "IF AVAILABLE
`
`DISPLAY
`INTENT,
`(&STCREIN=01
`
`219
`a
`GETSAVE
`CLIPPING
`FEGTS
`
`
`
`
`
`piswies
`INCENTIVE,
`
`
`as
`
`84 Claims, 21 Drawing Sheets
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 1
`
`“Emaginet”, fifteen pages copied on Feb. 16, 1998 from
`Related U.S. Application Data
`hitp:/Avww.emaginel.com.*
`Provisional application No. 60/077,630, filed on Mar. 11,
`“E-centives”, nine pages copied on Feb. 16, 1998 from
`998.
`
`
`(SV) Unt, CUeeeeeececeeeeeetesseeeneeenees GO06F 17/60 http:/Avww.e—centives.com, and three pages copied from
`
`
`
`
`(52) US. Ch. eeecececenceceereeeereeeeereneeeeecerenees 705/14 http:/Avww.emaginet.com.*
`58)
`Field of Search oo...cece 705/14
`.
`:
`(8)
`/
`* cited by examiner
`66)
`Primary Examiner—Donald L. Champagne
`(74) Attorney, Agent, or Firm—Dov Roscnfeld; Inventck
`(57)
`ABSTRACT
`;
`;
`.
`This invention relates to a system and method for defining,
`electronically distributing, dynamically displaying to a
`consumer, redeeming and clearing promotional incentives
`over a network. One or more parameters of the incentives
`may be dynamically determined by being dependent on one
`or more characteristics of the consumer including the loca-
`.
`bow
`we ps
`“ou
`tion on the network where the incentive is being viewed.
`
`AAAAA
`
`4,723,212
`4,791,281
`4,882,675
`5,056,019
`5,093,718
`5,173,851 A
`5,220,420
`5,287,181
`5,319,455
`5,446,919
`5,459,306
`5,502,636
`
`AAAAAA
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 1
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 1 of 21
`
`US 6,915,271 B1
`
`INCENTIVE
`DATABASE
`
`107
`
`105
`
`
`
`
`
`PROMOTION
`AUTHOR
`COMPUTER
`
`
` ONLINE
`
`
`POS COMPUTER
`CONSUMER
`
`
`(MERCHANT
`SERVER)
`COMPUTER
`
`
` OFFLINE
`POS
`
`
`
`
`MEMBER
`INCENTIVE
`
`
`INFORMATION
`
`
`
`COMPUTER
`INFORMATION
`MEMBER
`
`DATABASE
`COMPUTER
`
`COMPUTER
`
`Fig. 1
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 2
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 2
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 2 of 21
`
`US 6,915,271 B1
`
`START:
`CONSUMER CLICKS
`INCENTIVE ICON
`
`201
`
`
`
`GET
`INCENTIVE
`TEMPLATE
`
` GET
`
`
`DISPLAY
`REQTS
`
`
`
`
`
`
`et
`
`
`
`
`COMPUTE
`INCENTIVE CHARS.
