Royalty 1 article

A royalty is a contractual payment tied to the use or commercialization of intellectual property, commonly calculated as a percentage of product net sales. In biotechnology licensing, royalty rates may be fixed or tiered and can be affected by patent coverage, sublicensing, combination products or royalty stacking. Royalties differ from upfront and milestone payments because they are recurring commercialization economics that depend on sales and usually continue for a contractually defined royalty term.