Hobby Markets Online
Encyclopedia
Hobby Markets Online was an early internet auction company and which ran a series of person-to-person marketplaces for high-end collectible
s. The Company is cited as the second person-to-person online auction marketplace after eBay
and launched its first web-based auction on October 15, 1995, several weeks after eBay had launched its first auction on September 12, 1995. Both of these auction website
s were launched in the San Francisco Bay Area
although the respective founders did not know about each other or their websites at the time.
s, stamps
, sports memorabilia
. The first internet-based auction was started on Numismatists.com, a coin collecting
site, on October 15, 1995.
Hobby Markets later went on to launch three other web sites for Philatelists (stamps), Sportstrade (sports memorabilia), and AuctionVine (wine
).
and Dick was multimedia producer who at that time was producing some of the earliest electronic storefronts on AOL
. Hubbard was a coin collector and was familiar with the pre-internet trading
and auction
systems.
to a database
, buyers browsed inventory online, submitted bids online and received invoice
s automatically. Buyers then paid Sellers, Sellers shipped goods to Buyers and the Hobby Markets billed the seller a commission
.
Hobby Markets introduced a number of innovative features to online auctioning including the first system for automatically increasing bids
, SmartBid, and the first bid status feature, both of which were introduced in April 1996.
for a stamp was set with a winning bid of $397,838 for a US 24c Purple on Ribbed Paper (Scott 164). This stamp subsequently was sold again in 2004 by Siegel Auctions for $325,000.
site at the Annual BOTI Awards.
In December 1999, Hobby Markets Online merged with BoxLot, Inc. a privately held general person-to-person auction website and platform. In turn BoxLot was acquired by InfoSpace
, Inc. in June 2000.
In 2007, Hobby Markets and its coin auction website Numismatists Online were cited as significant prior art
in filings with the United States Patent and Trademark Office
in the patent
dispute eBay Inc. v. MercExchange, L.L.C.
.
Collectible
A collectable or collectible is any object regarded as being of value or interest to a collector . There are numerous types of collectables and terms to denote those types. An antique is a collectable that is old...
s. The Company is cited as the second person-to-person online auction marketplace after eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
and launched its first web-based auction on October 15, 1995, several weeks after eBay had launched its first auction on September 12, 1995. Both of these auction website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
s were launched in the San Francisco Bay Area
San Francisco Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a populated region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses metropolitan areas of San Francisco, Oakland, and San Jose, along with smaller urban and rural areas...
although the respective founders did not know about each other or their websites at the time.
Origins
Hobby Markets was founded in April 1995 as Affinity Traders Online as a collection of online auction websites for different types of collectibles such as coinCoin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
s, stamps
Postage stamp
A postage stamp is a small piece of paper that is purchased and displayed on an item of mail as evidence of payment of postage. Typically, stamps are made from special paper, with a national designation and denomination on the face, and a gum adhesive on the reverse side...
, sports memorabilia
Sports memorabilia
The term sports memorabilia usually refers to anything that can be directly connected to a sports event or personality. These items are generally gathered by the fans of the particular sport, athlete or team that the item signifies or by collectors who find value in the rarity time-value of these...
. The first internet-based auction was started on Numismatists.com, a coin collecting
Numismatics
Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the...
site, on October 15, 1995.
Hobby Markets later went on to launch three other web sites for Philatelists (stamps), Sportstrade (sports memorabilia), and AuctionVine (wine
Wine
Wine is an alcoholic beverage, made of fermented fruit juice, usually from grapes. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, or other nutrients. Grape wine is produced by fermenting crushed grapes using various types of yeast. Yeast...
).
Founders
The founders of Hobby Markets Online Jonathan Hubbard and Wendy Dick. Hubbard was a second-year student at Harvard Business SchoolHarvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
and Dick was multimedia producer who at that time was producing some of the earliest electronic storefronts on AOL
AOL
AOL Inc. is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services...
. Hubbard was a coin collector and was familiar with the pre-internet trading
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
and auction
Auction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
systems.
Early designs of automated trading
Like the concurrent eBay internet auction system, sellers uploaded inventoryInventory
Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
to a database
Database
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
, buyers browsed inventory online, submitted bids online and received invoice
Invoice
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms...
s automatically. Buyers then paid Sellers, Sellers shipped goods to Buyers and the Hobby Markets billed the seller a commission
Commission (remuneration)
The payment of commission as remuneration for services rendered or products sold is a common way to reward sales people. Payments often will be calculated on the basis of a percentage of the goods sold...
.
Hobby Markets introduced a number of innovative features to online auctioning including the first system for automatically increasing bids
Bidding
Bidding is an offer of setting a price one is willing to pay for something. A price offer is called a bid. The term may be used in context of auctions, stock exchange, card games, or real estate transactions....
, SmartBid, and the first bid status feature, both of which were introduced in April 1996.
Record stamp auction
On December 21, 1999, an online auction world recordWorld record
A world record is usually the best global performance ever recorded and verified in a specific skill or sport. The book Guinness World Records collates and publishes notable records of all types, from first and best to worst human achievements, to extremes in the natural world and beyond...
for a stamp was set with a winning bid of $397,838 for a US 24c Purple on Ribbed Paper (Scott 164). This stamp subsequently was sold again in 2004 by Siegel Auctions for $325,000.
Evolution
In 1998, Hobby Markets received an award for Best Business-to-Consumer electronic commerceElectronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
site at the Annual BOTI Awards.
In December 1999, Hobby Markets Online merged with BoxLot, Inc. a privately held general person-to-person auction website and platform. In turn BoxLot was acquired by InfoSpace
InfoSpace
Infospace provides metasearch and private-label Internet search services for consumers and businesses.InfoSpace's flagship metasearch site is Dogpile; its other consumer brands are WebCrawler, Nation, DoGreatGood and MetaCrawler.-History:...
, Inc. in June 2000.
In 2007, Hobby Markets and its coin auction website Numismatists Online were cited as significant prior art
Prior art
Prior art , in most systems of patent law, constitutes all information that has been made available to the public in any form before a given date that might be relevant to a patent's claims of originality...
in filings with the United States Patent and Trademark Office
United States Patent and Trademark Office
The United States Patent and Trademark Office is an agency in the United States Department of Commerce that issues patents to inventors and businesses for their inventions, and trademark registration for product and intellectual property identification.The USPTO is based in Alexandria, Virginia,...
in the patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
dispute eBay Inc. v. MercExchange, L.L.C.
EBay Inc. v. MercExchange, L.L.C.
eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 is a case in which the Supreme Court of the United States unanimously determined that an injunction should not automatically issue based on a finding of patent infringement, but also that an injunction should not be denied simply on the basis that...
.