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Simple English definitions for legal terms
Royalty
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A quick definition of Royalty:
Term: Royalty
Definition: Royalty is a payment made to someone who owns something special, like a book or a song, when other people use or buy it. For example, if you write a book and a company sells it, you might get some money from each book sold. This is called a royalty. The word "royalty" comes from a long time ago when people had to pay the king or queen for using their land or resources. Royalties can also be something that you can give to someone as a gift or inherit from someone else.
A more thorough explanation:
Definition: Royalty is a payment made to the owner of something valuable, like a book or a piece of land, for the right to use or profit from it. This payment is usually a percentage of the sales or a set amount per sale.
For example, if you write a book and a company wants to sell it, they will pay you a royalty for each book sold. This could be 20% of the sales or $5 per book sold. Another example is when a company wants to extract natural resources from a piece of land, they will pay the owner a royalty for the right to do so.
The term "royalty" comes from the payments that were owed to the English crown for extracting resources from its property. Royalties can also be a type of personal property that can be inherited or gifted.
Overall, royalties are a way for owners of valuable things to be compensated for the use or profit of their property.