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Licensing overview

Introduction
Like many organisations, Royal Mail licenses the use of its address management data products. Our licences set out what you can and can’t do with the data and state the obligations which you are required to meet. In addition, they detail the fees that licensees are required to return to us in exchange for the use of our data products. These fees cover the significant costs that the Address Management Unit overlay each year for managing and maintaining the databases and the million of records within them, and enable us to make a reasonable return. Royal Mail’s Address Management Unit has a revenue cap of 8-10% profit.

Types of licence
If you want to take address management data products directly from Royal Mail then there are two licences you will be required to sign.

1. The Data Supply Agreement covers the provision of your data. It covers the format, the frequency and the type of data refresh you are looking for.

2. The Data Licence Agreement deals with your use of the data products.

Licensing principles for your use of the data products

  • Businesses are licensed depending on WHERE the data will be used
    You can license the use of our data products depending on where you intend the data to be used; this can either be ‘internal’ or ‘external’. ‘Internal use’ is when users within your organisation, or within separate organisations that act as a single organisation e.g. franchises and broker groups, use the data products, for example, for looking up an address irrespective of whether they are in a call centre or in a post room. ‘External use’ is when the user is outside of your organisation. This specifically refers to website use.
  • Business are licensed based on the EXTENT of their use of the data
    Businesses can choose how they’d like to license their use of the data depending on their usage. Business with relatively low or infrequent usage may prefer to license on a transactional ‘pay as you go’ basis. This option enables businesses to closely track their usage and manage their expenditure. Similarly, those with more regular and higher volumes of usage may instead choose to license on an User basis, where each user has unlimited use. An annual user licence costs £75.

    By our definition, a ‘user’ isn’t an actually individual but a terminal or device. Organisations with call centres may license blocks of call centre operators rather than each operator individually as this will generally work out as being more cost effective.
  • Businesses are licensed depending on WHAT the data will be used for
    Most uses of the data are considered as being part of normal business use; however, there are some exceptions to this. An example is when the data is used for bureau use. This is when an organisation cleans data for another organisation and then passes the cleansed data back to them. For this type of use, a licence fee is payable based on the number of records that have been processed against our data products.

For more information about the different licences you may want to refer to our Licensing brochure. Each of our product pages provides information on the associated licensing fees.