Royalty Payment

A royalty payment is a fee paid by one party to another for the right to use an asset, such as intellectual property like patents, trademarks, or copyrighted works like music or books. It’s a form of compensation for the ongoing use or benefit derived from that asset. For example, a musician receives royalties whenever their song is played on the radio or streamed online. Royalties are typically calculated as a percentage of revenue or a fixed amount per use, and they ensure creators and rights holders are fairly compensated for their work or assets.