Overture Services, Inc. v. Google Inc.

Filing 116

Declaration of Ravind S. Grewal in Support of 115 Google's Responsive Claim Construction Brief filed by Google Inc.. (Attachments: # 1 Exhibit 1# 2 Exhibit 2# 3 Exhibit 3# 4 Exhibit 4# 5 Exhibit 5# 6 Exhibit 6# 7 Exhibit 7# 8 Exhibit 8# 9 Exhibit 9# 10 Exhibit 10# 11 Exhibit 11# 12 Exhibit 12# 13 Exhibit 13# 14 Exhibit 14# 15 Exhibit 15# 16 Exhibit 16# 17 Exhibit 17# 18 Exhibit 18# 19 Exhibit 19# 20 Exhibit 20# 21 Exhibit 21# 22 Exhibit 22# 23 Exhibit 23# 24 Exhibit 24# 25 Exhibit 25# 26 Exhibit 26# 27 Exhibit 27# 28 Exhibit 28# 29 Exhibit 29# 30 Exhibit 30)(Related document(s) 115 ) (Grewal, Ravind) (Filed on 1/30/2004)

Overture Services, Inc. v. Google Inc.

Doc. 116 Att. 14

Case 3:02-cv-01991-JSW

Document 116-15

Filed 01/30/2004

Page 1 of 19

EXHIBIT

Dockets.Justia.com

Case 3:02-cv-01991-JSW

Document 116-15

Filed 01/30/2004

Page 2 of 19

1/111111111111111111111111111111 111111111111111111/111111 IItllllll

1111111/1111111111111111

us 20030101126Al
(19) (12) United

States
(10) Pub. No. : (43) Pub.

Cheung et at.
PLACEMENT DATABASE SEARCH SYSTEM
Dominic Dough- Ming Cheung, South

Patent Application Publication

Date: May 29, 2003
09/993 926
Nov. 13,

US 2003/0101126 Al

(54) POSITION BIDDING IN A PAY FOR

(21) Appl. No.

(76) Inventors:

(22) Filed:

2001

Pasadena , CA (US); Jane C. Bove CA (US); Gabriel Graham , Pasadena, CA (US); Frank Marltato JR., Pasadena , CA (US); Scott W. Snell, Hollywood, CA (US); Darren J. Davis, Rowland Heights, CA (US); Alan Eric Lang, Redondo Beach, CA (US)
Redondo Beach,

Publication Classification

(52) U.S.

(51) Int. CI.' ..................................................... G06F 17/60 CI. ................................................................ 705/37
ABSTRACT

(57)

Correspondence Address:

BRINKS HOFER GILSON & LIONE O. BOX 10395 CHICAGO, IL 60611 (US)

A method for a pay for placement database search system includes storing one or more search listings associated with an advertiser, each search listing including a respective bid amount and receiving a bid cap for selected search listings.
The respective bid amounts are adjusted
for the selected

search listings according to the bid cap.

302

RECEIVE NEW BID AND RAN1\: FOR SEARCH LISTING
304

REMOVE SEARCH LISTIN"G FROM THE MARKEr PLACE

308

RANK ~ REQUESTED RANK
BID .:: BID c.'-\P

YES

318

RETURN SEARCH LISTIN"G TO THE MARKET PLACE

GOG 032207

""

~~~;

D

m

Case 3:02-cv-01991-JSW

Document 116-15

Filed 01/30/2004

Page 3 of 19

Patent Application Publication

May 29, 2003 Sheet 1 of 7

US 2003/0101126 Al
User Name sfphillips

Main Mana e Bids Re rts Mana e Listin s Mone
PremiumBiddin 1M I Standard Biddin

I8JLag Out

102 10093418 GoTo
2;~~; ~ccou~:~~t

~o e of Auo 23 ~~~u

Page: 1 I.

Account GaTa (Search
3 ways 10 change

10, 93418 54 0 US) $59.
Search US I ~ ~
our bids:

I Tips

Premium Ustings
I.Jslmgs In the top three
pos/boos of OverturE's searm results are presented 10 75% o/the Internel's users.

a ance.

120 Option 1: Option 2: Option 3:
busmess da ..

Move AlL LISTINGS ON THIS PAGE Change bids individually. bids must be 5 cents 01 Move AlL LISTINGS FOR THIS click 'Updale Bids' on greater. If one of your search ACCOUNT to the number 1 position.. 10 the number 1 posilion.' Please be sure 10 chal"\!es wm take effect in 3changes will lake effec! Ihis page below to save your changes isbngs was created before March 1 , 2001 and IS below mmeaalelv move

122 TChan eAIi fistings to the lop onceIChangePager-:; to his takes your per request If you wish
Dis

top aQain , visit this pace and ma e a new request . Enter new bid values and click . Update Bids' for instant changes 10 your account..

124
11 0
Bid To Curr&nt

Importantl

.~~.

Wlie~ changing your bkls al

your listings to the to be subject to the 5 cenl
minimum.

c:~r~~~Th~IrJ~~

alilisti

s for Ihis account

106

108

112 114 116
CIJT~BW
CID CID
CID
New Bid

I Tools

Search Your Listings:
Enter your search cntella rn the searcJi oox and select the type ofsearchusrng the pulldown menu below.

104

Sort bv.

Searth Term-

~rrenl Bid
$0_

alex m. kimura
buddha essence tern ole

Searmby'Search Term I ~

$0.

aoofvauvs123
aoofvauvs124
aoofvouvs 125

$0. $0.
$0.

$0. $0.

CID

isplay
CID
CID

Per Page

aoofvauvs 126

$0. $0. $0. $0. $0.
$0. $0. $0.

J!!L
....Q&.. ....Q&..

or Bids Betweo.n

aoofvouvs127
QOofvQuvs128

$007
$0. $0.

CID CID CID

Dand$D
~rr;~rb~g~~~~ listings
for a ~ 5Oarm term.

oaofvauvs129
oootvQuvs13

~::r

$0. $0.
$0. $0. $0. $0. $0. $0.
$0_

(ID
CID
CID

the ~~;::'b on each lelm in the last

~~~c

~~ol

aoofvauvs130
qoofvauvs131
QoofvQuvs132
QoofvQUVS 133

month.

CID
CID
CID

$005 $005
$0. $0.

Qoofvquvs 134

ooofvauvs135
QoofvQuvs136

CID CID
CID CID

QoofvQuvs137

$0.
$0. $0.
Curlenl

goofyguys 138

$0.
$0.
B~To

Sortby

~13
goofyguys14

QoofvQUVS 139

CID I curr

~6d

New Bid

$0-

$0. $0. $0. $0.
$0. $0. $0. $0. $0.

CID
CID CID CID CID
CID CID

goofyguys140
goofyguys141

$0. $0.
$0.

gaofy~uys142
Qoofyquvs143

$0.
SO 05 SO. SO 05

goofyguys144 goofyguys145
goofyguys 146

CID CID CID CID
CID

goofyguys147

$005
$0. $0. $0. $0. $0.

9oofyguys148 goofyguys149
goofyguys 15

$0. $0.
~0.

I--PRIOR ART

goofyguys 150

$007
$0.07
$0.
$0.
$0.

