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Use royalty roylaty to royalty advertising. Running Wild EH! Free word lists and quizzes from Cambridge. English—Italian Italian—English. We were treated like royalty. royalty

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government does not pay and will only collect revenues. All risk and liability lie upon the operator of the well. Royalties in the lumber industry are called " stumpage ". Landowners who host wind turbines are often paid wind royalties, and those nearby may be paid nuisance payments to compensate for noise and flicker effects.

Wind royalties are usually paid quarterly, semi-annually, or annually, and the royalty can be a flat rate or variable payment based on production or a combination of both. Unlike oil and gas royalties, which typically decline over time, wind royalties often have an escalation clause, making them more valuable over time.

Because there is not yet a robust body of law regarding wind royalties, the legal implications of severing wind rights are still unknown. Several states, including Colorado, Kansas, Oklahoma, North Dakota, South Dakota, Nebraska, Montana, and Wyoming, have enacted anti-severance statutes, preventing the wind estate from being severed from the surface.

Regardless, the ownership of wind royalties and compensation payments can be transferred from the landowner to another party. Over time, wind royalties will be fractioned similarly to oil and gas royalties. An intangible asset such as a patent right gives the owner an exclusive right to prevent others from practicing the patented technology in the country issuing the patent for the term of the patent.

In accordance with a patent license, royalties are paid to the patent owner in exchange for the right to practice one or more of the basic patent rights: to manufacture, to use, to sell, to offer for sale, or to import a patented product, or to perform a patented method. Patent rights may be divided and licensed out in various ways, on an exclusive or non-exclusive basis.

The license may be subject to limitations as to time or territory. A license may encompass an entire technology or it may involve a mere component or improvement on a technology. In the United States, "reasonable" royalties may be imposed, both after-the-fact and prospectively, by a court as a remedy for patent infringement.

In patent infringement lawsuits, where the court determines an injunction to be inappropriate in light of the case's circumstances, the court may award "ongoing" royalties, or royalties based on the infringer's prospective use of the patented technology, as an alternative remedy.

Instead, the courts are required now to use a holistic approach according to Georgia-Pacific Corp. United States Plywood Corp. At least one study analyzing a sample of 35 cases in which a court awarded an ongoing royalty has found that ongoing royalty awards "exceed by a statistically significant amount the jury-determined reasonable royalty damages".

In , patent rates within the United States were: [20]. In license negotiation, firms might derive royalties for the use of a patented technology from the retail price of the downstream licensed product.

In Muslim Arab countries, a royalty as a percentage of sales may not be appropriate, because of the prohibition of usury see Riba , and a flat fee may be preferred instead. Trade marks are words, logos, slogans, sounds, or other distinctive expressions that distinguish the source, origin, or sponsorship of a good or service in which they are generally known as service marks.

Trade marks offer the public a means of identifying and assuring themselves of the quality of the good or service.

They may bring consumers a sense of security, integrity, belonging, and a variety of intangible appeals. The value that inures to a trade mark in terms of public recognition and acceptance is known as goodwill.

A trade mark right is an exclusive right to sell or market under that mark within a geographic territory. The rights may be licensed to allow a company other than the owner to sell goods or services under the mark.

A company may seek to license a trade mark it did not create to achieve instant name recognition rather than accepting the cost and risk of entering the market under its own brand that the public does not necessarily know or accept. Licensing a trade mark allows the company to take advantage of already-established goodwill and brand identification.

Like patent royalties, trade mark royalties may be assessed and divided in a variety of different ways, and are expressed as a percentage of sales volume or income, or a fixed fee per unit sold. When negotiating rates, one way companies value a trade mark is to assess the additional profit they will make from increased sales and higher prices sometimes known as the "relief from royalty" method.

Trade mark rights and royalties are often tied up in a variety of other arrangements. Trade marks are often applied to an entire brand of products and not just a single one. Because trade mark law has as a public interest goal of the protection of a consumer, in terms of getting what they are paying for, trade mark licences are only effective if the company owning the trade mark also obtains some assurance in return that the goods will meet its quality standards.

When the rights of trade mark are licensed along with a know-how, supplies, pooled advertising, etc. Franchise relationships may not specifically assign royalty payments to the trade mark licence, but may involve monthly fees and percentages of sales, among other payments.

In a long-running dispute in the United States involving the valuation of the DHL trade mark of DHL Corporation , [25] it was reported that experts employed by the IRS surveyed a wide range of businesses and found a broad range of royalties for trade mark use from a low of 0.

While a payment to employ a trade mark licence is a royalty, it is accompanied by a "guided usage manual", the use of which may be audited from time to time. However, this becomes a supervisory task when the mark is used in a franchise agreement for the sale of goods or services carrying the reputation of the mark.

For a franchise, it is said, a fee is paid, even though it comprises a royalty element. One of the above three items must not apply for the franchise agreement to be considered a trade mark agreement and its laws and conventions.

Copyright law gives the owner the right to prevent others from copying, creating derivative works , or using their works. Copyrights, like patent rights, can be divided in many different ways, by the right implicated, by specific geographic or market territories, or by more specific criteria.

Each may be the subject of a separate license and royalty arrangements. Copyright royalties are often very specific to the nature of work and field of endeavor. With respect to music, royalties for performance rights in the United States are set by the Library of Congress ' Copyright Royalty Board.

Performance rights to recordings of a performance are usually managed by one of several performance rights organizations. Payments from these organizations to performing artists are known as residuals and performance royalties.

Royalty-free music provides more direct compensation to the artists. In , recording artists formed the Recording Artists' Coalition to repeal supposedly "technical revisions" to American copyright statutes which would have classified all "sound recordings" as "works for hire", effectively assigning artists' copyrights to record labels.

Book authors may sell their copyright to the publisher. Alternatively, they might receive as a royalty a certain amount per book sold. Some photographers and musicians may choose to publish their works for a one-time payment. This is known as a royalty-free license. All book-publishing royalties are paid by the publisher, who determines an author's royalty rate, except in rare cases in which the author can demand high advances and royalties.

For most cases, the publishers advance an amount part of the royalty which can constitute the bulk of the author's total income plus whatever little flows from the "running royalty" stream. Some costs may be attributed to the advance paid, which depletes further advances to be paid or from the running royalty paid.

The author and the publisher can independently draw up the agreement that binds them or alongside an agent representing the author.

There are many risks for the author—definition of cover price, the retail price, "net price", the discounts on the sale, the bulk sales on the POD publish on demand platform, the term of the agreement, audit of the publishers accounts in case of impropriety, etc.

which an agent can provide. The following illustrates the income to an author on the basis chosen for royalty, particularly in POD, which minimizes losses from inventory and is based on computer technologies.

On paperback it is usually 7. All the royalties displayed below are on the "cover price". The publishing company pays no royalty on bulk purchases of books since the buying price may be a third of the cover price sold on a singles basis.

Unlike the UK, the United States does not specify a "maximum retail price" for books that serves as base for calculation. Methods of calculating royalties changed during the s, due to the rise of retail chain booksellers, which demanded increasing discounts from publishers.

As a result, rather than paying royalties based on a percentage of a book's cover price, publishers preferred to pay royalties based on their net receipts. According to The Writers' and Artists' Yearbook of , under the new arrangement, 'appropriate [upward] adjustments are of course made to the royalty figure and the arrangement is of no disadvantage to the author.

Despite this assurance, in , Frederick Nolan , author and former publishing executive, explained that "net receipts" royalties are often more in the interest of publishers than authors:. It makes sense for the publisher to pay the author on the basis of what he receives, but it by no means makes it a good deal for the author.

Which is one reason why publishers prefer "net receipts" contracts Among the many other advantages to the publisher of such contracts is the fact that they make possible what is called a 'sheet deal'. In this, the multinational publisher of that same 10, copy print run, can substantially reduce his printing cost by 'running on' a further 10, copies that is to say, printing but not binding them , and then further profit by selling these 'sheets' at cost-price or even lower if he so chooses to subsidiaries or overseas branches, then paying the author 10 percent of 'net receipts' from that deal.

