GB2353876A - Allocating an entity - Google Patents

Abstract

A method of receiving and storing requests (bids) for allocation of an entity, e.g. property, over a network such as the Internet is disclosed. Each of the requests (bids) has a value associated therewith. A period of validity is allocated to requests, the period being no shorter than a predetermined minimum period. The originator of each request is informed of the values of other requests received. A record is made of which, if any, of the requests is accepted. Deposits may be forfeited if certain conditions are not met.

Description

2353876 Apparatus for and Methods of Allocating an Entity This invention

relates to apparatus for and methods of allocating an entity to one of a number of requests therefor and particularly, but not exclusively, to means to enable such methods to be carried out over a computer network link. It also relates particularly but not exclusively to apparatus and methods of operating such apparatus suitable for trading property.

Known apparatus for controlling a bidding process simply record the bids made with only bids higher than the last being permissible, and the entity bid for being allocated automatically to the highest bidder. This gives rise to a traditional style of auction. There are disadvantages to such arrangements which do not make them suitable for all applications. In particular such an arrangement is not considered suitable for trading property where large sums of money are usually involved and generally special rules apply to the buying and selling thereof.

When viewed from a first,aspect the present invention provides a system -ior use in allocating an entity to one of a plurality or requests therefor comprising:

data processing apparatus; and network of data entry apparatus each comprising means for originating a request for allocation of said entity, means for allocating a value to said request, and means for making data communication with said data processing apparatus; wherein said data processing apparatus comprises:

means for receiving and storing a plurality said requests for allocation of the entity, and their associated values; means for allocating a period of validity to received requests, said period of validity being no shorter than a predetermined minimum period; means for informing the originator of each request of the values of the other requests received; and means for recording which, if any, of said requests is accepted.

Thus it will be seen that in accordance with the invention a number of parties can make requests for an entity, but that each request remains valid, i.e.

available for acceptance, for at least a predetermined minimum time. This fosters stability in the process and encourages more careful consideration of the implications of making a request. The means in accordance with the invention do not therefore provide is for an ordinary type of auction.

The requests may be arranged to remain valid until some other event takes place e.g. one of the requests is accepted. Preferably however each request has a specified expiry time, subject. to the predetermined minimum validity period. This means that even after all requests have been made, the one having the greatest value is not necessarily constant as it may expire before a request having a lower associated value expires. Not every request need have an expiry time specif ied - only some or one may.

The data processing apparatus may automatically decide a period of validity to allocate to a request, but preferably the request comprises a requested period of validity and the data processing apparatus is arranged to check the requested period of validity against the predetermined minimum period and to allocate it the requested period of validity unless it is less than the predetermined minimum.

Where a request has an expiry time the system may comprise means to inform the originators of the other requests of said expiry time, but preferably it is arranged that only the party offering the entity is 3 informed of the expiry time of requests.

It will be appreciated by those skilled in the art that in fact the system described above does not necessarily require the network of data entry apparatus and in fact it is the means for receiving and storing the plurality of requests which is novel and inventive in its own right. Thus when viewed from a broader aspect the present invention provides means for receiving and storing a plurality of requests for allocation of an entity, each of said requests having a value associated therewith, comprising means for allocating a period of validity to received requests, said period of validity being no shorter than a predetermined minimum period, means for informing the originator of each request of the values of the other requests received and means for recording which, if any, of said requests is accepted.

The system may be arranged not to permit the entity being offered from being withdrawn. However in some circumstances such prevention of withdrawal would be a an unrealistic reflection of the real situation e.g. where the party cannot be legally obliged to go through with the transaction in any event. For a example in a preferred application of the invention the means thereof is accessible over a remote network link and the entity being offered is a property. It may not be possible in such circumstances to enforce an accepted request for allocation of the property if such a request has been made over a remote network link, since for example under present UK law a contract to sell a property may only be concluded in person or via a solicitor. Thus means in accordance with the present invention could not be used exclusively to conclude such a contract. In such circumstances the means of the invention can be used to facilitate the conclusion of a contract of this sort, but since it cannot enforce it, prevention of withdrawal would be unrealistic.

