Independent Software Vendor (ISV) Royalty Licensing Program Overview_2018
ISV Royalty Licensing Program Overview
The Independent Software Vendor (ISV) Royalty Licensing Program offers independent software
vendors (ISVs) a convenient way to license Microsoft Products (“Products”) and integrate them into
a Unified Solution. ISVs then replicate the business solution and distribute a fully licensed solution
to their end users (“users”). The ISV Royalty Program isn’t a reseller program; it’s a program that
grants ISVs the rights to license Products as part of a Unified Solution.
An ISV can integrate eligible Products into their Unified Solution by including one or more Products
along with the ISV’s software for their Unified Solution and by distributing through either of the
⚑ Copying onto physical media, which is labeled and packaged as the ISV’s Unified Solution
⚑ Pre-installing, by the ISV, on a computer system for distribution as part of the ISV’s Unified
The Microsoft ISV Royalty Licensing Program is a worldwide software licensing program for
solutions partners that qualify as an ISV.
The Independent Software Vendor Royalty Licensing Program offers ISVs the convenience of distributing to users a complete software solution from one source. For a full program overview, including a complete list of program benefits, please see the ISV Royalty Licensing Program Guide.
Here are some of the many benefits of participating in the ISV Royalty Licensing Program:
⚑ Ability to deliver a total solution. Offer a single resource for your users and avoid individual software deployment delays. Users benefit from having just one source to obtain a complete solution, including the Products and licenses.
⚑ Potential cost reductions. ISV Royalty Licensing Program provides the opportunity to cut costs
for goods sold by allowing you to preconfigure your installation with Products. You may be
able to reduce installation, configuration, update, and support costs.
⚑ Potential revenue increases. You can redistribute Microsoft licenses and Embedded Maintenance upgrade coverage with your solutions to provide an additional revenue stream for potential profit.
⚑ Extend Product life cycle. After Microsoft releases a new version of a Product, you can sell the previous version of most products as integrated in your value-added business solution for up to 48 additional months.
⚑ Wide selection of Products. You have access to a wide range of Microsoft server applications and some desktop PC applications. You can also access the most current version of Products that includes the most updated features.
⚑ Downgrade rights. If you have acquired a later version of the Product, you can offer your customers an earlier version of the Product, as long as the earlier version is still supported by Microsoft and other requirements are met…. ⚑ Worldwide distribution. You can distribute your Unified Solution to users in any part of the world where distribution is allowed.
What is a Unified Solution?
To participate in the ISV Royalty Licensing Program, you must develop a software Unified Solution that adds primary and significant functionality to the Product(s) so that your solution isn’t primarily a substitute for the Product. A Unified Solution is the software product that you license to your users that includes one or more Products and may include third-party software.
For example, an ISV develops an application that depends on a database. If you’re an ISV in the Microsoft ISV Royalty Licensing Program and your solution adds material functionality to the Products involved, you can include Microsoft SQL Server database software as part of your Unified Solution. Then you can distribute the fully licensed solution to your customers.
Enrolling in the ISV Royalty Licensing Program
To enroll and participate in the Independent Software Vendor Royalty Licensing Program, follow these key procedures:
1. Complete the Microsoft ISV Royalty License and Distribution Agreement and Microsoft Business and Services Agreement (MBSA), if you don’t already have one in place. For more information, contact your ISV Royalty distributor.
2. Submit these documents with the signed signature form to your distributor.
3. After Microsoft has received your signed Microsoft ISV Royalty License and Distribution Agreement, you’ll receive a
welcome letter that contains an agreement number.
Terms and licensing model
The ISV Royalty Licensing Program allows you to license Products as part of your Unified Solution during a three-year agreement term. You become the legal licensor of the entire Unified Solution, including the Products that are part of your Unified Solution.
You can offer your users the option to include Embedded Maintenance with the Products included in the Unified Solution. Embedded Maintenance offers your users the option to stay current on Products by upgrading to future Product versions for a fee.
Each Product offered through the ISV Royalty Licensing Program has an associated set of Microsoft license terms, also referred to as the use rights. Two license types are offered:
This default license type allows you to integrate Products and be licensed as part of your Unified Solution. This license also allows your users to use the underlying Product with applications other than the Unified Solution as long as they’re still licensed for your application.
ISV run-time license
Licenses for Microsoft SQL Server and Microsoft BizTalk Server through the ISV Royalty Licensing Program are offered with additional restricted use rights. With these restricted use rights, your users:
⚑ Can use these applications only with the Unified Solution with which they were acquired.
⚑ Cannot use the Products to run any other application or to develop new applications or in any other context independent of the Unified Solution with which it was acquired.
Eligibility and program requirements
To participate in the ISV Royalty Licensing Program, you must develop a Unified Solution by integrating select Microsoft Products into
your applications and distributing them to your users.
You must also be a member of the Microsoft Partner Network (MPN) at any competency level to enroll in the ISV Royalty program. For
more information on MPN, visit the MPN website at https://mspartner.microsoft.com/.
The following are key requirements for participating in the ISV Royalty Licensing Program. For the full list of program requirements,
please see the ISV Royalty Licensing Program Guide.
⚑ Develop a Unified Solution. Develop and distribute the Unified Solution in a tangible media format (electronic software distribution is available for some Products in the ISV Royalty program as specified in the ISV Royalty Product List).
⚑ Join the Microsoft Partner Network. Enroll and maintain status as a member of the Microsoft Partner Network at any level (Community, Subscriber, Competency, or Advanced Competency).
⚑ Comply with the Microsoft license terms. Incorporate any applicable Microsoft license terms into the End User License Agreement for the Unified Solution.
⚑ Designate an authorized distributor. Work with an authorized Microsoft ISV Royalty Licensing Program distributor to complete the ISV Royalty License and Distribution Agreement and the MBSA (or to link your existing MBSA to the ISV Royalty agreement).
⚑ Provide technical support. You’re responsible for providing technical product support for the Products included in the Unified Solution.
⚑ Provide monthly reporting on software licenses. Submit either a monthly royalty report or a zero royalty report for all licenses that you and your affiliates distributed to your end users the previous month.
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