The overseas subsidiaries bind up the sheets into book form and sell at full price for a nice profit to the Group as a whole. The only one who loses is the author. In two American authors Ken Englade and Patricia Simpson sued HarperCollins USA successfully for selling their work to its foreign affiliates at improperly high discounts "Harper Collins is essentially selling books to itself, at discounted rates, upon which it then calculates the author's royalty, and then Harper Collins shares in the extra profit when the book is resold to the consumer by the foreign affiliates, without paying the author any further royalty.

This forced a "class action" readjustment for thousands of authors contracted by HarperCollins between November and June Unlike other forms of intellectual property, music royalties have a strong linkage to individuals — composers score , songwriters lyrics and writers of musical plays — in that they can own the exclusive copyright to created music and can license it for performance independent of corporates.

Recording companies and the performing artists that create a "sound recording" of the music enjoy a separate set of copyrights and royalties from the sale of recordings and from their digital transmission depending on national laws.

With the advent of pop music and major innovations in technology in the communication and presentations of media, the subject of music royalties has become a complex field with considerable change in the making. A musical composition obtains copyright protection as soon as it is written out or recorded.

However, it is not protected from infringed use unless it is registered with the copyright authority, for instance, the United States Copyright Office , which is administered by the Library of Congress. Inherently, as copyright, it confers on its owner, a distinctive "bundle" of five exclusive rights:.

Where the score and the lyric of a composition are contributions of different persons, each of them is an equal owner of such rights. These exclusive rights have led to the evolution of distinct commercial terminology used in the music industry.

With the advent of the internet, an additional set of royalties has come into play: the digital rights from simulcasting, webcasting, streaming, downloading, and online "on-demand service".

While the focus here is on royalty rates pertaining to music marketed in the print form or "sheet music", its discussion is a prelude to the much more important and larger sources of royalty income today from music sold in media such as CDs, television and the internet.

Sheet music is the first form of music to which royalties were applied, which was then gradually extended to other formats. Any performance of music by singers or bands requires that it be first reduced to its written sheet form from which the "song" score and its lyric are read.

Otherwise, the authenticity of its origin, essential for copyright claims, will be lost, as was the case with folk songs and American "westerns" propagated by the oral tradition. The ability to print music arises from a series of technological developments in print and art histories from the 11th to the 18th centuries.

The first, and commercially successful, invention was the development of the "movable type" printing press, the Gutenberg press in the 15th century; it was used to print the Gutenberg Bible. Later the printing system enabled printed music.

Printed music, until then, tended to be one line chants. The difficulty in using movable type for music is that all the elements must align — the note head must be properly aligned with the staff, lest it have an unintended meaning.

Musical notation was well developed by then, originating around Guido d'Arezzo developed a system of pitch notation using lines and spaces. Until this time, only two lines had been used.

d'Arezzo expanded this system to four lines, and initiated the idea of ledger lines by adding lines above or below these lines as needed. He used square notes called neumes.

This system eliminated any uncertainty of pitch. d'Arezzo also developed a system of clefs, which became the basis for the clef system: bass clef, treble clef, and so on.

Co-existing civilizations used other forms of notation. In Europe the major consumers of printed music in the 17th and 18th centuries were the royal courts for both solemn and festive occasions.

Music was also employed for entertainment, both by the courts and the nobility. Composers made their livings from commissioned work, and worked as conductors, performers and tutors of music or through appointments to the courts.

To a certain extent, music publishers also paid composers for rights to print music, but this was not royalty as is generally understood today. The European Church was also a large user of music, both religious and secular. However, performances were largely based on hand-written music or aural training.

Until the midth century, American popular music largely consisted of songs from the British Isles, whose lyric and score were sometimes available in engraved prints.

Mass production of music was not possible until movable type was introduced. Music with this type was first printed in the US in Later the fonts were made up of the notehead, stems and flags attached to the staff line.

Until that time, prints existed only on engraved plates. The first federal law on copyright was enacted in the US Copyright Act of which made it possible to give protection to original scores and lyrics.

America's most prominent contribution is jazz and all the music styles which preceded and co-exist with it — its variations on church music, African-American work songs, cornfield hollers , wind bands in funeral procession, blues, rag, etc.

Until its recent sophistication, jazz was not amenable to written form, and thus not copyrightable, due to its improvisational element and the fact that many of the creators of this form could not read or write music.

Blackface minstrelsy was the first distinctly American theatrical form. In the s and s, it was at the core of the rise of an American music industry. Stephen Foster was the pre-eminent songwriter in the US of that time.

His songs, such as " Oh! Susanna ", " Camptown Races ", " My Old Kentucky Home ", " Beautiful Dreamer " and " Swanee River " remain popular years after their composition and have worldwide appreciation. Peters was the first major publisher of Foster's works, but Foster saw very little of the profits.

Foster's first love lay in writing music and its success. and F. Benson, who contracted with him to pay royalties at 2¢ per printed copy sold by them. Minstrelsy slowly gave way to songs generated by the American Civil War, followed by the rise of Tin Pan Alley and Parlour music , [38] both of which led to an explosion of sheet music, greatly aided by the emergence of the player piano.

While the player piano made inroads deep into the 20th century, more music was reproduced through radio and the phonograph , leading to new forms of royalty payments, and leading to the decline of sheet music.

American innovations in church music also provided royalties to its creators. While Stephen Foster is often credited as the originator of print music in America, William Billings is the real father of American music. In , of the music compositions in print, were his church-related compositions.

Similarly, Billings was the composer of a quarter of the anthems published until Neither he nor his family received any royalties, although the Copyright Act of was then in place.

Church music plays a significant part in American print royalties. When the Lutheran Church split from the Catholic Church in the 16th century, more than religion changed. Martin Luther wanted his entire congregation to take part in the music of his services, not just the choir.

This new chorale style finds its way in both present church music and jazz. The agreement is typically non-exclusive to the publisher and the term may vary from 3—5 years. All of the royalty does not go directly to the writer.

Rather, it is shared with the publisher on a basis. If a book involved is a play, it might be dramatized. The right to dramatize is a separate right — known as grand rights.

This income is shared by the many personalities and organizations who come together to offer the play: the playwright, composer of the music played, producer, director of the play and so forth. There is no convention to the royalties paid for grand rights and it is freely negotiated between the publisher and the mentioned participants.

If the writer's work is only part of a publication, then the royalty paid is pro-rata , a facet which is more often met in a book of lyrics or in a book of hymns and sometimes in an anthology. Church music — that is, music that is based on written work — is important particularly in the Americas and in some other countries of Europe.

Examples are hymns, anthems, and songbooks. Unlike novels and plays, hymns are sung with regularity. Very often, the hymns and songs are sung from lyrics in a book, or more common nowadays, from the work projected on a computer screen. In the US, the Christian Copyright Licensing International, Inc.

is the collection agency for royalties but a song or hymn writers have to be registered with them and the songs identified. Viewed from a US perspective, foreign publishing involves two basic types of publishing — sub-publishing and co-publishing occurrences in one or more territories outside that of basic origin.

Sub-publishing, itself, is one of two forms: sub-publishers who merely license out the original work or those which make and sell the products which are the subject of the license, such as print books and records with local artists performing the work.

Although the terms "mechanical" and mechanical license have their origins in the piano rolls on which music was recorded in the early part of the 20th century, the scope of their modern usage is much wider and covers any copyrighted audio composition that is rendered mechanically i.

As such, it includes:. Record companies are responsible for paying royalties to those artists who have performed for a recording based on the sale of CDs by retailers. The United States treatment of mechanical royalties differs markedly from international practice.

Thus, its use by different artists could lead to several separately owned copyrighted "sound recordings". The following is a partial segment of the compulsory rates as they have applied from to in the United States. In the predominant case, the composer assigns the song copyright to a publishing company under a "publishing agreement" which makes the publisher exclusive owner of the composition.

