Patent Publication Number: US-2002002527-A1

Title: Method for trading goods or services over a network

Description:
TECHNICAL FIELD  
       [0001] This invention relates to a method for trading goods or services over a network and more particularly, to a method for exchanging used or pre-owned products for more recently released products.  
       BACKGROUND OF THE INVENTION  
       [0002] Change (n) 1: small denominations of currency, usually in the form of a coin, that is frequently found in your pocket; 2: a process which results in removing the previously described definition of change from your pocket.  
       [0003] We can&#39;t help it, especially in the United States, we must have the latest and greatest or else we are not satisfied in life. Thus, products and services that were purchased in the recent past only provide us satisfaction until the next version is introduced—or at least until our neighbor shows up with it.  
       [0004] The life of products and services within the world in which we live are limited for several reasons. To be competitive and maintain consumer interest, companies are constantly coming out with enhanced products. In addition, as technology advances, newer produces can be built smaller, faster and more feature enhanced. But mainly, the marketers of the world understand our inclination to want the latest and greatest. Thus, slightly used products migrate there way to garage sales, thrift stores, flea markets, pawn shops, closet corners, basements, or even the garbage heap.  
       [0005] One category of products that is increasingly plagued by the above-described phenomenon is electronic devices. Individuals and businesses routinely use electronic devices and equipment on a daily basis. For individuals, some common pieces of electronic equipment or devices include televisions, stereo equipment, telephones, and mobile radiotelephones. Increasingly, individuals are commonly using more advanced electronic devices, such as lap-top computers, desk-top computers, digital cameras, personal data assistants (PDAs), electronic musical equipment, and electronic games. Businesses are perhaps more reliant on electronic equipment and devices such as laptop computers, desktop computers, printers, pagers, networking equipment such as hubs and routers, and other high-end office equipment. Invariably, electronic devices become dated as soon as the next generation of devices are introduced. Electronic devices with new or enhanced functionality, quickly replace what was once state-of-the-art electronics. Electronic devices continue to evolve with each new release having enhanced or additional functionality.  
       [0006] Upon a new release of an electronic device, many users of a prior release will seek to upgrade to the new version. Some users will purchase the new product and abandon their use of the prior product. The prior product, may be given or sold to a friend or may wind up in storage. Other users of a prior release may have the desire to purchase the new release, but may be unable to do so for various reasons. For example, the user may not be able to afford the new product without first selling the old product. Unfortunately, a user&#39;s heavy dependency on an electronic device will not allow them to part with their use without having a replacement product immediately available.  
       [0007] Services, similar to products, can quickly become obsolete or less desirable. A typical example can be found in the cellular telephone industry. To gain a reduced price on a cellular telephone handset, a subscriber will often sign up for a multiple year contract. Six months into the contract, the subscriber may find that the terms and conditions of the contract are not compatible with the subscriber&#39;s typical use of the cellular telephone service. It would be beneficial if a subscriber could trade his current service agreement in and obtain a new service agreement that is more appropriate for the subscriber.  
       [0008] Therefore, there exists a need in the art for a method in which consumers can more easily exchange products and services, such as electronic devices, for new releases or versions of the products or services. A need furthermore exists for ways in which a consumer can easily purchase a new product and receive a rebate for used items that are subsequently sold. Furthermore, a need exists for ways in which a consumer can more beneficially part with his or her used products and receive discounts on future purchases.  
       SUMMARY OF THE INVENTION  
       [0009] In a first embodiment of the present invention, there will exist a website capable of a plurality of transactions (service entity). One transaction type will allow a user to tradeup from a used product to a desired product the user wishes to purchase; usually a newer model that is presently available, or will be in the near future. The user will access the service entity using some communications device with Internet access capabilities. The service entity is preferably menu driven for ease of use, but may take other forms, or use a combination of user interface methods.  
       [0010] The user begins interacting with the service entity by choosing a transaction. If the user chooses the tradeup exchange transaction, the service entity will prompt the user for specified information about the used product. The service entity will also prompt the user to enter information concerning the desired product.  
