A label having a coded pattern provides information regarding the type of thread on a thread spool loaded on an embroidery machine and feeding one of the needles. A detector positioned at the base of a spindle on the thread tree reads the label. The label is attached to the bottom of a thread spool such that it is substantially flush with the detector. The label has a pattern that is readable by the detector regardless of its rotational orientation and provides information about the type of thread on the spool. This pattern corresponds to thread type information stored in data base.