Preferably therefore the system is arranged to penalise a party that withdraws an entity before it is allocated to one of the requests made. Such a penalty may take any appropriate form, but preferably it comprises a deposit associated with the party being forfeited.

The ability to enforce one or more rules relating to an entity allocation process, especially one conducted at least partially over a computer network, through the use of a deposit is novel and inventive in its own right, not necessarily just in the context of requests which remain valid for a predetermined minimum time and regardless of the specific rules involved. Thus when viewed from a further aspect the present is invention provides means for allocating an entity from an offering party to a requesting party making a request therefor comprising resource management means for confirming that a resource has been secured from said offering party, data storage means for recording a request from said requesting party for allocation of said entity, means for recording acceptance of said request, means for recording whether a predetermined condition had been met, wherein said resource management means is arranged to indicate that said resource is to be released if said condition is met or to indicate that said resource is to be forfeited if said condition is not met.

Similarly, preferably means are provided to penalise a party initiating a request for allocation of the entity in the event that said party withdraws its request before the request expires. Again applying this concept more generally, the invention provides means for allocating an entity to a party making a request therefor comprising resource management means for confirming that a resource has been secured from said party, data storage means for recording a request from said party for allocation of said entity, means for recording acceptance of said request, means for recording whether a predetermined condition had been met, wherein said resource management means is arranged to indicate that said resource is to be released if said condition is met or to indicate that said resource is to be forfeited if said condition is not met.

In preferred embodiments a resource is secured from each of said offering and requesting parties.

The securing of said resource may take many different forms. For example physical control of the resource may be effected. In the preferred case where the resource is money, this could mean that cash or a cheque is held. Alternatively an enforceable charge over the resource could be obtained. In the case of is money this could means that credit card or bank details were obtained. How the resource is secured is not however part of the invention- It is merely necessary to establish that it has been secured.

Means for penalising a party withdrawing the offer of the entity may be arranged to apply said penalty whenever the withdrawal is made, or alternatively said penalty could be applied only if the withdrawal is made before a predetermined time. In other words a period for requests may be pre-set after which the offer is either automatically withdrawn or may be done so without penalty. In such arrangements the system preferably comprises means for defining said predetermined time and establishing whether it has elapsed.

Preferably means are provided to penalise the party offering the entity being requested if the party does not accept a request which is valid and has the highest value associated with it. This could apply whatever the highest value is, but preferably it applies only if the highest value exceeds a predetermined threshold value.

Thus means are preferably provided to determine a threshold value such that requests below that value need not be accepted. once set the threshold value may be f ixed, but preferably means are provided to vary the threshold value. Such means may allow the threshold value to be freely varied, but preferably it comprises means to penalise the party offering the entity if the threshold is increased. More preferably a penalty is only applied if the increase is such as to raise the threshold above the value of a previously lodged request.

In preferred embodiments means are provided to allow a user to monitor the requests made for allocation of the entity without having to make a request for said allocation. This allows users to see what the value of previously made requests is and to decide whether to make their own request.

Preferably in accordance with such embodiments means are provided to give notification to a party monitoring requests whenever a new request is made i.e.

a request from a new party or a further request from an existing party having a different value or possibly even just a different expiry time.

Such a facility as is set- out above is considered to be novel and inventive in its own right and thus when viewed from a further aspect the present invention provides means for accepting a plurality of requests for allocation of an entity, each of said requests having a value associated therewith comprising means for allowing a party to monitor the values of the requests made without having made a request and means for notifying said party when a new request is made.

This aspect of the invention allows a potentially large number of parties to monitor the value of requests made but then also to have an opportunity themselves to lodge such a request. In the preferred application of the invention where the value of a request corresponds to a monetary bid for the entity, which may e.g. be a property, this aspect of the invention can improve the chances that the proper market value of the entity is achieved by ensuring that the maximum number of parties is able to monitor and thence participate in the process. This is particularly enhanced by the feature of the f irst aspect of the invention that each of said requests is valid for at least a predetermined minimum time since this can allow sufficient time for all interested parties to be notified of a new request and respond to it. This feature is therefore a preferred feature of the present aspect of the invention.