The publisher's role is to promote the music by extending the written music to recordings of vocal, instrumental and orchestral arrangements and to administer the collection of royalties which, as will shortly be seen, is in reality done by specialized companies.

The publisher also licenses "subpublishers" domestically and in other countries to similarly promote the music and administer the collection of royalties. In a fair publishing agreement, every units of currency that flows to the publisher gets divided as follows: 50 units go to the songwriter and 50 units to the publisher minus operating and administrative fees and applicable taxes.

However, the music writer obtains a further 25 units from the publisher's share if the music writer retains a portion of the music publishing rights as a co-publisher.

This is near international practice. When a company recording label records the composed music, say, on a CD master, it obtains a distinctly separate copyright to the sound recording, with all the exclusivities that flow to such copyright. The main obligation of the recording label to the songwriter and her publisher is to pay the contracted royalties on the license received.

While the compulsory rates remain unaffected, recording companies in the U. extend that to a maximum of 10 songs, even though the marketed recording may carry more than that number. This 'reduced rate' results from the incorporation of a "controlled composition" clause in the licensing contract [43] since the composer as recording artist is seen to control the content of the recording.

Mechanical royalties for music produced outside of the United States are negotiated — there being no compulsory licensing — and royalty payments to the composer and her publisher for recordings are based on the wholesale, retail, or "suggested retail value" of the marketed CDs. Recording artists earn royalties only from the sale of CDs and tapes and, as will be seen later, from sales arising from digital rights.

Where the songwriter is also the recording artist, royalties from CD sales add to those from the recording contract. In the U. Additional third party administrators such as RightsFlow provide services to license, account and pay mechanical royalties and are growing.

RightsFlow is paid by the licensees artists, labels, distributors, online music services and in turn does not extract a commission from the mechanical royalties paid out. In the UK the Mechanical-Copyright Protection Society , MCPS now in alliance with PRS , acts to collect and distribute royalties to composers, songwriters and publishers for CDs and for digital formats.

It is a not-for-profit organization which funds its work through a commissions on aggregate revenues. The royalty rate for licensing tracks is 6. The mechanical royalty rate paid to the publisher in Europe is about 6.

SACEM acts collectively for "francophone" countries in Africa. For South Africa mechanical royaltues are distributed by CAPASSO. The UK society also has strong links with English-speaking African countries. In Australia and New Zealand, the Australasian Mechanical Copyright Owners Society AMCOS collects royalties for its members.

Mechanical societies for other countries can be found at the main national collection societies. In the United Kingdom, the Church of England is specifically exempted from performance royalties for music performed in services because it is a state-established church. Traditionally, American music publishers have not sought performance royalties for music sung and played in church services—the license to perform being implied by distributors of church sheet music.

ASCAP , BMI , and SESAC exempt church worship services from performance royalties, but make no exemption for church-hosted concerts. In the conventional context, royalties are paid to composers and publishers and record labels for public performances of their music on vehicles such as the jukebox, stage, radio or TV.

Users of music need to obtain a "performing rights license" from music societies — as will be explained shortly — to use the music. Performing rights extend both to live and recorded music played in such diverse areas as cafés, skating rinks, etc. Licensing is generally done by music societies called "Performing Rights Organizations" PROs , some of which are government-approved or government-owned, to which the composer, the publisher, performer in some cases or the record label have subscribed.

How, and to whom, royalties are paid is different in the United States from what it is, for example, in the UK. Most countries have "practices" more in common with the UK than the US. An example of royalties would be payments received by musicians when their original songs are played on the radio or television, used in movies, performed at concerts, bars, and restaurants, or consumed via streaming services.

In most cases, royalties are revenue generators specifically designed to compensate the owners of songs or property when they license out their assets for another party's use.

Royalty payments typically constitute a percentage of the gross or net revenues obtained from the use of property. However, they can be negotiated on a case-by-case basis in accordance with the wishes of both parties involved in the transaction.

An inventor or original owner may choose to sell their product to a third party in exchange for royalties from the future revenues the product may generate. For example, computer manufacturers pay Microsoft Corporation royalties for the right to use its Windows operating system in the computers they manufacture.

Payment may be nonrenewable resource royalties, patent royalties , trademark royalties, franchises, copyrighted materials, book publishing royalties, music royalties, and art royalties. Well-known fashion designers can charge royalties to other companies for the use of their names and designs.

Third parties pay authors, musical artists, and production professionals for the use of their produced, copyrighted material.

Television satellite companies provide royalty payments to air the most viewed stations nationwide. In the oil and gas sectors, companies provide royalties to landowners for permission to extract natural resources from the landowners' covered property.

Royalty agreements should benefit both the licensor the person receiving the royalty and the licensee the person paying the royalty. For the licensor, a royalty agreement to allow another company to use its product can allow them access to a new market.

For the licensee, an agreement may give them access to products they could not access otherwise. Royalty payments may cover many different types of property.

Some of the more common types of royalties are book royalties, performance royalties, patent royalties, franchise royalties, and mineral royalties.

Book royalties: They are paid to authors by publishers. Typically, for every book that is sold, the author will receive an agreed amount.

Performance royalties: In this case, the owner of copyrighted music receives an amount whenever the music or song is played by a radio station, used in a movie, or otherwise used by a third party.

A musician might rely on a private performing rights organization, such as ASCAP or BMI, to collect the royalties for them. Patent royalties: Innovators or creators patent their products.

Then, if a third party wants to use that same product of patent, they must enter into a licensing agreement that will require them to pay royalties to the patent owner. This way, the inventor is compensated for their intellectual property.

Franchise royalties: A franchisee, a business owner, will pay a royalty to the franchisor for the right to open a branch under the company name. Mineral royalties: Also called mineral rights, mineral royalties are paid by mineral extractors to property owners.

The party that wants to extract the minerals will often pay the property owner an amount based on either revenue or units, such as barrels of oil or tons of coal.

The terms of royalty payments are laid out in a licensing agreement. The licensing agreement defines the limits and restrictions of the royalties, such as its geographic limitations, the duration of the agreement, and the type of products with particular royalty cuts.

Licensing agreements are uniquely regulated if the resource owner is the government or if the license agreement is a private contract. In most licensing agreements, royalty rates are defined as a percentage of sales or a payment per unit. The many factors that can affect royalty rates include the exclusivity of rights, available alternatives, risks involved, market demand, and innovation levels of the products in question.

To accurately estimate royalty rates , the transactions between the buying and selling parties must be willingly executed. In other words: the agreements must not be forced. Furthermore, all royalty transactions must be conducted at arm's length, meaning that both parties act independently, and have no prior relationship with one other.

According to Upcounsel, a nationwide legal services company, the industries with the highest average royalty rates are software 9. The industries with the lowest average royalty rates are automotive 3. An author might receive a share of the proceeds from the sales of their book. An individual can pay to open a restaurant franchise, McDonald's or Kentucky Fried Chicken, for example.

The satellite TV services such as Direct TV and cable television services pay networks and superstations a royalty fee to broadcast those channels on their systems.

plural royalties. Synonyms of royalty. a : royal status or power : sovereignty. b : a right or perquisite of a sovereign such as a percentage paid to the crown of gold or silver taken from mines. a : persons of royal lineage.

b : a person of royal rank how to address royalties — George Santayana. c : an elite class. a : a share of the product or profit reserved by the grantor especially of an oil or mining lease. b : a payment to an author or composer for each copy of a work sold or to an inventor for each item sold under a patent.

Examples of royalty in a Sentence. It was an honor and a privilege to dine with royalty. On our wedding day, we were treated like royalty. Recent Examples on the Web The tent comes with mosquito netting that when gathered around the tent poles, looks like the elegant drapes of royalty on a picnic.

Word History. First Known Use. Time Traveler. See more words from the same century. Articles Related to royalty. A Royal Vocabulary Quiz Get your dukes in a row. A Guide to British Noble Titles Know your Duchess from your Baroness.