       [0011] The service entity processes the information from the user concerning the used and desired product. The service entity will utilize its database or seek information from remote web sites, possibly owned by manufacturers or wholesalers, in order to provide a price for the used product. This price method is called an Instant Quote. Likewise, similar resources are utilized by the service entity to provide an Instant Quote of the best price for a desired product, available to the user through the service entity or remote web sites. Subsequently, the service entity will supply a single tradeup exchange price for the transaction. Finally, the user will acknowledge their desire to complete the tradeup exchange and the tradeup exchange will be executed.  
     
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
     [0012]FIG. 1 is a system diagram that illustrates an exemplary environment suitable for implementing various embodiments of the present invention.  
     [0013]FIG. 2 is a block diagram illustrating the components involved in an exemplary embodiment of the present invention operating to exchange one class of products for a different class of products.  
     [0014]FIG. 3 is a flow diagram illustrating the steps involved in an exemplary embodiment of the present invention operating to perform a tradeup transaction.  
     [0015]FIG. 4 is a flow diagram illustrating the steps involved in a second exemplary embodiment of the present invention operating to perform a tradeup transaction.  
     [0016]FIG. 5 is a flow diagram illustrating the steps involved in a third exemplary embodiment of the present invention operating to perform a tradeup transaction. 
    
    
     DETAILED DESCRIPTION  
     [0017] The accompanying drawings, which are incorporated in and form a part of the specification, illustrate embodiments of the present invention and, together with the description, disclose the principles of the invention. FIG. 1 is a system diagram that illustrates an exemplary environment suitable for implementing various embodiments of the present invention. The exemplary system illustrated in FIG. 1 includes an electronic device  10  that is made up of various components including, but not limited to a processing unit  12 , non-volatile memory  14 , volatile memory  16 , and a system bus  18  that couples the non-volatile memory  14  and volatile memory  16  to the processing unit  12 . The non-volatile memory  14  may include a variety of memory types including, but not limited to, read only memory (ROM), electronically erasable read only memory (EEROM), electronically erasable and programmable read only memory (EEPROM), electronically programmable read only memory (EPROM), electronically alterable read only memory (EAROM), FLASH memory, bubble memory, and battery backed random access memory (RAM). The non-volatile memory  14  provides storage for power on and reset routines (bootstrap routines) that are invoked upon applying power or resetting the electronic device  10 . In some configurations the non-volatile memory  14  provides the basic input/output system (BIOS) routines that are utilized to perform the transfer of information between elements within the various components of the electronic device  10 .  
     [0018] The volatile memory  16  may include, but is not limited to, a variety of memory types and devices including, but not limited to, random access memory (RAM), dynamic random access memory (DRAM), FLASH memory, EEPROM, bubble memory, registers, or the like. The volatile memory  16  provides temporary storage for routines, modules, functions, macros, data etc. that are being or may be executed by, or are being accessed or modified by the processing unit  12 . In general, the distinction between non-volatile memory  14  and volatile memory  16  is that when power is removed from the electronic device  10  and then reapplied, the contents of the non-volatile memory  14  remain in tact, whereas the contents of the volatile memory  16  are lost, corrupted, or erased.  
     [0019] The electronic device  10  may access one or more external display devices  30  such as a CRT monitor, LCD panel, LED panel, electro-luminescent panel, or other display device, for the purpose of providing information or computing results to a user. In some embodiments, the external display device  30  may actually be incorporated into the product itself. The processing unit  12  interfaces to each display device  30  through a video interface  20  coupled to the processing unit  12  over the system bus  18 .  
     [0020] The electronic device  10  may send output information, in addition to the display  30 , to one or more output devices  32  such as a speaker, modem, printer, plotter, facsimile machine, RF or infrared transmitter, computer or any other of a variety of devices that can be controlled by the electronic device  10 . The processing unit  12  interfaces to each output device  32  through an output interface  22  coupled to the processing unit  12  over the system bus  18 . The output interface may include one or more of a variety of interfaces, including but not limited to, an RS-232 serial port interface or other serial port interface, a parallel port interface, a universal serial bus (USB), an optical interface such as infrared or IRDA, an RF or wireless interface such as Bluetooth, or other interface.  
