Cost-Per-Action Search Engine Patent Headed to Auction Block
Wednesday, September 1st, 2010
Patent could potentially target Google and Microsoft.
A U.S. patent directed at cost-per-action advertising on search engines as well as cash-back search is headed to the auction block.
Sunnyvale, California based AnchorFree Inc. has enlisted ICAP Ocean Tomo to auction off U.S. patent number 7,647,305 (pdf) at its November 11 intellectual property auction in Napa, California.
The patent covers two main things. First, it covers charging search ad customers based on a CPA model rather than cost-per-click. Google has already toyed around with this sort of idea, charging customers based on an action (such as a sale or lead) rather than per click.
Second, the patent covers giving a portion of advertising fees back to the searcher. This is similar to Microsoft’s CashBack search, which rewarded searchers with a percentage of Microsoft’s affiliate fees when customers made a purchase. Microsoft has shut down the service, but many similar services exist.
Can’t wait for the auction? The patent has a buy-it-now price of $2 million.
Further Reading:
- Yahoo Awarded Patent for Human-Enhanced Search Engine
- I.co Headed to the Auction Block
- Will Cost Per Action Replace Cost Per Click?
Tags: intellectual property, patent
I like the pay per transaction PPT model.
Nice patent
Interesting that you can get a patent on things that simple. I was certain that google was testing this already, so they would violate the patent, at least in the US.
Its lame ass patents like this that stops companies in the USA from innovating and exploring new paths in technology at a faster pace.
Its why I love being overseas so damn much. Less hassles and more freedom to do what you want, when you want without all the red tape.