There has been a great deal of confusion around the terms under which pharmacies, wholesalers, manufacturers and suppliers of systems to pharmacies may use and distribute the PIP Code. This statement intends to clarify the different licensing arrangements required by users of the PIP code.

The PIP Code is specifically the code allocated to a specific product, along with the description associated to and describing that product. There are a number of other pieces of data which are provided by CMP Medica, which are not a part of the PIP Code, but which are provided as a part of the database subscription service.

The ownership of copyright in the PIP Code is dealt with in an agreement between the NPA and CMP which set out the joint design and development of the PIP code. This agreement specified that each party would have specific licensing rights in respect of the PIP Codes.

This has meant that there are in essence, two complementary components to PIP Code licensing - the right to publish PIP Code Data, and the right to incorporate the PIP Code into price lists, order forms and systems, and to apply the PIP Code to products ('Code User Rights'). The NPA has the exclusive right to license the Code User Rights. The right to publish the PIP Code is held solely by CMP Information (and licensed through CMP Medica).

User Licence - required for any party wanting to put PIP codes onto its own price lists, order forms, into its own systems, or onto any product manufactured or supplied by it. This licence is currently provided to pharmacies that are members of the NPA as part of their membership. Pharmacies which are not members of the NPA, and other organisations (manufacturers, wholesalers, systems suppliers), are required to purchase a User Licence. Only the NPA can grant these licences.

Publishing Licence - required by any organisation/person wishing to publish or reproduce PIP codes to or for any other organisation/person. Normally this is granted by CMP when copies of the main data tables are bought from C&D in electronic format. So, if an organisation wishes to publish some or all of the PIP Codes, or reproduce them for any other organisation, it will also need a licence from CMP. If the organisation only wishes to use the PIP Codes for its own internal purposes (as described under the above paragraph) it will not require a licence from CMP.

C+D Subscription - a subscription which entitles the subscriber to receive C+D (including versions of the PIP code database) and its regular updates to the PIP Codes. CMP Medica has sole responsibility for C+D Subscription licences, which have now been broken down into a number of packages which distinguish between electronic and print versions of the database. The subscription also licenses to pharmacists the right to make PIP Codes available to third parties, for example when placing orders.

In a typical scenario, a system supplier who wants to have the PIP Code as a part of their software would need to obtain a User Licence from the NPA, and a Publishing Licence and a Subscription from CMP Medica. A pharmacy using this system, which is also a member of the NPA, would have a User Licence as part of their membership, but would need to purchase a C+D Subscription to receive updates to the PIP code and to publish the PIP Code in orders (printed or electronic).

A wholesaler supplying products to the pharmacy, and using the PIP code to identify products purchased by the pharmacist would need to purchase a User Licence from the NPA, and a C+D Subscription from CMP Medica (to obtain the latest updates). If the wholesaler is also acting as a system supplier, and/or wishes to publish PIP Code data either via print or electronically (e.g. as part of its product file), then they will also require a publishing licence from CMP Medica. An organisation is not allowed to copy PIP Code data from a printed format and then republish the data, unless that organisation has a licence to do so.

It is the sole right of the NPA to determine the amount to be charged for the User Licence, but it does not have the right to determine the amount charged for either the Publishing Licence or the C+D Subscription. Likewise, it is the right of CMP Medica to determine how the Publishing Licences and C+D Subscriptions will be charged, but it does not have the right to determine User Licence charges. These rights are stipulated in the contract between CMP Information and the NPA.

The contract between CMP Information and the NPA provides that either party may take legal action against organisations or individuals which use the PIP code without having obtained the relevant licence. It should be noted that CMP, as the creator of the wider database, has additional rights in the database.