This excerpt taken from the CPRT 8-K filed Jan 23, 2008.
Copart, Inc. Announces Issuance of VB2 Patent
Fairfield, Calif. (January 22, 2008) Copart, Inc. (NASDAQ: CPRT) today announced it has been issued Patent No. 7,315,832 by the United States Patent Office. This patent covers and protects certain unique processes employed by its online auction platform, VB2. The patent was issued on January 1, 2008.
The VB2 online auction platform is comprised of a preliminary bidding session that allows bidders to access auction items and submit bids during a pre-established extended period of time followed by a real-time virtual auction session, which begins at the conclusion of the preliminary bidding session. During the virtual auction session each item is offered at the high preliminary bid amount with the opportunity for continued bidding in a manner similar to a conventional live auction.
The VB2 platform provides tremendous advantage to buyers of used and salvaged automobiles by allowing potential buyers to gauge the interest and price range of an item for auction before the virtual auction is actually conducted. Buyers can selectively monitor and participate in dozens of sales and place bids on the thousands of vehicles auctioned by Copart each business day. This allows buyers to allocate their resources to the vehicles they are most likely to buy. Also, the virtual auction component creates the frenzy and excitement associated with a live auction while at the same time providing for easy Internet access to the sale without actually having to physically attend the auction. Buyers participate in a real-time auction all at the click of a mouse.
Copart replaced the live auction process with the VB2 online auction platform during its fiscal year 2004. Currently all of Coparts 126 North American locations and seven of its ten locations in the United Kingdom sell completely online utilizing VB2. In fiscal 2007 Copart sold over one million cars and vehicles over the Internet using VB2.
We believe VB2 has had a tremendous impact on the success of Copart, stated Willis J. Johnson, Chairman and CEO of Copart. Since the introduction of VB2 the returns to our sellers have increased over 50 percent as vehicles which were previously purchased primarily by local buyers are now bid on and sold to buyers throughout the world. In fact, in our last fiscal year we sold to buyers from 94 different countries and in our last quarter more than one in every four cars we sold went to an international buyer. We are committed to being the technological leader in the online auction industry and the global leader in our marketplace.
Copart, founded in 1982, provides vehicle suppliers, primarily insurance companies, with a full range of vehicle remarketing services to process and sell salvage vehicles through a completely virtual auction-style trading platform, principally to licensed dismantlers, rebuilders and used vehicle dealers and exporters. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes or are recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made. The Company operates 136 facilities in the United States, Canada and the United Kingdom. It also provides services in other locations through a network of independent salvage vehicle remarketers.