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ANPR uses optical character recognition (OCR) on images taken by cameras.When Dutch vehicle registration plates switched to a different style in 2002, one of the changes made was to the font, introducing small gaps in some letters (such as P and R) to make them more distinct and therefore more legible to such systems.

Further scaled-down components at more cost-effective price points led to a record number of deployments by law enforcement agencies around the world.Smaller cameras with the ability to read license plates at higher speeds, along with smaller, more durable processors that fit in the trunks of police vehicles, allowed law enforcement officers to patrol daily with the benefit of license plate reading in real time, when they can interdict immediately.During the 1990s, significant advances in technology took automatic number plate recognition (ANPR) systems from limited expensive, hard to set up, fixed based applications to simple "point and shoot" mobile ones.This was made possible by the creation of software that ran on cheaper PC based, non-specialist hardware that also no longer needed to be given the pre-defined angles, direction, size and speed in which the plates would be passing the camera's field of view.The cameras used can be existing road-rule enforcement or closed-circuit television cameras, as well as mobile units, which are usually attached to vehicles.

Some systems use infrared cameras to take a clearer image of the plates.

Automatic number plate recognition can be used to store the images captured by the cameras as well as the text from the license plate, with some configurable to store a photograph of the driver.

Systems commonly use infrared lighting to allow the camera to take the picture at any time of the day.

This equipment must also be very efficient since the power source is the vehicle battery, and equipment must be small to minimize the space it requires.

Relative speed is only one issue that affects the camera's ability to actually read a license plate.

The first documented case of ANPR being used to help solve a murder occurred in November 2005, in Bradford, UK, where ANPR played a vital role in locating and subsequently convicting killers of Sharon Beshenivsky.