ISV Royalty Licensing Agreement

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ISV Royalty Licensing Agreement
David Langridge
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Royalty Licensing Agreement The Target

• Independent Software Vendors (ISV) who develop
  packaged applications integrating Microsoft?
  products

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Definition

• An ISV is a company that
• Develops software applications
• Based on his proprietary IP and code
• Potentially embedding or integrating 3rdparty
  applications
• Following a product lifecycle, with release
  dates, name and versioning
• AND
• Sells these applications in a packaged way to
  customers in a replicable way
• Directly, or through a channel of VARs and SIs
• AND
• Spends a significant part of his budget in RD
  and generates majority of its revenue in his
  products

Packaged software is defined as programs or
code sets of any type commercially available
through sale, lease, rental or as a service
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Royalty Licensing Agreement Definition

• Q What does the term integrate a Microsoft
  product means?
• It means that the ISV application is dependent on
  some (1 or more) Microsoft products to execute
• From a logistical aspect it means that the ISV
  can
• Include the MS product on the installation media
  (CD) of the ISV application
• pre-install the Microsoft product(s) on a PC that
  is part of the solution

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ISV Royalty Licensing ProgramProgram Requirements

• Minimum of 10,000 in royalties over the 8 full
  calendar quarter agreement term
• Maintain Certified or Gold level membership
  in the Microsoft Partner Program
• or
• purchase Microsoft Professional Support Services
  with 5 prepaid incidents

For MS CRM you also need to test the product
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ISV Royalty Licensing ProgramProgram Benefits to
the ISV

• Reduce Costs reduces cost of acquisition and
  may reduce installation, configuration, update
  and support costs
• Increase Revenue Redistribute Microsoft
  licenses with the ISVs solution
• Deliver a Total Solution - Provide one stop
  shopping for end customers and avoid deployment
  delays
• Worldwide Distribution - Allows for the global
  distribution of Microsoft's products as part of a
  unified solution and MS country revenue
  recognition

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ISV Royalty Licensing ProgramProgram Benefits to
the ISV

• Extend Product Life Cycle Control Revision
  Schedules - Sell version specific solutions up to
  18 months after Microsoft releases
• Royalty-Free Distribution
• For key locking Royalties paid only when the
  ISV allows the end customer to unlock the
  Microsoft software
• For demonstration copies distributed to the sales
  force and channel for use in sales presentations
• For 120-day evaluation copies distributed to end
  customers
• Earn Partner Points -ISVs can earn points in the
  Microsoft Partner Program

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Products available

• Microsoft Application Center 2000
• Microsoft BizTalk Server 2004
• Microsoft Commerce Server 2002
• Microsoft Content Management Server 2002
• Microsoft Exchange Server 2003
• Microsoft Host Integration Server 2002
• Microsoft Internet Security and Acceleration
  Server 2004
• Microsoft MapPoint 2004
• Microsoft Operations Manager 2000
• Microsoft Project Server 2003
• Microsoft SharePoint Portal Server 2003
• Microsoft SQL Server 2005
• Microsoft Virtual PC 2004
• Microsoft Visio 2003
• Microsoft Visual Basic for Applications V6.3
• MS CRM
• Microsoft Office Business Scorecard Manager 2005
• Full-use versions of Microsoft SQL Server 2000

Including All Editions
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What is Runtime License ?

• A type of license that allows a customer to use
  selected Microsoft applications only with the
  ISVs application.
• Customer cannot
• Use Microsoft application acquired through the
  ISVs applications other than for that specific
  application
• Nor can the customer develop new applications,
  etc. with a Microsoft application acquired
  through the ISVs application
• IW Products to be offered full use rights

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Royalty AgreementStep by steps

• Identify you can reach the 10.000 commitment
• Become a Microsoft Certified Partner OR Register
  buy 5 support incident
• Sign the RA contract ( Agreement enrollment(s))
• Receive the contract N
• Order the master license of the product
• Available WW
• Via http//www.explore.ms
• Integrate Microsoft product on the customer
  media
• Sell the solution
• Report on a monthly base

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Reporting

• Royalty Agreement Reporting
• Reporting of alI Microsoft licenses distributed
  with the ISV solution
• Reporting is done by country where the end
  customer is
• Reporting is due in the next 15 days after month
  end (3.x)
• Microsoft will invoice at 30 days
• You must do a Zero reporting if you have not
  sold any license

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3.1 whats new ?
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Versions comparison
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CPE Improvements

• Embedded Maintenance or EM (previously Upgrade
  Rights) has been re-introduced into the
  Agreement.
• EM SKU Pricing, 25 of the price of embedded
  SKUs for server tools and 29 of the price of
  embedded SKUs for IW products.
• Renewal is annual and cannot have lapse in
  coverage
• Acquisition at time of purchase
• Contract
• Language has been modified (Plain English) in the
  Agreement and Enrollment to be easier to
  understand. Agreement is also shorter (18 pages
  for v3.1 compared with 20 pages for v3.0).
• No need for CRM amendment

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Operational Efficiency Improvements

• Major issues with processing documents
• Credit report missing.
• A reminder has been added to Agreement to send
  Credit Report back with signed Agreement (listed
  on first page of agreement in attachment
  section).
• Inserted on the front page of agreement is a box
  for ISV to enter previous agreement so that
  ROCs can look up credit history. This is also for
  backdating the agreement.
• Missing information in enrollment form.
• Prior enrollment box added to enrollment forms.
• In the enrollment form section 6, pricing removed
  since it is in public price list. Part number
  added.
• To avoid delay in ISVs in sending in signed
  agreement
• Mailing address inserted onto the front page of
  the Agreement so it is clear where to return it
  to.
• Checklist to be provided with the Agreement to
  ensure everything necessary is included.

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