Any potential user may be. permitted to lodge a request for allocation of the entity, but preferably requests are only accepted from a predetermined group of users. Such a group is preferably comprised of parties which have been registered on the system. Thus in preferred embodiments registration means are provided for registering a party to enable that party to lodge requests for allocation of the entity, said means preferably comprising means for establishing an identity authentication means for the party, e.g. a password or security code.

Preferably the registration means comprises means ensuring that a resource has been secured from the party being registered as is set out above. This allows enforcement of the penalties set out earlier hereinabove by preventing return of said resource to the registered party.

Similarly in preferred embodiments a registration means is provided for registering a party to enable that party to offer an entity. This registration means preferably comprises means to record a description of the entity. As above preferably it comprises means to establish an identity authentication. As before, it is also preferred that it comprise means for temporarily securing a resource for the purpose of enforcing the penalties set out earlier hereinabove.

The methods and apparatus/means set out in accordance with the invention could be implemented using - 8 pure hardware means such as discrete components or hard wired logic gates. Preferably though, the invention is implemented at least partially using software, e.g.

computer programs. It will thus be seen that when viewed from a further aspect, the present invention provides computer software specifically adapted, when installed on data processing means, to accept a plurality of requests for allocation of an entity, each of said requests having a value associated therewith, and to inform the originator of each request of the values of the other requests, such that each of said requests remains valid for at least a predetermined minimum time.

Furthermore it will be appreciated that the means specified in the apparatus of the invention may similarly comprise computer software specifically adapted to carry out the methods hereinabove described when installed on data processing means, and a computer program element comprising computer software code portions for performing the methods hereinabove described when the program element is run on a computer.

The invention also extends to a data carrier comprising such software which, when used to operate a digital computer, causes the computer to carry out the steps of the method of the present invention. Such a data carrier could be a physical storage medium such as a ROM chip, CD ROM or disk, or could be a signal such as an electronic signal over wires, an optical signal or a radio signal such as to a satellite or the like.

It will further be appreciated that not all steps of the invention need be carried out by computer software and thus from a further broad aspect the present invention provides computer software such software installed on a data carrier for carrying out at least one of the steps of the methods set out hereinabove. Similarly, not all of the means specified in accordance with the invention need comprise computer software and thus in the general preferred case, it is at least one of such means which comprises computer software. In the most preferred embodiments of the present invention the means of. the invention comprises means which allow the requests for allocation of the entity to be made over a remote network link, most preferably the Internet. This enhances the advantage of the invention by potentially allowing a very large number of people the option to lodge such requests.

In the most preferred embodiment the entity is offered by means of a site on the World Wide Web on which a description of the entity is given.

It will be appreciated that the means set out hereinabove constitute novel technical inventions in their own right. However it will also be appreciated that there are a number of novel and inventive methods disclosed herein and thus when viewed from a further aspect the present invention provides a method of managing a process of bidding for an entity comprising recording one or more bids for said entity and keeping each of said bids open for at least a predetermined minimum length of time from when it is made.

It is particularly preferred that this aspect of the invention is implemented using computer software on a data processing machine, most preferably one which is available over a remote network link - e.g. the Internet. Thus when viewed from a yet further aspect the present invention provides computer software arranged to manage a process of bidding for an entity by recording one or more bids for said entity, and keeping each of said bids open for at least a predetermined minimum length of time f rom when it is made. The invention also provides a data processing machine operating such computer software.

It will also be seen that where what is being traded is property or other entities to which specific rules on trading apply, by using penalties, e.g.

deposits, preferred embodiments of the invention can provide a novel solution to the potential problem of a legal inability to conclude a valid contract for the sale thereof online.

Thus when viewed from a yet further aspect the present invention provides a method of buying and selling an entity online over a remote network link whereby each of the buying and selling parties must provide an initial deposit which is forfeited if either party fails to conclude a valid contract offline.

Thus effectively the invention provides a method of buying and selling an entity comprising taking deposits from a buying and/or a selling party, establishing a price for the entity using a computer operated bidding process, and returning the or each deposit only in the event that said sale is effected offline.

