Independent Software Vendor Royalty Licensing Program Overview Program Overview

Independent Software Vendor
Royalty Licensing Program
Program Overview
Overview
The ISV Royalty Licensing Program offers independent software vendors (ISVs) a convenient
way to integrate Microsoft® licensed products into their software business applications, replicate
the business solution, and distribute a fully licensed solution to your customers.
ISVs are organizations that exclusively develop software or software solutions instead of being
part of a computer system or being a hardware manufacturer. At least 30 percent of the
company’s overall revenue comes from the sales of licenses of that solution.
ISVs integrate Microsoft licensed products with their application in any of the following ways:
•
By integrating a Microsoft licensed product into the ISV’s application code;
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By including a Microsoft licensed product along with the ISV’s application on the
installation media; or
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By preinstalling a Microsoft licensed product on a computer system that is part of the
unified solution
Program Benefits
The ISV Royalty Licensing Program offers ISVs the convenience of distributing to customers 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:
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Ability to deliver a total solution. Provide one-stop shopping for your customers and avoid
deployment delays. Customers do not have to go through a separate procurement process
to acquire the Microsoft product licenses.
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Potential cost reductions. May reduce installation, configuration, update, and support
costs.
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Potential revenue increase. You can redistribute Microsoft licenses and Embedded
Maintenance upgrade coverage with your solution to provide an additional revenue stream
or potential margin.
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Extend product life cycle. You can sell version-specific unified solutions for up to 18
months after Microsoft releases a new version of the licensed product, which is integrated in
the value-added business solution.
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Wide selection of Microsoft licensed products. You have access to a wide range of
Microsoft server applications, including some desktop PC applications. For a sample list of
available products, please see the ISV Royalty Licensing Program Guide.
•
Worldwide distribution. You can distribute your unified solutions to customers in any part
of the world.
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Earn partner points. Earn partner points in the Microsoft Partner Program by signing up to
participate in the ISV Royalty Licensing Program.
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Customer Demonstrations. You can demonstrate your unified solutions to prospective
customers as long as you remain in possession of the demonstration copies.
•
Customer evaluations. You may use the licensed products to provide your unified
solutions to your prospective customers on a trial basis for up to 120 days.
Participating in the Program
The ISV Royalty Licensing Program allows you to license Microsoft licensed 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 Microsoft licensed products that are part of your unified
solution.
You can offer your customers the option to include Embedded Maintenance with the licensed
products included in the unified solution. Embedded Maintenance offers your customers the
option to get current and stay current on Microsoft licensed products by upgrading to future
product versions for a fee.
License Model
Each Microsoft licensed product offered through the ISV Royalty Licensing Program has an
associated set of use rights. There are the two types of use rights offered:
ISV License
This default license type allows you the ability to integrate Microsoft licensed products and be
licensed as part of your unified solution. This license also allows your customers to use the
underlying Microsoft licensed product with other applications as long as they are still licensed for
your application.
ISV Run-time License
Some licensed products offered through the ISV Royalty Licensing Program are offered with
additional restricted use rights. In these cases, your customer:
•
Can use these applications only with the unified solution with which they were acquired.
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Cannot use the Microsoft licensed 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.
The products that are currently offered with Run-time Use Rights are Microsoft SQL Server™,
Microsoft BizTalk Server®, and Microsoft Speech Server.
Eligibility and Program Requirements
The Microsoft ISV Royalty Licensing Program is a worldwide software licensing program for all
solutions partner segments, including ISVs, value-added resellers, value-added providers,
system builders, system integrators, training providers, and support providers.
The program allows ISVs to provide a unified solution, by integrating select Microsoft licensed
products into your applications, and distributing to your customers. A unified solution is the
software product that the ISV licenses to your customers that includes one or more Microsoft
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licensed products, adds significant and primary functionality to the Microsoft licensed products,
and may include software that the ISV acquires from third parties.
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.