`USING CONSUMER INFO
`
`IF AVAILABLE
`
`
` DISPLAY
`INCENTIVE
`(& STORE INFO)
`
`
`
`
`
`
` GET/SAVE
`CLIPPING
`REQTS
`
`
`
`DISMISS
`728
`
`CLIP & SAVE
`IN MEMBER
`ACCOUNT
`
`INCENTIVE Fig. 2
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 3
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 3
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 3 of 21
`
`US 6,915,271 Bl
`
` 333
`MANAGE
`
`MEMBER
`
`ACCOUNTS
`OFFER INFO|_—- 335
`DISPLAY
`CLIPPED
`
`CLIPPED
`INCENTIVES
`
`
`INCENTIVES
`SCRIPT/
`~~~ 328)APPLETS
`
`
`ACCNT
`OFFER INFO|_-— 338
`DISPLAY
`PROVIDER
`
`
`REDEEMED
`PROCESS
`REDEEMED
`INCENTIVES
`INCENTIVES
`
`
`HANDLE ~~ 2°
`CONSUMER
`INTERACTN
`
`923
`
`327
`
`/CONSUMR
`
`331
`
`
`
`OFFER
`ACCOUNT
`INFO
`
`337
`
`MANAGE
`CLIPPED
`INCENTIVES
`
`339
`
`343
`
`DISPLAY
`ACCOUNT
`INFO
`
`319
`
`HANDLE
`CONSUMER
`INTERACTN
`
`304
`
`329
`317
`
`
`CONSUMR
`{SRVPRVD
`SCRIPT/
`
`APPLETS
`
`
`
`
`
`351
`
`OFFER
`STATISTICS
`
`
`
`
`
`POS TERML/
`MCHNT SRVF
`INTERACTN
`
`
`
`DISPLAY
`INCENTIVE
`
`315
`
`
`
`
`
`MERCHANT
`345
`gig|GENERATE
`
`(POS)
`S
`INCENTIVES
`
`PROCESS
`
`
`REQUEST
`
`PROCESS
`REDEMPTIO
`
`INCENTIVES
`MONITOR [~~ 349
`~~ 311
`INFRA-
`STRUCTURE
`
`al
`
`
`
`
`SERVICE
`PROVIDER
`PROCESS
`
`
`
`[SRVLTS]
`
`
`
`STATISTICAL
`MODULE
`
`309
`
`347
`
`SYSTEM
`MONITOR
`
`PROCESS
`
`
`
`
`
`:
`ISSUER
`
`[PROMOTION
`
`VIEWER]
`
`PMOMOTNS
`
`STORE/ACCSS
`INCENTIVES
`
`303
`305
`
`MANAGE
`
` PROMOTION
`CREATE/EDIT
`EDITOR
`
`PROMOTN
`
`
`
`
`Fig. 3
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 4
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 4
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 4 of 21
`
`US 6,915,271 B1
`
`/! View_lcon executes in process ICON_DSPLY, whichis started on
`// consumer computer when consumerturns to a page with an icon
`BEGIN
`
`access SRVPRVDto getincentive icon info from INCENT-DB;
`IF (icon depends on member ID) {
`get memberID from cookie;
`IF (memberID not valid) {
`set icon to default icon;
`
`END;
`
`} ELSE{
`access ACCTPRVD to get memberinfo from MMBR-DB;
`
`Get_Incentive_For_Member;
`set icon to dynamically computed icon based on memberinfo;
`
`}
`} ELSE {
`set icon to default icon;
`
`} d
`
`isplay icon;
`access SRVPRVDto record view icon event in INCENT-DB: incentive ID, date;
`URL, time, plus member ID if present;
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 5
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 5
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 5 of 21
`
`US 6,915,271 B1
`
`// View_Incentive on consumer computer when consumerclicks incentive icon
`BEGIN
`
`Access SRVPRVDto getincentive template from INCENT-DB;
`IF (no incentive display requirements exist) {
`IF (incentive display uses no consumerinfo) {
`use default incentive characteristics;
`} ELSE { /* use consumer info based characterization */ {
`get memberID from cookie;
`IF (memberID is not valid) /* no cookie present */
`use default incentive characteristics;
`
`{
`
`compute incentive characteristics;
`
`} ELSE {
`access ACCTPRVDto get member info from MMBR-DB;
`IF (incentive chars requires missing memberinfo){
`use default incentive characteristics;
`
`} ELSE {
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 6
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 6
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 6 of 21
`
`US 6,915,271 B1
`
`} ELSE */ display requirements */ {
`
`Get_Member_ID;
`IF (incentive display requires missing member info) {
`Get_Required_Member_Info;
`IF (required member info still missing) {
`IF (missing member info hard requirement) {
`display “Unable to see incentive” message;
`EXIT;
`
`END;
`
`} ELSE{
`use default incentive characteristics;
`
`compute incentive characteristics;
`
`} d
`
`isplay incentive;
`access SRVPRVDto record view event in INCENT-DB: incentive ID, value, exp.