CID CID CID CID CID

goofyguys151

FIG.

goofyguys152
goofYguys153

$005
$0.
$0.

goofyguys154

GOG 032208

Case 3:02-cv-01991-JSW

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Page 4 of 19

Patent Application Publication

May 29, 2003 Sheet 2 of 7

US 2003/0101126 Al

216
216

200

INTERNET

202

224

204

206

226

208

FIG. 2
GOG 032209

Case 3:02-cv-01991-JSW

Document 116-15

Filed 01/30/2004

Page 5 of 19

Patent Application Publication

May 29, 2003 Sheet 3 of 7

US 2003/0101126 Al

302

RECEIVE NEW BID AND RANK FOR SEARCH LISTING
304

REMOVE SEARCH LISTING FROM THE MARKET PLACE

308

RANK:;. REQUESTED RANK
BID -( BID CAP

YES

318

RETURN SEARCH LISTING TO TIIE MARKET PLACE

END

FIG. 3

GOG 032210

Case 3:02-cv-01991-JSW

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Page 6 of 19

Patent Application Publication

May 29, 2003 Sheet 4 of 7

US 2003/0101126 Al

400
START PROCEDURE

YES

YES

YES

NO CHANGE
408

PROCESS CHANGE

414

END PROCEDURE

FIG. 4
GOG 032211

.......

FIG. 5
'Eo

FIG. 5504 514

r;.

FIG. 5r;'

Case 3:02-cv-01991-JSW

PREPOPULATE PREVIOUS BID REQUEST
510

512
CHANGE BIDS
CHANGE BIDS

518

BID TO POSITION
POWER PAGE

516

BY $ BID AMT

530 I
532
BID TO POSITION I
BID TO INDIVIDUAL AND

522

DISPLAY ERROR
MESSAGES

Document 116-15

rJJ

SELECT LISTINGS

LI
POSITION ALL

514
-..1

538
540

534 536

DISPLAY ERROR MESSAGES

rJJ

Filed 01/30/2004

YES

FIG. 5-

Page 7 of 19

I-'

.......

"'C

524
544

"E-

526 528

COMPLETE BID TRANSACTION

CONFIRMATION OF RECEIPT

"'C

c:-.
t")

Case 3:02-cv-01991-JSW

546
548

CONFIRMATION OF RECEIPT
550
558

560

Document 116-15

BID SERVICE

EMAIL TO ADVERTISER

r:JJ

562

564
EMAIL TO ACCT MGR
ACCT MGR
r:JJ

Filed 01/30/2004

i-4

FIG. 5-

i-4 i-4

i-4

C')

Page 8 of 19

C')

i-4

'"
Case 3:02-cv-01991-JSW Document 116-15 Filed 01/30/2004 Page 9 of 19
Patent Application Publication

May 29, 2003

Sheet 7 of 7

US 2003/0101126 Al

AdminUser:Rhillipss Advertise~sfphillips

181 604

Advertiser Loooul 181Lp~Out

Acoount 10

Account Name Product

100 93418 Go

To Search

Market

USlyl

I TIps

r~~i~~a

~:n

~;mlum

Premium Bidding

602

Bidding and how il can help you gat the most from your onlme advertising.

Read more here.
Premium Bidding is a fast and easy way 10 manage yuur Premium Ustings to get the ultimate targeted traffic, Leam about Premium Bidding

imj)i,iiiiiiir""""""""""Allbids sub","ed after March

Premium Bidding will be available for a limited time while we gather your feedback. Piease let us know what yOU think by using the feedback form found in the Support Center. Because we are testing response 10 Premium Bidding, we ask thai you use this page no more than six (6) times per day.

mJst be. mlnumum
~I ~~~5
I Tools

All listinGs
Pul all of your 1Istings in Premium' Listings (positions 1, . or 3) with jusl one click.

Search Your LIstings
and 612 the'esearch boxusingseled Ihe I'lf of search Ihe
pulldown menu below. Enter your search enteri. in

644

Account

Search by :
Bid AI:

606

\or
Individual Listings
Choose which tistings go to Premium positions. After selecting your positions and caps. You musl cock ' Submit Page' to save your work
before sorting or changing pages.
re 5011)'. Your account has gone olffine during lhis DirecTraffic Cenlero session.

SearchTerrn

goof

642 646

614 Display QEJ
sD

Per Page

or Bids Between 648

andS~

6J5

We therefore cannol update your bids at this time. If you need further assistance please send us an inquiry using our Support Request Form found in the Support Center.

Faga fill 0 OJI:* EnJf!lvaiues~changeali (8) Get Curr~nl BI or ~ave b~nkIQci;ar ~

..,...,....,......-.._uo........

IlIew current bi s an listings
for any search term.

Position Cap
You ()'JlTenUy have 0 Bid Requests awaiting processing. You may have up 10 20 open Bid Requests at any g~'en time. Note: each page you submit is considered a separate Rd Requesl

~~:r
# page

~ ~:'b

~~1~s

on each lerm in Ihe last

month.
Displav alilistinqs for this account
Seard1Term: 1X!
CuITent Bid &~.'!;nl

Bld~o

urc,e~Bld Positron I Cap
CID

goofyguys123 goofyguys124 goofyguys125

$005
$0. $0. $0. $0. $0.

$007
$0.

o:::J

608

CID

$007
$0.

cID
CID

goofyguysi26
goofyguys127
goofyguys128
goofyguys 129

$0.
$0. $0. $0.
. $007

cID

cID
CID

$005
$0. $0.
$0.

goofyguys130
goofy9uys131

cID
CID

o:::J o:::J o:::J

(:IJJIWJ ~ o :: (IJ~
(Q;QB-

o:::J IWJ

o:::J IWJ

goofyguys132

$0.

(8)

(Q

632

Ciick 'Up:late Bids to send your PremiJrn Bid Requesl Of dick ' Reser to return yo'J" search tenn ~ds andl. '

Uodate Bids ~I Reset

610

640
Importantl Ciic~ ' Update Bids' before sorting or changing pages or your bid changes wiil be

636
634

630

kJsl
Main I

Mana ge_~ids I Reports

Manaqe Listinqs

rvbney Manaqer

SUpport Cenler

FIG. 6

GaG

032214

Case 3:02-cv-01991-JSW

Document 116-15

Filed 01/30/2004

Page 10 of 19

US 2003/0101126 Al

May 29, 2003

POSITION BIDDING IN A PAY FOR PLACEMENT DATABASE SEARCH SYSTEM
RELATED APPLICATIONS

some pay for placement systems have affiliate agreements whereby some of their highest-bidded search listings are
presented to searchers using other general purpose search

(0001) This application is related to U.S.

patent applica-

tion Ser. No. 09/922 028 entitled SYSTEM AND METHOD FOR PROVIDING PLACE AND PRICE PROTECTION IN A SEARCH RESULT LIST GENERATED BY A COMPUTER NE1WORK SEARCH ENGINE, filed on Aug. 3,2001 in the names Cheung, et aI., which is a continuation
in part of U.S.

engines. Because of these affiliate agreements and similar arrangements , an advertiser s web site , if bid highly enough may be seen by as many as seventy- five percent of Internet users.

