royalty

Compensation for the use of property, usually copyrighted material or natural resources, expressed as a percentage of receipts from using the property or as an account per unit produced.

A payment which is made to an author or composer by an assignee, licensee or copyright holder in respect of each copy of his work which is sold, or to an inventor in respect of each article sold under the patent. Royalty is share of product or profit reserved by owner for permitting another to use the property. Alamo Nat. Bank of San Antonio v. Hurd, Tex.Civ.App., 485.

As used in instruments in connection with production of minerals (e.g., oil and gas leases) means in its popular sense a share of products or proceeds therefrom, reserved to owner of land for permitting another to use the property. Barry v. Frizzell, Okl., 371 P.2d 460, 464.

In patent law, signifies sums paid to owner of a patent for its use or for the right to operate under it, and may also refer to obligation giving rise to the right to such sums. Taylor v. Peck, 160 Ohio St. 288, 116 N.E.2d 417, 418.

See also minimum royalty clause

- overriding royalty

- shut-in royalty

@ reasonable royalty

Under patent law, a "reasonable royalty" is that amount which the trier of facts estimates a person desiring to use a patent right would be willing to pay for its use and a patent owner desiring to license the patent would be willing to accept. University Computing Co. v. Lykes-Youngstown Corp., C.A.Ga., 504 F.2d 518, 538.

@ overriding royalty

A retained royalty by a lessee when the property is subleased. Common in oil and gas leases

+ overriding royalty

As applied to an existing oil and gas lease is a given percentage of the gross production payable to some person other than the lessor or persons claiming under him. Royalty interest carved out of working interest created by oil and gas lease, and is interest in oil and gas produced at surface free of expense of production and its outstanding characteristic is that its duration is limited by duration of lease under which it is created. Cline v. Angle, 216 Kan. 328, 532 P.2d 1093, 1097

@ royalty acres

That part of the oil that goes to landowner, whether it be in place or after production. Dickens v. Tisdale, 204 Ark. 838, 164 S.W.2d 990, 992

@ royalty bonus

The consideration for oil and gas lease over and above the usual royalty. Sheppard v. Stanolind Oil & Gas Co., Tex.Civ.App., 125 S.W.2d 643, 648

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