`date; URL, time, plus member ID if present;
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 7
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 7
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 7 of 21
`
`US 6,915,271 B1
`
`Get_Member_ID;
`If (all required memberinfo is not present) {
`Get_Required_Member_Info;
`IF (all required memberinfo is not present) {
`IF (missing member info hard requirement) {
`display “Unable to clip incentive” message;
`EXIT;
`
`END;
`
`Fig. 6
`
`\601
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 8
`
`/{ Clip_Incentive executes in process DSPLY,whichis started on
`// consumer computer when consumerclicks to clip an incentive
`BEGIN
`
`} a
`
`ccess ACCTPRVDto save incentive in ACCNT-DB;
`access SRVPRVDto record clip in INCENT-DB: incentive ID, value, exp. date;
`URL,time, member ID;
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 8
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 8 of 21
`
`US 6,915,271 B1
`
`// Get_Member_ID executes in consumer computer as part of process
`
`if DSPLY
`
`BEGIN
`
`get memberID from cookie;
`IF (memberID valid){
`access ACCTPRVDto get member info from MMBR-DB;
`} ELSE {
`Sign_On;
`get memberID from cookie;
`IF (member ID valid){
`access ACCTPRVDto get member info from MMBR-DB;
`} ELSE {
`
`Fig. 7
`
`oot
`
`display error message to consumer;
`END;
`
`/f Sign_On
`BEGIN
`
`pop-up sign-up screen on consumer computer;
`get required accountinfo from consumer; including account name and password;
`IF (consumeris not a member) {
`in new pop-up request necessary accountinfo fram member;
`create new account for consumer;
`
`} a
`
`ccess ACCTPRVDto get member ID from MMBR-DB;
`write member ID to cookie;
`
`Fig. 8
`
`sot
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 9
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 9
`
`

`

`ask memberfor required info;
`for each piece of info requiring external validation
`Validate_External_Member_Info;
`
`END;
`
`// Validate_External_Member_Info
`BEGIN
`
`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 9 of 21
`
`US 6,915,271 B1
`
`/{ Get_Required_Member_Info
`BEGIN
`
`MMBR-DB;
`
`access SRVPRVDto get external validation process for external member info
`from INCENT-DB;
`access external validation process to validate external memberinfo and get
`expiration date;
`IF (external memberinfo valid) {
`access ACCTPRVD to store external memberinfo and expiration date in
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 10
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 10
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 10 of 21
`
`US 6,915,271 B1
`
`// View_Accountstarts on consumer computer when consumerclicks
`
`} ELSE {
`access ACCTPRVDto get contents of member account from ACCNT-DB;
`display member accountinfo;
`access ACCTPRVDto record view in ACCNT-DB: incentive ID, URL,
`time;
`
`END;
`
`/{ View Account button;
`BEGIN
`
`Get_Member_ID;
`IF (memberID not valid) {
`display “Unable to view account” message;
`EXIT;
`
`/{ View_Member_Account_Pagestarts on a consumer computer when the
`/{ consumerturns to the “view account” page of service provider Website
`BEGIN
`
`access ACCTPRVD to record in ACCNT-DB the URL the member came from;
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 11
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 11
`
`

`

`END;
`
`get member ID from merchant-placed cookie;
`IF (memberID valid) {
`access ACCTPRVDto get member'sclipped incentives;
`match clipped incentives with goods and services order;
`for each match, compute adjusted price based on incentive;
`
`} E
`
`ND;
`
`/f Record_Redemption
`// called by the merchant server whena sale is done
`BEGIN
`
`for each redeemedincentive access SRVCPRVDto record redeem: member ID,
`time, URL
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 12
`
`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 11 of 21
`
`US 6,915,271 B1
`
`// Buy_Now executes on a consumer computer when consumerclicks
`/f on the “Buy Now”button
`BEGIN
`
`get member ID from cookie
`IF ((member ID notvalid) OR (incentive not clipped)){
`Clip_Incentive;
`
`} d
`
`isplay network location for purchasing product;
`END;
`
`// Adjust_Goods_&ServicesOrderis called by the merchant serverat the
`// time of sale (before final confirmation) and executes in process SRVPRVD
`BEGIN
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 12
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 12 of 21
`
`US 6,915,271 B1
`
`/{ Get_Incentive_For_Memberis called from View_Icon;
`BEGIN
`
`Execute the dynamicincentive selection algorithm to set incentive to a
`specific incentive based on memberinfo;
`
`END;
`
`// Close_Incentive
`/f consumer clicks “Close” button or attempts to close wndow without
`/{ other action(s)
`BEGIN
`
`Negotiate;
`
`take downincentive;
`IF (incentive is further negotiable) {
`Display “I'll negotiate” message asking consumerif they wantto
`negotiate.