Preferably the deposit is also forfeited by either party if it breaks one or more rules of the sale process - e.g. if the buyer withdraws its bid during a predetermined minimum time or if the seller fails to accept the highest bid above a predetermined reserve price.

From a further broad aspect the invention may be seen as providing a method of managing a process of bidding for an entity over a remote network link whereby each party must pay a deposit before taking part in said bidding process. The invention thus also includes computer software for managing a process of bidding for an entity which ensures that a deposit has been collected from a party wishing to offer an entity and any parties wishing to bid for said entity before said parties can take part in said bidding process.

It is preferred in accordance with the aspects of the invention that the deposit is arranged to be returned to the party lodging it in the event that a predefined set of conditions, preferably notified to the party before the deposit is lodged, is adhered to.

A preferred embodiment of the present invention will now be described, by way of example only, with reference to the accompanying Figure which is a flowchart showing the operation of an embodiment of the invention.

This preferred embodiment of the invention comprises a server computer connected to the Internet which allows property to be traded. Firstly a party wishing to sell a property must register with the service. This is achieved by remotely accessing a World Wide web site which is held on the server and is configured to operate in accordance with the invention.

Once the prospective vendor has accessed the site he/she will commence the registration process including is giving their full details and details of the property to be sold. This may include for example the address, a photograph, a location plan, a property plan, structural survey results, type and category information, description, tenure (i.e. whether freehold or leasehold), lease details, guide price, reserve price and the period in which bidding is to be open - i.e. opening and closing times. The vendor is also asked to provide various legal documents relating to the property, e.g. a copy of the local search although these are not necessarily required until bidding is to be opened.

It is also necessary as part of the registration process to pay the fee which may either be effected by means of the website, e.g. by a credit card payment or by an undertaking to pay by other means e.g. cheque.

once the vendor has provided all the necessary information and documents, it must lodge a deposit to be controlled by the server and to be returned only if certain rules of the process are adhered to, details of which ate given later. This deposit may be lodged electronically via the website e.g. by entering credit card or bank details or by another means, e.g. by a cheque.

once the vendor has provided certain details of the property, these are displayed on the open part of the website i.e. that part which may be accessed by anyone on the Internet. In this preferred embodiment, basic details are available initially, with further details being available to users of the site who express an interest in a particular property by selecting it and electing to receive further information. Full legal information regarding the property however is not available unless a fee is paid. The vendor is informed if any potential buyers elect to receive further information or pay for the full legal information.

A property is first displayed for a period before bidding is opened. This allows the property to be displayed without all of the information necessarily having been received.

The next phase.therefore is for bidding to commence and for this full details are required. In particular, a reserve price must be set, above which any bid must be accepted if the deposit is not to be forfeited. The vendor can choose for this reserve price to be displayed to potential buyers or not.

If the vendor decides to withdraw its property from sale the deposit lodged will be forfeited.

Browsers /potent i al buyers who are interested in lodging a bid for the property must first register by providing their details and those of their legal adviser appointed to effect the actual purchase. The buyer must also lodge a deposit which will be forfeited if he fails to comply with certain rules of the process as will be described in greater detail later.

once a buyer has registered and lodged a deposit, they may make a bid f or the property. The buyer may choose the amount to bid, although if it is an increase on a previously placed bid, it must be at least a predetermined amount higher than the previous bid, in this case at least 0.25% of the guide price above the previous bid. As well as specifying the amount of the bid, the buyer specifies the period for which the bid is to remain open subject to a minimum of three full business days.

once a bid has been made, all interested parties are notified of the bid by e-mail. As well as the vendor, interested parties include registered buyers and browsers who have selected to monitor the property in question. The vendor is additionally notified of the period for which the bid is open, but the other interested parties are not given this information.

once bidding has opened, the vendor may choose to reduce the reserve price set at any time. He may wish is to do this for example if high enough bids are not being made. The reserve price could also be increased. However, in the latter case, if any bids in excess of the original reserve price had been lodged, the vendor would lose its deposit and therefore have to lodge a further deposit in order to continue the selling process.

once a bid in excess of the reserve price has been lodged, a time limit for accepting the bid is begun, in the described example this is three full business days.

