WO2002007044A2

WO2002007044A2 - Individual economic monetization for present offerings, worth evaluation and realization, apparatus and method

Info

Publication number: WO2002007044A2
Application number: PCT/US2001/022123
Authority: WO
Inventors: Ghulam Ahmad Raza Khan; Vishal Garg
Original assignee: Iempower, Inc.
Priority date: 2000-07-14
Filing date: 2001-07-13
Publication date: 2002-01-24
Also published as: AU2001278914A1

Description

INDIVIDUAL ECONOMIC MONETIZATION FOR

PRESENT OFFERINGS, WORTH EVALUATION

AND REALIZATION,

APPARATUS AND METHOD

BACKGROUND

Field of the Invention

The present invention relates generally to the field of online computation and data transformation using a computer network. The invention relates more particularly to the field of computing and transforming income potential data into present valuation data using a computer network. The invention also relates to the field of commerce in enabling investors (e.g., investing individuals, groups, funds, endowments, educational institutions, financial institutions, governmental bodies, etc.) to invest in the personal earnings stream of an individual or of groups of individuals, etc.

Description of the Related Art

Auctions and exchanges have long been used for the sale and trade of products and investments. The traditional auction model for the sale of products has been adapted for use on the Internet, as has the traditional exchange model for the trade of investment vehicles such as stocks.

As used herein, the Internet refers to the World Wide Web

(WWW) and other facilities which allow a user to access data stored on server computers linked to a telecommunications network, wherein each such server may have one or more web sites, each having a unique address. These sites are commonly accessed by a user running web browser software on the user's computer, which allows the user to access a particular site by entering the Internet protocol address or web site domain name, or by selecting a link from another web site. In the case of an on-line auction on the Internet, the various users send Internet protocol or electronic mail ("e-mail") transmissions to the auction site with details of their bid and identity. Details of the bid are posted on the on-line auction service provider's website hosted on an auction computer and are available to other participants. The auction process can have a time period of any length, but is typically several days or weeks, and the product is generally allocated to the highest bidder, although other considerations may be involved. One of the advantages of this system is the lack of complexity in running of the auction process over the Internet where Internet protocol or e-mail transmissions are used to communicate with the auction computer. Although the term Internet is described above in general terms, nothing herein should be construed to limit the present invention to any particular telecommunications protocol or form of network

Several on-line Internet auction systems have been proposed and/or implemented. An early example of one such auction involved the auctioning of fifty airline tickets. Registered bidders submitted concealed bids by e-mail over a two week bidding session. The fifty highest bidders at the close of the bidding session received an e-mail message instructing them on how to purchase tickets.

In another example, bidders register and submit bids for auction items through the Internet. Bidders are notified by e-mail when a bid higher than their own is placed on an item. The winning bidder is also contacted by e-mail at the close of the bidding session.

In a further example, bidders register and submit bids through the Internet. Items for sale are graphically displayed on the bidders' screens, in addition to the bid data for each item. Bid data is updated hourly throughout each two week bidding session.

In another example, a computer is used to facilitate a transaction between a buyer and seller, in which a conditional purchase offer is inputted with a payment identifier specifying a credit card account. The purchase offer is communicated to the seller, the seller's acceptance is inputted, and payment is made to the seller by using the payment identifier. See U.S. Patent No. 5,794,207.

In yet a further example, an on-line auction system is proposed which provides, in a computer network enabling communication between a host computer and a plurality of remote customers, an auction data transmission and processing system implemented as a computer program within the host and network, comprising, a merchandise database connected in communication with the host for storing merchandise data, the merchandise data being descriptive of a lot available for purchase by a customer, a bid database in communication with the host for storing bid data, the bid data being descriptive of a bid received from one of the remote customers, an auction manager implemented in the server and in communication with the databases, an electronic mail messenger in communication with the bid database, wherein the auction manager induces a customer to bid across the network on a lot of merchandise by posting a descriptive merchandise catalog page containing data from the merchandise database, the customer views across the network the catalog page and sends a bid to the bid validator across the network, the bid validator determines whether the bid is valid, the bid database stores the bid, the auction manager determines whether the bid is successful, and the e-mail messenger notifies the customer whether the customer's bid was determined to be successful by the bid manager. Similar to the online auction model, the traditional stock exchange model has been adapted for the online marketing and trade of investment opportunities. The most familiar example may be the U.S. stock exchanges such as NASDAQ or the New York Stock Exchange (NYSE), as made accessible online through Internet brokerages such as E*TRADE. Buyers and sellers are matched in the electronic combination of these systems, which may additionally facilitate and effectuate research, communications and transactions.

Online systems are currently available for investments in publicly traded companies and commodities. An example of an automated exchange-driven commerce system for trading futures is disclosed in U.S. Pat. No. 4,903,201. The success of online auction and exchange systems may be attributed to the ability of a wide demographic and geographic range of buyers to bid for a product or investment at a competitive price. Substantial data such as research and advertising may be provided online to inform the purchasing or trading decision.

