Royalties is an English word that means perk or privilege. It consists of an amount that is paid by someone to the owner for the right to use, explore or sell a product, work, land, etc.
This word is the plural of royalty, which means royalty. This explains the origin of this form of payment for the right to enjoy something, which started when people had to pay the king to use minerals on their properties. Later on, the word continued to be used to describe this compensation given to the owner of something, and it is now widely used in the context of oil exploration.
in the world of song, you royalties are an amount paid to the author or composer of a particular song, in order to have the right to use or reproduce the song in question.
You royalties are very common in system of franchise, a fee that is paid periodically by the franchisee to the franchisor. This amount is a percentage of the gross sales earned by the franchise.
At the business context, many times a person invests money in a company, charging later
royalties, a percentage of the revenue obtained from the sale of the product or service. It can also be a fixed amount for each unit of the product. In addition, the royalties they can also be a form of remuneration for the use of patented (or licensed) technological processes for the production of some product.Oil and pre-salt royalties
In the case of the oil industry, the royalties they are the financial compensation given by the companies that carry out the exploration for any environmental damage that may be caused during the extraction process.
In Brazil, the royalties are paid to the Federal Government, and there are also special participations, which are different from royalties and depend on the production and profitability of each extraction site.
Royalties for education
In Brazil, in September 2013 a law was passed that determines that 75% of royalties of oil should be invested in education and 25% in health. Also for education and health, 50% of the Social Fund of the Pre-salt.
This law only enters into force on contracts whose commerciality is established after December 3, 2012.