(0006) An advertiser wishing to attract searchers to his
web site as potential customers for the advertiser s goods and services thus has an incentive to position his search listing relatively high in the search results. An advertiser
may enter bids on many search listings. For search listings

patent appJication Ser. No. 09/911 674 filed

Jul. 24 2001 in the names of Darren J. Davis, et a!. , (attorney docket number 9623/334), which application is incorporated herein in its entirety and which is a continuation of U. patent application Ser. No. 09/322 677 , filed May 28, 1999 in the names of Darren 1. Davis, et a!. , now U,S. Pat. No. 269 361.

which are closely related to the content of the advertiser
web site , the advertiser might place relatively large bids. For less closely rela ted search listings, the advertiser might place smaller bids. A number of strategies have been developed by

advertisers to increase traffic to advertiser web sites in this
manner,

REFERENCE TO COMPUTER PROGRAM LISTINGS SUBMITTED ON COMPACT DISK
(0002) A compact disc appendix is included containing

(0007) Similarly, pay for placement search systems have
developed tools to help the advertisers manage their bids and attract traffic. Overture Services, Inc. , operating a system at www. overture. com , has presented advertisers with a standard bidding page accessible over the world wide web. An

computer program code listings pursuant to 37 c.F.R.

1.52(e) and is hereby incorporated by reference in ils
entirety. The total number of compact discs is 1 including 071 files and 96 227 410 bytes. The files included on the compact disc are listed in a file entitled " dir " on the compact disc. Because of the large number of files contained on the compact disc, the required listing of file names, dates

example of this page is shown in FIG, 1 , which shows a portion of a standard bidding page for a current pay for
placement search system. The standard bidding page allows
an advertiser to log in, display and edit all current search

of creation and sizes in bytes is included in the file dir s on the compact disk and incorporated by reference herein.
BACKGROUND

listings and review bids. Thus, the standard bidding page in FIG, 1 includes a dispJay 102 of account information and a
display 104 of current bid information.

Internet provides many databases of information accessible for searching and receiving information. Pay for placement database search systems have been developed in which advertisers bid on the placement of their listings in search results returned to a searcher in response to a world wide web query from a searcher. Each advertiser s listing includes a search term and a bid amount. In some embodiments, each advertiser s listing includes a title , descriptive text and a clickable hyperJink or uniform resource locator
(0003) The

display 104 of current bid information in the illustrated example is arranged in a table including several fields. Among these is a search term field 106, a current bid field 108 , a current position field 110 , a bid to become number 1 fieJd 112, a current bid tool selector field 114 and
(0008) The

a new bid field 116. The search term field 106 displays in one

column of the table all of the search terms on which the advertiser has bid. These are the terms with which search
queries are compared to determine a match for presentation to a searcher. The current bid field 108 shows the current
amount bid on the search term. In the illustrated example
five cents or $0.
currently accept ,

(URL). The database of search Jistings stores many such listings , each associated with an advertiser. Upon receipt of the query, the database is searched and listings having a search term matching the query are formatted for display to
the searcher as search results.
(0004) The advertisers adjust their bids or bid amounts to

05 is the minimum bid the system will
with smaller bids below the minimum bid

amount grandfathered at that bid amount until changed. The current position field 110 shows the current position or rank at which the search listing will be presented to a searcher if a search query including that search term is received. A rank

control the position at which their search listings are presented in the search results. The pay for placement system
places search listings having higher-valued bids higher or

or current position of 1 means that search listing will be displayed first to a searcher. The bid to become number 1
field 112 shows the amount the advertiser must bid to have
the search listing appear at the top of the list of search results , or in the number 1 or first ranked position. The current bid tool field 114 includes a hyperlink that redirects the advertiser s browser to a URL at which the advertiser can see all bids by all advertisers for that search term , so that the

closer to the top of the search listings. Other rules may be applied as well when positioning search listings. For example , a more senior listing will be positioned or ranked higher than a junior listing for the same search term and same bid. Higher-ranked listings are seen by more searchers and are more likely to be clicked , producing traffic of potenliaI customers to an advertiser s web site.
(0005) The searcher is presented with search listings

advertiser can better manage his bid. The new bid field 116
allows the advertiser to enter a new bid for a search term.

The system will accept the new bid and update the search
listing accordingly.

according to the bid amounts. The search listings may
extend over several screens or pages when formatled for viewing. As a result , higher positioned search listings are much more likely to be seen by the searcher. Moreover

control field 120 presents other bid management options. A change all hyperlink 122 allows all listings for the advertiser s account to be moved 10 the number 1 bid
(0009) The

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position. A change page hyperlink 124 allows all listings
shown on the current page for the advertiser to be moved to

(0020) FIG, 6 shows one embodiment of a change bids

page for bid to position control.

the number 1 bid position. By guaranteeing a highest ranked

position for all or many bids,
tiser s web site.

these tools are effective at

allowing an advertiser to maximize the traffic to the adver-

DETAILED DESCRIPTION OF THE PRESENTLY PREFERRED EMBODIMENTS

standard bidding page of the type has proved very successful at allowing advertisers to manage their bids. However, as the system has become more successful, some advertisers have started to maintain very large numbers of bids. Some advertisers are known to have bid on thousands of search terms. Also , more advertisers are bidding on the same search term, increasing the likelihood that an advertiser s updated search listing will be subsequently displaced from the desired position by a second advertiser updating the
(0010) The

(0021) Referring now to the drawing, FIG, 2 is a block
diagram of a pay-for-placement search system 200. FIG, 2 is an example of a distributed system 200 configured as
client/server architecture used in one embodiment of the

second advertiser s listings. Further, advertiser may desire to be among the highest- bidded search listings which
are presented to searchers using other general purpose

an

present invention. A client is a member of a class or group that uses the services of another class or group to which it is not related. A server is typically a remote computer system that is accessible over a communications medium such as the Internet. The client process may be active in a second computer system , and communicate with the server process over a communications medium that allows multiple clients
to take advantage of the information- gathering

capabilities

search engines. However,

the option to place all search
also to

listings or pages of search listings in the highest bidded
position may be too successful at generating traffic ,
unmanageable levels.

of the server. Thus, the server essentially acts as an information provider for a computer network,

increasing the cost of maintaining the search listings
(0011) One

therefore shows a distributed system 200 including a plurality of advertiser web servers 204 and associated database 224 , an account
(0022) The block diagram of FIG, 2

currently available web site aJJows a user to designate a selected position or rank for an advertisers keywords. However, this conventional system allows only a single keyword to be processed and does not handle tie situations well, in which multiple bids exist for the same keywords at the same dollar amount.

management server 206 and associated database 226, and a search engine web server 208 and associated database 228 and a plurality of client computers 216 such as a searcher
computer and an advertiser computer, all of which are connected to a network such as the Internet 214. The

(0012) Accordingly, there is a need for an improved system and method for managing bids in a pay for placement
system.

network 214 will be hereinafter generally referred to as the Internet. Although the system and method of the present invention is specifically useful for the Internet, it should be understood that the client computers 216 , advertiser web servers 204 , account management server 206 , and search
engine web server 208 may be connected together through one of a number of different types of networks. Such networks may include local area networks (LANs) , other

