What is Royalty payment?
A '''royalty''' is a '''payment''' made to someone for the use of something, an [[asset]], that they have created or own. For example a musician who writes a song is paid a royalty each time the song is played on the radio, or each time another musician plays the song. The owner can allow other people to use their asset by paying a [[license]] or a [[Franchising|franchise]]. The amount paid is usually a [[percentage]] of the all the money made from using the asset, the gross, or from the just the profit, the net. Another way is to set a fixed price, for example a set amount for each book or recording. There are many other ways that the royalty fee can be calculated and paid.<ref>{{cite web|url=http://www.aar.com.au/pubs/tax/fotaxapr04.htm|title=Focus: Tax and Intellectual Property – April 2004|publisher=Allens Arthur Robinson|access-date=2007-09-13}}</ref><ref>{{cite web|url=http://dictionary.law.com/Default.aspx?selected=1870&bold=|publisher=law.com|title=Royalty (definition)|access-date=2007-09-13}}</ref><ref>{{cite book|title=Manual on Technology Transfer Negotiation|url=https://archive.org/details/manualontechnolo0000unse|year=1996|publisher=United Nations Industrial Development Organization|location=Vienna|isbn=92-1-106302-7|author=United Nations Industrial Development Organization}}</ref><ref name=autogenerated3>Guidelines for Evaluation of Transfer of Technology Agreements, United Nations, New York, 1979</ref><ref name=autogenerated1>{{cite book|title=Licensing Guide for Developing Countries: A Guide on the Legal Aspects of the Negotiation and Preparation of Industrial Property Licenses and Technology Transfer Agreements Appropriate to the Needs of Developing Countries|year=1977|publisher=World Intellectual Property Organization|location=Geneva|isbn=92-805-0395-2}}</ref><ref>UNIDO International Workshop on Technology Transfer Negotiation and Plant Level Technology Needs Assessment, 7–8 December 1999, New Delhi.</ref><ref>{{cite web | url=http://www.vertexips.com/information/articles/licensing.html | author