royalty

A royalty is a percentage or fee paid on the proceeds of sale or exploitation of some work by a business, who has acquired the right from the creator to exploit their work. The work may be for instance a musical work by a composer, a literary work written by an author, an invention with intellectual property rights vesting in it.

Usage: The royalty for the licensing for the intellectual property was payable monthly in arrears.

Related Words: commission; contract; intellectual property rights.