BRIEF SUMMARY

(0013) By way of introduction only, the present embodiments provide a method and system for a pay for placement
database search system. The method and system include storing one or more search listings associated with an
advertiser, each search listing including a respective bid amount and receiving a bid cap for selected search listings. The respective bid amounts are adjusted for the selected

wide area networks (WANs), and regional

networks

accessed over telephone lines, such as commercial informa-

tion services. The client and server processes may even
comprise different programs executing simultaneously on a
single computer. Advertiser web server 204, account management server 206 , and search engine web server 208 and

search listings according to the bid cap,
(0014) The

their associated storage device comprise a pay-for-placement database search system 202 as described herein.
(0023) The client computers 216 can be conventional

foregoing discussion of the preferred embodi-

ments has been provided only by way of introduction.
Nothing in this section should be taken as a limitation of the claims , which define the scope of the invention.

personal computers (PCs), workstations, or computer systems of any other size. Each client 216 typically includes

BRIEF DESCRIPTION OF SEVERAL VIEWS OF THE DRAWINGS
(0015) FIG. 1 shows a portion of a standard bidding page for a current pay for placement search system;

(0016) FIG, 2 is a block diagram of a pay for placement
database search system;

one or more processors , memories, input/output devices, and a network interface, such as a conventional modem or network interface card. 'The advertiser web servers 204 account management server 206 , and the search engine web server 208 can be similarly configured. However, advertiser web servers 204, account management server 206 , and search engine web server 208 may each include many
computers connected by a separate private network.
(0024) The client computers 216 can execute web browser programs , such as the NAVIGATOR, EXPLORER , or MOSAIC browser programs, to locate the web pages or

(0017) FIG, 3 is a flow diagram illustrating a bid to
position method for a pay for placement database search system such as the exemplary system of FIG, 2;
(0018) FIG, 4 is a flow diagram illustrating processing of exception conditions in the method of FIG, 3;
(0019) FIG, S is a state diagram showing operation of the
system of FIG, 2 and

records stored on advertiser server 204. The browser programs allow the users to enter addresses of specific web pages to be retrieved. These addresses are referred to as

Uniform Resource Locators,

or URLs. In addition ,

once a

page has been retrieved , the browser programs can provide

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access to other pages or records when the user "clicks" on hyperlinks to other web pages. Such hyperlinks are located within the web pages 30 and provide an automated way for the user to enter the URL of another page and to retrieve that
page. The pages can be data records including as content

208 includes a search database including search listing
records used to generate search results in response to user
queries. In addition , search engine web server 208 may also
be connected to the account management server 206.

plain textual

information, or more complex digitally encoded multimedia content, such as software programs graphics , audio signals, videos, and so forth.

Account management server 206 may also be connected to the Internet 214. The search engine web server 208 and the account management server 206 address the different information needs of the users located at client computers 216.
(0029) For example , one class of users located at client

(0025) In one embodiment, client computers 216 communicate through the network with various network information providers, including account management server 206
search engine server 208 , and advertiser servers 204 using

computers 216 may be network information providers such

as advertising web site promoters

or advertisers having

the functionality provided by a HyperText Transfer Protocol (HTfP), although other communications protocols, such as FTP, SNMP, TELNET, and a number of other protocols known in the art, may be used. Preferably, search engine server 208, account management server 206, and advertiser
servers 204 are located on the World Wide Web.
(0026) As discussed above , at least two types of server are

advertiser web pages located on advertiser web servers 204.

These advertising web site promoters or advertisers may wish to access account information residing in storage on account management server 206. An advertising web site
promoter may, through the account residing on the account management server 206 , participate in a competitive bidding process with other advertisers. An advertiser may bid on any number of search terms relevant to the content of the advertiser s web site. In one embodiment, the relevance of
a bidded search term to an advertiser s web site is determined through a manual editorial process prior to insertion

contemplated in the illustrated embodiment. The first server
contemplated is an account management server 206 com-

prising a computer storage medium 220 and a processing system. A database is stored on the storage medium 220 of the account management server 206. The database contains advertiser account information. It will be appreciated from the description below that the system and method described herein may be implemented in software that is stored as
executable instructions on a computer storage medium, such as memories or mass storage devices, on the account management server 206. Conventional browser programs, running on client computers 216 , may be used to access advertiser account information stored on account management server 206. Preferably, access to the account management server 206 is accomplished through a firewall, not shown , which protects the account management and search result placement programs and the account information from external tampering. Additional security may be provided via enhancements to the standard communications protocols
such as Secure HTfP or the Secure Sockets Layer.
(0027) The second

of the search listing containing the search term and advertiser web site URL into the database. In an alternate embodiment of the present invention, the relevance of a bidded search term in a search listing to the corresponding web site may be evaluated using a computer program executing at the

processor of account management server 206 , where the computer program will evaluate the search term and corresponding web site according to a set of predefined editorial rules.

higher bids receive more advantageous placement on the search result list page generated by the search engine 208 when a search using the search term bid on by
(0030) The

the advertiser is executed. In one embodiment, the amount

bid by an advertiser comprises a money amount thai is
deducted from the account of the advertiser for each time the advertiser s web site is accessed via a hyperlink on the

search result list page. Alternatively, the amount bit may

server type contemplated is a search

engine web server 208. A search engine program permits

searcher clicks on the hyperlink with

comprise any economic value given by the advertiser. A a computer input

network users, upon navigating to the search engine web server URL or siles on other web servers capable of submitting queries to the search engine web server 208 through
their browser program, to type keyword queries to identify

device to initiate a retrieval request to retrieve the information associated with the advertiser s hyperlink. Preferably,

pages of interest among the millions of pages available on the World Wide Web. In a prefelTed embodiment of the present invention , the search engine web server 208 generates a search result list that includes, at least in part, relevant entries obtained from and formatted by the results of the
bidding process conducted by the account
of hypertext

each access or click on a search result list hyperlink will be redirected to the search engine web server 208 to associate the " click" with the account identifier for an advertiser. This

will access account identification information coded into the
redirect action , which is not apparent to the searcher,

search result page before accessing the advertiser s URL

using the search result Jisl hyperlink clicked 00 by the
searcher. The account identification information is recorded in the advertiser s account along with information from the retrieval request as a retrieval request event. Since the information obtained through this mechanism conclusively matches an account identifier with a URL in a manner not
possible using conventional server system logs known in the
art accurate account debit records will be maintained. The

management

server 206. The search engine web server 208 generates a list

l.in.ks to documents that contain information

relevant 10 search terms entered by the user at the client
computer 216. The search engine web server transmits this list , in the form of a web page , to the network user, where

it is displayed on the browser running on the client computer 216. One embodiment of the search engine web server may be found by navigating to the web page at URL htlp:/i www. overture. corn/.
(0028) Search

ad~ertiser s web site description and hyperlink on the search

result list page is accompanied by an indication that the advertiser s listing is a paid listing. Each paid listing displays a cost to advertiser, which is an amount corresponding to a price-per-click paid by the advertiser for each referral to
the advertiser

engine web server 208 is connected to the Internet 214. In one embodiment, search engine web server

s site through the search result list.

