Royalty Interest
/ˈrɔɪəlti ˈɪntrəst/
Definitions
- (n.) A legal right to receive a portion of the production or revenue from natural resources such as oil, gas, or minerals on land owned by another party.
The landowner retained a royalty interest in the oil extracted from his property.
- (n.) A contractual right to receive payments based on the use or sale of intellectual property, such as patents, copyrights, or trademarks.
The author negotiated a royalty interest in the book’s future sales.
Forms
- royalty interest
- royalty interests
Related terms
See also
Commentary
In drafting, clearly distinguish between royalty interests in natural resources and those in intellectual property to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.