Is it possible to use hlslcc in non-UE4 product?

We have an in-house engine that currently uses a relatively standard combination of hlsl2glsl + glsl-optimizer to do HLSL → GLSL translation.

While looking at alternatives hlslcc seems like a good choice. It’s distributed under the terms of Unreal Engine License; however, upon reading the license it’s still unclear to me whether it is legal to use hlslcc to generate shaders for a shipping product without redistributing hlslcc source or binary to end users, and without being subject to a 5% royalty fee.

Is it possible to use hlslcc generated shaders in a commercial product without a fee?

In short, no; if you use hlslcc for a commercial product, it’s a Product under the EULA and royalties are due.