Royalty

Royalty, a payment reserved by the grantor of a patent lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee. It is usually a payment of money, but may be a payment in kind - that is, of part of the produce of the exercise of the right. Royalty has also another signification, viz. a payment made to an author or composer by an assignee or licensee in respect of each copy of his work which is sold, or to an inventor in respect of each article sold under the patent.