A “royalty” is a payment made to the owner of an asset for the right to use that asset. A “royalty” is the right to collect a portion of future royalty payments. Royalties are a “cut” in income earned from the use of the asset. The owner of a royalty is paid before shareholders, company executives, and so on. Royalty payments are generally made at specific intervals, such as monthly or quarterly.
Both in recording and in composition, various stakeholders collect a percentage of the royalties generated by the music they work on. Below are links to explore each type of royalty more closely and in more detail. Music Royalties 101 Editorial Royalties Music Royalties 101 Music Royalties 101 Who collects what for whom?.
