Royalty Management Information:
Software, Resources, & More

Royalty Information & Resources

With over 25 years of royalty management experience, MetaComet® Systems has mastered the science of calculating, paying, and reporting on royalties. We’ve compiled these resources to help you do the same.

Reducing the royalty workload

Case Study: Reducing the Royalty Workload from Months to Days

by David Marlin | January 29, 2025

Megan Trank is the client manager for financial statements for IPG, the leading book distribution and sales company. She previously oversaw accounting and royalties, among other responsibilities, for a small independent book publisher. In both roles, she used MetaComet’s Royalty Tracker® to drastically reduce the time she spent calculating royalties, distributing statements, and providing guidance to royalty recipients. 

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Different types of royalties and how they work.

Different Types of Royalties: Key Insights & Examples

by David Marlin | January 21, 2025

Here we’ll explore the different types of royalties, from creative industries like book publishing and video games to the worlds of science, technology, and natural resources. We’ll cover the key mechanisms of how they work and provide simple examples for each type to give you a comprehensive understanding of royalties in various sectors.

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What Is a Royalty Advance?

Royalty Advances 101 – A Comprehensive Guide for Publishing

by David Marlin | January 13, 2025

A royalty advance, sometimes known as an advance against royalties, is a standard feature of author payments in book publishing. It may also be used in other media, entertainment, and licensing industries, when creators are paid for a work that is acquired and sold by a publisher, studio, distributor, or other business entity. In this Q&A, we will define the term “royalty advance” and answer other related questions.

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How are royalties calculated?

How Are Royalties Calculated? Assessment & Reporting Tips

by David Marlin | January 7, 2025

Royalties are a crucial aspect of financial management in various industries, particularly in publishing, biotechnology, franchising, and natural resources. Here’s a detailed overview of how royalties are calculated, when they are paid, typical percentages, and related concepts.

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Rights & Royalties Definitions

Rights and Royalties Definitions – Glossary of Terms

by David Marlin | January 6, 2025

This glossary defines many of the commonly used terms related to royalties, rights, and royalty management software.

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Royalty Tracker and Sales Aggregator Scale Up Painlessly

Case Study: Royalty Tracker® and Sales Aggregator Scale Up Painlessly

by David Marlin | December 20, 2024

The largest private audiobook production company in the US radically upgraded its royalty management process using MetaComet® software. By adopting Royalty Tracker® and Sales Aggregator, John Marshall Media and Lantern Audio Distribution saved multiple days of work per quarter, eliminated errors in calculations, and streamlined the payment process.

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A cartoon image of a woman paying royalties by hand.

Paying Royalties | Meaning, Tips & Tracking Solutions

by David Marlin | December 20, 2024

Royalty payments are a key instrument in book publishing, biotechnology, and other industries that rely on the licensing and transfer of intellectual property. If your business is paying royalties to more than a handful of recipients in each royalty period, you may benefit from a software system that automates that process for you.

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The Bookseller article calling for publishing industry solutions for royalty chaos.

Publishing Industry Solutions for Royalty Management Chaos

by David Marlin | December 5, 2024

A November 21 article from The Bookseller reports on the publishing industry’s “hidden epidemic” of chaotic royalty management, payments, and communication. (Heloise Wood, “Royalties survey sparks calls for change as Society of Authors reveals ‘increased reliance on hardship grants.’”)

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Webinar: Royalty Automation for University Presses

by David Marlin | November 25, 2024

In this video we look at exactly how automated royalty management systems work, walking through real-world royalty processing scenarios. We demonstrate how to use an automated system to record contract terms, process disparate sales files, perform calculations, and generate and transmit royalty statements, reports, and payment files. We also review the implementation process and discuss best practices for a smooth and painless transition to automation.

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Royalties in Business & How to Track Them

Royalties in Business | Definition & Tracking Solutions

by David Marlin | November 15, 2024

Authors, illustrators, inventors, and developers — these diverse types of professionals are among the many who create intellectual property and rely on royalty payments to support their work.

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Frequently Asked Royalty Information Questions

 

What are royalties and how are they paid?

A royalty is a payment made by one party (the licensee) to another (the licensor) for the ongoing use of an asset, commonly a piece of intellectual property. Payment methods and frequency are established in a royalty licensing agreement between the two parties. For more details, see our article entitled, “How Do Royalties Work?”

How much is the average royalty check?

Royalty payments vary widely across different industries and within industries as well, depending on the value of the asset being licensed, the sales volume within the royalty period, and many other factors. So, there is no such thing as an average, normal, or typical royalty check. To learn more about the elements that affect a royalty check, see our article, “How Are Royalties Calculated?”

How do I calculate my royalties?

Royalties are calculated based on a percentage of sales revenue or a flat fee per unit sold. The percentage or fee is agreed upon in a royalty licensing agreement between the licensor and licensee. The agreement will also outline other variables that will affect royalty payments. For more information, read our post, “How Are Royalties Calculated?”

Who receives royalty payments?

Royalty recipients include copyright holders (like writers, illustrators, and composers), patent owners (such as inventors), natural resource owners, and franchisors, among others. See our article, “What Are Royalties in Business?” for further examples of people and companies that receive royalty payments.

What types of royalties exist?

Common types of royalties include book publishing royalties, music royalties, patent royalties, franchise fees, and oil and gas royalties. Our blog post, “Different Types of Royalties,” goes into more detail about the various types of royalties you may encounter.

How often are royalties paid out?

Payments are typically made quarterly or annually, and sometimes monthly or semiannually, depending on the terms of the royalty agreement.

What is included in a royalty agreement?

A royalty licensing agreement will include, at a minimum, a definition of the rights granted, usage conditions, and payment terms. Our article about “How Do Royalties Work? delves into the deeper details of royalty agreements.

Are royalties taxed?

Yes, royalty payments are taxed as income.