     [0021] The electronic device  10  may receive input or commands from one or more input devices  34  such as a keyboard, pointing device, mouse, modem, RF or infrared receiver, microphone, joystick, track ball, light pen, game pad, scanner, camera, computer or the like. The processing unit  12  interfaces to each input device  34  through an input interface  24  coupled to the processing unit  12  over the system bus  18 . The input interface may include one or more of a variety of interfaces, including but not limited to, an RS-232 serial port interface or other serial port interface, a parallel port interface, a universal serial bus (USB), an optical interface such as infrared or IrDA, an RF or wireless interface such as Bluetooth, or other interface.  
     [0022] It will be appreciated that program modules implementing various embodiments of the present invention may be stored in the non-volatile memory  14 , the volatile memory  16 , or in a remote memory storage device accessible through the output interface  22  and the input interface  24 . The program modules may include an operating system, application programs, other program modules, and program data. The processing unit  12  may access various portions of the program modules in response to the various instructions contained therein, as well as under the direction of events occurring or being received over the input interface  24 .  
     [0023] The electronic device  10  may transmit signals to, or receive signals from, one or more communications systems  36  such as a cellular network, RF network, computer network, cable network, optical network or the like. The processing unit  12  interfaces to each communications system  36  through a transmitter  26  and a receiver  28 , both coupled to the processing unit  12  over the system bus  18 . The transmitter  26  and the receiver  28  may include one or more of a variety of transmission techniques such as a radio frequency interface (AM, FM, PSK, QPSK, TDMA, CDMA, Bluetooth or other technique) or an optical interface such as infrared or IrDA.  
     [0024]FIG. 2 is a block diagram illustrating the components involved in an exemplary embodiment of the present invention operating to exchange one class of products for a different class of products. The overall system  110  includes various components which operate together to exchange a product in a first class for a product in a second class, sell a product for credit toward later purchases, or provide rebates associated with the purchase of products whenever a product is subsequently sold using the present invention.  
     [0025] The main components in an exemplary embodiment of the present invention include a trading entity  115 , a service entity  135  and a connection means  125  that allows that trading entity  115  to communicate with the service entity  135 . The trading entity  115  represents any entity that uses embodiments of the invention. Although this component is described as a user, it could also include a computer running a program module. The trading entity  115  accesses the service entity  135  through the connection means  125 . In the preferred embodiment, the network means is a global communications system such as the Internet, or a more local based intranet network. However, it should be understood that the various aspects of the present invention can equally be applied in other types of configurations including private networks, satellite and the like. In this embodiment, the service entity  135  is most appropriately described as a web service. The service entity  135  provides an interface for interacting with the trading entity  115 . The service entity  135  has access to and can search a desired product database  140  and a used product database  145 .  
     [0026] Although the databases are shown as two separate databases, the actual information can be included in a single database or multiple databases, and exist on a single platform or be spread across several platforms. More generally speaking, the databases may represent various classes of products and services and the present invention is not limited to used and desired classes. Additional classes include, but are not limited to power efficiency ratings, age range for typical users (i.e., products for infants versus products for toddlers), weight of the product, aesthetic attributes, or the like. In the addition, although the present invention is described as being used to trade used or old products for newer products, the reader will realize that the reverse is also true. A party experiencing cognitive dissonance after purchasing the latest and most expensive product may want to trade the product for an older less expensive product and obtain a refund or credit for the left over balance.  
     [0027] For purposes of simplicity, the databases will be described as a used product database database  145  and a desired product database  140 . The used product database  145  contains information, from which the service entity  135  may draw, to search for a correlation to product information provided by the trading entity  115 . Similarly, the desired product database  140  may be searched by the service entity  135  to check for a correlation between the desired product information, provided by the trading entity  115 , and the database  140  stored information concerning the desired products.  
