AN INNOVATIVE tracking system, developed by a Darlington company to help protect valuable musical instruments, is hitting the right note with the music industry.

MusitraC, developed by Cleveland Studios, is being piloted in music stores across the country and is likely to be adopted as the UK standard.

The company is expanding rapidly, as an increasing number of industries in the UK and Europe look for specialist identification solutions. It now has 14 employees and has received backing on three occasions from UK Steel Enterprise, the Corus subsidiary which supports growing businesses.

MusitraC has been adapted from the company's ChiptraC, a tracking system for valuables such as antiques or expensive sports equipment.

The new offering comes as a kit and allows new owners to fit their musical instrument with a unique identification chip. Details are held on a register and chips can be read by scanners installed with police authorities and in other centres across the country.

Ken Campling, managing director of Williams Music Group, is piloting MusitraC in the company's stores, including outlets in Darlington and the MetroCentre.

"We're very impressed with it," he said. "Sales of musical instruments, particularly guitars, are going up and up and buyers spend anything from £99 to in excess of £4,000.

"The cost of MusitraC is a very small proportion of such an outlay and we are sure it will be well received."

Richard Newhouse, Cleveland Studios managing director, expects the kit to be a major area of growth. "The Musical Instruments Association was looking for a system that would help protect instruments that can be worth thousands of pounds and they are recommending MusitraC to all their members," he said.

The company began life manufacturing animal identification tags and still supplies them to more than 2,500 veterinary practices across the UK.

The company then moved into RFID microchip recognition solutions for data collection, asset identification and stock control. The systems are proving highly attractive to many industries because they require no line of sight, so have huge advantages over the barcode system

UKSE's second investment helped the company develop ChiptraC.

"We have worked closely with the police to establish a database and lost property register and supply every authority with scanners," said Mr Newhouse.

"We are already looking at further adaptations for the equestrian and boating worlds - 2004 is proving to be a very exciting year for us."

He praised UKSE for its support, and the advisers at Middlesborough chartered accountants and business advisers, Keith Robinson & Co.

"It can be a lonely place when you are running a small business and their experience and knowledge have proved invaluable," he said. Nick Johnson of UKSE said the product had huge potential as it could be adapted for use in many different industries. "We have now made three investments in the company and have every confidence in its future," he said.

Terry Truran, of Keith Robinson & Co, said Cleveland Studios was revolutionising the product identification market. "We introduced the company to UKSE and it is always satisfying to be part of such a team and work alongside a company as it grows," he said.