Technology Terms Glossary
What is a Royalty?
A royalty refers to the legal binding of a payment that a company or individual makes to use copyrighted assets or natural resources. The term is most associated with musicians as they receive royalty payments through their original composed songs. You can generate royalties via television, radio, concert performance, streaming services, or movie use. In short, royalties generate revenue for individuals or companies and compensates the copyrighted owner for the use of the asset.
Royalty Examples
Examples of royalty include:
- Example 1: Mineral royalties
- Example 2: Patent royalties
- Example 3: Franchise royalties
- Example 4: Performance royalties
Here is a comprehensive article about royalty.
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