`IF (consumer wants to negotiate) {
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 13
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 13
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 13 of 21
`
`US 6,915,271 B1
`
`// Negotiate
`// called when consumerclicks “Negotiate” button
`
`// also called from Close_Incentive;
`
`// also called recursively
`BEGIN
`
`Display “Not further negotiable” message;
`
`IF (incentive is further negotiable) {
`Modify incentive characteristics based on incentive negotiation
`formula;
`Display new incentive;
`} ELSE{
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 14
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 14
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 14 of 21
`
`US 6,915,271 Bl
`
`STKE!2Promotion|F:gitorele
`
`se ATTY
`
`Save $100 ona
`Sony Camcorder
`Model # CCD-TRV82
`
`Expires
`
`{ssurer
`
`1923 1949Toab28
`
`Fig. 19
`
`esnm,;
`WSA
`
`$100 offHf first night
`New York Marriott
`
`Expires JJan[ry15 Fyi998t
`sure
`
`
`Not yet activated,last modified 9/31/93
`
`Clip Limit ©[1EE] Ountimited
`Active []
`
`Value Formula
`
`If Age > 30 and Age < 40 then value + 5%
`If Gender = Male then Value = Value -9%
`If Customer has stayed at Marriott before, then Value = Value + 10%
`
`[Feog) Pe
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 15
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 15
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 15 of 21
`
`US 6,915,271 Bl
`
`Retype Password [|
`Crmee
`FaizeTheesen|7\_
`P|
`
`GPVISA iSave - Microsoft Internet Explorer
`
`LaLa
`
`Save $100 0n a
`Sony Camcorder
`Model # COD-TRV3Z
`
`
`
`Name:
`
`Password:
`Email:
`Address:
`
`City:
`State:
`
`Zip:
`Age:
`Sex:
`
`|California
`
`[92002
`
`|Female
`
`oo
`Fig. 23
`
`\aot
`
`Visa «ae
`Sign Up
`ee
`ee
`
`eC CET
`
`Een
`
`Sex: Janet
`
`Name:
`
`Password:
`Emall:
`Address:
`
`City:
`State:
`
`Zip:
`Age:
`
`Smith
`
`ismith@aol.com
`222 Vine Street
`an Geronima
`
`2002
`
`Female
`
`om
`\2401 Fig. 24
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 16
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 16
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 16 of 21
`
`US 6,915,271 Bl
`
`met REWARDS
`
`ta REWARDS
`
`20% off First Night
`at th7
`New York Marriott
`
`35% of)FirstNight
`
`the
`New York Marriott
`
`Terms ight
`Buy now from CDNo
`Saved
`
`Helen Smith
`VISA <REDT
`This Offer has been saved
`in your
`VISA iSave Account
`
`SUVISA iSave - Microsoft Internet Explorer—PETE
`VISA a
`Visa TO welcome to iSave!
`
`Your VISA ISave
`account
`has been created.