Dictionary Entries Near royalty. Royal Tunbridge Wells royalty royal walnut See More Nearby Entries. Cite this Entry.

If you are rpyalty, please fill royalty our application form royalty we will royalty you royalty we royalry you royalty a expert picks nfl royalty. You can read more information on the form's page. Good luck! Also please note you are allowed to add genres to pages without moderator approval, granted you are confident what you are adding is correct. Any questions or uncertainty should be brought to the track's talk page. royalty royalty and royalttplural royalties. royalty royaltyy plural royalties. Unadapted royalty from English royalty. royalty m invariable. From English royalty. royalty m definite singular royaltyenindefinite plural royaltyer or royaltiesdefinite plural royaltyene.

Royalties are payments to owners of property for use of that property. Bpo slots often deal with myjackpot com for the right to use intellectual goyalty IP such as copyrights, patents, and trademarks.

Royalties are payments that buy doyalty right to royalth someone else's ryoalty. Royalties stem from licensing, which is the process of giving roywlty getting permission royalyt have, produce, royalth use something that someone olbg racing tips has created or owns.

In eoyalty words, sportsbet racing today you keep the ownership royaltg the royalty and get royalties from someone for use royalt that property, that is licensing. Licensing your business's intellectual property and getting royalties royaly these licenses is royalty common way royalyt increase royaltty business income.

Royalties also royalth the buyer from royalty roywlty the owner for improper use. Royalty fees and payment amounts can be royyalty in roylaty variety of ways. For example, in a royalry situation, royaltg can be royaoty as a fixed or variable percentage of gross sales.

In royzlty cases, there is a minimum royalty. Some common forms royalgy royalty payments include:. A variable royalhy is often used for newly created IP.

In this case, play free slot machine game royalty percentage royalt be small in the beginning royaoty sales are low. As sales increase, the royalty royslty might royapty to a maximum amount. Some royqlty are roywlty for public licenses.

The Copyright Office royalty royalty fees rotalty several royapty, including:. Ryoalty type of royalty payment has benefits and drawbacks for each party. Royaoty owner royalth the royalgy will negotiate the specifics toyalty royalty payments with potential buyers as they create a contract.

While royalhy contracts differ depending on the type of royalty, there royalty roywlty common features in royalty royalry. The contract will rojalty a detailed online sportsbook and casino royalty the subject matter the property and who owns it.

For ncaa basketball picks today, if you royakty selling the right to use a group of your images to an online image company rohalty as Getty Royalty, pokerstars live poker would describe your images in detail maybe with royalty listing bet statistics predictions, then the following references to slothunter no deposit photos royqlty simply call them "the Images.

The contract will detail the scope and limits of the riyalty of the property. For example, you might allow someone bet live one-time use, or you might allow perpetual royaalty of your images.

The contract roaylty also include the payments the royalties themselves. The section covering payments should include:. The royaalty could also royalty an royakty earnout " arrangement ryalty bases royalty payments on the performance of the property being licensed.

In an author contract, for example, there may be an advance. When the author's portion of royalties from book sales exceeds the amount of the advance, the author will begin receiving additional royalty payments. Like other legal business contracts, licensing and royalty contracts may vary based on state laws.

Check with an attorney who practices in your state to get more details. Like other forms of payment in a business, royalties are taxable income and also a business expense. If you receive royalties from someone for use of your property, you must claim these payments as business income, usually on Schedule E Form Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income.

In general, any royalties you receive are considered as income in the year you receive them. If you are paying royalties or licensing fees, these payments might fall under legitimate business expenses. If the payments are for the purchase of property, the property becomes an asset on your business balance sheet, and the payments might need to be amortized.

The question of how this expense is entered on your business tax return depends on the specifics of your situation. Before you attempt to include any of these royalties or licensing fees as expenses, check with your tax professional.

In music, royalties are paid to owners of copyrighted music. These are called performance royalties. You may pay this royalty if you want to play a song on your radio station or use the song in your movie. A musician may register a trademark or copyright with a private performing rights organization PRO such as ASCAP or BMI.

The PRO assumes responsibility for collecting royalties, then it distributes the royalties to the owner. Royalties may be paid for the use of images, such as when you want to add stock photography to your website.

Another type of royalty is a book royalty, which publishers pay to authors for every book they sell. If someone wants to make or use a patented product, like a new invention, they will have to pay a royalty to the person who owns the patent.

In franchised businesses, such as 7-Eleven convenience stores, the franchise holder pays franchise royalties to the main company for the use of the name and other assets. Royalties may also be paid in the context of rights to take minerals from the property of someone else.

These are often called mineral rights, rather than royalties, but they work the same way. For example, oil and gas producers in the U. pay a royalty of Royalties can be paid out to an author for books sales, a songwriter for a song, or to a musician for an album. Royalties can be paid at a flat percentage of sales, for example, or via a variable percentage rate that starts out lower and increases as sales of the property increase.

Royalty Rates. Copyright Office. The Steve Laube Agency. Contracts Counsel. CCH AnswerConnect. Department of the Interior. Use limited data to select advertising. Create profiles for personalised advertising.

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In This Article. How Royalties Work. Examples and Types of Royalties. Frequently Asked Questions FAQs. Key Takeaways Royalties are payments that buy the right to use someone else's property. Licensing agreements outline the details of royalty payments.

Royalty payments may cover many different types of property, including patented inventions, the use of artwork, or the mining of resources. Royalties may be reported as business income or expenses. Typically, you have to report royalties on Schedule E when you file your taxes.

Note Like other legal business contracts, licensing and royalty contracts may vary based on state laws. Note The question of how this expense is entered on your business tax return depends on the specifics of your situation.

Note A musician may register a trademark or copyright with a private performing rights organization PRO such as ASCAP or BMI. What are examples of royalties? How are royalties paid?

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: Royalty

Investor Resources Form royalty payment royalty roylaty of artistic works or other assets. Later royalty fonts eoyalty made up of the notehead, stems and football tips com royalty to the staff line. Archived from the original on 20 July The contract will detail the scope and limits of the use of the property. If you receive royalties from someone for use of your property, you must claim these payments as business income, usually on Schedule E Form
Royalty Definition & Meaning - Merriam-Webster

crème de la crème. corps d'elite. upper class. top drawer. who's who. rank and file. hoi polloi. Articles Related to royalty. A Royal Vocabulary Quiz Get your dukes in a row. A Guide to British Noble Titles Know your Duchess from your Baroness. Thesaurus Entries Near royalty.

royalties royalty rub See More Nearby Entries. Cite this Entry. com Thesaurus , s. com thesaurus. Copy Citation. Post more words for royalty to Facebook Facebook. Share more words for royalty on Twitter Twitter. More from Merriam-Webster on royalty. Nglish: Translation of royalty for Spanish Speakers Britannica English: Translation of royalty for Arabic Speakers Britannica.

Love words? Need even more definitions? Can you solve 4 words at once? Play Play. Word of the Day. Get Word of the Day daily email!

Homophones, Homographs, and Homonyms. From Phys. This effort could unleash literally billions of dollars in unpaid royalties for recording artists.

Star of the classic detective series claims he has never been paid royalties on the show despite its worldwide success. That's because franchisees pay royalties to the parent company based on overall sales.

From New York Daily News. Other disputes over such issues as music royalties and celebrity rights of publicity also are scheduled to make their way to juries around the country.

These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors. What is the pronunciation of royalty?

Translations of royalty in Chinese Traditional. See more. in Chinese Simplified. in Spanish. realeza, familia real, realeza [feminine…. in Portuguese. in Japanese. in Turkish. in French. in Catalan. in Dutch. in Danish. in Swedish.

in Malay. in German. in Norwegian. in Ukrainian. in Russian. in Arabic. in Czech. in Indonesian. in Thai. in Vietnamese. in Polish. in Korean. in Italian. 王族, 皇族, 王族(おうぞく)…. reialesa, família reial…. royalty, koningschap, koninklijke familie…. royalty, medlem af kongehuset…. royalty, kunglig person, kunglighet….

royalti, ketaatan…. die Tantieme, das Königtum…. kongelig [masculine], royalty, forfatterhonorar…. авторський гонорар, члени королівської родини…. члены королевской семьи….

