What is royalty?

Deductions to the owner for the use of hisproperty existed since the time of feudal law. Finally, such financial relations took shape under capitalism. At the same time, the authors' rights to use their works were recognized, and royalties appeared. Let's see, royalties: what is this?

The meaning and essence of the concept

The word "royalty" came fromOld-French roialte (in Latin regalis) and means royal. It was used when the monarch issued a permit to receive income (duties). And the authors were given privileges for their works.

In modern law, royalties are payments foruse of property: works (music, art, literary, scientific, films), patents, trademarks, trademark, computer program, etc.

Payment is not a one-time payment, butfor a certain period (stipulated in the contract) or the entire time of use of the property of the author (owner). The royalty is a percentage of the number of uses (circulation of the book, copies of disks, films, etc.).

Application in various fields

In the business sphere, royalties arefranchising - a form of small business, when the franchisor (entrepreneur) gets the right to conduct business under a certain trademark. A certain percentage of sales are paid for the use of this sign (brand).

The economy pays the right to useland and subsoil. In copyright law royalties are paid for each edition and the performance of music, the circulation of the book, the rental of the film, the production of goods (to the designer, the inventor).

Having understood what royalty is, remember that when paying royalties, the buyer does not acquire the copyright itself, but the opportunity to use it for commercial purposes.