`
`P 35% off FirstN
`at the
`} New York Marriott
`
`a
`waddle Blather es
`Anartiolt
`
`Fig. 27 \aro
`
`se
`
`> Pelion Perretree Cte stlcts BEE
`
`Offer
`
`BEE]
`
`$100 off a camcorder
`Good thru 03/3198
`Buy now from Crutchfield.com
`
`Buy now from Target
`Saves5s% offona
`Carpenter's CD
`Good thru 03/31/98
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 17
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 17
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 17 of 21
`
`US 6,915,271 B1
`
`'
`
`
`
`the iSave offers
`
`
`
`
`BE kernelnese a
`Eile Ect
`View Go
`Fav
`Help
`
`
`
`
`PEESAVE
`iSave Central
`
`
`3113
`
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`3103
`
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`3105
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`Turn to your electronic "wallet" to see al:
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`3109 Dee Turn to your electronic "wallet" to see all the iSave offers
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`
`
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`totals of both claimed rewards — how much you have saved to
`date — and avaiable rewards, which you can claim at any time.
`Personal Profile
`
`Use this page to provide information about yourself to be used
`to increase the iSavings you find.
`iSave Everywhere
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`See the entire galaxy of iSave offers!
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`Amazon/AlmondNet
`Exhibit 1003
`Page 18
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 18
`
`

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`Save 15% on "Joy of Cooking"
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`20% off Leather Handbag
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`Buy rolls of film, get 1 free
`Good through 03/3198
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`$100 off Sony Camcorder
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`40% off Second Business Class Fare
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`U.S. Patent
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`Jul. 5, 2005
`
`Sheet 18 of 21
`
`US 6,915,271 B1
`
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`Amazon/AlmondNet
`Exhibit 1003
`Page 19
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 19
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 19 of 21
`
`US 6,915,271 B1
`
`Peie hd LL de a
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`Amazon/AlmondNet
`Exhibit 1003
`Page 20
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 20
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 20 of 21
`
`US 6,915,271 B1
`
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`20% off W ool Blazer
`Good through 03/3198
`Buy now trom EB Online
`Save 15% on “Joy of Cooking"
`Good through 03/31.98
`Buy now irom Amazon.com
`20% off Leather Handbag
`@TARGET Good through 03/3198
`Buy now from Target
`60% off Digital Camcorder
`@TARGET Good throug03/21/98
`Buy now Irom Target
`$4000ff Sony Camcorder
`Good through 03/3198
`Buy now from Crutchfield
`0% off Second Business Class Fare
`Good through 03/3183
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`
`Amazon/AlmondNet
`Exhibit 1003
`Page 21
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 21
`
`

`

`U.S. Patent
`
`Jul. 5, 2005
`
`Sheet 21 of 21
`
`US 6,915,271 B1
`
`
`
`
`
`MeZEISG AVE
`
`Claimed iSavings
`
`,
`Se aae
`Available iSavings
`
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`Good through 03/318
`Buy now trom Crutchfield
`
`Tia
`
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`; EECeSrp AUCs
`
`| Claimed iSavingsPe
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 22
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 22
`
`

`

`US 6,915,271 B1
`
`1
`METHOD AND SYSTEM FOR DELIVERING
`REDEEMING DYNAMICALLY AND
`ADAPTIVELY CHARACTERIZED
`PROMOTIONALINCENTIVES ON A
`COMPUTER NETWORK
`CROSS-REFERENCE TO RELATED
`APPLICATION
`
`2
`tems does not enable a company to present incentive offers
`to individuals taking all the above factors into account in a
`timely manner, The companycould call consumers individu-
`ally on the telephone to present
`the ollers, but
`this is
`expensive and also does not allow the consumerto find the
`incentives at their ownpace.
`It is known to distribute incentives electronically. For
`example, electronic shopping on the Internet is popular, and
`often an Internet shopping merchant displays an icon on a
`page that describes an incentive such as a discount coupon
`in exchange for the consumer providing some useful mar-
`keting information via a “registration” process. For an
`example of an Internet shopping network, see U.S. Pat. No.
`5,715,314 to Payne et al. entitled NETWORK SALES
`SYSTEM.
`
`Described below are several alternate approaches to that
`of the present invention. While no admissionis being made
`herein that of any of these alternate approaches is priorart,
`none of these alternates includes all features of the present
`invention.