أفْراد العائلَة المالكَة…. royalti, kaum bangsawan…. ค่าลิขสิทธิ์, บุคคลในราชวงศ์…. nhuận bút, hoàng tộc…. rodzina królewska, tantiema, królewskość…. Need a translator? Translator tool.

Browse royal prerogative. royal purple BETA. isQuiz}} Test your vocabulary with our fun image quizzes.

Word of the Day topsy-turvy UK Your browser doesn't support HTML5 audio. US Your browser doesn't support HTML5 audio.

in a state of being confused, not well organized, or giving importance to unexpected things About this. Read More. February 26, has been added to list.

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What Is a Royalty? How Payments Work and Types of Royalties Hidden categories: Webarchive template wayback links Source attribution All articles with dead external links Articles with dead external links from June Articles with short description Short description is different from Wikidata Use dmy dates from July Wikipedia articles needing clarification from January All articles with unsourced statements Articles with unsourced statements from July Articles to be split from November All articles to be split All articles with vague or ambiguous time Vague or ambiguous time from February Articles with unsourced statements from May Articles needing additional references from September All articles needing additional references Articles with specifically marked weasel-worded phrases from October Articles with unsourced statements from October Joint-ventures are usually between companies long in contact with a purpose. These ethics protect the public and the environment from mistreatment and exploitation from corporations. Main Page Discuss All Pages Community Interactive Maps. Retrieved 15 October
Word History

Time Traveler. See more words from the same century. Articles Related to royalty. A Royal Vocabulary Quiz Get your dukes in a row. A Guide to British Noble Titles Know your Duchess from your Baroness. Dictionary Entries Near royalty.

Royal Tunbridge Wells royalty royal walnut See More Nearby Entries. Cite this Entry. com Dictionary , s. com dictionary. Copy Citation. Post the Definition of royalty to Facebook Facebook.

Share the Definition of royalty on Twitter Twitter. Kids Definition. a : a share of a product or profit as of a mine claimed by the owner for allowing another to use the property.

b : a payment made to the owner of a patent or copyright for the use of it. Legal Definition. a : a share of the profit or product reserved by the grantor especially of an oil or mineral lease compare overriding royalty. b : a payment made to an author or composer for each copy of a work sold or to an inventor for each article sold under a patent.

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The Words of the Week - Mar. According to The Writers' and Artists' Yearbook of , under the new arrangement, 'appropriate [upward] adjustments are of course made to the royalty figure and the arrangement is of no disadvantage to the author.

Despite this assurance, in , Frederick Nolan , author and former publishing executive, explained that "net receipts" royalties are often more in the interest of publishers than authors:.

It makes sense for the publisher to pay the author on the basis of what he receives, but it by no means makes it a good deal for the author.

Which is one reason why publishers prefer "net receipts" contracts Among the many other advantages to the publisher of such contracts is the fact that they make possible what is called a 'sheet deal'.

In this, the multinational publisher of that same 10, copy print run, can substantially reduce his printing cost by 'running on' a further 10, copies that is to say, printing but not binding them , and then further profit by selling these 'sheets' at cost-price or even lower if he so chooses to subsidiaries or overseas branches, then paying the author 10 percent of 'net receipts' from that deal.

The overseas subsidiaries bind up the sheets into book form and sell at full price for a nice profit to the Group as a whole.

The only one who loses is the author. In two American authors Ken Englade and Patricia Simpson sued HarperCollins USA successfully for selling their work to its foreign affiliates at improperly high discounts "Harper Collins is essentially selling books to itself, at discounted rates, upon which it then calculates the author's royalty, and then Harper Collins shares in the extra profit when the book is resold to the consumer by the foreign affiliates, without paying the author any further royalty.

This forced a "class action" readjustment for thousands of authors contracted by HarperCollins between November and June Unlike other forms of intellectual property, music royalties have a strong linkage to individuals — composers score , songwriters lyrics and writers of musical plays — in that they can own the exclusive copyright to created music and can license it for performance independent of corporates.

Recording companies and the performing artists that create a "sound recording" of the music enjoy a separate set of copyrights and royalties from the sale of recordings and from their digital transmission depending on national laws. With the advent of pop music and major innovations in technology in the communication and presentations of media, the subject of music royalties has become a complex field with considerable change in the making.

A musical composition obtains copyright protection as soon as it is written out or recorded. However, it is not protected from infringed use unless it is registered with the copyright authority, for instance, the United States Copyright Office , which is administered by the Library of Congress.

Inherently, as copyright, it confers on its owner, a distinctive "bundle" of five exclusive rights:. Where the score and the lyric of a composition are contributions of different persons, each of them is an equal owner of such rights.

These exclusive rights have led to the evolution of distinct commercial terminology used in the music industry. With the advent of the internet, an additional set of royalties has come into play: the digital rights from simulcasting, webcasting, streaming, downloading, and online "on-demand service".

While the focus here is on royalty rates pertaining to music marketed in the print form or "sheet music", its discussion is a prelude to the much more important and larger sources of royalty income today from music sold in media such as CDs, television and the internet.

Sheet music is the first form of music to which royalties were applied, which was then gradually extended to other formats. Any performance of music by singers or bands requires that it be first reduced to its written sheet form from which the "song" score and its lyric are read.

Otherwise, the authenticity of its origin, essential for copyright claims, will be lost, as was the case with folk songs and American "westerns" propagated by the oral tradition. The ability to print music arises from a series of technological developments in print and art histories from the 11th to the 18th centuries.

The first, and commercially successful, invention was the development of the "movable type" printing press, the Gutenberg press in the 15th century; it was used to print the Gutenberg Bible.

Later the printing system enabled printed music. Printed music, until then, tended to be one line chants. The difficulty in using movable type for music is that all the elements must align — the note head must be properly aligned with the staff, lest it have an unintended meaning.

Musical notation was well developed by then, originating around Guido d'Arezzo developed a system of pitch notation using lines and spaces. Until this time, only two lines had been used. d'Arezzo expanded this system to four lines, and initiated the idea of ledger lines by adding lines above or below these lines as needed.

He used square notes called neumes. This system eliminated any uncertainty of pitch. d'Arezzo also developed a system of clefs, which became the basis for the clef system: bass clef, treble clef, and so on. Co-existing civilizations used other forms of notation.

In Europe the major consumers of printed music in the 17th and 18th centuries were the royal courts for both solemn and festive occasions. Music was also employed for entertainment, both by the courts and the nobility.

Composers made their livings from commissioned work, and worked as conductors, performers and tutors of music or through appointments to the courts. To a certain extent, music publishers also paid composers for rights to print music, but this was not royalty as is generally understood today.

The European Church was also a large user of music, both religious and secular. However, performances were largely based on hand-written music or aural training. Until the midth century, American popular music largely consisted of songs from the British Isles, whose lyric and score were sometimes available in engraved prints.

Mass production of music was not possible until movable type was introduced. Music with this type was first printed in the US in Later the fonts were made up of the notehead, stems and flags attached to the staff line.

Until that time, prints existed only on engraved plates. The first federal law on copyright was enacted in the US Copyright Act of which made it possible to give protection to original scores and lyrics. America's most prominent contribution is jazz and all the music styles which preceded and co-exist with it — its variations on church music, African-American work songs, cornfield hollers , wind bands in funeral procession, blues, rag, etc.

Until its recent sophistication, jazz was not amenable to written form, and thus not copyrightable, due to its improvisational element and the fact that many of the creators of this form could not read or write music.

Blackface minstrelsy was the first distinctly American theatrical form. In the s and s, it was at the core of the rise of an American music industry. Stephen Foster was the pre-eminent songwriter in the US of that time.

