Manheim, Copart Resolve Legal Dispute Over Online Auction Technology

By Jennifer Reed, Online Editor
June 29, 2006

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ATLANTA (June 29, 2006) -- The battle over the intellectual property rights of online auction technology between Manheim and Copart reached a resolution earlier this week when the companies filed a notice of voluntary dismissal with the U.S. Northern District Court of Georgia, courthouse executives confirmed Wednesday. The legal wrangling was sparked when Manheim sued Copart last year, alleging that Copart's VB2 and related products were an infringement of Manheim's "Electronic On-Line Motor Vehicle Auction and Information System" patent. Copart responded shortly thereafter vehemently denying Manheim's allegations and sought declarations of patent non-infringement, invalidity and unenforceability. Additionally, Copart filed countersuits against the auction giant, alleging that Manheim's online auction patent was invalid and that the company had violated the U.S. antitrust laws under the Sherman Antitrust Act, which is a federal law associated with corporate monopolies. An official representing the U.S. Northern District of Georgia, Atlanta Division, told Auto Remarketing Wednesday that a voluntary dismissal regarding the lawsuits was filed with the courthouse Monday. Under the dismissal, both companies agreed to cover their respective costs and attorneys' fees associated with the lawsuits. According to the courthouse official, it is likely that both parties reached a settlement. When Auto Remarketing contacted Manheim for comment on this latest action, all company executives would say was that, "The case was resolved amicably." As for Copart, in a statement released late Tuesday, company executives said, "The matter was resolved amicably with express denials of liability from both parties."

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