`
`Recently, a system called “E-CENTIVES” was intro-
`duced by Emaginet, Inc. of Beheads, Maryland (Internetsite
`http:/Awww.imaginet.com) for the distribution of electronic
`incentives over the Internet with online or offline redemp-
`tion. It is not clear whether or not the E-CENTIVESsystem
`1s prior-art, and no admission of the E-CENTIVES system
`being prior art is made herein.
`U.S. Pat. No. 5,794,210 to Goldhaber et al., entitled
`ATTENTION BROKERAGE,describes a system that pro-
`vides for the immediate payment to computer and other
`users for paying attention to an advertisement or other
`“negatively priced” information distributed over a computer
`network such as the Internet. A further invention, Orthogo-
`nal Sponsorship, allows advertisers to detach their messages
`from program content and explicitly target their audience.
`Meansare provided to allow users to choose whether they
`will view an ad or other negatively priced information and
`receive associated compensation. Targeting users may be
`provided by reference to a data base of digitally stored
`demographic profiles of potential users. Information can be
`routed to users based on demographics, and software agents
`can be used to actively seek out users on a digital network.
`Private profiles may be maintained for different users and
`user information maybe released to advertisers and other
`marketers only based on user permission.
`USS. Pat. No. 5,761,648 to Golden et al., entitled INTER-
`ACTIVE MARKETING NETWORK AND PROCESS
`USING ELECTRONIC CERTIFICATES, describes a data
`processing system issuing electronic certificates through
`“online” networks. Each electronic certificate includes trans-
`action data and identification data, and can be printed out on
`a printing device linked to a consumer’s personal input
`device, or electronically stored. The data processing system
`identifics and marks cach clectronic certificate with a codec
`distinguishing it from all other certificates and with another
`code identifying the user. The certificate can be used for
`various purposes, including use as a coupon for a discounted
`price on a product or service. Consumers access the data
`processing system online, browse among their choices, and
`make their selections. The data processing system provides
`reports on the selected certificates and their use following
`selection. Certificate issuers also have online access to the
`data processing system and can create or revise offers, and
`provide various instructions pertaining to the certificates,
`including limitations as to the numberofcertificates to be
`issued in total and to each individual consumer.
`
`
`
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 23
`
`This application claims the bencfit of U.S. Provisional
`Patent Application Ser. No.: 60/077,630,filed Mar. 11, 1998,
`to inventors Meyer, Hoeber, Kay, and Bartlett, entitled
`METHOD AND SYSTEM TOR DELIVERING AND
`REDEEMING DYNAMICALLY AND ADAPTIVELY
`CHARACTERIZED PROMOTIONAL INCENTIVES ON
`A COMPUTER NETWORK (Hercinafter the “Original
`Description”.)
`BACKGROUND OF THE INVENTION
`1. Field of the Invention
`This invention relates to the electronic distribution,
`redemption and clearing of promotional incentives. More
`particularly, this invention relates to a method and system
`for defining, electronically distributing, dynamically dis-
`playing to a consumer, redeeming and clearing promotional
`incentives whose characteristics are adaptively obtained as a
`function of demographics, behavior history, and other char-
`acteristics of the viewing consumerand other such proper-
`ties.
`2. Background Discussion
`It is commonpractice for businesses to provide incentives
`to consumers to buy products or serviccs or to provide
`incentive for particular consumer behavior byoffering pro-
`motions such as discounts, coupons, prizes, etc. Common
`examples of incentives are discount coupons that consumers
`can present
`to claim the discount when they purchase
`products or services.
`Businessesarc very concerned with using their promotion
`budget efficiently. They want to discount products at specific
`times, to specific consumers in such a way as to maximize
`the profit when the cost of the promotion and its effect on
`sales is Laken into account. The optimal discount incentive,
`for example, is the smallest discount that will successfully
`motivate the consumer to purchase.
`The optimal incentive, for example, the optimal discount,
`is a function of several Lactors:
`Inventory factors mayinclude: the demandfor the product
`which may vary cven on a dailybasis, for cxample in
`the hospitality industry; the cost of carrying the prod-
`uct;
`the remaining life of the product before it
`is
`superseded or upgraded; and so on.
