Royalties

Royalties are payments made to the owner of a particular asset, typically intellectual property such as copyrights, patents, or trademarks, for the use of that asset by another party. These payments are often calculated as a percentage of the revenue generated from the asset or as a fixed fee agreed upon in a licensing contract. royalties serve as compensation for the owner’s contribution and rights to the intellectual property during the term of the agreement.

Royalties meaning with examples

• After years of hard work, the author finally began to see royalties from her bestselling book. The income allowed her to focus on writing full-time, assuring her that her creative efforts were being recognized and rewarded. As each month passed, she eagerly checked her statements for new royalty payments, appreciating the financial independence her work had finally afforded her.
• The musician made a substantial income from royalties generated by streaming services. Each play of her songs contributed to her earnings, reflecting the popularity of her music. This new digital landscape provided her with opportunities her predecessors could only have dreamed of, showcasing the power of modern technology in reshaping revenue models for artists.
• When a filmmaker licenses a script to a production company, they typically negotiate a royalty agreement. This ensures that the writer receives a percentage of the profits made from the film based on ticket sales, merchandise, and licensing deals. Such arrangements highlight the importance of intellectual property in the film industry and reward creativity and collaboration.
• Software developers often earn royalties from their creations through licensing agreements with companies that use their software. Every time the software is sold or downloaded, a portion of the profits is sent back to the developers as a token of appreciation for their innovation. This model incentivizes developers to create high-quality products that meet the needs of various industries.