What is royalty?

[anonymous_user_3e9f22c4]

I’ve been looking at some posts on here and they say [ROYALTY] in the title and I want to know what that means. I know that might be a silly question but I would love an answer

[qdelpeche]

Basically it as follows:

A royalty is a payment made by one party (the “licensee”) to another that owns a particular asset (the “licensor”) for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation. A royalty interest is the right to collect a stream of future royalty payments.

A license agreement defines the terms under which a resource or property are licensed by one party to another, either without restriction or subject to a limitation on term, business or geographic territory, type of product, etc. License agreements can be regulated, particularly where a government is the resource owner, or they can be private contracts that follow a general structure. However, certain types of franchise agreements have comparable provisions.

[Jamendxman3]

Simply put, royalty is a percentage of revenue. If I work for a team that pays royalty, then I am not paid by the hour, or per project, but I receive a percentage of revenue sales and possibly other methods of income.

[Ironbelly]

I thought it was a learning tool to discover how hard it is to keep a team active and motivated

(No, seriously, the above 2 have the correct answer).

[anonymous_user_2b10dd13]

Royalty/ Revenue Share should always be considered carefully, though it may work well for some people.

One implication of royalty is that you are taking a risk based on whether or not the game will be successful.

Just something to keep in mind, my first failed game project involved royalty and it fell apart for… well, I just don’t want to get into it now.