A royalty is a payment made to an owner or creator of an asset, such as a patent, copyright, or mineral rights, for the right to use that asset. In the context of income, royalty income refers to the revenue earned by the owner or creator of an intellectual property, such as a book or song, when it is used or sold by others. The amount of royalty paid is typically a percentage of the revenue generated by the use or sale of the asset.
Definition – What is a ‘Royalty’?
