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Royalty Agreement Basics

When you own intellectual property, it only takes a few minutes to draw up a Royalty Agreement and make you get paid for your work. Perhaps you own a patent or trademark. Or maybe you're the person who wants to use a poem, logo or unique manufacturing process for a certain amount of time. The owner deserves compensation. A Royalty Agreement helps you determine the big stuff, including the bottom line.

Use the Royalty Agreement document if:

  • You are the owner of a property interest (copyright, patent, other property interest) and you would like to grant the right to use of such property interest to another party for a limited period of time.
  • You would like to contract the use of certain property from the company or individual who owns the property rights.

Whether you're a designer, writer or industrial engineer, you want to make sure you get your fair share when someone is making money off your ideas. A Royalty Agreement lets you determine how you property will be used and for how long. Of course, royalties are at the center of the agreement, and you need to decide on how to structure them: how much you'll be paid, and when. If you want to use someone else's property, approach them from the right angle. By suggesting a formal agreement, you'll show them you're trustworthy, responsible, and professional. That means you have a much better chance of getting their permission. A Royalty Agreement helps everyone get what they want.

Other names for this document: Royalty Contract, Royalty Agreements

Sample Royalty Agreement

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