Royalty characterization of domain registration fees requires a transfer of proprietary or use rights; mere registrar facilitation does not qualify.

Whether fees for domain name registration qualify as royalty depends on whether the registrar transfers a proprietary or right-to-use interest; a registrar acting as intermediary under its accreditation agreement that disclaims ownership and does not convey exclusive or transferable rights does not convert registration fees into royalty.

---

---

---