Royalty
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A royalty is a form of income received for giving the rights to another person or entity to use a product or right that the first person owns.
Royalties are common in two areas:
- The entertainment industry (whereby the writers and singers of a song, or actors and writers of a film, receive royalties each time the song or film is played)
- The mineral industry (for example, a landowner whose property has minerals underneath it -- most commonly crude oil and natural gas -- will receive a portion of the sale of any oil and gas produced)