Royalty Payments and YOU!

Royalty (payment) In the law of property, term used to designate payment analogous to rent made for the use of the property of another. The owner of lands containing mineral resources, such as petroleum or coal, who permits another to extract these products generally receives a royalty, or payment, consisting of a percentage of the production for petroleum or a fixed dollar amount per ton for coal. The owner of a patent or copyright may license others to use the patented item or to reproduce, change, distribute, perform, or display the copyrighted creative work. For example, royalties may be paid to a writer, composer, or inventor as a share of the proceeds resulting from the sale, performance, or other use of his or her work or invention.