The Automated Vendor Selection Technology FAQs

What is AVS Technology®?

The AVS Technology® is a multi-step purchasing procedure implemented by a computer-operated system for procuring goods and services that are defined by production or performance specifications at the time they are being ordered. It is protected by U.S. Patent No. 6,397,197, Patent No. 7,451,106, post-Bilski Patent No. 7,788,143, and Continuing Application 12/855,423. The essential component of AVS Technology® is a five-step procedure that includes: ENTER vendor attributes ENTER project specifications MATCH vendor attributes to project specifications to determine sub-set of qualified vendors SEND project specifications to sub-set of qualified vendors RECEIVE a bid response from at least one vendor

How innovative is AVS Technology®?

AVS Technology® is not simply the computerizing of an existing method. Rather, it is the invention of a novel procedure for procuring custom goods and services not found anywhere in the prior art when the patent application covering this invention was first filed by e-LYNXX on November 30, 1998. AVS Technology® is revolutionary because it breaks the “iron triangle” of quality, timeliness, and cost by allowing pre-qualified vendors with excess idle capacity to provide an extraordinary low price without risk of establishing future buyer price expectation.

What does this patented* procedure achieve?

By breaking the “iron triangle” of quality, timeliness, and cost, AVS Technology® allows a buyer to obtain optimal cost reduction through its own pre-qualified vendor base. Cost reduction is achieved because the procedure establishes an environment wherein preferred vendors are permitted to be flexible in their bids based on available production capacity. These preferred vendors are free to respond to each opportunity (i) by bidding high, low or not at all, (ii) without regard to buyer pricing expectations, (iii) without setting precedent for future bid prices, and (iv) without putting at risk their obtaining subsequent opportunities for which they are qualified. This procedure allows the buyer to benefit from extraordinarily low prices resulting from open capacity wherever it exists within its vendor base at the time the custom goods or services are needed.

What is the scope of AVS Technology®?

AVS Technology® is universal and applies to the procurement of any custom product or service that is defined by production or performance specifications at the time of purchase. Examples include commercial print, direct mail, labels, marketing materials, packaging, publications, creative services, temporary staffing, textiles, automotive and other machined parts, specialized tools, medical instruments, extruded products, transportation, trucking, construction services and many more. The exact parameters of AVS Technology® are set forth in a series of “claims” that are found at the end of each of the published patents*.

What does "post-Bilski" mean in terms of the e-LYNXX patent?

Bilski is an important patent case decided by the U.S. Supreme Court on June 28, 2010, and which for the first time addressed the validity of so-called "business method" patents. The inventors in that case tried to patent a method of hedging risks in commodities trading, but the Supreme Court denied their application by ruling that the process they were trying to patent was too abstract. At the same time, the Supreme Court left the door open to other types of business method or process patents by rejecting the claim that an invention is patentable only if it (1) is implemented with a particular machine or else (2) transforms an article from one thing or state to another. The Supreme Court did not attempt to set parameters for this so-called "machine or transformation test," but instead ruled that this test is only "a useful and important clue" to patentability. Shortly after Bilski was decided, the U.S. Patent and Trademark Office issued a set of interim guidelines to its patent examiners, effective July 27, 2010, for applying Bilski to method or process patents like the AVS Technology®. These guidelines were in effect when the latest patent in the AVS Technology® portfolio (No. 7,788,143) was granted on August 31, 2010. This means that Patent Office believes that the '143 Patent is fully consistent with the Bilski decision.

How does e-LYNXX plan to protect its intellectual property?

Our interest is to work with organizations that see licensing of AVS Technology® as an attractive proposition in the procurement of custom goods and/or services. License royalties can be tailored to the licensee’s advantage based on the dollar amount of purchasing being conducted using AVS Technology®, and exclusive licenses for particular industries or types of products or services will be considered for those organizations seeking a competitive advantage within their industries or geographic areas.

Who should inquire about licensing?

Every organization that makes, sells, or uses a computer-operated system for the procurement of custom goods or services that performs each of the steps in any of the patent claims needs to obtain a license to use the patented* procedure. This would apply to systems that are developed internally as well as systems obtained through third party brokers, procurement services, and system providers, including ERP systems, general supply chain management systems, specialized product or service procurement systems. Those not presently using the patented* procedure may wish to enjoy the benefits of unprecedented cost reductions that result from its application.

	Who are the contacts for inquiring about AVS Technology® and how it can be licensed?
	For more information regarding licensing opportunities, please contact our Technology Licensing Advisor, Michael J. Cannata, Managing Director, BOCA Advisory Services, Inc. by e-mail (mcannata@bocaadvisory.com) or phone (905-773-2207); or Anthony W. Hawks, e-LYNXX Chief Legal Officer by e-mail (Anthony.Hawks@e-LYNXX.com) or phone (888-876-5432).