Legality & Ownership
Understanding why our barcodes are legal, why you can own them tax-free forever, and the history behind the "Grandfathered" status.
The "Grandfather" Clause Explained
Prior to August 28, 2002, the Uniform Code Council (UCC) sold manufacturer prefixes outright to businesses. If you bought a prefix before this date, you owned it completely. There were no renewal fees, and the contract did not prohibit reselling unused numbers.
After August 2002, the UCC changed their model to a "license" (rental) model, requiring annual renewal fees. However, they attempted to force pre-2002 owners to start paying these fees as well. This led to a massive class-action lawsuit.
The 2002 Settlement Agreement
In the landmark case against the UCC, the court ruled in favor of the pre-2002 prefix holders. The settlement established that companies who purchased their prefixes prior to August 28, 2002, are perpetual owners of those prefixes and are exempt from paying annual renewal fees.
"The Settlement Agreement... provides that Class Members are the owners of all Prefixes issued to them by the UCC prior to August 28, 2002."
How UPC Market Acquires Inventory
We purchase huge blocks of these "Grandfathered" prefixes from companies that went out of business or simply have excess inventory they never used. Since these companies own their prefixes outright (thanks to the settlement), they have the legal right to sell, transfer, or subdivide them.
When you buy from us, we are transferring a specific set of these pre-2002 numbers from our ownership to yours. This transfer is permanent and legal.
Ownership Benefits
- No Annual Fees
- Lifetime Validity
- Legal Ownership
- Asset Value
Important Limitations
Because these codes identify the original prefix holder in the global registry database, they work perfectly for 99% of retailers (Amazon, eBay, Google, Local Shops).
However, a few massive retailers with specific EDI requirements regarding the registry database (specifically Walmart Physical Stores, Kroger, Macy's, and Target's EDI program) require you to lease a brand new prefix directly from the leasing authority to match your exact company name. For all other purposes, our codes are the standard.
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