Royalty Management Information:
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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.

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.