royalty
ROY-ul-tee
/ˈrɔɪ.əl.ti/
A payment made to a rightsholder for the right to use their asset, process, or creative work.
Usually negotiated as a recurring percentage of revenues or per-unit fee generated from the asset's use.
The story behind the word. Originally, 'royalty' referred to rights granted by the crown (the king) to private individuals to exploit minerals or land, in return for giving the monarch a cut of the profits.
Word relationships
- license fee: A license fee is often a fixed flat sum, whereas a royalty is typically an ongoing calculated payout based on sales or usage.
- flat sum: A flat sum is a single, fixed upfront payment with no ongoing performance payouts.
Commonly confused with
- loyalty: Loyalty is faithfulness or devotion, whereas royalty refers to payment for protected intellectual assets.
Word family
- royalties (noun): Plural form referring to accumulated payment streams.
Collocations
- royalty payments
- royalty rate
- earn royalties
- royalty agreement
Example sentences
- "The songwriter receives a royalty every time her song is played on commercial radio." Music industry contract
- "The landowner signed a deal granting the mining firm extraction rights in exchange for a quarterly royalty fee." Mining rights context
Memory hook
Pay a ROYALTY to treat the creator like ROYALTY. ROYALTY = King's share of profits.
When not to use
Do not confuse commercial royalty payments with flat one-time purchases of physical objects.
Fun facts
- In oil and gas law, land owners still receive 'mineral royalties' descended directly from medieval English royal prerogatives.
Related words
Explore more words
copyright, monetization, income, asset, intellectual property, interest
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