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 UPC Barcode Prefix The company who has been assigned the UPC Barcode Prefix 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 prefix certificate along with your start-up package.

As far as we know, there are only three companies that require a copy of this 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, Guitar Center, CD Baby, Whole Foods, Raley’s, Safeway, 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 UPC Prefixes. 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 10 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 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 Barcode Prefixes. We are not concerned about running out any time soon.

In 2002 GS1 attempted to codify the agreement with UPC UPC Barcode 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 prefix holders including Multicom Publishing.

The GS1 decided to change the way they were doing business. They started sending out renewal notices insisting that the prefix 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 prefix 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 (Media Media Inc.) 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.

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)