ROYALTY

ROYALTY

Royalty is the remunerations payable to a person in respect of the use of an asset , whether hired or purchased from such person, calculated by reference to and varying with quantities produced or sold as a result of the use of such assets.

The expression used in a broad sense has a more extended meaning as it is frequently employed in connection with hiring of machines where the charge, instead of being upon a fixed base, say N5 per machine, is calculated on the number of revolutions ,or in a textile machinery , the number of switches .

The chief forms of royalty are mining royalties ,patent royalties, and copyright royalties , based respectively upon ore raised , products sold and books sold . – Riddle