Royalty

A Royalty is a recurring payment made to the owner of intellectual property — such as music, books, patents, or licensed content — each time that property is used, sold, or performed by a third party. In the creator economy, royalties are most common in music licensing (where songwriters receive royalties each time their music is streamed or performed), book publishing (where authors receive a percentage of each sale), and content licensing (where creators receive ongoing payments for licensed use of their videos or images). Unlike a flat fee (which is a one-time payment), royalties provide ongoing passive income as long as the work continues to be used.