Auctions and exchange-brokerages are currently available online as natural extensions of traditional models. However, traditional auction and exchange models have not been widely applied to one asset that virtually every individual possesses: the individual's future income. In fact, only a relatively few unique financial arrangements or instruments for offering such assets are even known to exist. One example is the "Yale Tuition Postponement Option" program instituted in 1971-78, which was later withdrawn. Another example is the "Bowie" bond. Such arrangements and instruments are not commonplace, and have not served as models to create an online marketplace for offering such assets up to bidding and investment. Nevertheless, one can envision a number of scenarios in which an individual desires to receive the present value of future income potential. Innovative individuals who have developed a new technology or viable business model may lack current financing for their ideas. Individuals who operate in an equity based labor market may require financing in order to support themselves while they wait for their options to liquidate. Other individuals who simply wish to avoid debt may require financing of their education and skill set development to actualize their full potential. The scenarios are legion.

It would be desirable if the future income potential of these individuals could be computed and transformed by some apparatus or method into a product that could be offered in commerce to a wide market for the generation of present income. Currently, no apparatus or method exists. The lack of accommodation for this real asset despite its universality bespeaks the necessity of markedly departing from traditional thinking. A solution preferably would propose an appropriate model for on-line implementation, consider the data necessary for electronically transforming the asset into a reasonably valuated product, and propose a computerized method or apparatus to provide an online marketplace.

SUMMARY OF THE INVENTION

To address the shortcomings of the prior art, the present invention provides an effective method and apparatus for computing and transforming future individual income potential into a product usable in commerce, using technology in a manner not previously contemplated.

In one aspect, the present invention is a method comprising storing individual profile data onto an auction computer; computing individual economic monetization data from at least some individual profile data; computing present offering valuation data from at least some individual economic monetization data; computing worth evaluation data from at least some individual profile data; and storing data regarding realization of a transaction.

In another aspect the present invention is an apparatus comprising an auction computer; memory on the auction computer programmed with individual profile data; a CPU on the auction computer programmed to compute individual economic monetization data from at least some individual profile data; memory on the auction computer programmed with individual economic monetization data; a CPU on the auction computer programmed to compute present offering valuation data from at least some individual economic monetization data; memory on the auction computer programmed with present offering valuation data; a CPU on the auction computer programmed to compute worth evaluation data from at least some individual profile data; memory on the auction computer programmed with worth evaluation data; memory on the auction computer programmed with data regarding realization of a transaction.

In another aspect of the present invention, one may employ any structure in this specification, or a broad range of equivalents, as means to accomplish the functions of the foregoing method and apparatus. In another aspect, one may employ any step in this specification, or a broad range of equivalents, as a step to accomplish the functions of the foregoing method and apparatus.

In one aspect, users may create, edit, and delete various data in their profile. In another aspect, users may preview the profile data.

BRIEF DESCRIPTION OF THE DRAWINGS FIG. 1 illustrates one embodiment of the computer network and system which may be advantageously used to practice the invention. FIG. 2 is a flow chart showing one embodiment of the method by which individuals employ the network and system of the invention.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS The present invention may be practiced in one of several embodiments, or a combination of more than one embodiment, whether or not such embodiment or combination is specifically noted below.

FIG. 1 is an overview of a computer network which may be used to practice the on-line method of the present invention. Computer network 100 is composed of at least computers li, I2 . . . . In and computer 4 connected to telecommunication network 2. An optional financial institution computer 7 may also form a part of computer network 100 if it is also connected to telecommunication network 2. Communication between computers li, I2 . . . . In, 2, and if applicable, 7, are preferably made using e-mail and/ or Internet protocol transmissions. Computers li, I2 . . . . In are terminals whereby individuals may post, and investors may bid on, items auctioned by auction service 3 on auction computer 4.

In one aspect of the invention, it is contemplated that the foregoing hardware are means for performing the functions of the invention. However, other means identified in this application are also contemplated. In addition, there is a broad range of equivalents that may be used to accomplish the functions of the invention, which one skilled in the art would appreciate without the necessity of specific identification.

While the terms "auction" and "bid" are used, it is to be understood that in one embodiment the auction is also an equity offering, the bidder is also an investor, and method described herein is a hybrid of an on-line auction and an exchange /brokerage system. Similarly, the apparatus described herein is a hybrid of an auction platform and an exchange /brokerage platform. In one embodiment, a seller is not bound to select the highest bid, but may consider factors that are not explicitly monetary. Thus, a seller may be free to choose the bid that represents the best overall value proposition to that particular seller. Accordingly, where appropriate herein, the terms "highest bid," "high bid," etc., mean the highest value bid perceived by a seller or according to the seller's criteria. As used herein, the term "user" includes individuals and investors. Similarly, the term "seller" may correspond to either an individual or an investor, depending on the context, and the term "buyer" may correspond to either an individual or an investor, also depending on the context. As used herein, the terms "individual," "investor," "user," "buyer," and "seller," and their plural forms, include the singular and plural without limitation.

