HK1060203A

HK1060203A - A trading and auction system, and methods for the authentication of buyers and sellers and for the transmission of trading instructions in a trading and auction system

Info

Publication number: HK1060203A
Application number: HK04103125.8A
Authority: HK
Inventors: 丹尼斯．门迪奥拉; 吉尔帕特里克．R．加西亚
Original assignee: 奇卡有限公司
Filing date: 2000-06-21
Publication date: 2004-07-30

Description

Trading and auction system, and method for identifying buyers and sellers and transmitting trading instructions in trading and auction system

Technical Field

The present invention relates to a trading and auction system and to a method of authenticating buyers and sellers and transmitting trading instructions in a trading and auction system.

The present invention has particular, although not exclusive, utility in enabling users of messaging capable radio devices, such as mobile telephones, to quickly and efficiently participate in auctions and transactions.

Throughout this specification, unless the context requires otherwise, the word "comprise", or variations such as "comprises" or "comprising" … …, will be understood to imply the inclusion of a stated integer or group of integers but not the exclusion of any other integer or group of integers.

Background

With the rapid growth of the internet, a variety of methods have emerged that facilitate convenient, rapid, and often secure processing of business from buyer to buyer. Electronic commerce, commonly referred to as eCommerce, continues to grow at an extraordinary rate. Com is an example of a popular e-commerce internet site.

Com allows a shopper with a computer connected to the internet and a credit card to purchase goods displayed on his website ebay com, and on the other hand is a conference site where independent buyers engage in transactions with buyers, including a large variety of goods offered by those very motivated sellers and buyers who can make any transaction from a collection of rare money to a certain second-hand piece of furniture.

Com web sites that facilitate the auction of goods and services (e.g., ebay) have succeeded by quickly forming a critical majority of mutually trusted vendors and buyers-goods are described exactly by vendors in good faith, they will be delivered as committed by the vendors and the payment will be delivered as committed by the buyers.

However, unscrupulous buyers and sellers can establish multiple accounts to manipulate bids for particular products. For example, a vendor can establish multiple virtual buyer accounts that will bid on his products in an attempt to drive up the end price by declaring higher and higher bids that legitimate buyers would have due to follow-up. Legitimate buyers are misled to believe that a genuine race to purchase the product has occurred.

Another problem includes buyers and sellers who, upon completion of a particular transaction, choose to leave the transaction and thus violate the auction contract.

These problems are well known and many auction sites have attempted to address these problems by employing various means of bidder authentication and deal commitment. Authentication refers to proactive verification of the identity of a particular buyer or seller. This typically takes the form of a process called "check-in" or some form of registration in which the buyer and seller fill out various forms or provide evidence that they are truly identity. Deal commitments are mandatory, such as telling buyers and sellers that if they are found to participate in unscrupulous bids or against deals, they will be forever denied engaging in commerce at the auction site.

Buyers desiring to bid on a product at an auction site typically employ a computer equipped with an internet connection and a browser. Recently, several auction sites have begun to implement strategies that allow users to access their auction accounts using radio devices. Most people use radio equipment, such as pagers or mobile phones that can transmit SMS (short message service), to notify users of their bids or transaction status. For example, if a bid fails, a message is sent to all participating buyers that have radio equipment (such as pagers or mobile phones that can receive SMS).

Some systems allow a user to send commands from a radio that can be used for two-way data communication, such as by SMS. However, existing systems are inconvenient, requiring the user to embed an email address or other fixed command into the body of the SMS to instruct the auction engine what action to take. Once issued by the bidder, the message is sent to the designated email address and ultimately to the auction engine. Since the email address is typically a common address to which several other bidders send their messages, the instructions provided to the auction engine and the particular product being bid must be specified within the message. Alternatively, different email addresses may be specified that are appropriate for different commands (e.g., raise price commands). However, this also requires that the message itself comprises specific product and simplified instructions.

Mobile devices equipped with internet access to the same channel via the radio application protocol (or "WAP") are expected to gain popularity in the coming years. Some auction sites now allow mobile devices using WAP to access their sites. To access the internet, users dial a "WAP internet gateway" with their mobile device. The mobile users then browse the internet using the small screen of their WAP phones.

In an auction website, the user accesses the auction website and logs in using their WAP phone, perhaps entering a password, and then finally accessing his account. In this way, the "logged-on" mobile user can engage in basic auction activities, such as reading a message informing him of the bid status, and instructing the auction server to raise his bid after his bid has failed.

The fact that the WAP user needs to have a WAP enabled device, as opposed to using the current "legacy" digital mobile phone, becomes a limiting factor in developing auctions using this media. Moreover, before introducing General Packet Radio Service (GPRS) or true "anytime and anywhere" radio access to GSM devices, WAP internet access remains inconvenient, requiring users to dial a gateway and log into the auction site each time they want to access their account. This necessarily takes time, and in most cases, much more than a typical computer and browser-based internet access. Thus, WAP access via a mobile phone is only an alternative to computers connected to the internet. The login process, the bid process, etc. are all similar to the process of a computer internet user performing these same tasks on an auction website.

