Let us know whether you are using any Cypress silicon (this includes IoT, pSoc etc – all cypress group)?
In production, I do not use any cypress silicon. I will use only FX3 in prototyping.
So, to develop my production system, I will migrate the software provided by Cypress, into silicons except Cypress.
If you are using any cypress silicon in your design which goes for production, you can use Cypress driver and library without any Royalty.
Here, you can use the driver for Proto type board but not for Production purpose, since it does not have any Cypress silicon.