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Develop a unified solution. Develop a value-added solution using Microsoft licensed
products and distribute the unified solution in a tangible media form.
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Revenue commitment. Commit to a minimum of US$15,000 in royalties paid to
Microsoft during the three-year term of the Independent Software Vendor (ISV) Royalty
License and Distribution Agreement.
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Provide technical support. You are responsible for providing technical product support
for the Microsoft licensed products included in the unified solution to your customers. To
ensure the proper support level, you must either enroll as a Microsoft Certified Partner
(or above) or purchase five technical product support incidents from Microsoft or a Gold
Certified Support Partner.
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Comply with the Microsoft license terms. Incorporate any applicable Microsoft license
terms into the End Customer Agreement for the unified solution.
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Provide monthly reporting on software licenses. Submit either a monthly royalty
report or zero royalty report for all licenses that you and your affiliates distributed to your
customers. If the end customer generated more than US$1,000 per month in revenue,
you need include their name and address. If you did not distribute any licensed products
to your customers, you need to submit a zero royalty report.
Pricing and Invoicing
Pricing
To find out the royalty price you are charged for each Microsoft licensed product offered through
the ISV Royalty Licensing Program, you may obtain the price list through explore.ms.
Microsoft may decrease the price in the price list at any time. Microsoft may increase the price
in the price list only once each calendar year on January 1 and at any time to offset exchange
rate fluctuations for prices other than U.S. dollars. If Microsoft increases the price of a particular
version of a licensed product after you sign your agreement, you are invoiced at the price in
effect for that particular licensed product at that time.
Invoicing
Microsoft uses the information contained in the monthly royalty report to invoice you, in the
applicable currency, for the royalties owed to Microsoft. Microsoft checks your agreement to
determine which licensed products you are including in your unified solution, and then multiplies
the price assigned to licensing those applications by the number of units of the unified solution
that you have sold, as reported by you in your monthly royalty report. Microsoft then sends you
an invoice for the total amount of the royalties for that calendar month. Payment terms are net
30 days of the date of the Microsoft invoice using the standard payment method.
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Enrolling in the ISV Royalty Licensing Program
To participate in the ISV Royalty Licensing Program, follow these key procedures:
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Meet one of the following two requirements:
o
Enroll in the Microsoft Partner Program as a Microsoft Certified Partner or Gold Certified
Partner at http://members.microsoft.com/partner/default.aspx
o
Purchase a minimum of at least five technical product support incidents for the licensed
products used in the unified solution, either from Microsoft at
http://support.microsoft.com/default.aspx?scid=fh;en-us;Prodoffer41a&sd=GN or from a
Gold Certified Support Partner
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Complete the Microsoft ISV Royalty License and Distribution Agreement and credit
application form. To obtain these documents, please contact your Partner Account Manager,
local subsidiary, or e-mail [email protected]
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Submit these documents to the applicable Microsoft Operations Center. The list of Microsoft
Operations Centers can be found in the ISV Royalty Licensing Program Guide.
The ISV Royalty Licensing Program offers you access to a wide range of Microsoft licensed
products. The list of available products is updated quarterly and is available at www.explore.ms.
Additional Resources
ISV Royalty Licensing Program
Additional information on the ISV Royalty Licensing Program.
http://www.microsoft.com/licensing/programs/isv/default.mspx
Professional Support Options and Phone Numbers
ISVs that want to purchase the five technical product support incidents.
http://support.microsoft.com/default.aspx?scid=fh;EN-US;OfferProPhone
Microsoft Volume Licensing Program
Information on what software licensing can do for your organization.
http://www.microsoft.com/licensing/default.mspx
Contact Us
Contact us at [email protected] for assistance with renewal or program questions.
This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR
IMPLIED, IN THIS DOCUMENT.
© 2007 Microsoft Corporation. All rights reserved. Microsoft and BizTalk are either registered trademarks or
trademarks of Microsoft Corporation in the United States and/or other countries.
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