An interactive system including a printed substrate having coded data disposed thereon an an electronic pen for interacting with the substrate. The pen includes an infrared light source; an image sensor; a cartridge having a nib for contacting said substrate; a retraction mechanism for slidably moving the cartridge between a retracted position and an extended position; a force sensor cooperating with the retraction mechanism; and a processor configured to generate indicating data indicative of the interaction with the substrate. The image sensor is configured to sense said coded data only when said force sensor detects that said nib is in contact with said substrate.