Simple definition
A payment tied to use, sale, or licensing of intellectual property.
Intellectual Property
What Does Royalty Mean?
A payment tied to use, sale, or licensing of intellectual property.
Example in a contract
A five percent royalty is payable on net sales.
What royalty means in a contract
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Why it may matter
Its practical effect depends on the exact wording and how it connects to the rights and obligations elsewhere in the agreement. Review the exact language rather than relying on the label alone.
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FAQ
Questions about royalty.
What does royalty mean in plain English?+
A payment tied to use, sale, or licensing of intellectual property.
Where might royalty appear in a contract?+
In a contract, this term should be read in the context of the surrounding clause, defined terms, cross-references, and governing law.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.