In addition, where appropriate the terms "user" and "investor" may also include institutions such as funds, endowments, educational institutions (e.g., universities), financial institutions, governmental bodies, etc. Such institution users could be investors, co-investors or neither, depending on the situation. For example, a university could be an institution that would invest, co-invest or simply facilitate investment in its students. In one embodiment, the institution is the only investor (e.g., a university may be the sole purchaser of equity in its students in a closed, non-public system). In another embodiment, the institution is one of a plurality of investors or co-investors (e.g., in an open or partially open system). In another embodiment, the institution does not have a direct financial stake or investment (e.g., a university may simply wish to facilitate outside investment in its students). In a preferred embodiment, the institution may be provided a fee or other compensation for its services relating to the offering of equity. One can appreciate that there are a number of variations that would be appropriate depending on the institution, the offerings, and/ or the individuals. Auction computer 4 may comprise one or more computers or network of computers. In one embodiment, an auction manager 5, comprising software and/ or at least one computer program running on auction computer 4, includes subroutines for the posting, notification, and/ or other functions discussed in more detail below. Auction computer 4 may host the web site 10 maintained by auction service 3. An optional financial institution computer 7 is controlled and administered by financial institution 6, and may be connected to auction computer 4 via a connection 9 (which may be a telephone network local area network, or wide area network connection), or may not have any connection to auction computer 4. FIG. 2 is a flow chart showing a method by which users operating computer li, I2. . . . In conduct and participate in an auction hosted by auction service 3. Reference in FIG. 2 and elsewhere herein to transmitting or receiving of data simply refers to general input, output, transmitting and/ or receiving apparatus, means, operations, or steps conducted by the auction computer. One skilled in the art will understand that the present invention is not limited to any particular form of direct or indirect transmission, computer network, or user computers and/ or terminals. Similarly, except as may be expressly claimed, nothing herein should be construed as necessarily requiring a computer network, terminals, computers, etc.

Using computer network 100, an individual posts 201 an individual profile on the auction service's website. The individual profile may include data regarding the individual's work experience, education, skills and other qualifications, references, affiliations, financials, contact information, specific interests, business ideas, and more. Investors may also input data relating to their experience as investors, access to capital, strategic relationships, and more. In one embodiment, the profile may include individual skill data, such as skill name, level of expertise, and type of skill, e.g., analytical, communication, hardware, software, writing, managerial, other. It may also indicate the number of years the skill was possessed. In another embodiment, the individual profile may include data relating to educational background, such as educational institutions, degrees received, performance data, and duration of attendance.

In another embodiment, the profile may include individual occupational or work experience data. For example, individuals may input data relating to a project or company name, a title, a description of contributions, and t e duration of involvement.

In a preferred embodiment, individuals will provide income data, such as annual adjusted gross income (AGI). As used herein, the term "income data" also includes data derived directly or indirectly from income data. Ideally income data, such as AGI data, should date back three years. Preferably, the individual can also input expected AGI percentage growth for a future time segment, e.g., five, ten, fifteen years, etc., starting now or from a specified time hence, and ending five, ten, fifteen years later, for example, or for the individual's remaining lifetime, etc. Preferably, there are no limitations regarding any aspect of the time period. In another preferred embodiment, the time period is limited by data relating to the lifetime or expected lifetime of the individual. In another embodiment, third-party reference data may be included in the profile. For example, an individual may input the reference's name, title, company, and contact data, such as e-mail address or telephone number.

Various additional data may relate to professional affiliations, legal status (e.g., immigration status or criminal record), and financial history. In one embodiment, individuals may upload data files containing tax returns, pictures, writing samples, audio clips, business plans and pitches, patents and other intellectual property.

In one embodiment, individuals may secure their data or portions of their data. For example, access to certain parts of an individual's profile may be made accessible on a restricted basis. In a preferred embodiment, access is granted on a case-by-case basis. In a most preferred embodiment, access is granted only after agreeing to usage policies governing privacy, non-disclosure, limited use, etc. In another embodiment, users may upload non-disclosure agreements and non-compete agreements. In another embodiment, users may utilize standard -agreements supplied by the auction computer. In another embodiment, users may propose terms for nondisclosure or non-compete agreements. A most preferred embodiment combines aspects of the foregoing, so that individuals may secure their data or portions thereof, and investors may view the secured data only after they have agreed to specified terms or agreements. Preferably, a record of the agreement and terms are stored in both the individual's portfolio and investor's portfolio. In one embodiment, investors may indicate the type of investor they are. For example, investors may enter data indicating whether they are accredited, angel investors, venture capitalists, private equity, alternative investment, mutual fund managers, hedge fund managers, pension fund managers, insurance companies, financial institutions, individuals, or other. In another embodiment, investors may indicate the location of their operations. For example, investors may indicate if they are onshore or offshore.

In another embodiment, investors may transmit financial data such as the size of the assets under their management, the size of the average range of investment, their average return expectation, their expected time to actualize a return on investment, the industry concentration size of their average range of investment, or a combination of more than one of the foregoing. In another embodiment, the profile may include data relating to the investors' biographies or any additional data they wish.

In one embodiment, profile data types may be specified by the user. For example, institutions may create their own forms with custom data fields to request information of particular type. This embodiment might appeal to institutions with particular information demands. In a preferred embodiment, the institution is a "for-profit" charity. In another preferred embodiment, the institution is an educational institution (e.g., a university). In another preferred embodiment, the institution is a financial institution, e.g., bank and/ or insurance company.

In one embodiment, data verification may be enabled by the profile. For example, investors seeking verification regarding individuals might obtain credit history data, or data relating to residential status. Conversely, individuals might obtain data to verify that investors legitimately possess the necessary capital for investment. In a preferred embodiment, users may perform such verifications on-line in real-time.

