Announced at CES 2009, Microsoft released in early 2009 its beta of Microsoft Tag, a new barcode technology developed in-house by Microsoft Research.

Unlike other 2D barcodes, Microsoft Tag can be read easily: from a side angle, out-of-focused (blurry), behind a glass, etc.
The technology was created to be used by phone cameras, even the poor ones, on the go. Another thing: the tag is twice as small as other 2D barcodes (QRCode, Datamatrix).

It is intended to be used on product packages, discs, product displays, posters, etc. and “connect” the real to the virtual world.

How does it work? You scan the tag using the application on your mobile phone. The application “converts” the tag into an ID and connects to Microsoft Tag servers to find what to do with it.

A tag can open an URL, display a free-text (maximum 2000 alphanumeric characters), download a vCard or dial a number. Anyone can create a tag. All you need is a Windows Live ID.

The downsides: it’s not an open technology, no API exists as of today and Microsoft may charge for commercial usage in the future. Microsoft guarantees that tags created during the beta will work for at least two years, free of charge.

Microsoft Tag client application is available for the Windows Mobile, J2ME, Blackberry, iPhone and Symbian S60 phones. Android and PalmOS support is planned (no date yet).

Download the client application for/from your mobile and see for yourself. You can quickly test by “snapping” my vCard using the following tag:

For more information, checkout their website and read the FAQ.