2010 PAF Licence Agreements

Transcription

1 Royal Mail, the Cruciform and the colour red are registered trade marks of Royal Mail Group Ltd. Licences 2010 Copyright Royal Mail Group Ltd All rights reserved. P2.1_NOV PAF Licence Agreements a guide for existing Solutions Providers

2 O1 PAF 2010 PAF Licence Agreements 02 Welcome to your 2010 PAF licences Contents Introduction This guide introduces you to the 2010 PAF licences - outlining their many features and benefits - and explains how the new licence terms can be applied. Why license PAF? The 2010 PAF Agreements The BIG changes Other important changes The two types of Agreement What s stayed the same in the 2010 PAF Agreements Data Supply Agreement Summary What s new? the small print The use of Royal Mail s PAF products is governed by legal Agreements of which this guide does not form part. In the event of any conflict or inconsistency between these legal documents and this guide, the terms of the legal documents will prevail. These legal documents contain the full details of rights and obligations with regard to the PAF products and their licensing. Reliance should not be placed on explanations or descriptions set out in this guide. If you have any doubts with regard to your rights or obligations, please refer to the relevant legal documents and/or consult Royal Mail. You may wish to obtain your own legal advice to check that you are correctly licensed. Royal Mail has made all reasonable efforts to ensure that the information provided in this guide is accurate and correct at the time of publication. However, Royal Mail reserves the right to correct and amend this guide at any time and without notice. All prices set out in this guide are correct as at October All prices exclude VAT at the prevailing rate. Royal Mail is the creator and owner of, or is otherwise authorised to use and exploit, the databases known as PAF, PIF, Alias, and UDPRN. These databases and all supporting documentation, including this guide, and all Intellectual Property Rights subsisting in and/or relating to the same from time to time are and shall remain the property of Royal Mail or its licensors. Overview & Summary Pricing Other options Advanced options for franchising & networks End User scenarios Our contractual relationship Contact us

3 03 PAF 2010 PAF Licence Agreements 04 Introduction Why license PAF? In 1959, along with the arrival of automatic sorting machines in Norwich, the early form of the UK postcode was first introduced. By 1974, the modern form of postcode had been rolled out nationwide, but it wasn t until the 1980s that the Postcode Address File - PAF - was established. Since then PAF has become the standard for postal address databases. Today PAF contains around 1.8 million postcodes and every known business and residential postal address in the UK. We invest heavily in maintaining PAF data quality and each month on average, we make approximately 100,000 updates, to keep PAF as accurate as possible. In recent years, with the growth of the internet and arrival of new technologies, the use of postcode data and PAF generally has changed dramatically. We knew by listening to our customers and the marketplace that the PAF Agreements needed updating to reflect these changes. Our intention throughout has been to deliver a new Agreement which encourages more flexible use of PAF, especially for low, infrequent use. In October 2009 we finalised and published the new Agreements for the supply and use of PAF. The published Agreements come into effect from 1 April We know that the implementation of the new Agreements has implications for your business and for your customers and we want to help you through the period of transition. Royal Mail employs approximately 66,000 postmen & women who, as well as postal deliveries, also check every house number, house name, road name and business address to validate all known UK postal addresses; all 28.6 million of them! We also work with Local Authorities and other third parties with other complementary datasets which we incorporate into PAF. As a business Royal Mail takes responsibility for managing and updating PAF. There are also intellectual property rights in PAF and Royal Mail works hard to protect these and to allow the fair use of PAF. We license other organisations who wish to use PAF, and we are permitted to recover our costs and make a reasonable return on our investment. We show this by presenting separate accounts from Royal Mail Ltd. The revenue we generate from the licence fees is ploughed back into the business to maintain and improve the quality of PAF for the 37,000 or so licensed address management organisations that use it. This guide is the starting point. It s designed to help you: Familiarise yourself with the new Agreements Explain some of the key features of the new Agreements Offer you various points of contact if you need help postmen & women are responsible for validating all 28.6 million UK postal addresses

