Royalty payments: proportionate compensation for use of property, creating pay-per-unit entitlement under contract and licence arrangements. Royalty is a proportionate payment reserved by an owner as compensation for permitting use or exploitation of property, computed as a share of produce, profit or per-unit output and arising from an agreement; it applies to mining leases, patent licences, copyright publishing and similar grant arrangements, and is characterized by unit-linked or output-linked calculation rather than a fixed sum.