IPC XML is a flavor of XML that was designed with the specific purpose of content interchange between brand owners and their suppliers.
It is an open format that borrows concepts from the JDF specification made by the CIP4 organization. The IPC XML schema was designed by the Intelligent Packaging Consortium, an informal workgroup consisting of brand owners, retailers, software vendors, consultants and packaging designers.
Dynamic Content can work with various flavors of XML (XHTML, PIM, SPL, …). The plug-in does not place any restrictions on the XML formats you can use as long as the XML files you add to the palette are well-formed. However, because the IPC XML schema is designed specifically for use in packaging, Dynamic Content has a number of features that make working with IPC-based XML files easier.