Although the foregoing discussion has focused on auction sites where buyers raise bids for product or service competitions, much of the discussion above applies to other types of e-commerce and auction business models, such as reverse auctions (i.e., where buyers set prices that sellers may receive) and fixed price models.

Disclosure of Invention

The present invention seeks to address the existing limitations of the mobile auction process by taking advantage of the existing two-way SMS communication functionality in many digital radios. The invention is particularly suitable for use with existing "legacy" GSM mobile devices equipped with SMS, but any SMS enabled device, such as a Code Division Multiple Access (CDMA) device, may be utilised.

Most GSM networks have an SMS function that allows short messages to be exchanged between its subscribers. A user typically enters a short text message into their GSM mobile phone and then enters the mobile phone number of the intended recipient of the message as the address of that recipient. Once sent, the message is processed by a Short Message Service Center (SMSC) server system of the GSM network and forwarded to the recipient's mobile phone.

The invention comprises an auction server directly linked to the short message service of the mobile network. In this embodiment of the invention, the auction server communicates directly with the server system of the Short Message Service Center (SMSC) of the GSM network to send and receive short messages or commands via SMS. The auction server communicates with the SMSC via the internet, a direct communication line, or other suitable communication system. Short messages are sent and received from the auction server system using the message protocol of the GSM network. In one embodiment of the invention, the protocol used is the computer interface message distribution protocol second edition (CIMD2), a system adopted by GSM mobile phones and network manufacturers Nokia and Ericsson. The computer server may also be designed to support any other popular short message protocol, such as SMPP (or simple message paging protocol).

In one form, the invention takes the concept that a mobile telephone number may be unique to a particular user and so may be used as a more reliable means of authenticating buyers and buyers, for example, more reliable than email addresses. A user may have a single mobile telephone number, but users with multiple email addresses are common. A merchant who has registered his mobile phone number is less likely to violate a transaction because he is easily tracked and denied participation in future auction campaigns. Once rejected, a merchant must re-register with another mobile phone number and continue to use the auction system. This is more efficient than using only one email address, since email addresses are anonymous to a degree and less expensive to establish than mobile phones. Before a buyer or seller can use the auction system, they will need to register with the auction server. In this embodiment of the invention, the provision of a mobile telephone number is an essential part of the registration process, since the SMS messaging system of the mobile network needs to be employed to send the user's password to their mobile telephone.

In another form, the invention assigns a unique mobile phone-like numeric address to each product or service called for in the auction server. This unique digital address is used as an identifier in the SMS message sent by the auction server, which allows a user to more conveniently and quickly send a command (such as raising a bid to a particular standard) to the auction server via simple SMS transmission (such as by simply selecting the "reply" option available in most two-way SMS capable digital radios and then entering a generic command or digital message in the message body). Also unlike WAP access, this operation does not require the user to explicitly connect to the internet or dial it.

According to a first aspect of the present invention, there is provided a method of authenticating buyers and sellers and transmitting transaction instructions in a transaction and auction system, comprising the steps of:

requesting that the prospective buyer or seller register with the trading and auction system before being able to place a trading instruction, including requesting that said prospective buyer or seller provide a unique identifier of a message-capable radio belonging to the prospective buyer or seller;

assigning a password to said prospective buyer or seller;

communicating said password to said prospective buyer or seller and receiving a confirmation of said password from said prospective buyer or seller, wherein at least one of said steps of communicating said password and receiving a confirmation of said password is performed using the messaging capabilities of said radio;

activating an account or transaction instruction of said prospective buyer or seller if said password is correct;

assigning a unique identification number to each product or service available for sale or auction in said trading and auction system;

sending messages to the buyer's radio relating to bids and asks made by that buyer for a product or service, a ' sender ' field of each message including a unique identification number for that product or service;

the method includes receiving messages from a buyer's radio relating to instructions for a transaction by that buyer for a product or service, extracting and recognizing a unique identification number for the product or service from a ' recipient ' field of the received messages to identify the product or service, extracting and recognizing a unique identifier for the radio from the ' sender ' field of each message to identify the buyer, and analyzing the text of each message to determine instructions for the transaction by the buyer for that product or service.

Preferably, the method further comprises the steps of: the buyer is required to prove their identity to the trading and auction system upon submitting their first trading instructions for a product or service through a message exchange between the trading and auction system, wherein at least one of the messages is sent or received using the messaging capabilities of the radio.

In one design, the step of communicating the password to the prospective buyer or seller is performed over a computer network, and the step of receiving a confirmation of the password from the prospective buyer or seller is performed using the messaging capabilities of the radio.

In another design, the step of communicating the password to the prospective buyer or seller is performed using the messaging capability of the radio, and the step of receiving a confirmation of the password from the prospective buyer or seller is performed over a computer network.

Preferably, said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server for controlling and managing SMS to and from said radio, wherein said transaction and auction system communicates directly with said SMSC server.

Preferably, said step of sending a message to the buyer's radio includes connecting an access identification number to the unique identification number of the product or service and placing said connected number in the ' sender ' field of each message, said SMSC server employing the access identification number to identify the SMS from the radio for said transaction and auction system and forwarding this SMS directly to the transaction and auction system.