In one embodiment, the auction computer is programmed to accommodate a portfolio manager. Preferably, both investors and individuals may maintain portfolios or portfolio databases on the auction computer. In a preferred embodiment, portfolios are distinct from profiles but can be accessed from the same navigation points. In another embodiment, portfolios may be partitioned or integrated segments of user profiles. In one embodiment, the portfolio data may comprise data oriented to permit investors to track investments, to view performance analytics, maintain contact with their investments, keep track of pending payments, receive relevant documents from individuals such as income tax returns, keep track of bids, accommodate other information or services, or a combination of more than one of the foregoing.

In another embodiment, the portfolio manager may be equipped to perform portfolio functions, for example, to permit individuals to track their investors, communicate with them, seek advice, inform them of progress, or a combination of more than one of the foregoing. In one embodiment, the portfolio may inform individuals of pending payments, enable them to upload relevant documentation such as income tax returns, enable them to view bids and other auction generated data, and/ or other services. An. individual evaluation engine (IEE) may be used to evaluate/ compute 202 data derived directly or indirectly from the individual's profile. For example, the IEE may evaluate data relating to the individual's skill, education, industry, occupation, income, and/or other data provided in the individual's profile.

The IEE provides users the ability to evaluate the monetary value or equivalent of an individual's economic potential. In one embodiment, individuals may utilize the IEE to compute a monetary valuation. In another embodiment, individuals may use tools provided by the IEE to calculate a monetary valuation. In another embodiment, the IEE provides guidelines for calculating monetary valuations. In one embodiment, users may select a financial model from an available list. In another embodiment, users may create a custom financial model. Preferably, users may combine aspects of each.

The IEE thus is used to monetize the economic value of the individual ("individual economic monetization", or "IEM"), by assigning at least one monetary value or equivalent to the individual's economic potential. In one embodiment, the IEM is cumulative. In another embodiment, the IEM is computed for some future time period or segment, e.g., five, ten, fifteen years, etc., starting from the present or from a specified time hence, and ending some time thereafter, for example, five, ten, fifteen years thereafter, upon the individual's death, or upon the termination of the individual's expected lifetime. In a preferred embodiment, the time period is limited by the lifetime or expected lifetime of the individual. In another preferred embodiment, the lifetime is the expected earnings lifetime and not the entire life span of an individual. In another preferred embodiment, the time period exceeds the individual's lifetime. For example, an IEM may account for annuities or lump sum payments to be made to the individual's estate upon or after death. In one embodiment, there are no limitations regarding the termination of the time period. In another embodiment, the IEM relates to some endeavor or group of endeavors. In another embodiment, the IEM is a combination of some or all of the foregoing, or portions thereof. In another embodiment, more than one IEM is computed for a single individual.

In one embodiment, the IEE evaluates AGI data taken or computed from the individual's profile. Preferably, the data includes the individual's current age. In one embodiment, the IEE may compute AGI percentage growth for a future time segment, e.g., the next ten years, five to fifteen years hence, or other time segment. In another embodiment, the computation may relate to a specified portion of the income stream, based on any number of variables, whether arbitrary or otherwise. A non-arbitrary apportionment may be based, for example, on a specific percentage, a particular endeavor, another variable, or some other combination thereof. In a most preferred embodiment, high, middle and low estimations may be computed. In the instance wherein AGI is inputted by the individual, the percentage growth for a future time segment preferably is computed. For example, the difference between the initial year (AGIo) and the following year (AGIi) may be divided by the initial year, represented mathematically as (AGIi - AGIo)/ AGIo. In one embodiment, this process may be repeated for all inputted years, and the computed percentages may be averaged. In another embodiment, the IEE may have a pre-defined estimate for the percentage growth rate. In one embodiment, the current year's income may be multiplied by the growth percentages, and the result may be added to the current year's income. In another embodiment, this formula may be applied to the time remaining in the individual's economic life expectancy, a portion or portions of this time period, or a portion or portions of another future time period. In one embodiment, the IEE uses the AGI data, preferably for a future time period such as the next ten years, and/ or other data taken or derived from the individual profile data, to compute an IEM.

In one embodiment, the IEE evolves and the computation of IEMs is improved by modification of IEE parameters as more transactions are commuted, so that the accuracy of the IEE increases. This may be done, for example, by creating a database based on historical transactions, using it for comparative analysis, and modifying the IEE parameters accordingly. As a result, other individuals with similar profile data (e.g., age, AGI, industry, etc.) subsequently may be subjected to more accurate monetizations. In one embodiment, after-tax earnings data are computed from income data. Preferably, income tax percentage data and/ or indices are available to the IEE. In such case, the earnings data and related income tax percentages may be used to compute income taxes, which in turn may be used to compute after-tax earnings data. It is understood that other data may be used in this computation. Preferably, the taxation data correspond to temporal segments, for example, income tax rates corresponding to yearly income. In one embodiment, the IEE uses some or all of these values to compute after- tax discounted IEMs. Preferably using the after- tax discounted IEMs, the IEE may compute the present value of a desired earnings stream, combination of earning streams, or cumulative earning stream of the individual. It is understood that other data may also be used to compute after-tax discounted IEMs. In one embodiment, the IEE may compute rate of return data.

