Supposedly, according to Ed Bott’s ZDNet article (linked here), this wording is included in the license for Microsoft Office 365 Home Premium:
The service/software may not be used for commercial, non-profit, or revenue-generating activities.
Does that mean that if you’re a professional writer, and you sell the things that you write, you can’t use this version of Microsoft Word?
Remember, this includes the license for Microsoft’s nifty new iPad version of Word that everyone is so excited about. I know many writers who want to use their iPads for novel writing, or editing (especially editing — it’s brilliant for proofreading a manuscript).
In the real world, Microsoft is not going to know or care if you’ve written or edited your novel on their “not for revenue-generating activities” version of Word, so this is a non-issue. It just makes you kind of scratch your head and wonder at the convoluted nonsense that Microsoft lawyers jam into their licensing agreements.
If you’re paranoid about it, then use the perfectly good Pages word processor that comes free with your iPad.
Personally, I’m still waiting eagerly for Scrivener to come out on iPad.