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Woodland and Silver filed a patent application for “Classifying Apparatus and Method” in which they described both linear and bull eye’s printing patterns, as well as mechanical and electronic systems needed to read a code. Woodland moved to IBM an tried to interest them in developing the system. The patent was issued. Woodland’s and Silver’s patent was offered to IBM. The offer was not accepted. It was purchased by Philco and later sold to RCA. Association of American Railroads selects KarTrak as a standard. Collins forms the Computer Indentics corporation to develop a black and white version of KarTrak for other industries. Computer Identics Corporation installed one of the first two scanning systems based on black-and-white code and helium-neon lasers on General Motors factory in Flint, Michigan. A group of trade associations from the grocery industry formed the Uniform Product Code Council (UPPC), which defined a numerical format that become the basis of the Uniform Product Code (UPC). The first UPC-marked item was scanned at a retail checkout at Marsh supermarket in Troy, Ohio – a 10-pack of Wrigley’s Juicy Fruit gums. Even though the introduction of barcodes promised both an increase in sales and a reduction in costs, less than 200 grocery stores had scanning machines. The introduction of barcode systems showed a 10-12% increase in sales as well as a 1-2% decrease in op-erating costs. ROI for a barcode scanner was 41.5%. By 1980 around 8,000 stores per year were convert-ing. David Jarret Collins started to work on the KarTrak system using blue and red reflective stripes. Light reflected from the stripes was read by photomultiplier vacuum tubes. 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