Barcodes have become an essential part of product identification and supply chain management. The familiar black and white stripes printed on products provide a quick and accurate way to capture product information. With barcodes being so ubiquitous, some people wonder if barcodes need to be registered or if anyone can create and use any barcode they want. Here is a look at how barcodes work and the registration requirements and rules around using barcodes.
How Do Barcodes Work?
A barcode consists of a series of parallel black lines and white spaces of varying widths that can be scanned and interpreted into numbers and letters. The most common type of barcode is the Universal Product Code (UPC) barcode that is found on retail products. Here is a quick primer on how UPC barcodes work:
- The barcode consists of 12 numeric digits that encode information about the product.
- The first 6 digits make up a manufacturer identification number that identifies the company.
- The next 5 digits are a product identification number to identify the specific product.
- The last digit is a check digit that validates the accuracy of the preceding digits.
The black lines and white spaces of the barcode represent the 12 digits in a binary format. When scanned, the barcode scanner interprets the widths of the lines and spaces to decode the 12 digit number. This number provides key information about the product that allows it to be identified in a database and tracked through inventory systems.
UPC Barcode Registration
UPC barcodes do need to be registered through an organization called GS1. GS1 is a not-for-profit organization that administers the UPC system and other barcode systems used around the world. Here are some key facts about registering UPC barcodes:
- Companies must become licensed members of GS1 in order to obtain and use UPC barcodes.
- Once a member, companies are allocated a unique manufacturer identification number that is incorporated into all their UPC barcodes.
- Companies then create their own product identification numbers to assign to their products.
- GS1 maintains a database of all registered UPC numbers to ensure each barcode is unique.
- There is an annual fee for membership and barcode registration with GS1.
By requiring registration of UPCs through GS1, it ensures that each product has a unique barcode that can be accurately scanned and tracked globally across all systems. If two products ended up with the same barcode, it would create errors in inventory tracking.
Other Barcode Types
While UPC barcodes must be registered through GS1, there are some other barcode types that do not require registration:
- EAN: Like UPC codes, EAN (European Article Number) barcodes must be registered with GS1.
- Code 128: This flexible barcode type allows companies to encode their own product identification numbers without needing GS1 registration.
- Code 39: Another barcode format that can be created without registration. Mainly used internally by companies.
- QR Codes: Quick response (QR) codes can be generated freely by anyone as they simply encode any type of data.
For internal tracking and identification, companies can use Code 128, Code 39, and QR code barcodes without any registration. But any barcode intended to go on products sold at retail would need to be registered with GS1.
Rules for Barcode Use
In addition to registration requirements, there are some rules around how barcodes can be used:
- UPC and EAN barcodes can only be obtained and used by licensed GS1 members.
- Barcodes can only be used for the company and product they are registered to.
- Barcodes cannot be reused – once assigned to a product it stays with that product.
- There are specifications around barcode size, margins and placement on packages.
- Barcodes cannot be modified or distorted from their original proportions.
These rules help ensure barcodes are used properly so they can be accurately read and scanned. For companies that violate the rules, GS1 can revoke their membership and barcode licensing.
Obtaining a Barcode
For companies that need UPC or EAN barcodes, here are some options for obtaining barcodes:
- Become a full member of GS1 to get barcodes directly from them. Fees range from $250-$1500/year.
- Use an online barcode reseller that purchases blocks of barcodes from GS1. Fees are $10-$200 per barcode.
- For small batches, GS1 offers a pay-per-scan service at $0.015 per scan.
- For one-off prototype products, GS1 provides a coupon system for $12 per UPC.
Online resellers can provide a more budget friendly option for small businesses. But large enterprises may want to become full GS1 members to get the lowest bulk rates on barcodes.
Conclusion
In summary, while some barcode types like Code 128 and QR Codes are free to generate, the ubiquitous UPC and EAN-based barcodes used in retail require registration with GS1. This registration ensures each product has a unique barcode to avoid errors in the supply chain. And there are rules around properly using and printing barcodes to maintain accuracy. For any product going through retail channels, obtaining a registered UPC is a requirement.