If the vendor accepts the bid, then it becomes liable to pay a success fee to the operator of the website and a further deadline for exchange of legal contracts is set at two business days. If either party fails to exchange contracts within this deadline, it will lose its deposit. It will be seen from this that the apparatus and method of the invention do not result in a legally binding sale of the property, but by use of the deposit which are lodged by both parties, sufficient incentive can be given to ensure that this does in fact take place.

If the vendor decides not to accept the bid, then unless a higher bid is received in the three day 14 acceptance deadline, the vendor will lose its deposit and must effectively restart the marketing process. If however a higher bid is received within this period, a fresh three day deadline is generated.

A buyer may withdraw a bid during the period in which it is open, but in this case the buyer will lose its deposit and must therefore lodge a further deposit if it wishes to make another bid. Of course, if a buyer simply wishes to make a higher bid, there is no need to withdraw the lower bid and thus the deposit will not be lost.

It will be appreciated by those skilled in the art that the process set out above is merely one particular example of the methods and apparatus in accordance with is the invention and there are many other possibilities.

Thus, the entity to be allocated need not be a property and could be any other sort of entity. Similarly, a network link such as the Internet need not be used the apparatus could simply comprise a single computer on which all the steps are carried out.

Claims (42)

Claims:

1 A system for use in allocating an entity to one of a plurality or requests therefor comprising:

S a data processing apparatus; and a network of data entry apparatus each comprising means for originating a request for allocation of said entity, means for allocating a value to said request, and means for making data communication with said data processing apparatus; wherein said data processing apparatus comprises:

means for receiving and storing a plurality said requests for allocation of the entity, and their associated values; means for allocating a period of validity to received requests, said period of validity being no shorter than a predetermined minimum period; means for informing the originator of each request of the values of the other requests received; and means for recording which, if any, of said requests is accepted.

2. Means for receiving and storing a plurality of requests for allocation of an entity, each of said requests having a value associated therewith, comprising means for allocating a period of validity to received requests, said period of validity being no shorter than a predetermined minimum period, means for informing the originator of each request of the values of the other requests received and means for recording which, if any, of said requests is accepted.

3. A system or means as claimed in claim 1 or 2, wherein said requests have a specified expiry time equal to or greater than said minimum.

4. A system or means as claimed in claim 3 wherein said expiry time is specified by the originator of the request.

5. A system or means as claimed in claim 3 or 4 wherein only the party offering the entity is informed of said expiry times.

6. A system or means as claimed in any preceding claim comprising means arranged to penalise the offering party in the event it that withdraws said entity before it is allocated to one of the requests made.

7. A system or means as claimed in claim 6 wherein a penalty is only applied if said offering party withdraws is the entity within a predetermined period.

8. A system or means as claimed in any preceding claim arranged to penalise the offering party in the event that it does not accept an acceptable request. 20

9. A system or means as claimed in claim 8 wherein an acceptable request is defined as the request with the highest associated value above a predetermined minimum.

10. A system or means as claimed in claim 9 comprising means for determining said minimum.

11. A system or means as claimed in claim 10 comprising means for adjusting said minimum. 30

12. A system or means as claimed in claim 11 comprising means arranged to penalise the offering party in the event that the minimum is increased.

13. A system or means as claimed in claim 12 comprising means arranged to penalise the offering party in the event that the minimum is increased beyond the value of - 17 a previously made request.

14. A system or means as claimed in any preceding claim comprising means arranged to penalise a party initiating a said request in the event that said party withdraws said request before the request expires.

15. A system or means as claimed in any preceding claim comprising means arranged to penalise the offering party or a requesting party in the event that said party fails to meet a predetermined condition.

16. A system or means as claimed in any of claims 6 to 15 comprising resource management means for confirming is that a resource has been secured from said offering or the or each said requesting party, said resource management means being arranged to indicate that said resource is to be forfeited in the event that a penalty is to be applied.