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(0031) A second

class of users at client computers

216

(0035) FIG, 3 is a flow diagram illustrating a bid to
position method for a pay for pJacement database search

may comprise searchers seeking specific information on the web. The searchers may access, through their browsers, a
search engine web page residing on web server 208. The

search engine web page includes a query box in which a
searcher may type a search term comprising one or more

keywords. Alternatively, the searcher may query the search
engine web server 208 through a query box hyperlinked to

the search engine web server 208 and located on a web page stored at a remote web server. When the searcher has finished entering the search term, the searcher may transmit the query to the search engine web server 208 by clicking on a provided hyperlink. The search engine web server 208 will then generate a search result list page and transmit this page
to the searcher at the client computer 216.
(0032) The

system such as the exemplary system 200 of FIG. 2. In the exemplary system , advertisers may specify a bid cap and a desired rank for one or more search listings, The bid cap is the maximum dollar amount at which the bid of a search listing may be set by the system. Bid amounts less than or equal to the bid cap are acceptable. The desired rank is limited to one of the ranks corresponding to the premium listings , which in the exemplary system are rank 1 , rank 2 and rank 3 or the first three search listings displayed to a user. Also , the exemplary system has policies that search
listings are ranked by bid amount and search listings with

searcher may click on the hypertext links

associated with each listing on the search results page to
access the corresponding web pages. The hypertext links may access web pages anywhere on the Internet 214 , and include paid listings to advertiser web pages located on advertiser web servers 204. In one embodiment, the search

result list also includes non-paid listings that are not placed

identical bid amounts or tie conditions are resolved with a senior or earlier placed bid being ranked higher than junior listings. Further in the exemplary system, some listings are referred to as grandfathered. The system has a current minimum bid amount of $0.05 but some listings were created before the minimum was applied and have bid amounts less that the minimum. Under current policy, if a bid is cbanged for a grandfathered listing, the minimum bid of $0.05 applies.

as a result of advertiser bids and are generated by ventional World Wide Web search engine , such

a con-

as the

INKTOMI, LYCOS, or YAHOO! search engines. The non-

(0036) In one embodiment , the method of FIG, 3 and the system of FIG, 2 implement bid change logic which may be summarized by the following rules:

paid bypertext links may also
listings on the search results page.

include links manually

indexed into the database by an editorial team. Most preferably, the non-paid listings follow the paid advertiser

(0037) 1. We will place you at the position
requested , at the lowest price possible.

you

(0033) In another embodiment, the users at client computers 216 may access the web site of other web service
providers affiliated with the operator of the pay for placement search system 200. Under affiliate agreements, search

(0038) 2. If there are ties that make your requested position unavailable , we will make your new bid
$0. 01 more than the tie amount and you will be right

on top of the ties. This means you might get a
position higher than you requested.

queries entered by the users at the client computers

216

using web pages of the affiliated web service providers are also passed 10 the search engine web server 208. The search engine web server 208 produces pay for placement search results as described herein. Some of the pay for placement

(0039) 3. Your new bid will never be higher than your
bid cap, if specified. If your requested position

search results are passed back to the user at the client
computer and combined with other search results to form

cannot be obtained because your bid cap is too low we will get you the best position for your bid cap. Often that means tbat your new bid will be equal to
your bid cap, but if we can get that same position for a lower price , we will give you the lower price.

query results. Under an affiliate agreement,

the pay for

placement search results may be positioned in any suitable

(0040) 4. Your new bid will never be lower than the
minimum bid of $0. 05. This means that if you use position bidding on a grandfathered listing, you will lose grandfather status for that listing.
rules are exemplary only. Other rules may be devised and applied as well.
(0041) These

location in the query results. If the user clicks on one of the pay for placement search results , economic value is generated for the pay for placement search system 200 or for the affiliated web service provider, or both.

(0034) Preferably, from the perspective of the operator of
tbe pay for placement search system 200, under tbe affiliale

agreement the pay for placement search results are positioned or ranked near or at the top of the query results sent
to the user. Search listings treated this way are referred to as premium listings. In one example , the premium listings are tbe top three search listings for a search term and are passed to the affiliated web service provider and displayed in the top three positions of the query results. A premium listing has an

(0042) Examples of the application of these rules are
shown below. In these examples ,

original rank and bid amounts are shown for several search listings which an
these listings win be

specify the same search term. When a query containing this
search term is received from a user,

presented in the query results to the user in rank order

according to bid amount. Under an affiliate agreement, the
top three ranked listings are premium listings and wiIJ be presented in query results for queries received from affiliated
web service providers.

increased likelihood of being clicked by the user. In this
manner , an advertiser s premium search listing will be seen
increasing the traffic to the advertiser

by a larger number of searchers using tbe World Wide Web s web site. This

position tbe advertiser

increases the incentive for the advertiser to submit bids to s searcb listings as premium search listings , with a rank or position which will ensure display near the top of the query results.

EXAMPLE 1

(0043) In the first example, an advertiser with an old rank
of 5 at a bid amount of $0. 90 requests a rank of 2 and
specifics a bid cap of $1. 50.

Based on the existing bids and

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the rules , the new rank is 2 and the bid amount is $1.00. Thus , the system receives the bid cap and the desired rank

for selected search listings adjusts respective bid amounts for the selected search listings according to the bid cap and the desired rank. In this particular embodiment , a bubble
popping process is applied to reduce the bid amount from the specified amount or the bid cap to a bid amount which is just high enough to achieve the desired rank.
(0044) Example 1: No problems. Give the rank requested.

Rank Original Stale
$1. 00
Old Rank:

B2P

Rank Final Stale
S1.00 50. 50. 50. 50.
SO.

50. 50. 50. 50. 50.

Old Bid: Rank Requested:
Bid Cap:

50. 50.

New Rank:: New Bid:

50.

Status: Partial Success

Rank Original State
51.00 50. 50.
50.
Old Rank: Old Bid:

EXAMPLE 4
B2P

Rank Final State
51.00 51.00
50. 50. 50. 50.

(0049) In the fourth example , an advertiser with an old
rank of 2 at a bid amount of $0. 99 requests a rank of 4 and specifies a bid cap of $0. 90. In this example , the bid cap of
$0. 90
forces (he new rank to be lower than the requested

SO.

50. 50.

Rank Requested: Bid Cap: New Rank: New Bid: Status: Success

51.50
51.00

but the obtained position of rank 5 is the best position attainable given the bid cap. Applying the bubble popping method , the bid amount is lowered to $0. , the minimum amount needed to be at the best possible rank for
the bid cap.

rank of 4 ,

(0050) Example 4: Bid cap forces the new rank to be lower

than requested. BubbJe popping drops the price further.

EXAMPLE 2

(0045) In the second example , an advertiser with an old
rank of 5 at a bid amount of $0. 90 requests a rank of 2 and

specifies a bid cap of $1.50. However,

Rank Original State
51.00
SO.

B2P
Old Rank: Old Bid:

Rank Final Stale
S1.00
50.
SO. SO.

this lime , a tie

condition exists in that two listings with bid amounts of
$1.00 are ranked first and second. Applying the rules above

since the tie condition makes the requested

rank of 2

50. 50.
SO. SO.

