A transponder signal, or transponder code, was a type of signal broadcasted by and used to identify starships, or at least starships whose owners obeyed the law. An individual ship's transponder was built into the vessel itself. A transponder could be used for the purpose of tracking. Droids also made use of transponder codes. Some smuggling ships, such as the Millennium Falcon, were capable of transmitting false transponder codes. Transponder signals could be utilized to unlock starships from the outside.
Information contained within a ship's transponder included, but was not limited to, its name, port of registry, captain, and weapons profile. With the transponder therefore identifying any ship in question, law enforcement agencies used transponder codes to identify wanted vessels. In the same vain, if a ship was without a proper transponder, law enforcers might be clued into the fact it was being used in criminal activity.
In 9 ABY, two New Republic X-wings flanked Din Djarin while he was flying the Razor Crest. Captain Carson Teva asked Djarin why the ship's transponder was not emitting. Djarin responded that his ship is pre-Empire surplus and isn't required to run a beacon, but Carson replied that the sector is now under New Republic jurisdiction, and beacons are required for all ships. Later, Djarin was flying with his N-1 starfighter near Tatooine. Two New Republic officers, Lieutenant Reed and Carson Teva, flanked him, and asked him to run a beacon for them.
The droids of Luke Skywalker's Jedi temple sent out automatic transponder signals when on missions, so that the vessel they were aboard could be found if an issue arose.
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