`Tinancial factors include preferred timing for selling the
`product. For example, in some industries a companyis
`more motivated to make a sale at certain points in the
`week, the month, the quarter or the year.
`Consumer factors include demographic characteristics,
`stated consumerinterest, and past purchasing behavior.
`Acompany, for example, may want to provide a more
`valuable incentive to one type of potential customer
`(e.g., wealthier, more stable, more loyal, etc.)
`In addition,
`the optimal incentive system needs to be
`flexible,
`for example to enable several entities to be
`involved, and for anyparticular incentive to have one or
`more characteristics depend on the characteristics of one or
`more of these entities.
`
`KR0
`
`15
`
`w3
`
`35
`
`50
`
`wva
`
`Alternate Approaches
`Alternate approaches, including prior art incentive sys-
`tems have one or more shortcomings, and using such sys-
`
`65
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 23
`
`

`

`US 6,915,271 B1
`
`a
`
`w3
`
`3
`U.S. Pat. No. 5,774,870 to Storey entitled FULLY
`INTEGRATED, ON-LINE INTERACTIVE FREQUENCY
`AND AWARD REDEMPTION PROGRAM,discloses a
`fully integrated on-line frequency award program. A user
`may access the programon-line and may browse a product
`catalog for shopping. The user mayelectronically place an
`order. The program also calculates award points, updates the
`award account of enrolled users, and communicates that
`number of awarded points to the user. Enrolled users may
`browse through an award catalog and electronically redeem
`an amount of awarded points towards an award. The pro-
`gram then electronically places an award redeeming order
`with the fulfillment house and updates the user’s award
`account.
`USS. Pat. No. 5,710,886 to Christensen et al. entitled ,
`ELECTRIC COUPONING METHOD AND APPARATUS
`discloses a method and apparatus for distributing,
`generating, and redeeming discount coupons,rebate or gift
`certificates or the like tracks each coupon using a consumer
`ID numberprinted on the coupon. Coupons may bedistrib- 5
`uted electronically, for cxamplc, in the form of a diskette or
`CD-ROMsoftware. Software on the diskctte or CD-ROM
`may prompt
`a consumer to call a 1-800 number for a
`validation number or code. Once the software is validated,
`a consumer may print out selected coupons displayed on a 9.
`Graphical User
`Interface (GUD. Each coupon may be
`prioted only a limited number of times. Each coupon maybe
`imprinted with a consumer ID number, preferably in the
`form of a bar code. Once redeemed, consumer ID informa-
`tion and coupon information maybe retrieved from coupons
`forwarded to a coupon clearing house. Accurate data may
`then be produced illustrating which consumers or groups of
`consumers are redccming which coupons. Such data may be
`used for marketing purposes or ta generated further diskettes
`for distribution targeting specific consumers or groups of;
`consumerswith specific classes of coupon offerings. The use
`of a consumer ID number on the coupon may reduce or
`prevent the fraudulent copying and redemption of coupons,
`as multiple redemptions of a single coupon by a consumer
`may be readily detected from data gathered at the brokerage
`clearing house.
`European Patent publication EP 08222535 to Apte, et al.
`entitled INTERACTIVE MULTIMEDIA ADVERTISING
`AND ELECTRONIC COMMERCE ON A HYPERTEXT
`NETWORK,describes a system and method for providing
`targeted, multimedia advertisements and electronic com-
`merce capability on a hypertext network. Advertising soft-
`ware from a server is loaded on a user’s computer through
`a browser at the user’s request. The display screen of the
`client computer is partitioned into a browser area, which
`retains the full functionality of the underlying browser, and
`advertising area. Controls affecting the presentation and
`content of the advertisements streamed from the server to
`the client computer are available to the userin the interactive
`area, as are secure purchase and electronic coupon controls.
`PCT publication WO9819224 to Q’Toole et al., entitled
`CONTROLLED TRANSFER QF INFORMATION IN
`COMPUTER NETWORKS, relates to techniques for con-
`trolling transfers of information in computer networks. One
`technique involves transmitting smart digilal offers based on
`information such as coupons and purchasinghistories stored
`at
`the computer
`receiving the offer. Another technique
`involves transmitting from a server computer to a client
`computer a requestfor a user’s personalprofile information,
`and activating a client avatar that compares the request for
`personal profile information with a sccurity profile of the
`user limiting access to personal profile information.
