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royalty definition - finance
A payment made for the right to use an asset, invention, or creation calcu-lated as a percentage of the sale price. For example, the holder of a valuable natural resource may receive a royalty from a company that extracts the resource; the amount of the royalty payment depends on the amount of the resource that the company is able to extract. An author may receive a royalty each time one of his or her books sells.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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