Royalties Explained

Royalties are payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, generally intellectual property (IP) rights. Royalties are typically a percentage of gross or net sales derived from the use of an asset or a fixed amount per unit sold of an item. A royalty interest is the right to collect a stream of future royalty payments for a predetermined period of time.

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