This data may, for example, relate to risk-free market rate of return (e.g., the 10-year treasury bond) and/or the expected equity market rate of return (e.g., S&P 500 expected growth). In another embodiment, the IEE may evaluate an individual's expected equity market rate of return. In another embodiment, the present value of the after-tax economic value of the cumulative total of the individual's future income, or a portion thereof, may be computed using these discount rates to create a discounted cash flow stream using the net present value ("NPV") function. In another embodiment, after-tax discounted IEMs may be determined by a comparable persons valuation. Comparable persons valuation is based on valuing an individual relative to the valuations given to past commuted and to a lesser degree, contemplated, transactions. A contemplated transaction may comprise various steps towards a commuted transaction but might fall short thereof. For example, bids for a transaction that never became commuted may be used for comparable persons valuation. Investors gauge new individuals against previous transactions with metrics and ratios such as price to earnings ratio, average return on investment and duration till breakeven. The valuation may consider the high, average, low, and accepted values for these transactions. The accuracy of this valuation tool may increase as more transactions are commuted due, for example, to a broader sampling of the population.

In this or similar manner, IEMs are provided 203 as present values suitable for an offering of equity. IEMs suitable for present offerings (IEMPOs) and/or related data may be computed 203, in one embodiment, and transmitted into a profile. Some or all of such data along with any related data may be transmitted 204 to the individual's terminal through the computer network. Preferably, some or all of such data may be transmitted into and/ or through an individual profile, alone or in combination with other data. Optionally, some or all of such data may be transmitted into an investor profile, alone or in combination with other data.

It is envisioned that an individual may post 205 an advertised IEMPO, which may represent the capital investment sought by the individual, for a specified future earnings stream or portion thereof. Preferably, the advertised IEMPO is inputted into the individual's profile. In one embodiment, an individual may specify an advertised IEMPO, or indicative price for their equity, which may be their asking price or it may be their expected price.

In one embodiment, at least one IEM for individual disposable income and/or investment income are computed in a like manner, including the computation of present values. In one embodiment, the IEE aids in these computations. Preferably, these present values are used, in turn, to compute or refine IEMPOs.

It is envisioned that a worth evaluation ("WE") will be computed 206 of IEMPOs from individuals who are selling equity stakes in their future earnings streams. In one embodiment, an investor may compute a WE upon viewing an individual's IEMPO estimate as part of the individual's profile. However, it is also envisioned that an investor will not simply rely upon an individual's advertised IEMPO. In one embodiment, the IEE computes a WE and transmits it to the investor. In another embodiment, an investor may utilize IEE tools to compute a WE of an individual's IEMPO. In another embodiment, an investor may manipulate various data taken or derived from an individual's profile. An investor may use one or a combination of these embodiments to arrive at an IEMPO worth evaluation ("IEMPOWE") for such purposes as general research or determining whether to consummate a transaction. In a preferred embodiment, the investor may estimate the individual's disposable income and/or investment income, and/or the present value of these incomes. In another embodiment, the investor may use the IEE to compute or aid in computing these estimations. In a preferred embodiment, these estimations may be used to compute or refine the investor's IEMPOWE.

In one embodiment, the IEE evolves as more transactions are commuted, so that the accuracy of the IEE increases. For example, data utilized by the IEE may be updated to include the new data resulting in higher accuracy. In this example, the results of system auctions, including equity sale amounts of similar individuals and their tracked performance over time, may be fed back into the system's database. The IEE becomes more accurate when commuted transactions are fed back into it in such manner as to improve its future evaluations. As a result, other individuals with similar profiles (e.g., age, AGI, industry) subsequently may be subjected to more accurate monetizations and worth evaluations. In one embodiment, the updated IEE and related data may be used for general or specific research (e.g., economic, demographic, other). In one embodiment, the investor may transmit and save its

IMPOWEs to a portfolio and/ or profile.

Preferably, individuals may place their equity up for auction in increments at different times, e.g., an individual may offer a percentage of their equity now and offer another percentage at a later time. In one embodiment, individuals will not be able to offer greater than a certain portion of their equity. In a preferred embodiment, the total portion may be limited to 50%, or fixed at about 10-25%, or more preferably 17-18%, or most preferably 17.5 %. In another embodiment, this total may be determined at least in part by the IEE using at least some data in the individual's profile. In another embodiment, users may directly or indirectly specify the total portion which may be sold.

It is envisioned that investors may utilize the auction manager 5 to search for potential investments. In one embodiment, investors may view a plurality of auction listing. Preferably, investors may search by industry or other profile data. In one embodiment, investors may search for individuals whom they consider the best investment. In another embodiment, investors may search by IEMPO data. In another embodiment, investors may search by estimated worth evaluation (WE) data. In another embodiment, investors may search by other data derived from the IEE. In a preferred embodiment, investors may search by a combination of the foregoing. In a preferred embodiment, the auction computer 4 or auction manager 5 assigns a relative weight to a match for at least one search criteria. For example, a point system may be employed wherein weighted numerical values are assigned based upon matches for specific criteria. In one embodiment, such a search engine assists a user in identifying the most appropriate match, and/or in sorting through and prioritizing the potential matches. In one embodiment, investors may use the auction computer and/ or auction manager to place a compensation package up for auction. The compensation package may comprise, for example, money or other form of compensation (e.g., time, training, contacts, etc.). In another embodiment, individuals may use the auction manager to search for compensation or investment packages.

