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This paper addresses the code reading error probability (EP) in radio-frequency identification (RFID) SAW tags with pulse position coding (PPC) and peak-pulse detection. EP is found in a most general form, assuming M groups of codes with N slots each and allowing individual SNRs in each slot. The basic case of zero signal in all off-pulses and equal signals in all on-pulses is investigated in detail. We show that if a SAW-tag with PPC is designed such that the spurious responses are attenuated by more than 20 dB below on-pulses, then EP can be achieved at the level of 10-8 (one false read per 108 readings) with SNR >;17 dB for any reasonable M and N. The tag reader range is estimated as a function of the transmitted power and EP.