There are different types of barcodes. Some are represented
by lines and spaces (linear barcodes), others are made up of patterns of
squares, dots and other geometric shapes.
A barcode is an optical machine-readable representation of
data. The first use of barcodes was to label railroad cars, but they were not
commercially successful until they were used to automate supermarket checkout
systems, a task in which they have become almost universal. Systems such as
RFID are attempting to change the standard, but the simplicity, universality and low cost of printed barcodes has limited the role of these other systems. It costs less than one-half
of one cent to implement a printed barcode compared to seven to thirty cents to
implement a passive RFID.*
George Joseph Laurer developed the Universal Product Code in
1973. As an engineer at IBM he was asked to develop the pattern used for the
Universal Product Code (UPC-A Barcode).
GS1, which used to be called the Uniform Code Council (UCC)
is the provider of UPC barcode prefixes. A company goes to the GS1, they
purchase the prefix and then are responsible for the self-assignment of the
identification numbers that go after the prefix.
The Barcode prefix, the first 6, 7, 8 or 9 digits, is called
a GTIN number. GTIN is the abbreviation for Global Trade Item Number. The
company who has been assigned the GTIN number is responsible for the assignment
of the next digits (making up a total of eleven digits) to their products. Then, as the barcode number is
designated, the last number is mathematically determined through an algebraic
equation to create a checksum (check digit). This check digit is the twelfth or
final digit. When you join GS1, you get a GTIN certificate along with your
start-up package.
As far as we know, there are only three companies that
require a copy of this GTIN certificate: Kroger’s, Walmart/Sam’s Club and
Macy’s. We do not know of any other company who has this requirement, however, we do
recommend that you ask your retailers. According to our clients, we have sold
barcodes to companies with products in Pep Boys, Autozone, Amazon, CD Baby,
Whole Foods, Raley’s, Safeway, Walgreen's, Fred Meyers, Longs (CVS), etc. We have not verified this, but
we have a very vocal group of customers. We would hear if there were issues.
The GS1 maintains the database of GTIN numbers. It is our
opinion that, although this database is conceptually a great idea, and has to
be maintained, it is virtually ignored, unknown and unused.
Retailers input information from product data sheets filled
out or given to them by their suppliers. The supplier gives the retailer the
product information including the barcode based on the complete 12 digit code
and the retailer enters it into their point of sale system.
There are no formal centralized databases of product
barcodes. Using the mathematical formula x=1110
there are potentially 100 billion products that can be represented by
UPC-A barcodes at any given time. This, more than anything else, explains why
there is no centralized database of products. No one has the bandwidth, energy
or resources to catalog something this massive.
There is nothing programmed into a UPC barcode. The bars
only represent the 12 digit number that is the barcode. The retailer associates
these 12 numbers with the product information. This information is pulled from
the retailer’s database when a product is scanned.
You have two choices when you need to buy a barcode or block
of barcodes. You purchase directly from the GS1 (They charge a minimum of
$750.00 plus a yearly renewal fee) or you purchase from us or a company
like ours. Unlike some others, we do not charge set-up or renewal fees.
Nationwide Barcode is owned by 680 Digital in Issaquah Washington. 680 Digital
is the holding company for Multicom Publishing and the GTIN (Barcode prefix)
which allows us to produce 99,999 barcodes with that prefix.
We received our prefix in 1998 and We also own two other publishing
companies with GTIN Barcode Prefixes. We are not concerned about running out
any time soon.
In 2002 GS1 attempted to codify the agreement with UPC GTIN prefix holders which included renewal fees. The codified agreement included
rules that were in the form of a contract which included not being able to
subdivide a barcode number. Prior to this, there were no signed agreements with
any GTIN holders including Multicom Publishing.
The GS1 decided to change the way they were doing business.
They started sending out renewal notices insisting that the GTIN holders pay
renewal fees and agree to the new terms and conditions. Ultimately a class
action suit was levied against the GS1 in the state of Washington and the GS1 lost. All GTIN owners
prior to August 28, 2002 became exempt to the GS1’s renewal fees and new codified agreement.
Quoting the UCC Settlement web site:
This Settlement provides that companies who became members
of UCC before August 28, 2002, are not obligated to pay membership renewal fees
to UCC to maintain membership as a condition for their use of Company Prefixes
issued to them by UCC, or as a condition for Basic Membership Benefits as
defined in the Class Settlement Agreement. Class members who have paid a renewal
fee to UCC are entitled to compensation from a $3,895,000 settlement fund. The
settlement also provides that the "licensing agreement," which
accompanied UCC renewal fee invoices, is null and void as to those who became
members in UCC before August 28, 2002. **
Quoting George Laurer, “Often I am asked if a person that purchases a number
from a subset seller will have legal problems in the future. Again, I am not a
lawyer, but if the number was originally assigned to the seller by the UCC
before August 2002, the answer is no problem.”****
Nationwide Barcode is one of the companies deemed legitimate by George Laurer. www.laurerupc.com
The decision to go with the GS1 or Nationwide
Barcode is a matter of economies of scale. GS1 charges an upfront fee and a
yearly renewal fee based upon the number of 12-digit barcode numbers that you
need along with your company’s revenue. The
more you make, the more the barcode prefix will cost you, and this amount can
increase over time. We believe that the GS1 is a great organization, they
provide a tremendous service, however, for a small business with a limited
budget, Nationwide Barcode makes the most sense.
Why is Nationwide Barcode cheaper than everyone else?
Setting a price is a management decision, based on cost of goods, management
and administrative costs, advertising, etc. We look at this as an opportunity
to forge relationships. We provide barcode labels, packaging labels, own a CD
and DVD production company (680 Digital) and are about to launch an entire
suite of internet management services and tools helping our clients gain more market share.
We want the opportunity to share these offerings with you and being the least
expensive in the marketplace is done in order to capture your attention and to give us the opportunity to share these things with you.
For more information, please visit our site at www.nationwidebarcode.com
SOURCES:
* Text provided by Wikipedia and is available under the
Creative Commons Attribution/Share-Alike License. http://en.wikipedia.org/wiki/Barcode
** http://www.ibcaweb.org/ucc-settlement.htm
*** http://bellsouthpwp.net/l/a/laurergj/UPC/renufee.html
(page on George Laurer’s website)
**** http://www.laurerupc.com (George
Laurer’s site)B