`
`45
`
`50
`
`wva
`
`4
`U.S. Pat. No. 5,621,812 to Deaton and Gabriel, entitled
`METHOD AND SYSTEM FOR BUILDING A DATA-
`BASLE TOR USE WITIT SELECTIVE INCENTIVE MAR-
`KETING IN RESPONSE TO CUSTOMER SHOPPING
`HISTORIES generates discounts by printing incentives
`based on a customer’s shopping history as determined at a
`point of sale using a credit verification apparatus such as a
`check reader.
`PCTpublication WO 9723838 to Scroggie et al. entitled
`SYSTEM AND METHOD FOR PROVIDING SHOPPING
`AIDS AND INCENTIVES TO CUSTOMERS THROUGH
`ACOMPUTER NETWORKdiscloses a system and method
`for delivering purchasing incentives as well as other shop-
`ping aids through a computer network by methods such as
`using, c-mail or over the Internct (including the World Widc
`Web). Customers can log on to a central system andcan clect
`to browse among available purchasing incentive offers, or
`elect to claim a product rebate or receive product informa-
`tion. The system merges customer supplied information with
`other purchase incentive dala and creates a printable graphic
`image of the incentive for transmission to the customer.
`Alternatively, the incentive is not transmitted directly to the
`customer, but
`the terms of the incentive are transmitted
`electronically to a retail store designated by the customer,
`whothen receives either a token to presentto the store or an
`advisory message. The incentives can be targeted to specific
`consumers bascd on consumer purchasc history, and cither
`e-mailed to the consumer based on e-mail addresses stored
`in a consumerdatabase, or established for each consumer
`using a “personal page” established for the consumerin the
`computer network.
`U.S. Pat. No. 5,675,662 to Deaton, ct al. entitled
`METHOD AND SYSTEM FOR BUILDING A DATA-
`BASE FOR USE WITH SELECTIVE INCENTIVE MAR-
`KETING IN RESPONSE TO CUSTOMER SHOPPING
`HISTORIES,discloses a system and methodforretail store
`markeling. A memorystores a database of existing custom-
`ers of the retail store. The database includes a unique
`customeridentification code for each customer. A memory
`stores a list of unique identification codes for prospective
`customers of the store who reside in a predetermined geo-
`graphical area relative to the store. Circuitry compares the
`unique identification codes in the stored database ofexisting
`customers with the stored list of unique identification codes
`of prospective customers. Circuitry eliminates data from the
`list of prospective customers relating to the store’s existing
`customers, such that a non-customer database is produced
`for use in marketing.
`USS. Pat. No. 5,502,636 to Clarke, cntitled PERSONAL-
`IZED COUPON GENERATING AND PROCESSING
`SYSTEM,describes a personalized coupon generating and
`processing system includes a coupon dispensing source that
`communicates with responsive consumers through a com-
`munications interlace. The availability of pre-selected cou-
`pons is communicated to the consumers by an availability
`communications means, and consumer responses are com-
`municated to the coupon dispensing source by consumer
`response means. Consumer requested coupons are person-
`alized and distributed to the responsive consumers. Redemp-
`tion of the coupons is communicated to the coupon dispens-
`ing source by redemption data means.
`USS. Pat. No. 5,459,306 to Stein,et al. entitled METHOD
`AND SYSTEM FOR DELIVERING ON DEMAND, INDI-
`VIDUALLY TARGETED PROMOTIONS, discloses a
`method and system for delivering product picks to a pro-
`spective individual uscr. Personal user information is gath-
`ered. Information on a user’s use of a product during product
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 24
`
`Amazon/AlmondNet
`Exhibit 1003
`Page 24
`
`

`

`5
`6
`When a customer makes a selection of coupons from the
`use is gathered, correlated and stored. A user code provided
`to the us