Question:

What is royalty percentage?

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I'm on zazzle and it says royalty percentage, what is it? And will I have to pay anything?

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  1. That's a different kind of royalty than what they are talking about in this section. A royalty is a payment based on a percentage of sales price. For example, an author receives a royalty from the publishing company, of a certain percentage of the selling price of his or her books. A songwriter receives royalties when their songs are published and another royalty when a performer uses them and another royalty when a recording company records them.

    If you mean that you design shirs for zazzle, then they can either pay you a flat fee for designing a shirt, or they can give you a royalty which means you would get a few cents of the sale price of every shirt with your design on it.


  2. Royalties are payments made by one company (the licensee) to another company (the licensor) in exchange for the right to use intellectual property or physical assets owned by the licensor. For example, software giant Microsoft invented the Windows operating system for personal computers as a means of managing files and performing operations. Computer manufacturers such as IBM and Compaq pay a royalty to Microsoft in exchange for being allowed to use the Windows operating system in their computers. Other common situations in which royalties are paid include the following:

    In the fashion industry, designers such as Ralph Lauren and Calvin Klein license the right to use their names on items of clothing in exchange for royalties. For example, they may sign a contract with a company that makes jeans that allows the company to place the designer's name on the jeans.

    In book publishing, authors are commonly paid both a fee for their services and a royalty rate that entitles them to a percentage of their books' profits.

    In the music industry, royalties are paid to music copyright holders and to songwriters by radio stations and anyone else who derives a commercial benefit from the copyrighted material.

    In the television industry, popular satellite TV services such as Direct TV and cable television services pay network stations and superstations a royalty rate so that they can broadcast those channels over their systems.

    In the oil and gas industry, companies pay landowners a royalty rate for the right to extract natural resources, such as petroleum and natural gas, from the landowner's property. Similar agreements exist in the mining industry for minerals such as copper and silver.

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