His songs, such as " Oh! Susanna ", " Camptown Races ", " My Old Kentucky Home ", " Beautiful Dreamer " and " Swanee River " remain popular years after their composition and have worldwide appreciation.

Peters was the first major publisher of Foster's works, but Foster saw very little of the profits. Foster's first love lay in writing music and its success. and F. Benson, who contracted with him to pay royalties at 2¢ per printed copy sold by them.

Minstrelsy slowly gave way to songs generated by the American Civil War, followed by the rise of Tin Pan Alley and Parlour music , [38] both of which led to an explosion of sheet music, greatly aided by the emergence of the player piano.

While the player piano made inroads deep into the 20th century, more music was reproduced through radio and the phonograph , leading to new forms of royalty payments, and leading to the decline of sheet music.

American innovations in church music also provided royalties to its creators. While Stephen Foster is often credited as the originator of print music in America, William Billings is the real father of American music. In , of the music compositions in print, were his church-related compositions.

Similarly, Billings was the composer of a quarter of the anthems published until Neither he nor his family received any royalties, although the Copyright Act of was then in place. Church music plays a significant part in American print royalties. When the Lutheran Church split from the Catholic Church in the 16th century, more than religion changed.

Martin Luther wanted his entire congregation to take part in the music of his services, not just the choir. This new chorale style finds its way in both present church music and jazz.

The agreement is typically non-exclusive to the publisher and the term may vary from 3—5 years. All of the royalty does not go directly to the writer. Rather, it is shared with the publisher on a basis.

If a book involved is a play, it might be dramatized. The right to dramatize is a separate right — known as grand rights.

This income is shared by the many personalities and organizations who come together to offer the play: the playwright, composer of the music played, producer, director of the play and so forth. There is no convention to the royalties paid for grand rights and it is freely negotiated between the publisher and the mentioned participants.

If the writer's work is only part of a publication, then the royalty paid is pro-rata , a facet which is more often met in a book of lyrics or in a book of hymns and sometimes in an anthology.

Church music — that is, music that is based on written work — is important particularly in the Americas and in some other countries of Europe. Examples are hymns, anthems, and songbooks. Unlike novels and plays, hymns are sung with regularity.

Very often, the hymns and songs are sung from lyrics in a book, or more common nowadays, from the work projected on a computer screen. In the US, the Christian Copyright Licensing International, Inc. is the collection agency for royalties but a song or hymn writers have to be registered with them and the songs identified.

Viewed from a US perspective, foreign publishing involves two basic types of publishing — sub-publishing and co-publishing occurrences in one or more territories outside that of basic origin. Sub-publishing, itself, is one of two forms: sub-publishers who merely license out the original work or those which make and sell the products which are the subject of the license, such as print books and records with local artists performing the work.

Although the terms "mechanical" and mechanical license have their origins in the piano rolls on which music was recorded in the early part of the 20th century, the scope of their modern usage is much wider and covers any copyrighted audio composition that is rendered mechanically i.

As such, it includes:. Record companies are responsible for paying royalties to those artists who have performed for a recording based on the sale of CDs by retailers. The United States treatment of mechanical royalties differs markedly from international practice.

Thus, its use by different artists could lead to several separately owned copyrighted "sound recordings". The following is a partial segment of the compulsory rates as they have applied from to in the United States.

In the predominant case, the composer assigns the song copyright to a publishing company under a "publishing agreement" which makes the publisher exclusive owner of the composition. The publisher's role is to promote the music by extending the written music to recordings of vocal, instrumental and orchestral arrangements and to administer the collection of royalties which, as will shortly be seen, is in reality done by specialized companies.

The publisher also licenses "subpublishers" domestically and in other countries to similarly promote the music and administer the collection of royalties. In a fair publishing agreement, every units of currency that flows to the publisher gets divided as follows: 50 units go to the songwriter and 50 units to the publisher minus operating and administrative fees and applicable taxes.

However, the music writer obtains a further 25 units from the publisher's share if the music writer retains a portion of the music publishing rights as a co-publisher. This is near international practice. When a company recording label records the composed music, say, on a CD master, it obtains a distinctly separate copyright to the sound recording, with all the exclusivities that flow to such copyright.

The main obligation of the recording label to the songwriter and her publisher is to pay the contracted royalties on the license received. While the compulsory rates remain unaffected, recording companies in the U.

extend that to a maximum of 10 songs, even though the marketed recording may carry more than that number. This 'reduced rate' results from the incorporation of a "controlled composition" clause in the licensing contract [43] since the composer as recording artist is seen to control the content of the recording.

Mechanical royalties for music produced outside of the United States are negotiated — there being no compulsory licensing — and royalty payments to the composer and her publisher for recordings are based on the wholesale, retail, or "suggested retail value" of the marketed CDs.

Recording artists earn royalties only from the sale of CDs and tapes and, as will be seen later, from sales arising from digital rights. Where the songwriter is also the recording artist, royalties from CD sales add to those from the recording contract.

In the U. Additional third party administrators such as RightsFlow provide services to license, account and pay mechanical royalties and are growing.

RightsFlow is paid by the licensees artists, labels, distributors, online music services and in turn does not extract a commission from the mechanical royalties paid out. In the UK the Mechanical-Copyright Protection Society , MCPS now in alliance with PRS , acts to collect and distribute royalties to composers, songwriters and publishers for CDs and for digital formats.

It is a not-for-profit organization which funds its work through a commissions on aggregate revenues. The royalty rate for licensing tracks is 6.

The mechanical royalty rate paid to the publisher in Europe is about 6. SACEM acts collectively for "francophone" countries in Africa.

For South Africa mechanical royaltues are distributed by CAPASSO. The UK society also has strong links with English-speaking African countries.

In Australia and New Zealand, the Australasian Mechanical Copyright Owners Society AMCOS collects royalties for its members. Mechanical societies for other countries can be found at the main national collection societies. In the United Kingdom, the Church of England is specifically exempted from performance royalties for music performed in services because it is a state-established church.

Traditionally, American music publishers have not sought performance royalties for music sung and played in church services—the license to perform being implied by distributors of church sheet music.

ASCAP , BMI , and SESAC exempt church worship services from performance royalties, but make no exemption for church-hosted concerts. In the conventional context, royalties are paid to composers and publishers and record labels for public performances of their music on vehicles such as the jukebox, stage, radio or TV.

Users of music need to obtain a "performing rights license" from music societies — as will be explained shortly — to use the music. Performing rights extend both to live and recorded music played in such diverse areas as cafés, skating rinks, etc. Licensing is generally done by music societies called "Performing Rights Organizations" PROs , some of which are government-approved or government-owned, to which the composer, the publisher, performer in some cases or the record label have subscribed.

How, and to whom, royalties are paid is different in the United States from what it is, for example, in the UK. Most countries have "practices" more in common with the UK than the US. Who license music to music-users and act as royalty collection and distribution agencies for their members.

These funds are distributed quarterly [52] though there can be delays depending on what PRO is being used to collect on music royalties.

PPL issues performance licenses to all UK radio, TV and broadcast stations, as well as establishments who employ sound recordings tapes, CDs , in entertaining the public.

Performers do not earn from sound recordings on video and film. PRS, which is now in alliance with MCPS, [55] collects royalties from music-users and distributes them directly to "song-writers" and "publishers" whose works are performed live, on radio or on TV on a basis.

MCPS licenses music for broadcast in the range 3 to 5. MCPS also collects and disburses mechanical royalties to writers and publishers in a manner similar to PRS. Although allied, they serve, for now, as separate organizations for membership.

The next diagram shows the sequences in the licensing of performances and the royalty collection and distribution process in the UK. Details of songs or recordings are notified to the PROs directly, or through Catco, an electronic tracking system.

It needs to be clarified that while blanket licenses are commonly issued to music-users, the latter are responsible for "usage returns" — the actual frequency of performances under the license — which then becomes the basis for the PRO to apportion royalties to writers, publishers, and record labels.

