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<h1>Property owners receive proportional compensation when others exploit their minerals, patents, or resources through royalty agreements.</h1> Royalty refers to compensation paid to a property owner for permitting another party to exploit and use their property. In mining contexts, it represents a variable payment proportionate to the quantity of minerals extracted or worked within a specified period. The term encompasses payments to patentees for articles manufactured under patents, authors for book sales, and mineral owners for extraction rights. Royalty is characterized as a pro rata payment based on production quantity or profits, typically established through contractual agreements between grantors and lessees. Government entities may also demand royalties for appropriation of minerals, timber, or other state-owned property, with payments proportional to quantities removed.