Independent software vendors who participate in Microsoft’s ISV Royalty program should be aware of the criteria:
ISV must develop a value-added solution using Microsoft’s products and distribute it as one solution.
It is expected that a Certified II or Gold II membership is maintained in the Microsoft Partner Program or your organization can purchase prepaid support options from MS or a Gold Certified Support Partner.
There is a commitment of $15,000 in royalties over a three-year agreement term.
Technical support for customers on licensed products is required along with monthly reports, even during times of inactivity.
One thing to be hyper aware of in terms of compliance is the Microsoft requirement to incorporate all license terms into your customer agreements. This means if your customers are using your licensing improperly, you are in danger of being out of compliance. Be sure to very clearly state their usage rights!
This seems like a lot to ask – but the ISV licensing program can save you up to 50% on licensing costs. Microsoft provides a lot of information on the benefits of the ISV Royalty Program.