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nick_Anag's avatar
nick_Anag
Iron Contributor
Aug 21, 2024

Legal Parameters for Indirect Reseller case in CSP Program

Dear community,   We are an Indirect Provider in CSP, located in EU (CEMA Region). We would like your precious help to resolve a legal question that bothers us.   The case: one of our resellers h...
CSP
Indirect Provider
Indirect reseller
Partner question
nick_Anag's avatar
nick_Anag
Iron Contributor
Aug 21, 2024

Dear JillArmourMicrosoft 

 

Thank you in advance for you assistance to reply on this really critical question for us to win a big project!

Looking forward to receiving team's update.

 

Warm regards,
Nick

Nick_Beacroft's avatar
Nick_Beacroft
Iron Contributor
Aug 22, 2024
Interesting. Let's see what response Jill receives.

I believe the Microsoft Customer Agreement covers this, where in this case the Reseller, if they can buy from you, is the customer and therefore the MCA restricts them from distributing or sublicensing.
  • nick_Anag's avatar
    nick_Anag
    Iron Contributor
    Aug 22, 2024

    Hi there Nick_Beacroft,

    Thank you for participating and contributing in this case.
    To my point of view, the reseller buys the licenses from us in the level of an Indirect Reseller and not an end-customer. Therefore, as each subsidiary has its own unique legal entity, they will be able to deliver licenses and subscriptions to each unique tenant.

     

    Let's see what the team has to say on this. It is indeed interesting to know!
    Warm regards,
    Nick

    • JillArmourMicrosoft's avatar
      JillArmourMicrosoft
      Icon for Community Manager rankCommunity Manager
      Aug 22, 2024

      nick_Anag I was pointed to this learn article and they shared info below:

       

      Supported CSP partner relationships - Partner Center | Microsoft Learn.

      --------------------

      If you go to the “Supported partner transactions in the CSP program” section under Sample scenario 5 you will see the following:

       

      Sample scenario 5: What if a partner in the CSP program wants to sell to themselves as an end-customer?

       

      By contract, partners in the CSP program aren't allowed to sell Microsoft or third-party offers to themselves (as end-customers) or to their affiliate organizations (as end-customers).

       

      This type of transaction isn’t allowed under the CSP program.

      -------------------

      I hope that helps. 

      • nick_Anag's avatar
        nick_Anag
        Iron Contributor
        Aug 23, 2024

        Dear JillArmourMicrosoft,

         

        Much appreciated Jill for your reply!
        Regarding the article, we have also been reviewing the same learn article.
        Let me follow up on your reply to add few thoughts: firtly, we do not intend to sell to ourselves as an end-customer; so this scenario is out of scope. It is one of our Indirect Resellers who want to sell to a different legal entity, which happens to be their subsidiary. Therefore, based on the sample scenario 5, does this applies to the clause "or to their affiliate organizations"?

        To our point of view, this is not a case of an "affiliate organization" due to the fact that they have different legal entities. Please let's work on this point as it is crucial to investigate it in detail.

        Thank you once again for your actions Jill! 🙂

         

        Warm regards,
        Nick

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