Preferably, the trading and auction system is connected to the SMSC server via a computer network.

According to a second aspect of the present invention, there is provided a method of authenticating buyers and sellers in a trading and auction system, the method comprising the steps of:

assigning a password to said prospective buyer or seller;

communicating said password to said prospective buyer or seller and receiving a confirmation of said password from said prospective buyer or seller, wherein at least one of said steps of communicating said password and receiving a confirmation of said password is performed using the messaging capabilities of said radio; and also

preferably, the method further comprises the steps of: the buyers are required to prove their identity to the trading and auction system upon submitting their first trading instructions for a product or service through a message exchange between the trading and auction system, wherein at least one of the messages is sent or received using the messaging capabilities of the radio.

According to a third aspect of the present invention, there is provided a method of transmitting trading instructions in a trading and auction system, comprising the steps of:

sending messages to a buyer's radio relating to bids and asks made by that buyer for products or services, each message including in a ' sender ' field the unique identification number for the product or service;

the method includes receiving messages from a buyer's radio relating to that buyer's instructions to a transaction for a product or service, extracting and recognizing a unique identification number for that product or service from a ' recipient ' field of the received messages to identify that product or service, extracting and recognizing a unique identifier for the radio from the ' sender ' field of each message to identify that buyer, and analyzing the text of each message to determine that buyer's instructions to a transaction for that product or service.

In one design, the step of exchanging messages comprises the steps of sending a password to the prospective buyer or seller over a computer network and receiving a confirmation of the password from the prospective buyer or seller using the messaging capability of the radio.

In an alternative design, the step of exchanging messages comprises the steps of sending a password to the prospective buyer or seller using the messaging capability of the radio and receiving a confirmation of the password from the prospective buyer or seller over a computer network.

Preferably, said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server for controlling and managing SMS to and from said radio, wherein said transaction and auction system is in direct communication with said SMSC server.

Preferably, the transaction and auction system is connected to the SMSC server via a computer network.

According to a fourth aspect of the present invention there is provided a trading and auction system comprising:

registration processing means for receiving a unique identifier of a message-deliverable radio device belonging to an intended buyer or seller;

message distribution means for sending messages to the radio of the prospective buyer or seller;

message receiving means to receive a message from the prospective buyer or buyer's radio;

said registration processing means being designed to assign a password to said prospective buyer or seller and to communicate said password to said prospective buyer or seller and to receive a confirmation of said password from said prospective buyer or seller, wherein said password is communicated to said prospective buyer or seller's radio device via said message distribution means and/or said confirmation of said password is received from said prospective buyer or seller's radio device via said message receiving means, said registration processing means being designed to activate said prospective buyer or seller's account or transaction instructions when said confirmation of said password is correct;

unique identification number assigning means for automatically assigning a unique identification number to each product or service available for sale or auction in said trading and auction system;

database means for storing the unique identification number for each product or service available for sale or auction in the trading and auction system and storing the unique identifier for each buyer's or seller's radio device; and

transaction and auction processing means arranged to send messages to the buyer's radio via said message distribution means relating to bids or offers made by that buyer for a product or service, a ' sender ' field of each message including the unique identification number for that product or service;

the transaction and auction processing means is further designed to receive from the buyer's radio device via the message receiving means a message relating to that buyer's transaction instruction for a product or service and to validate that product or service by extracting and recognizing a unique identification number for that product or service from a ' receiver ' field of the received message, identify the buyer by extracting and recognizing a unique identifier for that radio device from the ' sender ' field of each message, analyze the body of each message to determine the buyer's transaction instruction for that product or service and execute the transaction instruction.

Preferably, said transaction and auction processing means are designed to require buyers to prove their identity to the transaction and auction system when submitting their first transaction instructions for a product or service by exchanging messages with the transaction and auction system, wherein one of said messages is communicated to the buyer's radio via said message distribution means and/or another of said messages is received from the buyer's radio via said message receiving means.

Preferably, said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server for controlling and managing SMS to and from said radio, said message distributing means and message receiving means communicating directly with said SMSC server for sending and receiving SMS therefrom respectively.

Preferably, said message distribution means is arranged to associate an access identification number with a unique identification number for the product or service and to place said associated number in the 'sender' domain of each message sent to the buyer associated with that product or service, said SMSC server using the access identification number to identify the SMS from the radio equipment for said transaction and auction system and forwarding this SMS directly to the message receiving means.

Preferably, the message distributing means and the message receiving means are connected to the SMSC server via a computer network.

According to a fifth aspect of the present invention, there is provided a trading and auction system, comprising:

database means for storing a unique identifier for each buyer or buyer's radio;

said registration processing means being designed to assign a password to said prospective buyer or seller and to communicate said password to said prospective buyer or seller and to receive a confirmation of said password from said prospective buyer or seller, wherein said password is communicated to said prospective buyer or seller's radio device via said message distribution means and/or said confirmation of said password is received from said prospective buyer or seller's radio device via said message receiving means, said registration processing means being designed to activate said prospective buyer or seller's account or transaction instructions when said confirmation of said password is correct.