In one embodiment, the auction computer is programmed to assist 207 in realization of the transaction. Preferably, the auction manager 5 is programmed on the auction computer 4 as the main point of interaction for realization of transactions between investors and individuals. Realization may include the transmission of data representing bids and acceptance of bids, the on-line consummation of a transaction, funds transfer, and/ or either of these steps alone or in combination with one or more intermediary steps. Data relating to realization of a transaction is referred to herein as "realization data."

Preferably, investors may use the auction manager to place bids or transmit bid data on an individual's equity offering. In this manner, individuals may sell equity in their future earnings stream through the auction manager in exchange for what they deem the best investment package.

In one embodiment, investors may bid on an advertised IEMPO over computer network 100 using the auction protocol of auction manager 5, which may be described and posted on the auction service's web site 10. Preferably, a record is made of bids in both parties' portfolios. It is envisioned that the auction manager may notify users of bid data. In one embodiment, the auction manager notifies the seller. Preferably, the auction manager 5 posts the current high bid and/ or a list of bids on the auction service's web site 10. In this manner, both users may view bids. In one embodiment, users may view a history of placed bids. In another embodiment, a bid issued by one investor is not visible to other investors.

In one embodiment, auctions will last for a set time period. For example, an auction may last for four weeks. Preferably, the time period for the auction may be set by the user/ seller. In one embodiment, the auction manager limits the time period set by the user.

In one embodiment, the auction manager 5 may compute the time remaining in the auction, and may allow for further bidding if time remains or may identify at least one high bidding investor if the time for the auction has expired. Preferably, the auction manager 5 may provide notification over computer network 100 regarding high bids.

The auction computer preferably may be programmed to accommodate an agreement manager that is capable of assembling or configuring agreements. In one embodiment, users would be able to select a variety of options, such as terms and method of payment, duration of contract, possible buy-back options, transferability, termination, non-performance, remedies, etc. The auction computer preferably may be programmed to accommodate a communication manager that is capable of providing communication services. For example, individuals and investors may communicate with each other during and/ or after an auction to learn more information, create a better match, more accurately price individuals, to discuss or construct various investment structures, agreements, and/ or mutually beneficial packages. In one embodiment, a communication manager is embedded in the auction manager. It may be appreciated that a wide variety of services are possible, including e-mail, chat, instant messaging, voice-over-IP, videoconferencing, visual tools such as electronic whiteboard for visual communication, or other forms of communications available over telecommunications networks. In a preferred embodiment, the communication manager may integrate more than one of the foregoing, for example, active and passive messaging capabilities (e.g., chat features automatically convert into e-mail if a user is not available) with visual tools such as electronic whiteboards. In one embodiment, investors and individuals may transfer documents, sound clips, video clips, writing samples and other files via the communication manager. Preferably, a data storage space is appropriated for relevant documents such as business plans, patents, tax returns, audio clips, video clips, and writing samples, among others. In one embodiment, the communication manager provides records of communication, preferably accessible to the relevant users. In a preferred embodiment, the communication manager accommodates emerging non-PC based communication tools, such as handheld devices, PDAs and wireless telephones.

Preferably, communications between individuals and investors may be made over a secure network or Internet connection. In one embodiment, the communication manager may be a secure, one-click, branded interface for investors to contact individuals, and vice-versa. In another embodiment, the communication manager can only be utilized by registered investors and visitors. In another embodiment, the communication manager or selected aspects thereof can only be used after agreement with the usage and legal policies of the auction service provider. The communication manager preferably incorporates more than one aspect of the foregoing.

The communication manager preferably may be scaled depending on the level of interaction required by users.

In one embodiment, sellers may review buyers' bids and profiles at the close of the auction, so that sellers may accept the bid they deem most suitable. In another embodiment, the auction manager 5 may automatically select the highest bidder at the close of the auction, and provide notification over computer network 100 that the high bidding buyer has won the auction for the offering, and/ or notify the seller of the identity or identifier of the high bidder. In one embodiment, the auction manager closes the auction at this point.

In one embodiment, a record of the transaction is made by the auction computer. This record is referred to herein as a receipt. The receipt data may include the amount of equity sold, the price/ compensation package, the date and time, the contact data of the parties, other relevant data, or a combination of more than one of the foregoing. In one embodiment, data from the record are used for modifying IEE parameters. Such data may include, for example, data relating to the lowest bid, the highest bid, and/or the accepted bid.

In one embodiment, the auction computer may be programmed to assist in managing the back-end of the investment relationship, e.g., structuring the legal and financial details of the transaction by means of stored templates. Preferably, users are not limited by these templates. In another embodiment, auction computer 4 and/or financial institution computer 7 are programmed to assist in creation of financial accounts and/or transfer of funds. Preferably, this may be facilitated via relationships between the auction service and banking and/or escrow services.

In one embodiment, the individual may pay a listing fee. In another embodiment, the investor may pay a participation fee or a registration fee. In another embodiment, a fee is assessed if a transaction is consummated. This fee may be a flat fee, a non-flat fee, equity, options (e.g., options in another company), or other manner of compensation based on variables relating to the transaction or the parties. For example, the auction service may charge 2.5% of the transaction, or some other appropriate portion.

It is envisioned that the present apparatus and method may be used for general or specific research (e.g., economic, demographic, etc.) and thereby enjoy substantial additional utility. In such embodiments, those skilled in the art will appreciate that aspects of the apparatus and method as above-described for auctions may be more or less appropriate, depending on the research goals. It is to be understood that the above-described embodiments are merely illustrative of the principles of the invention and that other arrangements may be devised by those skilled in the art without departing from the spirit and scope of the invention.

