AU772810B2 - The facilitation of trade - Google Patents

Description

THE FACILITATION OF TRADE This invention relates to the facilitation of trade. More particularly, this invention relates to a method of facilitating trade and to an arrangement whereby trade is facilitated.

BACKGROUND

At present both barter and auction facilities are available. Auction facilities are available to the public in a number of different forms. A popular form uses the World Wide Web (www) as a basis for communicating bids to an auctioneer or provider. The success of such facilities has been remarkable. This is clear when one considers the present value of companies offering auction and barter facilities on the www.

S•Generally, www based auction facilities operate in a similar manner to normal auctions. Thus, a party locates a particular item and communicates a bid 20 electronically. Various functions such as "hammer drop" are facilitated by auction protocols contained in software.

go.o• S For example, a seller can himself make a decision as to when bidding should cease. Instead, a provider of the auction service can control the period of o. 25 bidding. Generally, websites offering auction facilities also provide many links to pages having details of goods or services available for sale via the auction OO.lO system. Further, such details are often accompanied by a start price at which bidding starts.

Some auction providers have a means whereby, for a joining fee, a member can join an auction club and receive certain benefits. These benefits include such things as insurance and specialised catalogues. Furthermore, the benefits may also permit subscribers to sell their own goods via the auction system.

However, in many cases parties can sell their goods subject to a commission, the final selling price being received by the auction provider.

Generally, currency transactions are carried out via credit card and other conventional payment methods.

A further feature that has made www-based auctions popular is that software is provided which can carry out the bidding on behalf of a potential purchaser.

The purchaser merely enters the details regarding a maximum limit which the potential purchaser is prepared to pay. The protocols embedded in the software then carry out the bids until the ceiling is reached.

Many auction websites also include what is knowri as an electronic shop front.

Such electronic shop fronts permit sellers and purchasers to carry out transactions via the www. In short, the provider receives the necessary payment and transfers it to the seller. The provider then also organises or arranges transfer of the goods or services to the purchaser. Again, the provider can receive a commission or can charge a subscription fee to those who wish to use the selling and purchasing protocols.

*It will be appreciated that the provider can also maintain an account on behalf of 20 members or subscribers. The account can be used to receive funds used for purchases. The account can also be in the form of an escrow account to be used to hold funds until transfer of goods/services has taken place.

WWW-based bartering is also a popular form of trade. The underlying basis of 25 such a form of trade is what is known as the barter or trade dollar.

0 0000 Parties wishing to barter goods/services pay a particular subscription fee to join a barter club. This permits subscribers to ascribe a particular value in barter dollars to their goods/services to form the basis of barter for other goods/services.

It is also possible for parties to purchase barter dollars and use these barter dollars to purchase goods/services offered by subscribers. In such cases, the provider receives a commission on the value traded.

Some providers offer protocols which make it possible for parties to purchase barter dollars at discount prices and re-use them at a later stage at full value.

This permits parties to receive profits from trading in barter dollars.

It is certainly foreseeable that the barter dollar will soon be recognised as a currency in itself. It would then be possible to trade in barter dollars as one would with any other currency.

Barter clubs or companies established in the United States and Canada promote the trade of goods and services against barter dollars instead of US or Canadian dollars. Thus, the barter dollars are used to account trading values between members of barter companies. Members of barter companies acquire barter dollars by transferring goods and services between members of the same barter company. Credited barter dollars are accounted by barter companies.

Members can then use credited barter dollars to make different acquisitions or to clear debts.

o .0"0 Barter companies account transactions between members in barter dollars.

o. 20 They provide services such as listings of barter trades, member directories, barter counselling and credit. All transactions between members are subject to commissions payable to barter companies.

A particular method of becoming involved in the use of barter dollars is as 25 follows: olooe .A written bid by fax or e-mail is placed in order to trade cash for barter dollars.

A party may be asked to provide sufficient guarantees to cover the bid on demand. All bids are subject upon acceptance of the ask to be completed.

It is also possible to place a written ask by fax or e-mail in order to trade cash for barter dollars. As with the bid, the party may be asked to provide sufficient guarantees to cover the ask upon demand. Also as before, all asks are subject upon acceptance of the bid to be completed. In both cases, with an accepted bid or ask, a guarantee of any transaction to be completed is not constituted.

The real bid or ask prices may be different from those advertised on the websites since these are not generally a real time trading market.

An example of an organisation controlling the trade in cash and trade dollars is that known as FIDEX EXCHANGE. FIDEX EXCHANGE has a fixed commission per trade dollar. This commission is payable in cash or in trade dollars.

