What is Royalty Expense?

Royalty expense is the expense which is paid by the person who will use the asset of other person. He will get the license from other person for use of same asset and will paid the royalty to the owner of asset who will authorize other person to use of same asset. It is income for asset owner and it is expense of the person who will use the asset. This royalty expense will be paid on the gross or net revenue on same asset when it will be used for commerce.

Royalty Expense Vs Patent Expense Vs Trademark Expense Vs Copyright

Royalty expense will be on physical use of mine or petroleum area.Royalty is also paid by publisher to owner of book

Patent expense will be on the use of scientific invention.

Trademark expense will be on the use of logo or slogan or brand.

Copyright expense will be on the use of copyright of music or any digital creation.

Royalty can also be used on all these uses like patient right, trademark, copyright and moreover getting franchise of big brand. It also be paid for any use of intellectual property.

Royalty may be 1% to 10% on gross revenue or net revenue from same use of asset.