     [0028] In addition to the databases, information pertaining to the products and services can be obtained from other sources. In the Internet or intranet based embodiments, one such source can include other web sites or web services. For instance, in a particular embodiment, one or more desired product information web sites  120  and used product information web sites  130  may be maintained and accessed via the Internet or intranet.  
     [0029] The desired product information web sites  120  are web sites that may be utilized to search for the current price for a desired product. The service entity  135  has access to these desired new product information web sites  120 . The desired product information web sites  120  are normally only searched if the desired product database  140  does not contain a correlation with the desired product information provided by the trading entity  115 . Likewise, the service entity  135  may search the used product information web sites  130 . This is usually only done if there is no correlation with the information provided by the trading entity  115  and the used product information stored in the used product database  145 . Both the desired product information web sites  120  and the used product information web sites  130  are part of the remote web sites available to the invention to search for price/value information.  
     [0030]FIG. 3 is a flow diagram illustrating the steps involved in an exemplary embodiment of the present invention operating to perform a tradeup transaction. Flow diagram  200  shows the steps of a first embodiment of the present invention. At step  205 , the trading entity  115  will access the Internet or intranet  125 . This access may be done using any number of ways to access the Internet  125  and allows trading entity  115  to access and communicate with the service entity  135 . The service entity  135  offers a plurality of services for the trading entity  115  to choose from, though other embodiments may only offer one specific service. Once the trading entity  115  has connected to the service entity  135  processing continues at step  210 .  
     [0031] At step  210 , the trading entity  115  chooses a transaction to be performed (i.e., tradeup exchange transaction). Other choices available to the trading entity  115  in this embodiment may include selling, selling for credit, tradedown, buying, buying with an associated rebate, or other transactions). In response to choosing a particular transaction, the service entity  135  instructs the trading entity  115  proceed. When the trading entity  115  is a human user, the interface to the service entity  135  may include pull-down menus, screen menus, charts, graphs and other forms of user interface methods. Once the transaction has been selected, processing continues at step  215 .  
     [0032] At step  215  the service entity  135  prompts the trading entity  115  for information related to the tradeup exchange (i.e., information related to the used product to be traded). The information concerning the used product may vary, but in one embodiment comprises the following elements: type, quantity, manufacturer, model number, added upgrades, age, status of the warranty, and product condition. Once the used product information is provided, processing continues at step  220 .  
     [0033] At step  220 , the service entity  135  prompts the trading entity  115  for additional information relating to the tradeup exchange (i.e., information concerning the desired product). Information about the desired product in this embodiment comprises the following elements: type/category, quantity, manufacturer, and product model number. Those skilled in the pertinent art will realize the items in the used and desired product information list are in no way meant to be mandatory or exhaustive in nature. Once the desired product information is provided, processing continues at step  225 .  
     [0034] At step  225 , the service entity  135  will process the received information to obtain a price/value quote for the used and desired products (Instant Quote price). In one embodiment of the present invention, a warning indicator will be provided to the trading entity  115  indicating that the Instant Quote price for the used product is being provided based on the information provided by the trading entity  115 , and the service entity  135  retains the right to refuse to honor this price if the information provided is false. To obtain the Instant Quote, the service entity  135  will initially search for a correlation between information stored in its used product database  145  and the used product information provided by the trading entity  115 . If a correlation is found, the service entity  135  will use this information to provide an Instant Quote price for the used product. However, if there is no correlation, the service entity  135  will search for used product information on the used product information web sites  130 , in accordance with the description provided by the trading entity  115 . Information found using the used product information web sites  130  may be used to provide an Instant Quote to the trading entity  115 . For instance, the used product data may comprise Blue Book values of the used products as provided by any suitable source, such as the Blue Book values provided by Orion Research of Scottsdale, Ariz. The used product information may also be derived from other remote web sites, including brokers, exporters, or at other portals, such as one selling used products. In addition the service entity  135  will search the desired product database  140  for a correlation between its information and the desired product information provided by the trading entity  115 . If a correlation exists, the desired product database is used to provide an Instant Quote price for the desired product. If no correlation exists, the service entity  135  will search the desired product information web sites  120  to generate an Instant Quote price for the desired product.  