Rank Requested:
Bid Cap:

$0.

50.
SO. SO.

unavailabJe , the system adjusts the new bid by increasing the bid amount $0. 01 more than the tie amount, placing the

New Rank: New Bid: 50. Status: Partial Success

search listing in the first ranked position.
(0046) Example 2: TIe forces the new rank to be higher
than requested.

EXAMPLE 5

(0051) In the fifth example , an advertiser with an old rank
of 5 at a bid amount of $0. 90 requests a rank of 2 and

Rank Original State
51.
Old Rank: Old Bid:

Rank

specifies a bid cap of $1. 00. However, in this example a tie condition exists in that the search listings ranked 1 and 2
each have a bid of $1.00. Because of the bid cap, however

B2P

Final Stale
50.
51.01 51.00 S1.00 50.
SO. SO.

51.00
50. 50. 50. 50.

the new rank is lower than the old rank. The result is that the new rank is 3 , less than the rank of 2.
(0052) Example

Rank Requested:
51.50 New Rank: New Bid: 51. Status: Partial Success
Bid Cap:

5: Bid cap and ties force the new rank to

be lower than requested when bidding up

Rank Original Stale

B2P
Old Rank:
Old Bid:

Rank Final State
S1.00 51.00
SO. SO. SO. SO.

EXAMPLE 3

(0047) In the third example, an advertiser with an old rank
of 5 at a bid amount of $0. 90 requests a rank of 2 and

S1.00 51.
SO. SO. SO. SO.

50.

Rank Requesled:
Bid Cap:

$1.00

specifies a bid cap of $0. 95. In this example ,
$0.

with other

search listings at ranks 1 , 2 and 3 at bids of $1.00 , $0. 99 and
, respectively the bid cap of $0. 95 forces the search

New Rank: New Bid: 50. Status: Partial Success

listing to a new rank that is lower than the requested rank.
EXAMPLE 6
(0048) Example 3: Bid cap forces the new rank to be lower
than requested.

(0053) In the sixth example , an advertiser with an old rank
of 2 at a bid amount of $1.00 requests a rank of 4 and

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specifies a bid cap of $0.92. However, in this example a tie

is equal to the old bid , so no change is needed. The final state

condition exists in that the search listings ranked 4 and 5
each have a bid of $0. 92. The result is that the new rank is

is unchanged from the initial state.
EXAMPLE 7
Position

, below the requested rank of 4. The bid cap and the tie condition for the new rank to be lower than the requested
rank.

Advertiser

Bid

(0054) Bid cap and ties force the new rank to be lower than
requested when bidding down.

1.00

Rank Original State
$1.00 $1.00
$0. $0. $0. $0.
Old Rank: Old Bid:

Rank

B2P

Finat Stale
$1.00 $1.00 $0.
$0. $0. $0. $0.

EXAMPLE 8
(0064) In this example ,

Rank Requested: Bid Cap: $0. New Rank: New Bid: $0. Status: Partial Success

advertiser B uses the system to
$1.00. The normal

request rank #1 with a bid cap of

processing would grant rank #2 with a bid of $0.81. However, there is no rank improvement and with the new bid the advertiser is paying more. Therefore, the system does noth~
ing since the requested rank could Dol be granted.

(0055) In one embodiment , in order to provide more

favorable results for advertisers, there are some exceptions 10 these rules. The exceptions are set out below.

EXAMPLE 8
Position

(0056) a) If, after applying the rules, your new bid
comes out to be the same as your old bid , we will make no change. This way you retain your seniority
position at that bid.

Advertiser

Bid

1.00

(0057) b) If your new bid is higher than your old bid but your rank is not improved, we will not change
your bid. That way you don t get charged more for no improvement in rank.
EXAMPLE 9
(0065) In this example,

(0058) c) If it turns out that your new rank takes you
further down in the listings from your requested rank than where you were with your old rank , then we will not change your bid. Of course, your old bid has to be under your bid cap for this to happen.

advertiser C uses the system to

request rank 2 with a bid cap of $0. 80. The nonnal processing would grant rank 5 with a bid of $0. 76. However, this is
an undesirable result because the advertiser gets a new rank

(0059) d) If your new rank turns out to be worse than the rank you requested because there is a block of
tied bids and if your listing was in the block of tied
bids , then we won t make a change. This happens

that is lower than the one he had and lower than the one be
requested. Therefore the syslem will do nothing.

EXAMPLE 9
Position

when you request to be moved lower in the listings but there is a block of ties between your old rank and

Advertiser

Bid

your requested rank. If we made a change ,

you

1.00

would end up just under Ihe block of ties , possibly
far below where you requested, which is undesirable.

(0060) e) If you

use position bidding on a grandfa-

thered listing and if the new rank comes out to be better than the rank you requested , then we won make a change. We do this 10 protect your grandfathered listing.
(0061) These exceptions to the above rules are exemplary

EXAMPLE 10
(0066) In this example ,

advertiser B uses the syslem to
It is impossible to

only. Other exceptions may be devised and applied as well.
(0062) Examples of the application of these rules are

request rank 3 with a bid cap of $0. 80.

shown below.

grant either rank 3 or 4. They are unavailable due to a tie condition. It is undesirable to move the advertiser to rank 5
at $0.

76. Therefore the system will do nothing, so the final

EXAMPLE 7

position is rank 2 at $0.

, the same position and bid that advertiser B had 10 start with. In this case, tbe advertiser gets

(0063) In this example , advertiser C uses requests rank 1
with a bid cap of $0. 80. The bid cap is not high enough , so the new bid will be increased to the bid cap. However this

a higher rank than be requested. If advertiser B uses the system to request rank 3 with a bid cap of $0. , the final result wilJ be rank 5 at $0. 76.

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(0071) The loop

is exited and control proceeds to block

EXAMPLE 10
Position

Advertiser

Bid
1.00

316 after all search listings for the specified search term have been processed. At block 316 , exceptions to the bid change rules are tested. An exemplary embodiment of this exception

processing is described below in conjunction with FIG, 4.
During processing of block 316 , it is determined if

change to the bid amount for the selected search listing
should be entered because of the existence of an exception
condition. If no exception condition exists,

the bid is

changed as determined in processing in the loop of FIG, 3. At bJock 318, the search listing is returned from temporary
EXAMPLE 11
storage to the market place database for use by the search

engine responding to queries. The method ends at block 320.

(0067) In this example , advertiser D uses the system to
request rank 3 with a bid cap of $0. 05. According to the normal processing, the system would award rank 2 with a new bid of $0.05. However, the advertiser gets a rank higher than requested and loses the grandfather status , which is undesirable , so the system does nothing. If advertiser D uses the system to request rank 1 with a bid cap of $0. , then according to normal processing, we would grant rank 2 with a new bid of $0. 05. In this case we make the change and declare partial success because the new rank is lower than

(0072) FIG, 4 is a flow diagram illustrating processing of
exception conditions in the method of FIG. 3. The embodiment begins at block 400. At block 402 , it is determined if the new bid amount determined during the processing of FIG, 3 is equal to the old bid for the same search listing. If , control proceeds to block 410. If not , at block 404, it is determined if the new bid determined for the search listing is equal to the old bid but yields no rank improvement for the search listing. If so, control proceeds to block 410.

the requested rank.