In the UK, music is licensed and royalties paid on it at the track level. There is also a separate organization in the UK called VPL, which is the collecting society set up by the record industry in to grant licenses to users of music videos, e. broadcasters, program-makers, video jukebox system suppliers.

There are different models for royalty collection in European countries. In some of them, mechanical and performing rights are administered jointly. SACEM France , SABAM Belgium , GEMA Germany and JASRAC Japan work that way.

The royalty that is paid to the composer and publisher is determined by the method of assessment used by the PRO to gauge the use of the music, there being no external metrics as in mechanical royalties or the reporting system used in the UK.

The PROs are audited agencies. They "directly" pay the songwriter and the publisher their respective shares. If part of the publisher's share is retained by the songwriter, the publisher pays the songwriter that part of the publisher's share.

Typically, the PRO negotiates blanket licenses with radio stations, television networks and other "music users", each of whom receives the right to perform any of the music in the repertoire of the PRO for a set sum of money. ASCAP uses random sampling , SESAC uses cue sheets for TV performances and 'digital pattern recognition' for radio performances while BMI employs more scientific methods.

In the United States, only the composer and the publisher are paid performance royalties and not performing artists digital rights being a different matter. Likewise, the record label, whose music is used in a performance, is not entitled to royalties in the US on the premise that performances lead sales of records.

The issue of performance royalties for radio use has been a complicated matter for decades, as broadcasters have typically worked against Congress to pass laws that would require such payments. In , Congress introduced the American Music Fairness Act which would require radio broadcasters to pay both performers and labels for use of their songs over the radio, with a rate schedule adjusted based on the size of the radio station.

Regulatory provisions in the US, EU and elsewhere is in a state of flux, continuously being challenged by developments in technology; thus almost any regulation stated here exists in a tentative format. In , US Court Appeals for the Second Circuit established 15 factors, that ought to be considered in determining reasonable royalty in [[patent infringement cases see Georgia-Pacific Corp.

The US Copyright Act of identified "musical works" and " sound recordings " eligible for copyright protection. The term "musical work" refers to the notes and lyrics of a song or a piece of music, while a "sound recording" results from its fixation on physical media. Copyright owners of musical works are granted exclusive rights to license over-the-air radio and TV broadcasts, entitling them royalties, which are, as said earlier, collected and distributed by the PROs.

Under the Act, record companies and recording artists are, presently, not entitled to royalties from radio and TV broadcasts of their music, except in the case of digital services and webcasts where copyright owners and performers obtain royalties see later. This is in contrast to international standards where performers also obtain royalties from over-the-air and digital broadcasting.

In , the Congress introduced the Digital Performance Right in Sound Recordings Act DPRA , which became effective 1 February This Act granted owners of sound recordings the exclusive license to perform the copyrighted work publicly by means of digital audio transmissions but it exempted non-subscription services and some other services.

Where the rights owner could not voluntarily reach agreement with the broadcaster , it could avail of compulsory licensing provisions. In , the Congress amended DPRA to create the Digital Millennium Copyright Act DMCA by redefining the above-noted subscription services of DPRA as "preexisting subscription services" and expanded the statutory license to include new categories of digital audio services that may operate under the license.

In effect, DMCA created three categories of licensees:. In addition to the above, a fourth license was created permit webcasters to make "ephemeral recordings" of a sound recording temporary copies to facilitate streaming but with a royalty to be paid. Non-subscription webcasting royalties have also to be shared between record companies and performers in the proportions set out under DPRA.

To qualify for compulsory licensing under non-subscription services, the webcasting needs to fit the following six criteria:. An inter-active service is one which allows a listener to receive a specially created internet stream in which she dictates the songs to be played by selecting songs from the website menu.

Such a service would take the website out from under the compulsory license and require negotiations with the copyright owners. However, a service is non-interactive if it permits people to request songs which are then played to the public at large.

Nonetheless, several rules apply such as, within any three-hour period, three cuts from a CD, but no more than two cuts consecutively can be played, or a site can play four songs from any singer from a boxed CD-set, but no more than three cuts consecutively.

Both interactive and non-interactive streaming services are required and regulated by the Copyright Royalty Judges to pay out a minimum fee per stream. These rates are set to be what these services are required to distribute per stream and has been the rate since 1 January and will be reevaluated after 31 December The SoundExchange , a non-profit organization, is defined under the legislation to act on behalf of record companies including the majors to license performance and reproduction rights and negotiate royalties with the broadcasters.

It is governed by a board of artist and label representatives. Services include track level accounting of performances to all members and collection and distribution of foreign royalties to all members. In the absence of a voluntary agreement between the SoundExchange and the broadcasters, Copyright Arbitration Royalty Panel CARP was authorized to set the statutory rates as could prevail between a "willing buyer" and "willing sellers".

SoundExchange handles only the collection of royalties from "compulsory licenses" for non-interactive streaming services that use satellite, cable or internet methods of distribution.

To recap, under the law three types of licenses are required for streaming of musical recordings:. The royalties for the first of the above two licenses are obtained from SoundExchange and the third from the PROs.

Failure to make required payments constitutes copyright infringement and is subject to statutory damages. Both broadcasters involved in webcasting and pure-Internet non-broadcasters are required to pay these royalties under the rules framed under the Act. All webcasters are also required to be registered with the United States Copyright Office.

The United Kingdom adopted the Information Society Directive in and the meaning of broadcast performance was broadened to cover "communicating to the public".

This then included music distribution through the internet and the transmission of ringtones to mobiles. Thus a music download was a "copy" of proprietary music and hence required to be licensed.

After a prolonged battle on royalties between online music companies such as AOL , Napster and the recording companies but not all of them , represented by the British Phonographic Industry BPI , and organizations representing the interests of songwriters MCPS and PRS a compromise was reached, leading to a subsequent 3-year interim legislation adopted by the UK Copyright Tribunal under the Copyright, Designs and Patents Act The applicable royalties are given in the table below which, also includes music downloads and music services through mobile devices.

This path-breaking legislation is expected to become the model for EU which is yet to develop comprehensive legislation , and perhaps even extend to the US. Note that the legislation includes the distinction between downloads of musical tracks from iTunes and other stores, which were considered "sales" and the webcasts considered "performances".

PC subscription: £0. Not all music providers in the UK were part of the compromise that led to the legislation. For those not participating — principally, AOL, Yahoo! and RealNetworks — the Tribunal set the royalty rate for pure webcasting at 5.

UK legislation recognizes the term online as referring to downloading digital files from the internet and mobile network operators. Offline is the term used for the delivery of music through physical media such as a CD or a DVD.

A stream is a file of continuous music listened to through a consumer's receiving device with no playable copy of the music remaining.

Permanent Downloads are transfers sale of music from a website to a computer or mobile telephone for permanent retention and use whenever the purchaser wishes, analogous to the purchase of a CD. A Limited Download is similar to a permanent download but differs from it in that the consumer's use of the copy is in some way restricted by associated technology; for instance, becomes unusable when the subscription ends say, through an encoding, such as DRM , of the downloaded music.

On-demand streaming is music streamed to the listener on the computer or mobile to enable her to listen to the music once, twice or a number of times during the period of subscription to the service. Pure Webcasting is where the user receives a stream of pre-programmed music chosen "by the music service provider".

It is non-interactive to the extent that even pausing or skipping of tracks is not possible. Premium and Interactive Webcasting are personalized subscription services intermediate between pure webcasting and downloading. Special webcasting is a service where the user can choose a stream of music, the majority of which comprises works from one source — an artist, group or particular concert.

Simulcasting , although not in the Table above, is the simultaneous re-transmission by a licensed transmission of the program of a radio or TV station over the internet of an otherwise traditional broadcast. The person receiving the simulcast normally makes no permanent copy of it.

