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Program Guide: Microsoft ISV Royalty Licensing

The Microsoft Independent Software Vendor Royalty (ISV Royalty) Licensing Program offers Independent Software Vendors (ISVs) a 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 is not a reseller program, but is a program that grants ISVs the rights to license Products as part of a Unified Solution.

Integrating Microsoft Products

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:

Copying onto the physical media which is labeled and packaged as the ISV’s Unified Solution.


Preinstalling, by the ISV, on a computer system for distribution as part of the ISV’s Unified Solution.

For example, an ISV develops an application that depends on a database. If you are an ISV in the Microsoft ISV Royalty Licensing Program and your solution adds primary and significant functionality to the Products involved, you can include Microsoft SQL Server database software as part of your Unified Solution and distribute the fully licensed solution to your users.

ISV Royalty Licensing Program Benefits

The following 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 software deployment delays. Users benefit from having just one source to obtain a complete solution, including the Products and licenses.

Potential revenue increases. You can redistribute Microsoft licenses and Embedded Maintenance upgrade coverage with your Unified Solution to provide an additional revenue stream for potential profit.

Potential cost reductions. Participation in the 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.

Extended Product life cycle. After Microsoft releases a new version of a Product, you can sell licenses for the previous version as integrated in your value-added business solution for up to 24 additional months.

User demonstrations. You can demonstrate your Unified Solution to prospective customers if you retain the demonstration copies.

Free trial of Unified Solution. You can offer a trial of your Unified Solution to prospective customers for up to 120 consecutive days beginning on the date the Master Copy of the product is acquired.

Wide selection of Products. You have access to a wide range of Microsoft server applications and some desktop PC applications as identified in the ISV Royalty Product List. You can also access the most current version of Products that includes the most updated features.

Worldwide distribution. You can distribute your Unified Solution to users in any part of the world where distribution is allowed.

Opportunities with academic users. You can offer licenses with special academic pricing to qualified academic users.

Microsoft ISV Royalty License and Distribution Agreement Program Guide2

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