According to a sixth aspect of the present invention there is provided a trading and auction system comprising:

unique identification number assigning means for automatically assigning a unique identification number to each product or service available for sale and auction in said trading and auction system;

database means for storing a unique identification number for each product or service available for sale and auction in said trading and auction system; and

transaction and auction processing means arranged to send messages to the buyer's radio via said message distribution means relating to bids and asks made by that user for products or services, each message having a ' sender ' field containing a unique identification number for that product or service;

the transaction and auction processing means is further designed to receive from a buyer's radio device via the message receiving means a message relating to that buyer's transaction instruction for a product or service and to validate that product or service by extracting and recognizing a unique identification number for that product or service from a ' receiver ' field of the received message, to identify the buyer by extracting and recognizing a unique identifier for that radio device from the ' sender ' field of each message, to analyze the body of each message to determine the buyer's transaction instruction for that product or service and to execute the transaction instruction.

Drawings

The invention will be better understood from the following description of a particular embodiment. This description is made with reference to the accompanying drawings, in which:

FIGS. 1-3 are schematic diagrams illustrating how a user typically registers with a trading and auction system;

figure 4 is a schematic diagram showing how a user can generally receive notifications regarding his bids and submit further bids to the trading and auction system.

Detailed Description

The desired embodiment of the present invention is directed to a trading and auction system that provides an improved authentication process and a more convenient bidding system for users having messaging capable radios. The radio devices referred to for the purpose of illustrating this embodiment implemented are SMS enabled GSM mobile phones, but it will be understood that the invention is not limited to these devices.

The trading and auction system of this embodiment includes an auction server 10. The auction server 10 includes a registration processing means (registration processor), a message distributing means (message distributor), a message receiving means (message receiver), a unique identification number distributing means (UIN distributor), a database means (database 12), and a transaction and auction processing means (auction processor). These are implemented in the form of program software that is continuously executed under the control of the operating system in the auction server 10, so that the registration and co-compilation process can be automated.

The auction server 10 is connected to a computer network 14, which in this embodiment is the internet. This may enable a prospective user having a computer 16 to access the auction server 10 via the computer network 14 with the user's Internet Service Provider (ISP) 18.

The auction server 10 is also linked to the short message service of the GSM network, either directly or via the internet. In particular, the message distributor and message receivers communicate directly with the service system 20 of the Short Message Service Center (SMSC) of the GSM network to send and receive short messages or commands via SMS. The message distributor and message receivers communicate directly with the SMSC via a computer network 14, a direct communication line, or other suitable communication system. Short messages are sent and received from the auction server 10 using the message protocol of the GSM network. In this embodiment of the invention, the protocol used is the computer interface message distribution protocol second edition (CIMD II), which is a system adopted by GSM mobile phones and network manufacturers (e.g. Nokia). The auction server may also be designed to support any popular short message protocol, such as the simple message page scheduling protocol (SMPP).

Fig. 1-3 are useful in explaining the registration process for a prospective user.

Referring to fig. 1, the user uses their computer 16 to access the auction server 10 via the computer network 14 and their ISP 18. In this embodiment, the user 16 accesses a registry provided in the auction server 10. The registry comprises several fields in which the user has to enter basic data for the registration process, and further fields in which the user can enter option data if desired.

If the user has entered data into a domain in the registry, the user may submit the information to the auction server 10. This may be accomplished in a number of ways, such as using a form-based HTML web page provided for the registry, wherein the user may submit the entered data to the auction server 10. The registration processor is invoked upon receiving the basic and option data from the user's computer 16.

The registration processor generates a new entry in the database 12 for the user that includes the basic and option data. In this embodiment, the base data includes the user's name, address, a unique identification number of the wireless device owned by the user and capable of transmitting messages, such as a GSM mobile phone number, an email address, and a nickname. For example, the option data in this embodiment may include the birth date of the user.

The registration processor assigns the user a temporary password which is stored in the database 12 and is not communicated to the user at this stage. The data stored in the database 12 for that user is marked as inactive until the authentication process is complete.

Figure 2 shows a first part of the authentication process employed in this embodiment. The authentication process for the registration of a new user with the auction server 10 is performed by the registration processor. As shown, the registration process initially calls the registration processor to obtain the temporary password assigned to the user and the GSM mobile phone number of the user from the database 12.

The registration processor then instructs the message distributor to send an SMS message to the user's mobile phone 22. The GSM mobile phone number of the user is used as the 'recipient' field in the SMS message. The message text of the SMS message includes a temporary password assigned to the user by the registration processor. The message text may also include an instruction to the user to enter the password using their computer 16 and submit it to the auction server 10.

Figure 3 shows a second part of the authentication process. As shown, the user submits the temporary password to the auction server 10 using the computer 16 upon receiving the SMS message on their GSM mobile phone 22. In this embodiment, once the user has submitted the data entered into the registration form to the auction server 10, the user's computer 16 is caused to display another HTML page informing the user that they will soon receive a message on their mobile phone that includes a temporary password. The other HTML page then instructs the user to enter the password into the domain provided by the page and submit it to the auction server 10. This other HTML page then states that their account will be activated once the password is verified by the auction server 10.