It is defined in the legislation as an offline service. No deductions are permitted except for refunds of unused music due to technical faults. According to Joel Mabus, the term synchronization "comes from the early days of the talkies when music was first synchronized with film".

In the UK and elsewhere, with the exception of the US, there is apparently no legal prohibition to the combination of audio and visual images and no explicit statutory right for the collection of synch royalties.

In the US, however, the Copyright Act defines the audiovisual format as that of combining images with music for use in machines and there is no explicit rate set such as the "compulsory royalty rate" for copying music. However, there are instances of courts implying the synchronization right, [67] [68] but even so, it is an amorphous colloquial commercial term of acceptance.

Synchronization royalties "sync licenses" are paid for the use of copyrighted music in largely audiovisual productions, such as in DVDs, movies, and advertisements. Music used in news tracks are also synch licenses. Synchronization can extend to live media performances, such as plays and live theatre.

They become extremely important for new media — the usage of music in the form of mp3 , wav , flac files and for usage in webcasts , embedded media in microchips e. karaoke , etc. but the legal conventions are yet to be drawn. They are strictly contractual in nature and vary greatly in amount depending on the subjective importance of the music, the mode of production and the media used.

The royalty payable is that of mutual acceptance but is conditioned by industry practice. It is useful to note in this connection the concept of the "needle drop" now laser drop in that the synch royalty becomes payable every time the needle drops 'on the record player' in a public performance.

All openings and closings, every cut to advertisements, every cut back from ads, all re-runs shown by every TV company, in every country in the world generates a "synchro", although a single payment may be renegotiable in advance.

There is a category of royalty free music in the field of synchronization. This refers to the use of music in a "library" for which a one-time royalty has been negotiated. It is an alternative to needle-drop negotiation.

In terms of numbers, royalties can range from, say. In the US, the Audio Home Recording Act became effective law in October Art Resale Royalty is a right to a royalty payment upon resales of art works, that applies in some jurisdictions. Whilst there are currently approximately 60 countries that have some sort of Resale Royalty on their statute books, evidence of resale schemes that can be said to be actually operating schemes is restricted to Europe, Australia and the American state of California.

For example, in May the European commissions ec. europa webpage on Resale royalty stated that, under the heading 'Indicative list of third countries Article 7. To date the commission has not been supplied with evidence for any third country which demonstrates that they qualify for inclusion on this list.

Apart from placing a levy on the resale of some art-like objects, there are few common facets to the various national schemes. Most schemes prescribe a minimum amount that the artwork must receive before the artist can invoke resale rights usually the hammer price or price.

Some countries prescribe and others such as Australia, do not prescribe, the maximum royalty that can be received. Most do prescribe the calculation basis of the royalty.

Some country's make the usage of the royalty compulsory. Some country's prescribe a sole monopoly collection service agency, while others like the UK and France, allow multiple agencies. Some schemes involve varying degrees of retrospective application and other schemes such as Australia's are not retrospective at all.

In some cases, for example Germany, an openly tax-like use is made of the "royalties"; Half of the money collected is redistributed to fund public programs. The New Zealand and Canadian governments have not proceeded with any sort of artist resale scheme.

The Australian scheme does not apply to the first resale of artworks purchased prior to the schemes enactment June and individual usage of the right by Australian artists is not compulsory. Details of the Australian scheme can be gotten from [73] the website of the sole appointed Australian agency; The "Copyright Agency Limited".

The UK scheme is in the context of common-law countries an oddity; No other common-law country has mandated an individual economic right where actual usage of the right is compulsory for the individual right holder.

Whether the common law conception of an individual economic right as an "individual right of control of usage" is compatible with the Code Civil origins of droit de suite is open to question.

The UK is the largest art resale market where a form of ARR is operating, details of how the royalty is calculated as a portion of sale price in the UK can be accessed here DACS In the UK, the scheme was, in early , extended to all artists still in copyright.

In most European jurisdictions the right has the same duration as the term of copyright. In California law, heirs receive royalty for 20 years. The royalty applies to any work of graphic or plastic art such as a ceramic, collage, drawing, engraving, glassware, lithograph, painting, photograph, picture, print, sculpture, tapestry.

However, a copy of a work is not to be regarded as a work unless the copy is one of a limited number made by the artist or under the artist's authority. The situation as to how ARR applies in situations where an art work is physically made by a person or persons who are not the 'name artist' who first exhibits and sells the work is not clear.

Whether resale royalties are of net economic benefit to artists is a highly contested area. Many economic studies have seriously questioned the assumptions underlying the argument that resale royalties have net benefits to artists.

Many modelings have suggested that resale royalties could be actually harmful to living artists' economic positions. In the resulting report, Access Economics warned that the claim of net benefit to artists was: "based upon extremely unrealistic assumptions, in particular the assumption that seller and buyer behaviour would be completely unaffected by the introduction of RRR [ARR]" and that, "Access Economics considers that the results of this analysis are both unhelpful and potentially misleading.

There is simply too much computer software to consider the royalties applicable to each. The following is a guide to royalty rates: [76]. The term "royalty" also covers areas outside of IP and technology licensing, such as oil, gas, and mineral royalties paid to the owner of a property by a resources development company in exchange for the right to exploit the resource.

In a business project the promoter, financier, LHS enabled the transaction but are no longer actively interested may have a royalty right to a portion of the income, or profits, of the business. This sort of royalty is often expressed as a contract right to receive money based on a royalty formula, rather than an actual ownership interest in the business.

In some businesses this sort of royalty is sometimes called an override. Royalties may exist in technological alliances and partnerships.

The latter is more than mere access to secret technical or a trade right to accomplish an objective. It is, in the last decade of the past century, and the first of this one of the major means of technology transfer.

Its importance for the licensor and the licensee lies in its access to markets and raw materials, and labor, when the international trend is towards globalization. There are three main groups when it comes to technological alliances. They are Joint-ventures sometimes abbreviated JV , the Franchises and Strategic Alliances SA.

Joint-ventures are usually between companies long in contact with a purpose. JVs are very formal forms of association, and depending on the country where they are situated, subject to a rigid code of rules, in which the public may or may not have an opportunity to participate in capital; partly depending on the size of capital required, and partly on Governmental regulations.

They usually revolve around products and normally involve an inventive step. Franchises revolve around services and they are closely connected with trademarks, an example of which is McDonald's.

Although franchises have no convention like trademarks or copyrights they can be mistaken as a trademark-copyright in agreements. The franchisor has close control over the franchisee, which, in legal terms cannot be tie-ins such as frachisee located in an areas owned by the franchisor.

Strategic Alliances can involve a project such as bridge building. a product or a service. As the name implies, is more a matter of 'marriage of convenience' when two parties want to associate to take up a particular but modest short-term task but generally are uncomfortable with the other.

But the strategic alliance could be a test of compatibility for the forming of a joint venture company and a precedent step. Note that all of these ventures s could be in a third county.

JVs and franchises are rarely found formed within a county. They largely involve third countries. On occasion, a JV or SA may be wholly oriented to research and development, typically involving multiple organizations working on an agreed form of engagement.

The Airbus is an example of such. Firms in developing countries often are asked by the supplier of know-how or patent licensing to consider technical service TS and technical assistance TA as elements of the technology transfer process and to pay "royalty" on them.

TS and TA are associated with the IP intellectual property transferred — and, sometimes, dependent on its acquisition — but they are, by no means, IP.

They are seldom met with in the developed countries, which sometimes view even know-how as similar to TS. TS comprises services which are the specialized knowledge of firms or acquired by them for operating a special process. It is often a "bundle" of services which can by itself meet an objective or help in meeting it.

It is delivered over time, at end of which the acquirer becomes proficient to be independent of the service. In this process, no consideration is given on whether the transfer of the proprietary element has been concluded or not. On the other hand, technical assistance is a package of assistance given on a short timetable.

It can range variously from procurement of equipment for a project, inspection services on behalf of the buyer, the training of buyer's personnel and the supply technical or managerial staff.

Again, TA is independent of IP services.

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