The barter protocols and auction protocols described above have become extremely popular. However, if a party wishes to have access to both facilities, it is necessary for the party to operate both systems separately. This means that the party must pay commission on both auctions and bartering and may also be faced with excessive charges for joining barter clubs or companies. It is thus to be appreciated that it would be desirable for a means to be provided whereby a party can have access to both facilities at one trading location.

Further, it would be desirable for a party to be able to use trade dollars with the :auction protocol.

S 20 As set out above, it is foreseeable that barter dollars could themselves be regarded as a mainstream currency. It follows that such barter dollars would be i subject to rules and regulations similar to those to which conventional g currencies are subject.

:O 25 A number of different organisations offer barter dollar facilities. It follows that difficulties may arise where parties with different forms of barter dollars wish to trade with each other. It is to be appreciated that it would be desirable if an arrangement were provided whereby parties could trade barter dollars. This would obviate the need for parties to convert to a conventional currency and then back to a different form of barter dollar.

DEFINITIONS

In this specification, the following words or phrases are to be understood to have the definitions ascribed to them as set out below: "barter dollars" A value ascribed to any goods or services subject to a barter, the value being independent of a particular known currency and therefore not having geographical limitations.

"provider" A party who provides and/or facilitates use of the arrangement of the invention to the public and to subscribers.

"subscriber" A party who utilises the arrangement of the invention.

"trading location" Any site, whether electronic or physical, where trade between two or more parties occurs.

999 BROAD DESCRIPTION OF THE INVENTION According to a first aspect of the invention, there is provided a method of :,:"facilitating trade, the method including the steps of 25 providing an auction facility and a barter facility at a single trading Ci t location; permitting public access at least to the auction facility; providing a protocol whereby barter dollars can be utilised with the auction facility; and permitting access to the barter facility substantially only to subscribers.

The method may include providing subscribers with unique dollar accounts.

6 The step of providing the payment protocol may include the step of transferring barter dollars from a buyer's to a seller's account by way of at least part payment for goods or services purchased through the auction facility.

The method may include the step of hosting a world wide web site which defines said single trading location.

According to a second aspect of the invention, there is provided an arrangement for facilitating trade, the arrangement including at least one computer based apparatus incorporating an executable code which, when executed, defines an auction facility and a barter facility, which are accessible at a single trading location, the executable code further defining, when executed, an issuing protocol for issuing barter currency; a trading protocol for permitting trade with barter dollars on the :auction facility; and oa barter protocol for facilitating barter between parties using the arrangement.

20 The arrangement may be made accessible to parties for a fee payable to the provider. However, payment of a fee is not essential. The reason for this is that it may become profitable for the provider to offer access to the facility free of charge.

e 25 The invention provides a means whereby a party can use the auction facility to generate barter dollars. This is desirable since the need to purchase barter dollars is thereby obviated. Thus, it is easier for a party to become involved in barter than was previously possible.

The auction protocol may be any conventional auction protocol. This may be in the form of open public bidding. Instead, this may be in the form of a www based auction system, similar to those presently used. In such systems, bidding is carried out on line.

Auctions and electronic stores have become increasingly popular in the last few years. In particular, www-based auctions provide parties with the ability to purchase and sell goods directly to each other without the use of an intermediary. Furthermore, as such trading protocols become more popular, the range of goods/services becomes more extensive. It is foreseeable that a large proportion of trading will eventually be www based.

This invention therefore finds particular application for the www. However, it is to be appreciated that it is within the scope of this invention to have the various protocols take place physically or on intranets or other networks not as encompassing as the www. For example, parties may communicate with each other via dedicated communication lines outside of the internet. This may be desirable in certain circumstances due to security problems associated with the www.

It follows that the barter protocol may also be in the form of a protocol similar to that presently used on the www. In terms of such a protocol, parties using such a service trade various goods and services. This is accomplished by a party joining a barter club or subscribing to a service offered by a barter company.

That party advertises goods or services for a certain amount of barter dollars or goods and services to the same or similar value. The party can also exchange conventional currency for barter dollars which are held in an account by the provider. The barter dollars can then be used to purchase any of the goods or services offered by other barter club members and/or subscribers.

The provider may act as a broker to oversee and regulate transactions between members/subscribers. A feature of such trading is that each of the goods or services are assigned a particular value in barter dollars. It follows that where the goods/services to be exchanged do not match exactly, the outstanding balance may be credited to the relevant account. It follows that trading can result in a build up of barter dollars, which can themselves be used to purchase goods/service via the auction protocol.