The user enters the password into their computer 16 and submits this information to the auction server 10. Note that the information received by the auction server 10 must also be able to identify the user. There are a number of ways this can be achieved, such as by using "cookies". A "cookie" is a data file resident on the computer 16 that includes information based on previous activity of the user and that also enables the auction server 10 to identify a user or identify a person accessing a URL address corresponding to the auction server 10. Therefore, a "cookie" identifying the user is associated with that user's account.

Upon receiving the password, the auction server 10 verifies that the submitted password is the same as the temporary password stored in the database 12. If the password is correct, the user's account is marked as active and the user's computer 16 displays another HTML page to inform the user that his registration has been successful. Alternatively, if the submitted password does not properly match the unique password stored in the database 12, the user's computer 16 may display an HTML page to notify the user that their registration attempt was unsuccessful and that a retry is required.

After a few attempts the message processor 12 is not allowed to make further attempts by the user.

Although the authentication process employed by the illustrated embodiment includes a message sent to the user's GSM device and the user entering a confirmation via their computer, it will be appreciated that in other embodiments, additional registration procedures may be employed, but the user is still required to specify their mobile telephone number in order to activate their account.

For example, after submitting the registration data, the user may be directed to a web page including the temporary password and instructed to send an SMS message including their password to the particular phone number via his GSM device. That telephone number may be formed by the auction server 10 assigning and recognizing a numeric access code for registration purposes in conjunction with a numeric address. The user's SMS message may then be forwarded from the SMSC 20 to the message receiver of the auction server 10. Since the message text includes the password and the user's mobile phone number is displayed in the "sender" field of the SMS message, the user's identifier and password can be verified.

In an enhancement to the registration process, the auction server 10 sends a message to the user's mobile phone 22, including a message instructing the user to enter a temporary password displayed in an HTML page appearing on the computer 16. This message takes as its "sender" a number consisting of a numeric access code associated with the registration processor and a numeric address. In many GSM devices, sending an SMS including the temporary password is accomplished by simply pressing the "reply" key on their GSM device. The address of the "sender" formed by a numeric access code belonging to the registration processor linked to a numeric address will be automatically inserted into the "receiver" field of the new SMS message, thereby simplifying the sending process of the temporary password.

In this particular registration method, the message distributor inserts in the "sender" field of the SMS message a number formed by a numeric access code assigned and recognized by the auction server 10 for registration purposes, linked to a numeric address. The digital access code is used by the SMSC server system 20 to identify the auction server 10. Any SMS message received by the SMSC server system 20 with its "recipient" domain beginning with the auction server 10's digital access code will be forwarded directly from the SMSC server system 20 to the auction server 10 where it is processed by the message receiver.

The digital address code for registration is a predetermined number directed to the registration processor. Thus, any message received by the message receiver addressed to that digital code which is subordinate to the registration processor will be forwarded by the message receiver to the registration processor.

Once registered, a user is able to browse the products and services available for trading and auctioning and place bids for various products and services as described in further detail below. Registered users can also submit their products for trading and auctioning on the auction server 10.

To add a product or service to the auction server 10, a user can submit product data to the auction server 10 in a manner similar to the submission of registration data described above. That is, the user accesses the auction server 10 with their computer 16 and accesses an "add new product" HTML web page. The user then enters product data and submits the product data to the auction server 10. In this embodiment, the user is required to provide product data, some of which are optional:

name: a brief product description will appear in the auction server 10 product listing.

The user identifier: a nickname of a registered user selling the product.

User password: the user's password for validating the product entry. If the password is incorrect, the product will not be added to the auction server 10.

Auction type/method: for example, the user may specify whether the auction is to be conducted as a regular auction or as a dutch auction.

Cargo description: a more detailed description of the goods available for sale.

Country: the country of the vendor.

Auction start date and time: the date and time of the auction started. Bids for various items are not received until an auction begins.

Auction period: the duration of the auction.

Catalog: a broad category of identifiers for the types of products selected from a list for sale. Such as antiques, music or computers.

External resource URL: the user specifies an optional uniform resource locator for graphics, further information, etc.

Computer graphics files (options): a photograph of the item at the requested price may be uploaded to the auction server 10 directly from the computer 16 via the internet 14.

Payment method: the user will receive payment methods such as cash, checks or credit cards.

Shipment information: details regarding the shipment of the product from the seller to the successful buyer, such as shipping costs, countries to which the seller is or is not ready for shipment, and the like.

Lowest bid: a limit value for the lowest value is specified for this first bid. The auction server ignores bids that are below the lowest bid.

Reserve price: an optional value that specifies a price at which the vendor is not ready to sell the good at a lower price.

Bid increment: minimum bid increments.

Switch with or without dynamic bid time (option): this switch tells the auction server whether to extend or not extend the auction period if bids are still received near the end of the specified auction period. If the switch is on, the auction will be extended until no more bids are received for a time period corresponding to the dynamic bidding time.