4 05 PAF 2010 PAF Licence Agreements 06 The 2010 PAF Agreements The 2010 PAF Agreements Here s a summary of some of the key changes to the new PAF Agreements. More information on these key changes, and other changes we have made in the new Agreements, are provided in more detail further on in the guide. The BIG changes Pricing reflective of use The new Agreement moves from pricing based on technology ie. systems, to User-based pricing ie. the number of Users of PAF within each End User. Moreover, the licence fees per User have come down. Licensing by the number of PAF End Users is simple to understand and easy to administer. The price reduction will benefit low volume and infrequent users and help to attract new PAF licensees too. The price changes are intended to be income-neutral to Royal Mail. Any increase in income comes only from an increase in overall usage of PAF. These conditions have been agreed with the postal services regulator. Flexible licensing options PAF End Users now have a choice of licensing options to meet their requirements. Licensed PAF End Users can buy unlimited blocks of Transactions for internal use, with the price charged to Solutions Providers by Royal Mail for such blocks starting from as little as 8. This will allow small or infrequent PAF End Users to operate on a pay-asyou-go basis, rather than just through standard User-based pricing. Other important changes and features Our commitment to SIMPLICITY We now license the supply of PAF data separately from its use in two separate Agreements the Data Supply Agreement covers the supply of PAF data, and the covers the use of PAF data. Locality PAF and Thoroughfare PAF have merged to become Part PAF, meaning there are now only two versions of PAF to choose from: Full PAF or Part PAF. We ve removed the requirement to return End User registration forms to us. Our commitment to STABILITY This new Agreement will remain in place for at least three years. This means more stability for your business. And we commit to providing a minimum of 12 months notice of any price changes. This is a longer notice period than we ve previously offered. Our commitment to FAIR PRICING We ve reduced the User royalty by a further 12%, and it is now 50% less than in It s just 2 to license up to 200,000 records across four adjoining Postcode Areas, which is the same price as one Postcode Area. Under the current licensing you re charged for each copy of the data, and this will continue. We now allow load balancing as long as you meet certain conditions. There are now separate pricing terms for bureaux and those businesses wishing to offer only bureau services. Our commitment to INCREASING YOUR OFFERINGS to your customers You can now license another level of Third Party Solutions Provider, one more than was allowed previously. Associate Group licensing introduced in 2007 will continue to be available to support franchise-type situations. We ve introduced a new way of licensing certain closely connected groups called Broker Group you will find more detail later in this guide. New terms are available specifically relating to the use of PAF in market research. records, across 4 adjoining Postcode Areas, can be licensed for just 2

5 07 PAF 2010 PAF Licence Agreements 08 The 2010 PAF Agreements The two types of Agreement We ve split the Agreement into two to give us the flexibility to introduce different types of use: We supply PAF data under a Data Supply Agreement What s stayed the same in the 2010 PAF Agreement During the consultation period, and in the course of our customer meetings, you asked us to keep many elements of the 2007 Agreement exactly the same, and you ll see those principles in the Table below. Those currently on the 1995 Agreement will find a greater number of changes, but hopefully the new features and benefits, both to your business and to your customers, will outweigh the disruption caused by the implementation. Here s what s stayed the same: Table 1: Development of Agreement principles Agreement Principle How you use PAF is covered in the Data Licence Agreement Internal Transaction solution No Yes, with restrictions External Transaction solution 1 No Yes Yes Per copy licensing Yes Yes Yes Pricing with caps 2 Yes Yes Yes Associated User Groups No Yes Yes Look up No Yes Yes Separate Data Supply Agreement No Yes Yes Yes, many restrictions lifted Postcode area level of PAF Yes Yes Yes In this guide, we ll go into more detail about the Data Supply Agreement first, and from page 10 onwards, discuss the Data Licence Agreement. We ve also pointed to the relevant clauses in the Agreements throughout, to help you refer back to the Agreements, because they should be your definitive references. Notes: 1 External Transaction solution (used to be End User per click ) is a way of capturing addresses correctly on an e-commerce type system. This is explained in more detail on page 16 in the section on web use. 2 Caps on licence fees. This simplifies licensing for End Users (each being a single legal entity) with large numbers of Users. This is explained in more detail on page 13 in the section on Extensive PAF Usage.

