Improved Auctions & Online Marketplaces

CHECK FOR AVAILABILITY

Summer 2016 Auction Catalog

CHECK FOR AVAILABILITY - Summer 2016 Auction Catalog
ID Lot 011
Seller H-Chip Holdings, LLC
Sector eCommerce; Online Auctions
Assets 3 - US Patents; 2 - US Applications
US Patents 7,720,743 8,251,702 8,545,229
Applications US 13/975,183; US 60/161,818

Lot Summary

With priority dates from 1999, this portfolio offers benefits for an online auction wherein one or more predefined terms, qualities, incentives, or other such indicia (“Program Terms”) are associated with the particular product and/or service which is the subject of the auction. Customers rank or otherwise designate their preference for the Program Terms, and the system then partitions the set of customers into “pools” in accordance with the selected Program Terms. Merchants then compete to obtain that pool of customers by bidding on the Preferred Program Term.

Further, customers can be pooled according (i) to demographic or other customer characteristics or; (ii) to the level of commitment to purchase. Also, customers who would otherwise be partitioned into different pools are grouped in the same pool, and a bid that changes a first Preferred Program Term associated with a first customer automatically causes a bid of equivalent value to be made to one or more different Preferred Program Terms associated with one or more other customers.

The ‘743 patent relates to creating a marketplace to enable businesses to bid for a collective of customers. The patent allows for pooling customers and customer orders together in order for businesses to be able to collectively bid for their business in a reverse merchant auction. The patent provides for identifying common threads between potential customers and grouping them together based on different criteria such as demographics, income levels, etc.

In addition, the portfolio allows for creation of an on-line marketplace for conducting an auction wherein one or more predefined terms, qualities, incentives etc (also called as “Program Terms” in the patent) are associated with the particular product and/or service that is the subject of the auction. Customers can select a preferred program term and/or rank their preference for available program terms. Based on customer selections, the system divides the customers into pools. Different merchants can then compete to provide the specified products or services to the specific pool of customers by bidding for the pool that meets their Program Term criteria. Customers may be pooled according to demographic or other customer characteristics (“Characteristic Pooling”), or according to level of commitment to purchase (“Commitment Pooling”).

The major advantage of the patent is that it provides merchants with the ability to bid for a group of customers with pre-specified product preferences. Under the patent, different pools or groups receive different deals depending on different terms that may be available. Merchants compete for customer groups, giving the buyers a better deal than what they would have got individually. It enables an online marketplace that customizes deals for group buyers with similar characteristics and preferences.

Sample Forward Citation Analysis:
Ebay
LG Electronics Inc.
Oracle

Due Diligence

Patent NumberFile History
7,720,743
8,251,702
8,545,229