what is a royalty agreement 
a royalty agreement is a legal contract between a licensor and a licensee it grants the licensee the right to use the licensor s intellectual property in exchange for royalty payments the agreement will show the royalty rate and terms it will also state the parties involved the rights granted and the period of use the bottom lineroyalties are a way for creators innovators intellectual property owners or landowners to earn money from their assets royalties are agreements or licenses that lay out the terms by which a third party can use assets that belong to someone else royalties can be earned on books music minerals franchises and many other assets some royalty agreements are for a set period while other royalties are earned in perpetuity 