The Difference between Royalty and Royalty Management
Royalty is a payment to the owner of copyrighted works. A royalty payment is made to the legal owner of the property, patent, copyrighted work, or franchise by licensees or franchisees who wish to make use of it for the purposes of generating revenue or other such desirable activities.
Royalty management is used in order to create and manage a detailed contract, contract rights, and royalty. Royalty management can be divided into specific phases. The dissection of the phases will help maintain and improve the royalty management in details.
Stages of Royalty Management
To simplify the definition of royalty management, it can be divided into distinct stages. The acquisition, sales, sales reporting, royalty calculation, and royalty delivery. These steps can be used as a life cycle model. The breakdown of the phases is useful and helpful if you want to make any significant improvement to each stage of royalty management. To have control over your brand’s revenue potential by tracking, licensing, managing, contracts, and royalty due are all included in royalty management.
For example company A offering a package that’s included rights/availabilities, deal memo contracts (usage of a media software-RM to input all business and financial terms from the agreement, including straight and multi-tiered royalties and overrides, advances, minimum guarantees tied to dates, sales, deductions, exchange rates and more.
Royalty tracking and reporting will help the licensor to manage all available and licensed rights worldwide in real time, across different properties/brands, categories, and distribution channels.
There is an overlap between “digital rights management” which is how someone controls the rights and ownership of a piece of work or brand (licensor) and “royalty management” which is how someone handles the money (royalty) they get from someone else using their work (licensee).