Claims

CLAIMS We claim: 1. A method comprising: a) storing individual profile data onto an auction computer; b) computing individual economic monetization data from at least some individual profile data; c) computing present offering valuation data from at least some individual economic monetization data; d) computing worth evaluation data from at least some individual profile data; e) storing realization data based at least in part on the present offering valuation data and the worth evaluation data.

2. The method of Claim 1, wherein the individual profile data comprises individual age data.

3. The method of Claim 1 wherein the individual profile data comprises occupational data.

4. The method of Claim 1, wherein the individual profile data comprises educational data.

5. The method of Claim 1, wherein the individual profile data comprises income data.

6. The method of Claim 1, wherein the individual profile data comprises data regarding references of the individual.

7. The method of Claim 1, wherein the individual profile data comprises data regarding skills of the individual.

8. The method of Claim 1, wherein the individual profile data comprises data regarding affiliations of the individual.

9. The method of Claim 1, wherein the individual profile data comprises financial data of the individual.

10. The method of Claim 1, wherein the financial data comprises income data.

11. The method of Claim 5, wherein the income data comprises adjusted gross income data.

12. The method of Claim 1, wherein the individual profile data comprises contact data.

13. The method of Claim 1, wherein the individual profile data comprises data regarding the individual's specific interests

14. The method of Claim 1, wherein the individual profile data comprises data regarding the individual's business ideas.

15. The method of Claim 1, wherein individuals may secure their data or portions of their data.

16. The method of Claim 1, wherein a bid issued by at least one investor is not visible to at least one other investor.

17. The method of Claim 1, wherein investor profile data is transmitted from the investor's terminal to the auction computer through a computer network.

18. The method of Claim 17, wherein the investor profile data comprises data regarding the type of investor.

19. The method of Claim 17, wherein the investor profile data comprises data regarding the location of the investor's operations.

20. The method of Claim 17, wherein the investor profile data comprises financial data.

21. The method of Claim 17, wherein the investor profile data comprises data regarding the investor's biography.

22. The method of Claim 1, wherein profile data is verified.

23. The method of Claim 1, wherein portfolio data is compiled and stored.

24. The method of Claim 23, wherein individual portfolio data is compiled and stored.

25. The method of Claim 23, wherein investor portfolio data is compiled and stored.

26. The method of Claim 1, wherein portfolio functions are performed.

27. The method of Claim 1, wherein individual economic monetization data is cumulative.

28. The method of Claim 1, wherein individual economic monetization data is computed for some future time segment.

29. The method of Claim 1, wherein individual economic monetization data is computed for some future time limited by the lifetime or expected lifetime of the individual.

30. The method of Claim 29, wherein the lifetime is the expected earnings lifetime and not the entire life span of an individual.

31. The method of Claim 29, wherein the time period exceeds the individual's lifetime.

32. The method of Claim 29, wherein at least some individual economic monetization data relates to some endeavor or group of endeavors.

33. The method of Claim 1, wherein individual economic monetization data is computed from at least some income data from the individual's profile data.

34. The method of Claim 33, wherein the income data comprises adjusted gross income data.

35. The method of Claim 1, wherein the computation of individual economic monetization data is improved by modifying computation parameters based upon commuted transactions.

36. The method of Claim 5, wherein after-tax earnings data are computed from income data.

37. The method of Claim 5, wherein after-tax discounted earnings data are computed from income data.

38. The method of Claim 1, wherein rate of return data is computed.

39. The method of Claim 1, wherein present value data for an individual's future income is computed.

40. The method of Claim 1, wherein present value data for an individual's future income is computed using a net present value function.

41. The method of Claim 1, wherein present value data for an individual's future income is computed using a comparable persons valuation.

42. The method of Claim 1, wherein present value data is used to compute present offering valuation data.

43. The method of Claim 1, wherein present offering valuation data is stored in the individual's profile.

44. The method of Claim 1, wherein computation of present offering valuation data is improved as more transactions are realized.

45. The method of Claim 1, wherein computation of present offering valuation data is improved as more transactions are realized, by updating computation parameters to account for new data.

46. The method of Claim 25, wherein the investor's worth evaluations are stored in a portfolio.

47. The method of Claim 1, wherein the investor's worth evaluations are stored in a profile.

48. The method of Claim 1, wherein individuals place their equity up for auction in increments at different times.

49. The method of Claim 1, wherein at least one individual cannot offer greater than a certain portion of the individual's total equity.

50. The method of Claim 1, wherein at least one individual cannot offer greater than 50% of the individual's total equity.

51. The method of Claim 1, wherein at least one individual cannot offer greater than 10-25% of the individual's total equity.

52. The method of Claim 1, wherein at least one individual cannot offer greater than 17-18% of the individual's total equity.

53. The method of Claim 1, wherein at least one individual cannot offer greater than 17.5 % of the individual's total equity.

54. The method of Claim 1, wherein the realization data comprises data representing bids.

55. The method of Claim 1, wherein at least one user is notified of bid data.

56. The method of Claim 1, wherein the realization data comprises profile data.

57. The method of Claim 1, wherein the realization data comprises bid data and profile data.

58. The method of Claim 57, wherein bid data and profile data are transmitted to sellers.

59. The method of Claim 54, wherein sellers accept the bid they deem most suitable.

60. The method of Claim 54, wherein the auction computer automatically selects a highest bidder at the close of an auction, and transmits notification to a seller.