     [0035] In alternative embodiments, the service entity  135  updates the used product database  145  for future usage if the used product information web sites  130  are used to generate the Instant Quote. Both the used and desired product information web sites are included in the remote web sites utilized by the invention to provide Instant Quotes. The service entity  135  may acquire the used product and new product information in any suitable manner.  
     [0036] In the illustrated embodiment, the service entity  135  also calculates a single price for this transaction at step  225 . The single price for the transaction represents the amount that the trading entity  115  will pay when the price of the used item is less than the desired items or for which credit will be received by the trading entity  115  when the price of the used item is more than the price of the desired item. Thus, the single price will depend on the Instant Quote prices for the used and desired products. Once the Instant Quote is provided, processing continues at step  230 .  
     [0037] After the service entity  135  calculates a single price for this transaction, the service entity  135  will prompt the trading entity  115  for permission to complete the transaction at step  230 . The trading entity  115  may use various means to indicate that the transaction is approved and the service entity would preferably acknowledge the approval from the trading entity  115 . Once the transaction is approved, processing continues at step  235 .  
     [0038] Finally, at step  235 , the service entity  135  will execute the tradeup exchange transaction. In the illustrated embodiment, this may involve instructing the trading entity  115  how to send the used product to the facility and how the desired product will be received. The service entity  135  may provide confirmation numbers or exclusive access codes to the trading entity  115 . The service entity  135  may also generate an order to a warehouse or supplier to obtain the desired product. The variations included in the execution of the tradeup exchange may vary in accordance with the needs of the trading entity  115  and the different embodiments of the present invention.  
     [0039]FIG. 4 is a flow diagram illustrating the steps involved in a second exemplary embodiment of the present invention operating to perform a tradeup transaction. A smart-sell is a sell comprised of the ability to obtain a credit for the sale of a used product, which may be used at some future time to purchase a desired product during a smart-buy. At step  305 , the trading entity  115  will access the Internet  125  and will communicate with the service entity  135 . Processing then continues at step  310 .  
     [0040] At step  310 , the trading entity  115  chooses the smart-sell transaction. Other choices may or may not be available to the trading entity  115  in this alternative embodiment. Processing then continues at  315 .  
     [0041] At step  315  the service entity  135  prompts the trading entity  115  for information related to the smart-sell, (i.e., information related to the used product). Similar to the embodiment illustrated in FIG. 2, the information concerning the used product may vary. Processing continues at step  320 .  
     [0042] At step  320 , the service entity  135  utilizes its database resources and remote web sites to calculate an Instant Quote. The service entity  135  initially searches for a correlation between information stored in its used product database  145  and the used product information provided by the trading entity  115 . If a correlation is found, the service entity  135  will use this information to provide an Instant Quote price for the used product. However, if there is no correlation, the service entity  135  will search for used product information on the used product information web sites  130 , in accordance with the description provided by the trading entity  115 . Thus, the information found using the used product information web sites  130  is used to provide an Instant Quote to the trading entity  115  if no corresponding information is found in the used product database  145 . Processing then continues at step  325 .  
     [0043] At step  325 , after the Instant Quote is provided for this transaction, the service entity  135  will prompt the trading entity  115  for permission to complete the transaction. The trading entity  115  may use various means to indicate that the transaction is approved and the service entity  135  would preferably acknowledge the user&#39;s  115  approval from the trading entity  115 . Processing then continues at step  330 .  
     [0044] At step  330 , the service entity  135  provides a smart-sell password and credit for a future smart-buy. Thus, with this password or other unique information associated with this transaction, a trading entity  115  may make a smart-buy and receive a credit toward that purchase in proportion to his/her previous smart-sell. A smart-buy and smart-sell are buys and sells associated with the procedure of this invention. Processing then continues at step  335 .  