8 Barter trading is far more flexible than the forms of trading which have existed previously. The effect of such a trading format is that an intermediary is not required for the process in which the goods/services are transferred from the manufacturer to the end-user. Furthermore, the necessity first to generate a certain amount of capital before disposing of it is obviated. The goods/services are themselves traded and outstanding balances may be held by the club/company on behalf of the traders.

A problem with barter systems is that they can be costly to join. They often require a substantial investment. The reason for this is that the systems required to control and regulate the transactions are themselves costly and require substantial management input.

The applicant intends to combine the currency generating ability of an on line auction system with the advantages of flexibility and convenience associated with barter systems.

According to the invention, a party accesses a webpage maintained and *oo controlled by the provider. The party is permitted to use the auction protocol 20 without paying a fee, apart from the usual fees charged by the provider. The webpage contains a link to a subscription service that can be utilised by the party in the event that the party wishes to subscribe to the service offered by the provider.

25 Users of the arrangement can exchange conventional currency for barter dollars. These can then be used to support a bid made with the auction :o:protocol.

Instead, the party can sell goods/services via the auction protocol and receive all or part payment in the form of barter dollars. The party can then utilise this currency to trade goods/services with the barter protocol.

It is to be appreciated that the arrangement of this invention provides a connection between the auction and barter protocols. Still further, the 9 arrangement of this invention provides a means whereby access to a barter club is facilitated, especially where the party uses the auction protocol to generate barter currency.

The database in which data relating at least to subscribers is stored may include limited personal details and advertisements lodged by the parties. The database may also contain advertising material concerning those goods/services offered by parties.

The arrangement may include an administration means. The administration means may be configured to control operation of the auction protocol and operation of the barter protocol. The administration means may also be configured so that interaction between the auction and barter protocol is managed. The administration means may be operated and controlled by the provider.

The credit transfer protocol may be designed to provide transfer of funds between parties transacting with each other. Such transfer may take place via conventional security protocols similar to those used presently by www-based 20 banking facilities.

lo The arrangement may also include a banking database. The banking database 0 may contain fields relating to various aspects. Such aspects may include ~member details, member account numbers, member passwords and user 25 names.

The arrangement may include a cash transfer mechanism whereby payments relating to subscription fees, commission on auction and exchange of barter dollars can be made to the provider.

The arrangement may include a multi-tiered access means. Such an access means may include an access protocol that defines three levels of access.

These may include a primary access level whereby parties can access a website supported and maintained by the provider.

A secondary access level may be provided whereby the party can access a web page where the potential subscriber can subscribe to the services offered by the provider.

It follows that the arrangement may include a payment protocol whereby a party can pay a membership fee. Instead, or in addition, the party may be permitted to purchase barter dollars.

A tertiary access level may be defined by the access protocol. The third access level may be such that only the provider can access various aspects of the software controlling the various protocols of the invention.

It can be readily foreseen that a situation may arise where a party has obtained barter dollars from a different source and wishes to use those barter dollars with the arrangement of the invention. It would be desirable if that party were able to convert those barter dollars to the form of barter dollars used by the arrangement. Still further, it would be desirable for a means to be provided whereby one form of barter dollars could be traded for another form.

It follows that the arrangement may include a currency conversion mechanism whereby parties can convert one form of barter dollar into another form of barter dollar.

The conversion mechanism may include a barter currency database. The barter 25 currency database may include listings of values ascribed to different forms of barter dollars. The values may be determined with reference to a barter dollar unit of any desired form of barter dollar.

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The conversion mechanism may further include suitable conversion protocols which draw off the barter currency database to carry out the conversion process.

DESCRIPTION OF A TYPICAL EXAMPLE OF THE INVENTION 11 An arrangement and method for facilitating trade in accordance with this invention may manifest itself in a variety of forms. It will be convenient hereinafter to describe in detail a preferred embodiment of the invention with reference to the accompanying drawings. The purpose of this specific description is to instruct persons having an interest in the subject matter of the invention how to carry the invention into practical effect. It is to be clearly understood however that the specific nature of this description does not supersede the generality of the preceding broad description.

In the drawings, Figure 1 shows, schematically, an arrangement, in accordance with the invention, for facilitating trade; and Figure 2 shows, schematically, a barter dollar conversion mechanism for use with the arrangement of Figure 1.

