Published: Thursday January 28, 2010

London –28th January 2010 – 
There are a number of important changes in the way that we have to licence any products that incorporate Royal Mail data in the future. These changes become effective from 1st April 2010 and will apply to:
•Any new purchase of PAF® based software after this date 
•Any renewal of your existing product licences where PAF® is supplied.

Where you have an existing Capscan Software Licence Agreement, a new agreement will have to be issued that incorporates these changes as a prerequisite to continuing to use Royal Mail data.
Capscan Products Affected
 •All Matchcode Softwareusing PAF® (clients that do not access UK PAF® or use Matchcode Commercial Data only are not affected)
 •All Zapcode Software (Uses Part PAF®)
 •All Capscan OnDemand Users (where UK PAF® is referenced)
 •All Nearcode Software (uses Postzon)
Those customers who are using multiple data sets in different pools will need to check whether UK address data is included in any of those pools. If it is, then a new licence agreement will need to be accepted and returned to Capscan.
Main Changes
PAF® will be available in Full PAF® and Part PAF® only: Some of the other historical products such as the gazetteer will be dropped.  Full PAF® is used by Matchcode and Part PAF® by Zapcode.  

Users to be licensed in blocks of 300 (Multiple User Blocks): After implementation, new and existing customers will have their users licensed in blocks of 300 users.  System (Server) and Multi-System (Multi-Server) licences will no longer exist. Each block of 300 users will cost £4,125 for Full PAF and £1,110 for Part PAF®.  In most cases there will be an upper limit on the number of Multiple User Blocks for companies or other organisations using the software of 3 blocks. So it will be a little more expensive in some cases where there are large numbers of users that need to access the software than it may have been in the past. For many others however there will be marginal savings. The charge is applied against the first 55 Users in the case of Full PAF® with the other users being effectively "free" up to 300 (the next 245 users) and the first 37 users for Part PAF®.
Load Balancing: Always a slightly grey area in the past, the licence now explicitly states that load balancing is allowed. This means that a Multiple User Block of 300 users can be split over two or more sites - provided that each of the sites is using the same software product from the same supplier. In the past this may have required WAN connections or even two or more system licences. 

Bureau Charge: This is completely new. It affects only those organisations that are using the Capscan product(s) to clean or check databases that belong to third party clients and who return this processed data back to those clients, whether for reward or not. Royal Mail justify imposing this tariff on the grounds that organisations that provide bureau services are making greater gain from the use of the PAF® than other users and should pay more towards the upkeep of the data accordingly. 

The charge itself will be determined by the bureau's throughput in the previous financial year and will range from £250 to £10,000 per year according to this throughput on a sliding scale. Your Account Manager will be able to inform you of the appropriate fees upon enquiry.
New Categories of End User: There are two new categories of User, both of which are fairly specialist. The first is the "Extended Use Solution" which covers the situation where software is supplied by a business to its customers in order to produce labels or check addresses to which packages products or services will be supplied by the business.  The point here is that the use of PAF® is severely limited to labelling for postal delivery. The other 'new' type of End User is the "Broker Group Solution". This is supposed to cover the situation where software applications are supplied to Insurance Brokers.  It extends the current franchise type licensing to groups that may not trade under a common brand, but use a common software product. 

Licence Fee Reduction per End User: From April 1st, the PAF® licence fee for Full PAF® reduces further to £75 and for Part PAF® to £30. There are similar reductions in the fees for Postcode Areas.
Extension of Transaction (Per-Click) Licensing: At the moment it is possible to have unlimited per-click licensing in the case of public access Websites. In the case of non public systems where the information is to be used internally by a company, per-click licensing is limited to 5,000 transactions per year per company. This is set to change from April 1st. From this time both internal and external transactions are limited only by the number of lookups or transactions purchased in advance. So numerical limitations have been removed. HOWEVER the distinction between 'internal' and 'external' transactions or clicks remains important because the Royal Mail PAF® fee for each is different. External clicks will continue to attract a charge of 1p per lookup and internal clicks will have a much higher fee of 8p per lookup. Both will need to be purchased in advance in blocks of 100.
Market Research: There are now detailed rules in relation to the exporting and use of PAF® records for sampling and modelling. These are specific to market research and do not have wider application.

These represent the main changes that will affect our customers, although there are other less apparent changes that manifest themselves in the new licence by way of procedural differences. 

Further information can be obtained from a number of different sources.  These include the following:
 •Your Capscan Account Manager or Channel Manager
 •Royal Mail Website 
•There are also numerous magazine articles in the direct marketing press that can be found online