17. Means for allocating an entity from an offering party to a requesting party making a request therefor comprising resource management means for confirming that a resource has been secured from said offering party, data storage means for recording a request from said requesting party for allocation of said entity, means for recording acceptance of said request, means for recording whether a predetermined condition had been met, wherein said resource management means is arranged to indicate that said resource is to be released if said condition is met or to indicate that said resource is to be forfeited if said condition is not met.

18. Means for allocating an entity to a party making a request therefor comprising resource management means for confirming that a resource has been secured from said party, data storage means for recording a request from said party for allocation of said entity, means for recording acceptance of said request, means for recording whether a predetermined condition had been met, wherein said resource management means is arranged to indicate that said resource is to be released if said condition is met or to indicate that said resource is to be forfeited if said condition is not met.

19. Means as claimed in claim 18 comprising resource management means for confirming that a resource has been secured from both of said offering party and requesting parties.

20. A system or means as claimed in any preceding claim is comprising means for allowing a party to monitor the values of the requests made without having made a request.

21. A system or means as claimed in claim 20 comprising means for notifying said party when a new request is made.

22. Means for accepting a plurality of requests for allocation of an entity, each of said requests having a value associated therewith comprising means for allowing a party to monitor the values of the requests made without having made a request and means for notifying said party when a new request is made.

23. Means as claimed in claim 22 wherein each of said requests has a period of validity no shorter than a predetermined minimum period.

24. A system or means as claimed in any preceding claim comprising registration means for registering a party to enable that party to lodge requests for allocation of the entity.

25. A system or means as claimed in any preceding claim comprising registration means for registering a party to enable that party to offer the entity.

26. A system or means as claimed in claim 24 or 25 comprising means for establishing an identity authentication means for the party.

27. A system or means as claimed in any preceding claim 10 comprising computer software.

28. Computer software specifically adapted, when installed on data processing means, to accept a plurality of requests for allocation of an entity, each is of said requests having a value associated therewith, and to inform the originator of each request of the values of the other requests, such that each of said requests remains valid for at least a predetermined minimum time. 20

29. Computer software arranged to manage a process of bidding for an entity by recording one or more bids for said entity, and keeping each of said bids open for at least a predetermined minimum length of time from when 25 it is made. The invention also provides a data processing machine operating such computer software.

30. Computer software for managing a process of bidding for an entity which ensures that a deposit has been 30 collected from a party wishing to offer an entity and any parties wishing to bid for said entity before said parties can take part in said bidding process.

31. A data processing machine operating in use computer 35 software as claimed in any of claims 27 to 30.

32. A method of receiving and storing a plurality of requests for allocation of an entity, each of said requests having a value associated therewith, comprising allocating a period of validity to received requests, said period of validity being no shorter than a predetermined minimum period, informing the originator of each request of the values of the other requests received and recording which, if any, of said requests is accepted.

33. A method of managing a process of bidding for an entity comprising recording one or more bids for said entity and keeping each of said bids open for at least a predetermined minimum length of time from when it is made.

34. A method of buying and selling an entity online over a remote network link whereby each of the buying and selling parties must provide an initial deposit which is forfeited if either party fails to conclude a valid contract offline.

35. A method of buying and selling an entity comprising taking deposits from a buying and/or a selling party, establishing a price for the entity using a computer operated bidding process, and returning the or each deposit only in the event that said sale is effected offline.

36. A method of managing a process of bidding for an entity over a remote network link whereby each party must pay a deposit before taking part in said bidding process.

37. Computer software specifically adapted to carry out a method as claimed in any of claims 32 to 3G when installed on data processing means.

38. A data carrier comprising software as claimed in claim 37.

39. A computer program element comprising computer software code portions for performing a method as claimed in any of claims 32 to 36.

40. A system for use in allocating an entity to one of a plurality or requests therefor substantially as hereinbefore described with reference to the accompanying drawing.

41. A method of allocating an entity substantially as hereinbefore described with reference to the accompanying drawing.

42. Computer software substantially as hereinbefore described with reference to the accompanying drawing.