Royalty Legal Meaning and Definition

Here is a simplified definition of the legal term Royalty.

Royalty (noun)

Royalty is a payment given to the owner of a property, invention, or idea. It is usually a percentage of the money made from selling or using the item. This term is often used in business, particularly in sectors like book publishing, music, and technology. Royalty payments are a way to reward creators for their work and to compensate them for the use of their creations.