The Gindlesperger Method FAQs

What is The Gindlesperger Method?

The Gindlesperger Method is a multi-step purchasing methodology that uses a computer-operated system to procure goods and services that are defined by specifications at the time they are being ordered.  It is protected by U.S. Business Method Patent, No. 7,451,106, which was granted to e-LYNXX Corporation on November 11, 2008 by the U.S. Patent and Trademark Office (USPTO). The essence of The Gindlesperger Method is a five-step process that includes:     ENTER supplier attributes (e.g. production capabilities, location, quality and business status)     ENTER project specifications (e.g. requirements for production, location, quality and business status)     MATCH supplier attributes to project specifications (to determine sub-set of qualified suppliers)     SEND project specifications to sub-set of qualified suppliers     RECEIVE a bid response from at least one supplier

	Why is this business method patent called The Gindlesperger Method?
	It is called The Gindlesperger Method because it was created, developed, tested, documented and submitted by inventor William Gindlesperger, who also is a print industry pioneer and chairman of e-LYNXX Corporation.

How innovative is this business method patent?

This business method patent is not simply the computerizing of an existing method.  Rather, it is the invention of a novel process that had not been found anywhere in prior art when the patent application covering this invention was filed by e-LYNXX Corporation on November 30, 1998. Store-front and e-catalogue systems are available to manage procurement of inventoried items that are mass produced and kept in a warehouse until they are ordered.  Customized goods and services are very different as these are ordered and produced to precise and unique specifications at the time of purchase.

What are the benefits of using this patented methodology?

This business method patent allows pre-qualified suppliers with excess production capacity to provide an extraordinary low price without risk of establishing future buyer price expectation. It allows a buyer to obtain optimal cost reduction through its own pre-qualified supplier base.  Cost reduction is achieved, because the method establishes an environment where suppliers are permitted to bid based solely on availability of their production capacity.  Suppliers are free to respond to each opportunity by bidding high, low or not at all without regard to buyer pricing expectations, without setting precedent for future bid prices and without putting at risk their receipt of subsequent opportunities for which the supplier is qualified.  This method allows the buyer to locate open capacity, wherever it exists within its supplier base at the time the customized goods or services are needed, and realize the associated savings.

What is the scope of the business method patent?

The business method patent applies to the procurement of any customized or other specification-defined product or service where competitive bidding is sought from pre-qualified suppliers that are approved for participation in a pool of suppliers associated with a particular buyer.  Examples include, but are not limited to, commercial print, construction services, direct mail, labels, machined parts, marketing materials, product packaging, temporary staffing, textiles, transportation, and trucking.  The exact parameters of the business method patent are set forth in a series of 24 “claims” that are found at the end of the published patent.

How do I know if I am infringing the business method patent?

Potential infringers of a business method patent claim such as The Gindlesperger Method include any person or entity that “without authority, makes, uses, offers to sell, or sells” the patented invention.  See 35 U.S.C. § 271(a).  Such infringers could include software developers (“makes”), actual buyers or providers of procurement services (“uses”), or sellers of procurement systems or website hosting services (“offers to sell or sells”).   The key is whether the maker, user, or seller of the invention is performing (or controlling or directing the performance) of each step of any one of the 24 claimed methods contained in Business Method Patent No. 7,451,106.

	What are the penalties for infringing?
	Infringement is a violation of federal law and can result in severe penalties, which may include injunctions, monetary damages that are no less than a reasonable royalty (triple damages in some cases), interest, costs, and attorneys' fees in exceptional cases.

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

Our interest is to work with organizations that see licensing of the business method patent as an attractive proposition in the procurement of customized goods and/or services.  License royalties will be structured based on the dollar amount of purchasing being conducted using the business method patent, and exclusive licenses for particularly industries or types of products or services will be considered.  Licensing is our preferred path, but enforcement by legal means always remains an option.

Who should inquire about licensing?

Every organization that makes, uses, or sells a computer-operated system for the procurement of customized goods or services that performs each of the steps in any of the patent claim methods will need a license to use the patented methodology.  This would apply to systems that are developed internally as well as systems obtained through third party brokers, procurement services and system providers.  Those not presently using the patented methodology may wish to enjoy the benefits of unprecedented cost reductions that result from its application.

	Who is the e-LYNXX contact for inquiring about the business method patent and how it can be licensed?
	Please contact Anthony Hawks, Chief Legal Officer, at e-LYNXX Corporation for more information regarding licensing opportunities.  He can be reached from 8 am to 5 pm EST on normal work days at 888-876-5432 or by e-mail at anthony.hawks@e-lynxx.com.