6 09 PAF 2010 PAF Licence Agreements 10 Data Supply Agreement The Data Supply Agreement is for the provision of PAF data to you, but does not cover your use of the PAF data. Summary Data format, eg. CD or online download. Data frequency, eg. daily, monthly, quarterly. Type of refresh, eg. full file or changes/updates. Table 2 What s new? The price of data supply has been reduced by up to 80%. Under the 2010 Agreement, data supply is no longer available on magnetic tape or via Address Manager (which is part of UK Addresses CD). We will be supplying data just on CD and via web download. We re also looking to provide data on other media, eg. DVD and SFTP (Secure File Transfer Protocol). The cost of taking one complete edition of PAF is now the same as taking Changes files. The deals with your use of PAF data and your permission to license Third Party Solutions Providers and End Users to use the PAF data. Overview To help you find your way around the Agreement, here s what s where: Left hand side of contents page refers to terms 1 22, which relate to the internal use of PAF. Right hand side of contents page refers to the 5 Annexes, which are external use and advanced options. Definitions are at the beginning. Pricing is at the end. Use our background paragraphs, or Recitals, as signposts through the Agreement. Summary Minimum initial term until 31 March 2013, which is 3 years from the date you can first enter into the Agreement. Data Protection rules still apply. Simplified levels of PAF now only Full PAF and Part PAF. PAF pricing still based on per copy of PAF. In certain circumstances there is no longer a charge for backup and load balancing copies of PAF. New extra level of Third Party Solutions Provider. Frequency Current New Online CD Online CD Table The Annual 2 Sample Package data supply pricing for PAF 1 x Complete Edition N/A 500 N/A 400 The Updates Package 2 x Half-Yearly Complete Editions N/A N/A N/A x Quarterly Complete Editions N/A 2,000 N/A 1, x Monthly Complete Editions N/A 6,000 N/A 1,200 The Changes Package 1 x Complete Edition * & Quarterly changes 1,700 1, ,000 1 x Complete Edition * & Monthly changes 1,700 1, ,200 1 x Complete Edition * & Daily changes 3,250 N/A 2,250 N/A * Complete Edition must be on CD in year one For more details on this pricing option and the applicable contractual terms, please refer to the Data Supply Agreement.

7 11 PAF 2010 PAF Licence Agreements 12 Pricing Pricing continued Pricing is based on calculations in respect of each End User (each being a single legal entity). Prices are now based on number of Users within each End User that can access PAF rather than number of systems a User is a terminal or device (not a person) so those sharing a terminal are treated as just one User. Table 3 - pricing structure To help minimise disruption, we ve made the price points for blocks of Users similar to the previous system based pricing. We ve changed a number of terms and conditions, and changed our pricing structure, to make both the terms and pricing structure more reflective of use. Here s a more detailed explanation of how these changes can be applied in respect of each End User: Full PAF now available from as little as 1 per block for certain web use and 8 per block for internal use. Transactions now sold in blocks of 100, which reduces the initial outlay. Price for a single User with unlimited internal use is now 75 per year. Here s a more detailed explanation of how these changes can be applied to organisations: Occasional, low usage Those who want to only pay for what the End User uses, can license blocks of 100 Transactions (also sometimes known as clicks ) that will each last 12 months. A block of 100 Transactions costs 8. There is no limit on the number of blocks that can be bought per End User. Blocks of Transactions are suitable for an End User with many, infrequent Users where a block can be transferred amongst Users and shared. PAF Table 4 - low usage Transaction costs for Full PAF Internal use External use Blocks Transactions Royalty One block 100 Transactions 8 Second block 100 Transactions 8 Pay as you go Unlimited use Pay as you go Unlimited use Full PAF And so on For more details on this pricing option and the applicable contractual terms, please refer to Annex 5 of the. 8 for 100 Transactions 4 for 100 Transactions 75 per User see Extensive PAF usage if more than 55 Users PAF 30 per user See Licence if more than 37 Users Part PAF 1 for 100 Transactions 0.50 for 100 Transactions 4,000 2,000 Regular, unlimited usage This is the traditional way to license PAF. You can license the End User on a User (one terminal, eg. one PC or handheld device, etc) basis for unlimited use, with this priced at 75 per User per year. This is ideal for regular, unlimited usage of Full PAF. For more details on this and the applicable contractual terms, please refer to Annex 5 of the. For more details on the pricing options and the applicable contractual terms, please refer to Annex 5 of the.