61. The method of Claim 1, wherein the realization data comprises data representing acceptance of bids.

62. The method of Claim 64, wherein the auction computer closes an auction upon bid acceptance.

63. The method of Claim 1, wherein the realization data comprises data representing on-line consummation of a transaction.

64. The method of Claim 1, wherein a record of a transaction is made by the auction computer.

65. The method of Claim 1, wherein at least some data from the record are used for modifying at least one computation parameter.

66. The method of Claim 1, wherein the realization data comprises data representing a funds transfer.

67. The method of Claim 1, comprising an auction lasting for a set time period.

68. The method of Claim 1, wherein at least one user pays at least one fee for using at least one step in the method.

69. The method of Claim 1, wherein at least one user pays at least one fee for transmission of data.

70. The method of Claim 1, wherein at least one user pays at least one fee by electronic funds transfer.

71. The method of Claim 1, wherein communications are made over the computer network.

72. The method of Claim 71, wherein the communications are made secure.

73. The method of Claim 1, wherein at least one step is employed for research.

74. The method of Claim 1, wherein at least one user of the method is an institution.

75. The method of Claim 74, wherein the institution is selected from the group consisting of funds, endowments, non-profit charities, for-profit charities, financial institutions, and educational. institutions.

76. The method of Claim 74, wherein the institution is an investor.

77. The method of Claim 74, wherein the institution is a co- investor.

78. The method of Claim 74, wherein the institution has no direct investment in an individual.

79. The method of Claim 74, wherein the institution promotes application of the method to at least one individual.

80. The method of Claim 79, wherein the institution is provided compensation for promoting application of the method to at least one individual.

81. The method of Claim 1, wherein at least some profile data conforms to at least one data type specified by at least one user.

82. The method of Claim 81, wherein the data type corresponds to a data field specified by at least one user.

83. The method of Claim 81, wherein a user creates at least one form having at least one data field specified by the user.

84. The method of Claim 1, wherein at least one investor uses the auction computer to place a compensation package up for auction.

85. The method of Claim 1, wherein the auction computer is programmed to accommodate an agreement manager.

86. The method of Claim 85, wherein the agreement manager is capable of assembling agreements.

87. The method of Claim 85, wherein the agreement manager is capable of configuring agreements.

88. An apparatus comprising: a) an auction computer; b) memory on the auction computer programmed with individual profile data transmitted from an individual's terminal; c) a CPU on the auction computer programmed to compute individual economic monetization data from at least some individual profile data; d) memory on the auction computer programmed with individual economic monetization data; e) a CPU on the auction computer programmed to compute present offering valuation data from at least some individual economic monetization data; f) memory on the auction computer programmed with present offering valuation data; g) a CPU on the auction computer programmed to compute worth evaluation data from at least some individual profile data; h) memory on the auction computer programmed with worth evaluation data; i) memory on the auction computer programmed with realization data.

89. An apparatus according to claim 88, wherein the auction computer is programmed to accommodate an auction manager.

90. An apparatus according to claim 89, wherein the auction manager comprises a profile manager and an individual evaluation engine.

91. An apparatus according to claim 88, wherein the auction computer comprises a profile manager and an individual evaluation engine.

92. An apparatus according to claim 88, wherein the auction computer comprises a portfolio manager.

93. An apparatus according to claim 88, wherein the auction computer is programmed to accommodate portfolios comprising portfolio data.

94. An apparatus according to claim 88, wherein the auction computer is programmed to store a portfolio database.

95. An apparatus according to claim 93, wherein portfolios are distinct from profiles.

96. An apparatus according to claim 95, wherein the auction computer is programmed for access to a portfolio and a profile from a same navigation point.

97. An apparatus according to claim 93, wherein at least one portfolio is a partitioned or integrated segment of at least one profile.

98. An apparatus according to claim 92, wherein the portfolio manager is programmed to perform portfolio functions.

99. An apparatus according to claim 88, wherein the auction computer is programmed to assist in managing the back-end of the investment relationship.

100. An apparatus according to claim 88, wherein the auction computer comprises a communication manager for providing communication services.

101. An apparatus according to claim 100, wherein the communication manager may be scaled depending on the level of interaction required by users.

102. An apparatus comprising: a) means for storing individual profile data; b) means for computing individual economic monetization data from at least some individual profile data; c) means for computing present offering valuation data from at least some individual economic monetization data; d) means for computing worth evaluation data from at least some individual profile data; e) means for storing realization data.

103. An apparatus according to claim 102, further comprising a means for placing bids on an individual's equity offering.

104. An apparatus according to claim 102, further comprising a means for searching for potential investments.

105. An apparatus according to claim 104, further comprising a means for assigning a relative weight to a match for at least one search criteria.

106. An apparatus according to claim 102, further comprising a means for placing a compensation package up for auction.

107. A method comprising: a) step for storing individual profile data on an auction computer; b) step for computing individual economic monetization data from at least some individual profile data; c) step for computing present offering valuation data from at least some individual economic monetization data; d) step for computing worth evaluation data from at least some individual profile data; e) step for storing realization data.