Licensing
Royalty
A recurring payment to a rights holder calculated from continued use or revenue generated by the licensed work.
What it means in practice
The agreement defines the royalty base, rate, reporting period, deductions, payment schedule, and audit process. Royalties can be tied to sales, views, units, revenue, or another measurable use of the licensed asset.
Why it matters
Ambiguous calculation terms can cause underpayment, reporting disputes, and inaccurate campaign costs.
How it is used
A brand reports qualifying sales and pays the creator according to the royalty formula in the license.
Related terms
- Sync LicensePermission from music rights holders to synchronize a recording with moving images in a specific project.
- Fair UseA United States doctrine permitting limited unlicensed use of protected material for purposes such as criticism, commentary, or parody.
- Exclusivity ClauseA contract term preventing a creator from working with defined competitors for a stated period around the campaign.