In the attached drawings, reference 10 generally indicates an arrangement, in accordance with the invention, for facilitating trade. The arrangement includes a stand alone fully hosted web site 12 providing access to auction facilities and bartering facilities.

:O 20 The site 12 is designed to provide promotional information regarding the use of barter dollars and the advantages of internet-based bartering. Such information also relates to the possibilities of obtaining barter dollars by using the auction facilities.

::25 The site 12 includes an access protocol which permits potential subscribers to ooo* use the auction facilities without the necessity of paying subscription fees. In this case, a commission from sales made via the auction facilities are transferred to a provider at an administration means 14.

The access protocol includes a members account access protocol indicated at 16. The members account access protocol 16 has a number of functions. A first function is the ability to permit potential subscribers to join automatically by paying membership fees. A second function of the members account access protocol 16 is to permit subscribers to edit their personal details.

A third function of the members account access protocol 16 is to permit subscribers to transfer barter dollars to other members accounts. It will thus be appreciated that the members account access protocol includes user name, password and membership ID number protocols. These may be in the form of conventional encrypted communications used presently in performing electronic banking transactions. Such encrypted communication forms the basis of all monetary transactions carried out with respect to the arrangement A fourth function performed by the members account access protocol 16 is that it permits subscribers to e-mail or otherwise electronically contact other subscribers. This can also be controlled via suitable ID numbers and passwords.

A fifth function of the members account access protocol 16 is that it permits subscribers to search and view a list of other subscribers and their goods and q services offered for sale or barter. The list also contains details of the S9:2 geographical location of the goods/services.

A sixth function performed by the members account access protocol 16 is that it permits subscribers to submit classified advertisements and also to search and view classified advertisements created by other subscribers.

A seventh function of the members account access protocol 16 is that it serves *l 25 to maintain a record of all access accounts of subscribers. S The members account access protocol 16 operates in conjunction with the barter and auction site 12.

The member account access protocol 16 and the barter and auction site 12 draw off a barterbank database 18. The barterbank database 18 has data relating to each subscriber entered therein. These are entered in thirteen fields namely: 1. First Name 13 2. Last Name 3. Address 4. City State/Region/Province 6. Post/zip code 7. Fax 8. E-mail 9. Account number User name 11. Password 12. Goods and services offered by each subscriber 13. Category of goods/services for purposes of searching The barter bank database 18 is also used to store transaction records The arrangement 10 includes a banking protocol 22 which facilitates the o transfer of commission on auction fees, membership fees and hard cash transactions to be deposited directly into a bank account held by the provider at 14.

S The arrangement 10 includes a feedback facility. In terms of this facility, subscribers can obtain details relating to reliability and quality of service offered by other subscribers.

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25 The website 12 has links to delivery services so that a subscriber can arrange delivery of purchased or bartered goods.

•*og The arrangement includes an incentive protocol 24. The incentive protocol 24 is such that a subscriber receives a benefit in the event that a subscriber introduces a new subscriber to the arrangement Suitable software 26 controls the operation of the incentive protocol 24. In terms of the protocol 24, a subscriber receives a commission for each new 14 subscriber or affiliate who joins the arrangement 10. The software 26 is stand alone and is configured to keep a record of affiliates introduced by a subscriber.

The administration means 14 directs and controls operation of the arrangement 10. The administration means 14 includes four control centres. An auction control centre 28 controls operation of the auction facilities. A hard cash transaction control centre 30 controls all operations or transactions relating to cash. A barter control centre 32 controls operation of the bartering facilities offered by the arrangement 10. An affiliate control centre 34 controls operation of the incentive protocol 24.

In a typical application of the arrangement 10, new members using the arrangement 10 are offered a line of credit in barter dollars. This can be in the form of an interest free loan, the amount being governed by the particular form of business intended to be carried on by the new member. The member is then free to trade in goods and services on a global basis either by direct sale or by holding an on line auction. In either case, the members are encouraged to accept a percentage of their fee in barter dollars.

20 The website 12 incorporates those features to be expected from such a website. These include searching facilities and promotional material.

Soo**: In a particular example, in the event that a member chooses to auction O: goods/services they can list their goods/services for a nominal fee. Further, the member can choose the type of auction, the length of the auction and what percentage of the winning bid they will accept in barter dollars.

*i Once the auction has been closed, the winning bidder is notified automatically by e-mail and the auction holder is also notified as to the identity of the winning bidder. The barter component of the sale is then transferred from the buyer's account to the seller's account. The cash component of the sale is transacted purely between the buyer and the seller. It is, however, possible, that the seller and the buyer can utilise an escrow facility defined by the arrangement As set out earlier in the specification, it will readily be appreciated that a mechanism can be provided to permit parties to convert one form of barter dollar into another form of barter dollar. An example of a barter dollar conversion mechanism is shown schematically in FIG. 2.

