A royalty agreement is a contract between an author or creator and a business or publisher that outlines the terms of payment for the use of their intellectual property. The agreement covers aspects like the use of the work, the royalty rate, the payment schedule, and the rights and responsibilities of both parties involved.
An example of a royalty agreement may look something like this:
Agreement between [Author/Creator] and [Business/Publisher]
1. Use of Work
The author grants the publisher the right to reproduce, distribute, and display the work in any format, including electronic and print media, in any territory worldwide.
2. Royalty Rate
The publisher agrees to pay the author a royalty rate of [percentage or flat fee] of the net revenue generated from the work.
3. Payment Schedule
The publisher agrees to pay the author royalties on a quarterly basis, within [number] days of the end of each quarter.
4. Rights and Responsibilities
a. The author warrants that the work is original and does not infringe on any third-party rights.
b. The publisher agrees to use its best efforts to promote and market the work.
c. The publisher shall have final approval of all material used to market the work.
d. The author retains all rights to the work not granted to the publisher through this agreement.
This agreement may be terminated by either party on written notice to the other party if either party fails to comply with any material provision of this agreement.
6. Governing Law and Jurisdiction
This agreement shall be governed by and construed in accordance with the laws of [state/country] and any disputes arising out of or in connection with this agreement shall be resolved in the courts of [state/country].
This is just a basic example of a royalty agreement and can be customized to suit the needs of both parties. Before finalizing an agreement, it is essential to seek the advice of a legal professional. Having a well-defined royalty agreement can help prevent disputes and ensure a fair and mutually beneficial partnership between authors and publishers.