5,794,207, August 11, 1998.
Method and apparatus for a cryptographically assisted commercial network
system designed to facilitate buyer-driven
conditional purchase offers
Abstract
The present invention is a method and apparatus for effectuating
bilateral buyer-driven commerce. The present invention allows prospective
buyers
of goods and services to communicate a binding purchase offer globally to
potential sellers, for sellers conveniently to search for relevant buyer
purchase offers, and for sellers potentially to bind a buyer to a
contract based on the buyer's purchase offer. In a preferred embodiment,
the apparatus
of the present invention includes a controller which receives binding
purchase offers from prospective buyers. The controller makes purchase offers
available globally to potential sellers. Potential sellers then have the
option to accept a purchase offer and thus bind the corresponding buyer
to a
contract. The method and apparatus of the present invention have
applications on the Internet as well as conventional communications
systems such
as voice telephony.
This patent is held by
Priceline.com, a company that has consumers "name the price" they are
willing to pay for tickets, and using an auction where the first willing
seller (an airline) gets the sale. This is a very well known auction
technique, but Priceline claims the patent gives them a monopoly on using
this sales method on the Internet. Here are a few stories on this patent.
- December 1998, Alex Grove, Red Herring,
Priceline.com sparks a patent controversy.
-
August 17, 1998, Mel Duvall, Inter@ctive Week,
Priceline Patent Sparks Debate.
- August 10, 1998, Peter Lewis, in the New York Times,
Web Concern Gets Patent for Electronic Business Model.
5,845,265, issued December 1, 1998. This patent is assigned to
MercExchange, L.L.C., and also covers auction methods on the Internet.
A method and apparatus for creating a computerized market for used and
collectible goods by use of a plurality of low cost posting terminals and a
market maker computer in a legal framework that establishes a bailee
relationship and consignment contract with a purchaser of a good at the
market
maker computer that allows the purchaser to change the price of the good
once the purchaser has purchased the good thereby to allow the purchaser
to speculate on the price of collectibles in an electronic market for
used goods while assuring the safe and trusted physical possession of a
good with a
vetted bailee.
MercExchange claims that this patent blocks the practices used by
Priceline.com.
Comments and suggestions to Vergil Bushnell
vbushnell@cptech.org
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