The auction server 10 checks the integrity of the product data submitted by the user and if the information is complete, the UIN dispenser dispenses a UIN for the product. The product data and UIN are then stored in the database 12.

Bids relating to the product are also stored within the database 12 at the start of the auction.

A user may browse products available for auction on the auction server 10 via the internet 14 using his computer 16. If a user wishes to bid on a product, he is directed to a bid submission web page whenever he selects the product. The identity of the user is then authenticated using the authentication process described above. If the user's identity is authentic, the user's bid for the product is accepted by the auction server 10 and stored in the database 12. The user's bid for the particular product is identified using the UIN of the product. In another embodiment, the authentication process may be skipped when submitting a bid, or authentication may be required only when the value of the product exceeds a predetermined price.

The user may enter two types of bids, a conventional bid or an automatic (or proxy) bid. One conventional bid includes a bid for a particular price. An automatic bid is a maximum bid specified by the user. The auction and transaction processor then acts like an agent to bid for the product at the minimum increment for the user until the user-specified maximum price is reached, which attempts to win the bid for the product at the minimum possible increment value.

Once the user has registered their first bid for a product, notifications regarding the user's bids and further bids can be sent to or received from the user's GSM mobile phone without requiring the user to access his computer 16 or computer network 14. Fig. 4 helps demonstrate the notification and raising process.

If a user fails to bid on a product, the auction and transaction processor instructs the message distributor to send an SMS message to the user's GSM mobile phone 22. The auction and transaction processor retrieves the user's mobile phone number from the database 12 and forwards it to the message distributor for inclusion within the "recipient" domain of the SMS message.

The auction and transaction processor also forwards the UIN of the product to the message distributor, which connects the digital access code of the auction server 10 with the received UIN of the product and inserts the number resulting from the connection into the "sender" field of the SMS message.

Finally, the auction and transaction processor forwards a message text to the message distributor to be included in the message body that constitutes the SMS message. The message text produced by the auction and transaction processor includes information relating to the product such as the name of the product, the current highest bid price, and a command to place another bid price. An example of a message text may be "you have bid on' antique bookshelf" higher than others. The current maximum price is $1,050. To submit another bid, only reply to the message and specify the type and amount of the bid ".

The SMS message is sent by the message distributor directly to the SMSC system server 20 of the GSM network, which in turn forwards the message to the user's GSM mobile phone 22.

To submit another bid for the product, the user simply replies to the SMS message with a reply function on the GSM mobile phone 22. Advantageously, the reply function on the GSM mobile phone 22 will automatically retrieve the number in the "sender" field of the original SMS message and insert it in the "receiver" field of the reply SMS message. Thus, the user is not required to recall the email address or product code for subsequent submission of a bid. The user only needs to input the bid type and the bid amount in the body of the SMS message and send the SMS message.

To submit a conventional bid of $1200, the user need only enter "conventional 1200" as the text message of the reply SMS message. To submit an auto proxy bid of $1200, the user enters auto 1200 as the text of the SMS message.

Once the subscriber sends the SMS message, his GSM mobile phone 22 sends it to the SMSC server system 20 of the GSM network. The SMSC server system 20 identifies the digital access code of the auction server 10 within the "recipient" domain of the SMS message and forwards the SMS message directly to the message receiver of the auction server 10.

After receiving the SMS message, the message receiver extracts the product UIN from the "recipient" field of the SMS message, extracts the user's mobile phone number from the "sender" field of the SMS message, and extracts the text message of the SMS message and forwards these contents to the transaction and auction processor.

The transaction and auction processor can identify the product from the UIN of the product. Also, the transaction and auction processor can identify the user from the user's GSM mobile phone number. If a higher bid has been received from another user or the user's bid command is not recognizable, the auction and transaction processor sends a reply SMS message to the user's GSM mobile phone 22 notifying them of the error. Otherwise, the trading and auction processor enters the user's bid for that product in the database 12. Alternatively, if the bid is successfully received, the auction and transaction processor may send a reply SMS message to the user's GSM mobile phone 22 informing them that his bid was successfully received.

In addition to sending notifications to the highest bidder earlier, the auction and transaction processor may also be designed to send the same notifications to some or all users who have bid on that product.

As can be seen from the above description, the present invention provides a fast, efficient and convenient method and system for the authentication and transmission of commands for an auction and transaction system where the user has a wireless device capable of transmitting messages, such as a GSM device that allows SMS.

Claims

1. A method for authenticating buyers and transmitting transaction instructions in a trading and auction system, comprising the steps of:

requesting that the prospective buyer or seller register with the trading and auction system before being able to submit trading instructions, including requesting that said prospective buyer or seller provide a unique identifier of a message-transmittable radio device belonging to the prospective buyer or seller;

assigning a password to said prospective buyer or seller;

communicating said password to said prospective buyer or seller and receiving a confirmation of said password from said prospective buyer or seller, wherein at least one of said steps of communicating said password and receiving a confirmation of said password is performed using the messaging capability of said radio;

assigning a unique identification number to each product or service available for sale and auction in said trading and auction system;

sending messages to the buyer's radio relating to that user's bid or offer for a product or service, each message including within a 'sender' field a unique identification number for that product or service;

receiving messages from a buyer's radio relating to instructions for transactions by that buyer for a product or service, identifying the product or service by extracting and recognizing a unique identification number for that product or service from a ' receiver ' field of the received message, identifying the buyer by extracting and recognizing a unique identifier for the radio from the ' sender ' field of each message, and analyzing the text of each message to determine instructions for transactions by the buyer for that product or service.