The barter dollar conversion mechanism 40 includes a barter currency database 42. The database 42 includes listings of values ascribed to different forms of barter dollars. These values are determined with reference to a barter dollar unit of any desired form of barter dollar.

The conversion mechanism 40 further includes suitable conversion protocols 44 that draw off the barter currency database 42 to carry out the conversion process.

The conversion mechanism 40 is accessible via the website 12. Thus, parties using the arrangement 10 can readily access the conversion mechanism 0 The conversion mechanism 40 need not be www-based. Instead, the 00 conversion mechanism 40 can be carried out using computer telephony.

20 Instead and/or in addition, the conversion mechanism 40 may be carried out with a card-based system such as those used for the electronic transfer of funds.

0 It will of course be realised that the above has been given only by way of tt *25 illustrative example of the invention and that all such modifications and 0 epee o variations thereto as would be apparent to persons skilled in the art are deemed to fall within the broad scope and ambit of the invention as set forth in the following claims.

Claims (13)

1. A method of facilitating trade, the method including the steps of: providing an auction facility and a barter facility at a single trading location; permitting public access at least to the auction facility; providing a payment protocol whereby barter dollars can be utilised with the auction facility; and permitting access to the barter facility substantially only to subscribers.

2. A method according to claim 1 which includes providing subscribers with unique barter dollar accounts.

3. A method according to claim 2 where the step of providing the payment protocol includes the step of transferring barter dollars from a buyer's to a Q. seller's account by way of at least part payment for goods or services purchased through the auction facility. 20 4. A method according to any one of claims 1 to 3, which includes hosting a Word Wide Web site which defines said single trading location. An arrangement for facilitating trade, the arrangement including: at least one computer based apparatus incorporating executable 25 code which, when executed, defines an auction facility and a barter facility, which are accessible at a single trading location, the executable code further defining, when executed, an issuing protocol for issuing barter currency; a trading protocol for permitting trade with barter dollars on the auction facility; and 17 a barter protocol for facilitating barter between parties using the arrangement.

6. An arrangement according to claim 5, in which the executable code defines a subscription protocol when executed, so that the arrangement can be utilized by subscribers.

7. An arrangement according to claim 5 or claim 6, in which the executable code defines a banking protocol when executed, to permit a user to open and maintain an account with a provider.

8. An arrangement according to claim 7, in which the executable code defines the banking protocol when executed, whereby the user can convert data representing conventional currency into data representing barter currency and/or data representing one form of barter currency into data representing another form of barter currency. OS 00l 0

9. An arrangement according to claim 7 or claim 8, in which the executable ase Os O S code defines a credit transfer protocol when executed, to permit a user to 005 .0 20 transfer credit to an account held by another user. *550 *0 @ee. *c

10. An arrangement according to any one of claims 6 to 9, in which the executable code defines an incentive protocol when executed, for °t a0 providing a benefit, such as reduced subscription fees or a commission, to 25 those subscribers who introduce further subscribers to the arrangement.

11. An arrangement according to any one of claims 5-10, in which the computer based apparatus includes at least one database in which data relating at least to subscribers is stored, the executable code being configured so that, when executed, a user is permitted to access the database and thus predetermined details of each subscriber.

12. An arrangement according to any one of claims 5-10, in which the computer based apparatus defines a node on a network, the computer based apparatus including suitable communications hardware and software to permit data to be communicated to and from the computer based apparatus.

13. An arrangement according to claim 12, in which the computer based apparatus defines a node on a Wide Area Network (WAN).

14. An arrangement according to claim 12, in which the computer based apparatus defines a node on the World Wide Web (www). An arrangement as claimed in any one of claims 5-10 in which the computer based apparatus incorporates a signal encryption means to control access to the computer based apparatus.

16. A storage medium which is capable of being read by a computer-based apparatus, the storage medium having executable code stored thereon, 20 the executable code being written so that, when executed, the code defines an issuing protocol for issuing barter currency; a trading protocol for permitting trade with barter dollars on the °609: auction facility; and 25 a barter protocol for facilitating barter between parties using the arrangement. DATED THE THIRTY FIRST DAY OF JANUARY 2001 THOMAS DAVID HAMILTON BY PIZZEYS PATENT AND TRADE MARK ATTORNEYS -111~-