A coded pattern applied to an object is identified when the object is placed on a display surface of an interactive display. The coded pattern is detected in an image of the display surface produced in response to reflected infrared (IR) light received from the coded pattern by an IR video camera disposed on an opposite side of the display surface from the object. The coded pattern can be either a circular, linear, matrix, variable bit length matrix, multi-level matrix, black/white (binary), or gray scale pattern. The coded pattern serves as an identifier of the object and includes a cue component and a code portion disposed in a predefined location relative to the cue component. A border region encompasses the cue component and the code portion and masks undesired noise that might interfere with decoding the code portion.