2. A method as claimed in claim 1, further comprising the step of requiring buyers to prove their identity to the trading and auction system upon submitting their first trading instructions for a product or service by exchanging messages between the trading and auction system, at least one of said messages being sent or received using the messaging capability of said radio device.

3. A method as claimed in claim 1 or 2, wherein said step of communicating said password to said prospective buyer or seller is performed over a computer network, and said step of receiving a confirmation of said password from said prospective buyer or seller is performed using the messaging capability of said radio device.

4. A method as claimed in claim 1 or 2, wherein said step of communicating said password to said prospective buyer or seller is performed using the messaging capability of said radio device, and said step of receiving a confirmation of said password from said prospective buyer or seller is performed over a computer network.

5. A method as claimed in any preceding claim, wherein said radio is an SMS capable GSM device, said radio being served by a GSM network having an SMSC server to control and manage SMS to and from said radio device, wherein said trading and auction system communicates directly with said SMSC.

6. A method as claimed in any preceding claim, wherein said step of sending a message to the buyer's radio comprises linking an access identification number to the unique identification number of the product or service and placing said linked number in the ' sender ' domain of each message, said SMSC server using the access identification number to identify an SMS from the radio for said transaction and auction system and forwarding this SMS directly to the transaction and auction system.

7. A method as claimed in any preceding claim, wherein said trading and auction system is connected to said SMSC server via a computer network.

8. A method for authenticating buyers and sellers in a trading and auction system, comprising the steps of:

assigning a password to said prospective buyer or seller;

communicating said password to said prospective buyer or seller and receiving a confirmation of said password from said prospective buyer or seller, wherein at least one of said steps of communicating said password and receiving a confirmation of said password is performed using the messaging capability of said radio; and also

9. a method as claimed in claim 8, further comprising the step of requiring buyers to prove their identity to the trading and auction system upon submitting their first trading instructions for a product or service by exchanging messages between the trading and auction system, at least one of said messages being sent or received using the messaging capability of said radio device.

10. A method as claimed in claim 8 or 9, wherein said step of communicating said password to said prospective buyer or seller is performed over a computer network, and said step of receiving a confirmation of said password from said prospective buyer or seller is performed using the messaging capability of said radio device.

11. A method as claimed in claim 8 or 9, wherein said step of communicating said password to said prospective buyer or seller is performed using the messaging capability of said radio device, and said step of receiving a confirmation of said password from said prospective buyer or seller is performed over a computer network.

12. A method as claimed in any one of claims 8 to 11, wherein said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server to control and manage SMS to and from said radio, wherein said trading and auction system is in direct communication with said SMSC.

13. A method as claimed in any one of claims 8 to 12, wherein said step of sending a message to the buyer's radio includes connecting an access identification number to the unique identification number of the product or service and placing said connected number in the ' sender ' field of each message, said SMSC server using the access identification number to identify an SMS from the radio for said transaction and auction system and forwarding this SMS directly to the transaction and auction system.

14. A method as claimed in any one of claims 8 to 13, wherein the trading and auction system is connected to the SMSC server via a computer network.

15. A method of transmitting trading instructions in a trading and auction system, comprising the steps of:

16. A method as claimed in claim 15, further comprising the step of requiring buyers to prove their identity to the trading and auction system upon submitting their first trading instructions for a product or service by exchanging messages between the trading and auction system, at least one of said messages being sent or received using the messaging capability of said radio device.

17. A method as claimed in claim 16 wherein said step of exchanging messages comprises sending a password to said prospective buyer or seller over a computer network and receiving a confirmation of said password from said prospective buyer or seller using the messaging capabilities of said radio.

18. A method as claimed in claim 16 wherein said step of exchanging messages comprises sending a password to said prospective buyer or seller using the messaging capabilities of said radio and receiving a confirmation of said password from said prospective buyer or seller over a computer network.

19. A method as claimed in any one of claims 15 to 18, wherein said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server to control and manage SMS to and from said radio device, wherein said trading and auction system communicates directly with said SMSC via a direct link or via the internet.

20. A method as claimed in any one of claims 15 to 19, wherein said step of sending a message to the buyer's radio includes connecting an access identification number to the unique identification number of the product or service and placing said connected number in the ' sender ' field of each message, said SMSC server using the access identification number to identify an SMS from the radio for said transaction and auction system and forwarding this SMS directly to the transaction and auction system.

21. A method as claimed in any one of claims 15 to 20, wherein the trading and auction system is connected to the SMSC server via a computer network.