8 13 PAF 2010 PAF Licence Agreements 14 Pricing continued Database Cleansing Extensive PAF usage Pricing in the 2010 Agreement is calculated in respect of each End User (each being a single legal entity) and based on the number of Users within each such End User which can access PAF, rather than on the systems on which PAF is held. Numbers of Users are grouped into Multiple User Blocks. Price 12,375 For every 55 Users charged at 75 each, a further 245 Users will be licensed at no further charge. A Multiple User Block is priced at 4,125. For over 655 Users the price is capped at 12,375 per legal entity (per End User). Table 5 pricing band principles for a single legal entity (and End Users) for Full PAF In the past, customers told us they didn t understand what they were allowed to do in connection with Database Cleansing. As such the 2010 Agreement provides much more clarity around these terms. Solutions Providers must sign themselves up as End Users to be able to carry out Database Cleansing. End Users can either cleanse their own internal data as part of normal internal use, or they can cleanse data and pass it on to third parties (with restrictions), provided that it is part of their normal daily activities without attracting a further fee. An example of this use would be passing cleansed data on to a mailing house for fulfilment. For more details on this and the applicable contractual terms, please refer to Part 6 of Schedule 1 to Annex 3 of the Data Licence Agreement. 75 increments Bureau 8,250 4, increments A bureau is an End User which uses PAF to clean data from another legal entity before passing the cleansed data back to them. A licence fee is payable based on the number of records that have previously been processed by the bureau. Rather than have a separate Agreement, bureau terms are built into the main Solutions Provider and End User terms, meaning there is only one Agreement to sign. 75 increments Table 6 - bureau licence fees for Full PAF Records cleansed in preceding year Fixed licence fees per annum Numbers of Users Up to 1 million million 10 million 750 For more details on this and the applicable contractual terms, please refer to Annex 5 of the. 10 million 100 million 3,750 Over 100 million 10,000 For more details on this and the applicable contractual terms, please refer to Part 6 of Schedule 1 to Annex 3 of the.

9 15 PAF 2010 PAF Licence Agreements 16 Database Cleansing and Bureau continued The table below shows the key differences between Data Cleansing and Bureau Services. It illustrates the point at which Database Cleansing is deemed to be Bureau Services, ie. at the point when the data is passed back to the End User Customer. Table 7 - when Data Cleansing is deemed to be Bureau Services Database Cleansing End User Cleansed customer database May use Bureau Services Customer For Data Creation Data Creation is defined in the Agreement as creating a new Record in an End User Database or to a Customer Database or to create a new database where previously there was none. Created Data is deemed to be a separate copy of PAF. Data Creation was previously prohibited in our Agreements. Whilst it is now allowed, there are certain restrictions and limitations which apply. For more details on this and the applicable contractual terms, please refer to Clauses 2-5, of Schedule 2 to Annex 3 of the. For Internal use Supply to Third parties for their internal use Resupply to Internal use Supply to Third parties

10 17 PAF 2010 PAF Licence Agreements 18 Other options Other options continued The licensing options other than internal use are described in the Agreement as Advanced Options. These are: Web use As part of your e-commerce site ordering system, PAF can help capture correct addresses. This type of pricing is called External Transaction Solution. Those who want to only pay for what they use can buy blocks of 100 Transactions for 1. Table 8 - web usage Transaction costs for Full PAF Blocks Transactions Royalty One block 100 Transactions 1 Second block 100 Transactions 1 And so on There s no limit on the number of blocks that can be bought. Those organisations that either cannot measure the number of Transactions or which have very large requirements may license unlimited use for 4,000. For more details on this option and the applicable contractual terms, please refer to Annexes 1 and 5 of the. Market Research During the consultation process some customers made us aware of this very specific type of use which was difficult to license in the traditional way. In the new Agreement is a set of clauses allowing certain Market Research companies to provide researchers with sample lists, including PAF verified address and postcode information, for certain defined Market Research purposes only, ie. conducting a survey. These new Market Research terms provide specific exceptions to Data Creation to allow infilling of large databases using PAF. These terms are only intended for this niche part of the market. For more details on this and the applicable contractual terms, please refer to Annex 2, and for End User terms go to Schedule 2 to Annex 3 of the. Look up This grants permission to license End Users to provide a look up service for private use by consumers. Pricing is the same as in the 2007 licence. Terms remain similar to those in the 2007 licence. Personal usage by the consumer is still limited to 15 look ups per day. Providers of look up are obliged to display a Service Recipient Licence whenever a look up service is used. The Service Recipient Licence wording can be found in two places in the Data Licence Agreement: Annex 1, Part 1 or Clause 1.1 in Schedule 1 to Annex 3. For more details on the look up option and the applicable contractual terms, please also see Annexes 1 and 3. Corporates In our standard an End User is a single legal entity. As an alternative, we continue to provide corporate licences in certain circumstances where legal entities can group together as company groups and wish to cap their payments and pay Royal Mail directly for their use of PAF. Licence fee returns are still required where a Solutions Provider supplies PAF to such a corporate entity, although no payment is made by the Solutions Provider to Royal Mail in connection with the use of the data by the corporate licensee. We recognise it isn t always easy to identify those who already operate under a corporate licence. If you do pay licence fees to us in respect of an End User who is part of a corporate group licensed under a corporate licence, then we will refund the relevant fees to you if you apply to us within 12 months of making the payment. Visit to see which organisations are covered by corporate licences.

