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Program Guide: Microsoft ISV Royalty Licensing

Royalty Reporting

As a Microsoft ISV Royalty Licensing partner, you must submit consolidated monthly royalty reports to your distributor for all licenses that are distributed in the Unified Solution to your users during the preceding month. If you did not distribute any Products to your users, you must submit a zero royalty report. Your distributor will provide you with details on the format and procedure for submitting the reports and will report to Microsoft on your behalf each month.

You must include the end user’s name and address if the end user generated more than US $8,000 per month in revenue to Microsoft.

An authorized representative of your organization must certify that the monthly royalty report is accurate and complete. If you do not submit a report by the due date each month, then your organization is not compliant with the agreement.  


Your distributor uses the information contained in the monthly royalty report to invoice you, in the applicable currency, for the royalties you owe. The distributor then pays Microsoft on your behalf. Your distributor invoices you for the number of units reported in your monthly report multiplied by the distributor’s price for each license reported. You are responsible for submitting your payment to the distributor by the agreed on date.

Enrolling in the ISV Royalty Licensing Program

Agreement Structure

The Microsoft Volume Licensing agreement structure makes it easy to negotiate the terms and conditions of multiple agreements. An ISV Royalty Licensing Agreement has two components: the ISV Royalty License and Distribution Agreement and the MBSA.

ISV Royalty License and Distribution Agreement. This agreement enrolls your organization in the Volume Licensing program.

Microsoft Business and Services Agreement. The MBSA is a perpetual agreement between a customer and Microsoft. It contains high-level terms and conditions that are applicable to all agreements signed under it, such as use and ownership and confidentiality. It must be signed either with or prior to the effective date for the ISV Royalty License and Distribution Agreement.

Agreement Term

The agreement term is three years.

If you want to continue in the ISV Royalty Licensing Program after the three-year term expires, you need to re-enroll by signing a new ISV Royalty License and Distribution Agreement.

How to Enroll

ISV Royalty Licensing agreements are offered via authorized ISV Royalty distributors. Distributors are experts in Microsoft licensing, operations, and support services, and they offer a dedicated resource to support ISVs’ product and service needs. Work with an authorized Microsoft ISV Royalty Licensing Program distributor to complete the ISV Royalty License and Distribution Agreement. To find available authorized distributors by country, visit http://pinpoint.microsoft.com.

To enroll in the ISV Royalty Licensing Program, follow these steps:


Complete the Microsoft ISV Royalty License and Distribution Agreement and MBSA if you do not already have one in place. For more information, contact your distributor.

ISVs with an existing standard MBSA via another Microsoft Volume Licensing Agreement (for example, with an Enterprise Agreement, Select Plus, Open Value, or Services Provider License Agreement [SPLA]) should work with their distributor to provide their MBSA number and link the MBSA to their ISV Royalty License and Distribution Agreement.


Submit these documents with the signed Signature Form to your distributor.

Microsoft ISV Royalty License and Distribution Agreement Program Guide4

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