22. A trading and auction system, comprising:

said registration processing means being designed to assign a password to said prospective buyer or seller and to communicate said password to said prospective buyer or seller and to receive a confirmation of said password from said prospective buyer or seller, wherein said password is communicated to said prospective buyer or seller radio device via said message distribution means and/or said confirmation of said password is received from said prospective buyer or seller radio device via said message receiving means, said registration processing means being designed to activate an account or transaction instruction of said prospective buyer or seller when said confirmation of said password is correct;

database means for storing a unique identification number for each product or service available for sale or auction in said trading and auction system and storing a unique identifier for each buyer's or seller's radio device; and

transaction and auction processing means arranged to send messages to the buyer's radio via said message distribution means relating to bids or offers made by that user in respect of a product or service, a ' sender ' field of each message including a unique identification number for that product or service;

the transaction and auction processing means is further designed to receive from a buyer's radio device via the message receiving means a message relating to that buyer's transaction instruction for a product or service and to identify that product or service by extracting and recognizing a unique identification number for that product or service from the ' receiver ' field of the received message, to identify that buyer by extracting and recognizing a unique identifier for that radio device from the ' sender ' field of each message, to analyze the body of each message to determine the buyer's transaction instruction for that product or service and to execute the transaction instruction.

23. A trading and auction system as claimed in claim 22, wherein said trading and auction processing means is arranged to require buyers to prove their identity to the trading and auction system when they submit their first trading instructions for a product or service by exchanging messages with the trading and auction system, wherein one of said messages is communicated to the buyer's radio via said message distribution means and/or another of said messages is received from the buyer's radio via said message receiving means.

24. A transaction and auction system as claimed in any of claims 22 or 23, wherein said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server to control and manage SMS to and from said radio, wherein said message distributing means and message receiving means communicate directly with said SMSC server to send and receive SMS therefrom respectively.

25. A transaction and auction system as claimed in any one of claims 22 to 24 in which the message distribution means is arranged to connect an access identification number to the unique identification number of the product or service and to place the connected number in the 'sender' field of each message sent to the buyer associated with that product or service, the SMSC server employing the access identification number to identify the SMS from the radio equipment for the transaction and auction system and forwarding this SMS directly to the message receiving means.

26. A trading and auction system as claimed in any one of claims 22 to 25, wherein said message distribution means and message receiving means are connected to said SMSC server via a computer network.

27. A trading and auction system, comprising:

database means for storing a unique identifier for each buyer or seller's radio device;

said registration processing means being designed to assign a password to said prospective buyer or seller and to communicate said password to said prospective buyer or buyer and to receive a confirmation of said password from said prospective buyer or seller, wherein said password is communicated to said prospective buyer or seller radio device via said message distribution means and/or said confirmation of said password is received from said prospective buyer or seller radio device via said message receiving means, said registration processing means being designed to activate said prospective buyer or seller account or transaction instruction when said confirmation of said password is correct.

28. A trading and auction system as claimed in claim 27, wherein said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server to control and manage SMS to and from said radio, wherein said message distributing means and message receiving means communicate directly with said SMSC server to send and receive SMS therefrom, respectively.

29. A trading and auction system as claimed in claim 27 or 28, wherein said message distribution means and message receiving means are connected to said SMSC server via a computer network.

30. A trading and auction system, comprising:

message receiving means to receive a message from a radio of a prospective buyer or seller;

database means for storing a unique identification number for each product or service available for sale and auction in the trading and auction system; and

transaction and auction processing means arranged to send messages to the buyer's radio via said message distribution means relating to bids and asks made by that user for products or services, each message including within a ' sender ' field a unique identification number for that product or service.

The transaction and auction processing means is further designed to receive from a buyer's radio device via the message receiving means a message relating to that buyer's transaction instruction for a product or service and to identify that product or service by extracting and recognizing a unique identification number for that product or service from a ' receiver ' field of the received message, to identify that buyer by extracting and recognizing a unique identifier for that radio device from the ' sender ' field of each message, to analyze the body of each message to determine the buyer's transaction instruction for that product or service and to execute the transaction instruction.

31. A trading and auction system as claimed in claim 30, wherein said trading and auction processing means is arranged to require buyers to prove their identity to the trading and auction system when they submit their first trading instructions for a product or service by exchanging messages with the trading and auction system, wherein one of said messages is communicated to the buyer's radio via said message distribution means and/or another of said messages is received from the buyer's radio via said message receiving means.

32. A transaction and auction system as claimed in any of claims 30 or 31, wherein said radio is an SMS capable GSM device, said radio being served by a GSM network comprising an SMSC server to control and manage SMS to and from said radio, wherein said message distributing means and message receiving means communicate directly with said SMSC server to send and receive SMS therefrom respectively.

33. A transaction and auction system as claimed in any one of claims 30 to 32 in which the message distribution means is arranged to connect an access identification number to the unique identification number of the product or service and to place the connected number in the 'sender' field of each message sent to the buyer associated with that product or service, the SMSC server using the access identification number to identify an SMS from the radio equipment for the transaction and auction system and forwarding this SMS directly to the message receiving means.

34. A trading and auction system as claimed in any one of claims 30 to 33, wherein said message distribution means and message receiving means are connected to said SMSC server via a computer network.