11 19 PAF 2010 PAF Licence Agreements 20 End User scenarios Advanced options for franchises and networks We ve introduced licensing options for specific closed groups to benefit from network or membership opportunities. These options are for franchise- and network-type situations; often independent businesses operating under the same umbrella. Associate Group Solution: designed especially for franchise organisations operating under a common brand to come together under one Agreement. For every 55 Users charged at 75 per year each, a further 245 Users will be licensed at no further charge. If you have more than 1,555 Users (ie. 6 Multiple User Blocks) in the Associate Group the price is capped at 24,750 per year per Associate Group. With this type of stepped pricing, the price may be reduced for Associate Groups with small numbers of Users. For more details on this pricing option and the applicable contractual terms, please refer to Part 4 of Annex 1 and Annex 5 of the. Broker Group Solution: designed especially for closely connected groups to come together under one Agreement (eg. insurance brokers, or independent financial advisors). In our current licensing, this type of use would have been uneconomical, hence the introduction of terms for Broker Groups in the new 2010 Agreement. For every 55 Users charged at 75 per year each, a further 245 Users will be licensed at no further charge. If you have more than 3,110 Users in the Broker Group the price is capped at 49,500 per year per Broker Group. With stepped pricing this reduces the price for Broker Groups with a small number of Users. For more details on this and the applicable contractual terms, please refer to Part 5 of Annex 1 and Annex 5 of the Data Licence Agreement. Extended Use Solutions: a new licence term designed to allow End Users to pass data to third parties in order to verify or amend address details, prior to the third party sending out mail, packages, products and services, on behalf of the End Users. The data that has been passed from the End Users to the third party can only be used for the purposes of delivery mentioned above. For more information on Extended User Solutions please refer to part 3 of Annex 1. The prices referenced on this page are based on Full PAF. Here are 5 different scenarios with examples of annual, Full PAF pricing to help you understand the different applications of the new Agreements. For more End User scenarios, visit A charity has 10 Users and makes and takes calls on behalf of another smaller charity. No address data is passed to the smaller charity. Today The charity pricing options are identical for those on the 1995 & 2007 Agreements: 10 User 85. Total cost Licensing 10 User 75. Total cost 750 A call centre has 50 employees sharing 15 PCs and one copy of PAF on a single application. Today The call centre pricing options are identical for those on the 1995 & 2007 Agreements: 15 User 85. Total cost 1, Licensing 15 User 75. Total cost 1,125

12 21 PAF 2010 PAF Licence Agreements 22 End User scenarios End User scenarios The retailer The investment house A retailer has 280 internal Users on one system and a website offering goods and services with an unforeseeable number of Transactions. Today 1995 Licensing There are two possible options for licensing this use One system licence 3,850, transactional fee unavailable (only half the solution) OR An investment house has 600 Users currently on a multi-system licensing arrangement. Today pricing options are identical for those on the 1995 & 2007 Agreements: One multi-system licence is 11, Licensing 600 Users (capped price of 2 blocks of 300 Users) is 8, Licensing 2010 Licensing One system licence 3,850 + unlimited Transaction fee 3,750. Total cost 7, Users (1 block of 300) is 4,125 + unlimited Transaction fee 4,000. Total cost 8,125 The small office A three-person office, each a separate User, where there s a variety of PAF use: User 1 User 2 User 3 1,500 Transactions per year 750 Transactions per year 250 Transactions per year Total usage 2,500 Transactions per year Today there are several options for licensing this use: 1995 Licensing 3 85 = Licensing 2010 Licensing 3 85 = 255 OR one block of internal 15 = 185 There are a number of options to choose from. They can even mix User and Transaction based pricing Option each = 225 Option 2 2,500 8p each = 200 Option p each = 155

13 23 PAF 2010 PAF Licence Agreements 24 Our contractual relationship The illustration below outlines the contractual relationship between you and us, and between you and those whom you license. Table 9 the contractual relationship: AMU. Solutions Providers First Level Third Party Solutions Providers Second Level Third Party Solutions Providers million UK postcodes are held on PAF, along with every known business and residential Corporate licence End Users End Users End Users End Users postal address We ve touched upon many uses of PAF within this guide, and supported these with real examples. If you want further clarification or information please contact us; our contact details are listed on page 25.

14 25 PAF Contact us Your PAF Relationship Manager is available for you, or: Telephone , Option 2 Post Web PAF Agreement, Address Management Unit, Fourth Floor, Royal Mail, Slindon Street, PORTSMOUTH, PO1 1AF Contact the PAF Advisory Board The PAF Advisory Board is an independent body which offers Royal Mail independent advice, on behalf of PAF End Users and resellers. Web