EXAMPLE 11
Position

(0073) If not, at b)ock 406 several conditions are checked. First , it is determined if the unadjusted bid is less than or equal to the advertiser-specified bid cap. Second , it is determined if the unadjusted rank is greater or higher than
Bid

Advertiser

the requested rank. Third, it is determined if the unadjusted rank is less than the new rank determined in the loop of FIG, 3. If all these conditions are met, control passes to block 410.

(0074) At block 408, if none of the exception conditions of
(0068) The flow diagram of FIG, 3, illustrating the rules described above , is described below. The method of the embodiment of FIG, 3 begins at block 300. At block 302 information is received from an advertiser. In one embodiment , the information is a new bid cap which is then used to adjust the bids of the advertiser. In another embodiment , the

blocks 402, 404, 406 have been met, the bid amount change determined by the looping operation of FIG, 3 is processed. The bid amounts for the selected search listings are adjusted
according 10 the received bid cap and desired rank.

(0075) If any

of the exception conditions of blocks 402

404 406 have been met , at block 410 no change is made to

information received is a new desired rank which is then
used to adjust the bids of the advertiser. In the embodiment

the search listing. The exception handling method of FIG, 4 ends at block 414 and control returns to block 318 of FIG,
(0076) FIG,

shown in FIG. 3 , the new information is both a new desired rank and a bid cap which are then used to adjust the bids of the advertiser. The new information is for a single selected search listing, a group of selected search listings or all search listings associated with the advertiser s account. At block 304 , the selected search listing is removed from the market place , for example by moving the search listing from the search engine web server 208 of FIG, 2 to another storage location. The prevents use of the search listings while data is being updated.

S shows a state diagram 500 illustrating

operation of a bid to position function in the pay for placement syslem of FIG, 2. In FIG, , the blocks corre-

spond to operating states of the system and the labeled links
correspond to clicked hyperlinks.

state diagram 500 includes an access portion 502 and a bid to position portion 504. Each of the blocks in FIG, S corresponds to a block of code and stored data for performing the described functions. The access portion 502
(0077) The
provides several administrative functions such as secure

(0069) Control enters a loop beginning at block 306. A first
search listing for the search term is processed. At block 308
it is determined if the current rank is greater than the

requested rank or if the current bid amount is less than the
bid cap. If so , the )oop is exited and control proceeds to

block 316.

(0070) If the test of block 308 is not satisfied , at bloc 312
the bid amount for the selected search listing is adjusted. Normally, the bid amount is increased. In applying bubble
popping, the bid is decreased. At block 314 , control returns to block 306 and a next search listing for the specified search term is selected for processing.

login , reporting operations and others. By selecting a "bid to position " link 506 of a Manage Bids window 508 accessed by an advertiser s web browser. Selecting this link 506 redirects the advertiser s browser to a bid to position control page 510 of the bid to position portion 504. The bid to position control page 510 provides advertiser control of the bid to position operation of the system. The bid to position

contro) page 510 allows the user bid to position control of
one or more search listings.
(0078) One embodiment of the bid to position control page
510 is shown in FIG, 6. The page 510 includes an account

identification window 602,

an all listings bidding section

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604 , an individual listings section 606 and a search control section 608. The account identification window 602 displays
account identification information for the advertiser and

s search listings. The search type selector 644 allows the advertiser to specify the type of search or
in the advertiser

serves as a text input box for receiving new account identification information if the advertiser chooses to change
accounts.

field of his search listings to be searched, such as the search term, the title, the URL, etc. Search listings having matching text in the specified field will be displayed on the page after

LOO79) The all listing bidding section 604 includes a desired rank text entry window 610 and a bid cap window 612 along with an update button 614. The all listings bidding section 604 may be used by the advertiser to change all of tbe advertiser s bids on all search listings of the advertiser to tbe desired rank entered in the desired rank text entry window 610 at tbe bid cap entered in the bid cap window 612. Upon actuation of the update button 614, the system
updates all the bids to the advertiser s desired rank accord-

a search is performed. The display control 646 allows the advertiser to control how many search listings are displayed in the grid on any page. This can be important when using the quick page fill operation to bid to position a page full of

search listings. The bid search entry windows 648 are
configured to receive text defining upper and lower bounds for bid amounts in search listings. Search listings having bid amounts within the specified range will be displayed on the
page after a search is performed.

ing to the desired rank and the bid cap. Preferably, the rules
and exceptions specified herein are used in this updating process. Other rule sets may be used however.

LO084) Referring again to FIG, , a populate with previous bids functionality 514 retrieves stored bids to position
information for display in the grid of the bid to position

control page 510. Each time desired ranks or bid caps are
submitted for one or more search listings, Ihis information is stored. The functionality 514 retrieves the stored data and populates the grid with the retrieved information. This is a user convenience feature , eliminating the need for the advertiser to separately record this information. A clear defaults

LOO80) The individual listings section 606 includes an individual listings update portion 610 and a quick page fill portion 615. The individual listings update portion 610 includes a grid showing all of the advertiser s listings 620 under the selected account, current bid windows 622, currenl position windows 624, bid to become number 1 windows 626 , a current bid tool 628 , desired rank text entry window 630 and a bid cap window 632 along with an update button 634 and a reset button 636. Thus, for each search listing 620

functionality 516 is also provided to erase the stored information.

the grid shows the advertiser s current bid amount in a current bid window 622, the advertiser s current position relative to other search listings for the same search term, in the current position windows 624, and the bid amount

required to achieve the number one rank in the

bid to

become number 1 window 626. The current bid tool 628 is a hyperlink which redirects the user s browser to a web page showing some or all current bids for the search term and
allowing tbe advertiser to adjust his bid to achieve any

LO085) A change bids page 518 and an associated search and sort functionality 514 are accessible by clicking a change bids link 512. The change bids page 518 performs the bid change algorithm according to bid changes specified by the advertiser. The search and sort functionality may be implemented by any suitable search engine or searching and sorting code. After processing the bids according to the specified changes, a check is performed at a block 520, If error conditions exist, an error message is provided , block 522. If no errors exist, the bid change process is completed
for example by verifying the changes with the advertiser and

desired rank among the listed search listings.

copying the modified search listings back into the active
market place and ,

LOO81) The desired rank text entry window 630 and the bid cap window 632 , along with an update button 634, operate similarly to the analogous structures of the all listings

block 524. A confirmation message is sent to the advertiser, block 524 and the bid change process ends at block 528.

portion 604. A desired rank may be entered in the desired rank text entry window 630 for one or more search listings
and a bid cap may be entered in the bid cap window 632. Upon actuation of the update button 634 , the system updates

LO086) The bid to position operation is performed by bid to position individual functionalily 530 and bid to position
all functionality 532. The bid to position individual func-

tionality 530 receives Ihe text and click inputs from the
individual listings section 606 (FIG, 6) of the bid to position control page 510. Associated \vith the bid to position individual functionality 530 is a search and sort functionality 534 , which performs searching and sorting of an advertiser search listings in accordance with the search control section

the respective bid amounts for the selected search listings to the advertiser s desired rank according to the desired rank and the bid cap. Upon actuation of the reset button 636, the entries in Ihe desired rank text entry window 630 and the bid cap window 632 are cleared.
LOO82) The quick page fill portion 615 allows an advertiser

608 (FIG, 6).

to specify bid caps and desired rank values for all search

listings currently sbown on the page. These operate similarly to the analogous structures of tbe all listings portion 604 and tbe individual listings portion 606. Apage control button 640 allows the advertiser to select a page of listings for viewing.

