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.

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.

Read more

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.

Read more

The types of book publishing royalties include traditional and profit sharing models. Traditional royalties can be further divided into retail/list royalties and net royalties.

Publishing Royalties | What They Are & How to Calculate Them

by David Marlin | November 8, 2024

Royalties are a common payment framework for many different kinds of business agreements, and are especially prevalent in book publishing deals.

Read more

Royalty Reporting Tips for Success: What, Why, and How.

Royalty Reporting | Definition, Tips & Recommendations

by David Marlin | November 7, 2024

In royalty-based industries such as publishing, gaming, and pharmaceuticals, one of the most crucial yet complex aspects of financial management is royalty reporting. Ensuring that licensors and other stakeholders receive accurate, timely payments is essential for maintaining trust and fostering long-term relationships.

Read more

Types of Book Royalties: To calculate List Royalties, multiply Books Sold x List Price x Royalty Percentage. To calculate Net Royalties, subtract the wholesale discount from the list price, then multiply by Books Sold and the Royalty Percentage.

Book Royalties: What They Are, How They Work, & Tracking Tips

by David Marlin | October 8, 2024

Book publishers tend to enter the business because of a love for books, not a love for royalty accounting. But royalties can be complex, and consume a disproportionate amount of the time spent on the business.

Read more

Nelson Case Study: Publisher Royalties Become Visible

Nelson Case Study: Publisher Royalties Become Visible

by David Marlin | August 8, 2024

Nelson is Canada’s leading K–12 educational publisher, currently distributing thousands of products and managing tens of thousands of royalty agreements.

Read more

A chart showing the flow of book publishing royalties. Retailers pay publishers for book sales. Publishers provide discounts, rebates, and refunds to retailers. Publishers pay advances and royalties to authors.

Book Publishing Royalties Made Easy

by David Marlin | July 29, 2024

Many MetaComet customers are running established publishing houses with years or decades of experience managing book publishing royalties. But others are just getting started. If you are new to the business, you may have some questions. Fortunately, the royalty experts at MetaComet have answers.

Read more

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.