     [0045] Finally, at step  335 , the service entity  135  executes the smart-sell transaction. In alternative embodiments, a smart-sell can be invoked but the trading system, rather than issuing a credit at that time will just keep the transaction open for a period of time. If a trading entity  115  does not make a subsequent purchase request during that period of time, then the Instant Quote for the smart-sell will expire. In another embodiment, the value of the Instant Quote can decay over time. Thus, if a trading entity  115  invokes a smart-sell, then the longer the trading entity  115  delays before invoking a smart-buy, the lower the value of the Instant Quote will be.  
     [0046]FIG. 5 is a flow diagram illustrating the steps involved in a third exemplary embodiment of the present invention operating to perform a tradeup transaction. In this embodiment, though similar to the embodiment disclosed in FIG. 4, the desired product is purchased first using a smart-buy, and a rebate is given when a smart-sell occurs associated with the smart-buy. Flow diagram  400  shows the steps involved in this embodiment of the invention, which features the ability to give a rebate after a smart-sell associated with a prior smart-buy. At step  405 , the trading entity  115  accesses the Internet or intranet  125  and communicates with the service entity  135 . Processing then continues at step  410 .  
     [0047] In the illustrated embodiment, at step  410 , the trading entity  115  chooses the smart-buy transaction. Other choices may or may not be available to the trading entity  115  in this embodiment. Processing then continues at step  415 .  
     [0048] At step  415  the service entity  135  prompts the trading entity  115  for information related to the smart-buy, (i.e., information related to the desired product). Similar to the embodiment illustrated in FIG. 2, the information concerning the desired product may vary. Processing then continues at step  420 .  
     [0049] At step  420 , the service entity  135  utilizes the service entity resources and remote web sites to calculate an Instant Quote. The service entity  135  initially searches for a correlation between information stored in its desired product database  120  and the desired product information provided by the trading entity  115 . If a correlation is found, the service entity  135  uses this information to provide an Instant Quote price for the desired product. However, if there is no correlation, the service entity  135  searches for desired product information on the desired product information web sites  120 , in accordance with the description provided by the trading entity  115 . Thus, the information found using the desired product information web sites  120  is used to provide an Instant Quote to the trading entity  115  if no corresponding information is found in the desired product database  140 . Processing then continues at step  425 .  
     [0050] After the Instant Quote is provided for this transaction, the service entity  135  prompts the trading entity  115  for permission to complete the transaction at step  425 . The trading entity  115  may use various means to indicate that the smart-buy transaction is approved. Processing then continues at step  430 .  
     [0051] At step  430 , the service entity  135  provides a smart-buy password and stores a rebate amount for the trading entity  115  that can be applied future smart-sell. Thus, with this password or other unique information associated with this transaction, a trading entity  115  may make a future smart-sell and receive a rebate from a previous smart-buy in proportion to his/her previous smart-buy. Other embodiments may award a standard rebate amount for each smart-sell associated with a previous smart-buy. Processing then continues at step  435  when the transaction is executed. Alternative embodiments will allow various time limits, or unlimited time between the smart-buy and smart-sell.  
     [0052] Finally, at step  435 , the service entity  135  will execute the smart-buy transaction.  
     [0053] The foregoing description of the preferred embodiments of the invention has been presented only for the purpose of illustration and description and is not intended to be exhaustive or to limit the invention to the precise forms disclosed. Many modifications and variations are possible in light of the above teaching.  
     [0054] For example, while the embodiment described in FIG. 2 focuses on electronic devices or equipment, it should be understood that the invention encompasses other types of products and services. The products may include such goods as jewelry, sporting goods, automobiles, furniture, etc. Furthermore, trading entity  115  are able to exchange or trade goods for dissimilar goods, such as exchanging an automobile for furniture.  
     [0055] Alternate embodiments will become apparent to those skilled in the art to which the present invention pertains without departing from its spirit and scope. Accordingly, the scope of the present invention is described by the appended claims and supported by the foregoing description.