LO087) Similarly, bid to position
to position individual

all functionality 532

receives the text and click inputs from the all listings bidding

section 604 of the bid 10 position control page 510. The bid

functionality 530 and the bid to
the bid

position all functionality 532 operate to adjust
and the bid cap information.

LOO83) The search control section 608 allows the advertiser to control what search listings are displayed on a page. The search control section 608 includes a search text entry window 642 , search type selector 644, display control 646 and bid search entry windows 648. The search text entry window 642 is configured to receive text defining a search query, such as a search term or other text which may appear

amounts according to the received desired rank information
LOO88) In either case, a rules cbeck is performed , block

536 to ensure that the received bid caps and desired ranks conform to the rules. For example, in the present embodiment , an advertiser may only specify as a desired rank the ranks 1 , 2 or 3 of the search listings. Any other specified

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desired rank will generate an error. If an error occurs, an
error message will be displayed for the advertiser, block 53S block 540, and the advertiser will have a chance to resubmit
the bid to position request.

1. A method for a pay for placement database
system , the method comprising:

search

(OOS9) If the rule check of block 534 is passed , the bid to position request is submitted to a bid service queue, block 542. A confirmation of the advertiser s input is provided either a popup confirmation in the form of a window displaying the changed information or by mailing an electronic mail confirmation of receipt, block 546, after which
the confirmation process ends at block 54S,

storing one or more search listings associated with an advertiser, each search listing including a respective bid amount;

receiving a bid cap for selected search listings; and
adjusting the respective bid

amounts for the selected

search listings according to the bid cap. 2. The method of claim 1 wherein adjusting the respective
bid amounts comprises:
increasing the respective bids so long as each respective

(0090) At block 550, the bid queue operates to update the listings of the advertiser. The bid queue is implemented
because updating each bid takes a finite amount of time and many bids for position may be submitted in a short time frame. For example , if an advertiser with hundreds or thousands of bids performs a bid to position all operation block 532, processing all bids may take several seconds or longer. Rather than freeze the screen of the advertiser s web browser, by submitting the bids to be modified to a bid queue the advertiser is free to attend to other details. Similarly, other advertisers who submit bids while a large number of bid updates are occurring are also freed for other processing. The bid queue of block 550 provides additional features as well. If an advertise submits additional updates to any bid for which a change has been requested but which is still sitting in the queue , the second-submitted bid change will

bid does not exceed the bid cap.
3. The method of claim 1 further comprising:

receiving a desired rank for the selected search listings;
and
adjusting the respective bid

amounts for the selected

search listings according to the desired rank. 4. 'The method of claim 3 further comprising:

if a tie condition makes a desired rank unavailable for a respective search lisling, incrementing a bid amount for the respective search listing, 5. The method of claim 3 wherein adjusting the respective
bid amounts comprises:

overwrite the first-submitted change. This may allow an
advertiser to delete a mistakenly submitted bid which can be advantageous since grandfathered bids will lose their grandfather status upon change.
(0091) At block 552 ,

if the desired rank for a selected search listing can not be
obtained because of the bid cap, increasing a bid

amount for the selected search listing so the bid amount

does not exceed the bid cap to position the selected
search listing at a best attainable rank.

it is determined

if the bids were

successfulJy changed. If so, at block 554 , the bid queue is
updated by removing changed bids from the queue and

6. The method of claim 4 wherein adjusting the respective bid amounts further comprises:

advancing still pending bids.
(0092) Once the bid or bids have been changed ,
a bid

reducing the bid amount to a minimum bid necessary to
retain the best attainable rank for Ihe selected search

change notification operation begins at block 556. A notification is electronically mailed to the advertiser, block 55S and the operation ends at block 560. If the advertiser has an

listing. 7. The method of claim 3 wherein adjusling the respective
bid amounts comprises:

account manager associated

with the bid for placement

database operator who manages tbe advertiser s account, a notification may also be emailed to the account manager block 562. Processing ends at block 564. (0093) From the foregoing, it can be seen that the present invention provides method and apparatus which allows a user to designate a selected position or rank for an advertiser search listings. The user specifies information such as a bid
cap and a

reducing the respective bid amounts only if the reduced
bid amount exceeds a system minimum bid.

S. The method of claim 3 wherein adjusting respective bid
amounts comprises:

if an adjusted bid amount for a selected search listing
produces no bid change , leaving the bid amount unadjusted. 9. The method of claim 3 wherein adjusting respective bid
amounts comprises:

desired rank for selected search listings. The

system applies bid change logic and , where appropriate

adjusts the bid amount for the selected search listings to move the search listing to the desired rank. Preferably, the desired rank is limited (0 a premium position at or near the top of search results to be presented to a searcher. (0094) While a particular embodiment of the present
invention has been shown and described, modifications may be made. For example , rules and exceptions have been described for use by the system in implementing bid change logic. Any other suitable rules or exception conditions may

if processing an adjusted bid amount for a selected search

listing produces no rank change,

leaving the bid

amount unadjusted. 10. The method of claim 3 wherein adjusting respective
bid amounts comprises:

be substituted to tailor the operation of the system and
method according to particular requirements. It is therefore intended in the appended claims to cover such changes and modifications, which follow in the true spirit and scope of
the invention.

if processing a requested rank to a higher requested rank produces a rank change to a rank below an initial rank leaving tbe bid amount unadjusted, 11. The method of claim 3 wherein adjusting respective bid amounts further comprises:
leaving the bid amount unadjusted only if the bid amount required for the initial rank does not exceed the bid cap.

GOG

032223

Case 3:02-cv-01991-JSW

Document 116-15

Filed 01/30/2004

Page 19 of 19

US 2003/0101126 Al

May 29, 2003

U. The method of claim 3 wherein adjusting respective bid amounts comprises:

17. The method of claim 1 further comprising:

providing a confirmation of the received bid cap.
18. The method of claim 1 further comprising:

if adjusting the respective bid amounts produces an

adjusted rank that is below the requested rank because of a tie condition , leaving the bid amount unadjusted. 13. The method of claim 3 wherein adjusting respective bid amounts comprises:
if a selected search listing is a grandfathered search listing

providing a notification after adjusting the respective bid amounts.
19. A database search system comprising:

and if adjusting

the respective bid

amount for the

grand fathered search listing produces an adjusted rank that exceeds the desired rank, leaving the bid amount unadjusted.
13. The method of claim 3 further comprising:

a database configured to store search listings associated with one or more advertisers, each search listing including a respective bid amount;
first program code to produce an advertiser access page;
second program code to update one or more lis