A
royalty is a payment made by one party (the "
licensee") to another that owns a particular
asset (the "licensor") for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation. A
royalty interest is the right to collect a stream of future royalty payments.