Royalties

From Free net encyclopedia

A royalty is a sum paid to the creator of performance art for the use of that art. It is also a sum of money paid for the use of a license, or for use of works covered by copyright, patent, registered design or trademark.

The word is usually used in the plural.

Compare to residuals and royalty free music.

Royalties are also taxes levied on minerals extracted in accordance with a mining licence.

Patent royalties

In the United States, a patent owner, or patentee, is legally entitled to no less than a "reasonable" royalty from an entity that infringes said owner's patent. If the patent owner has lost profits due to infringement, and if said lost profits are more than a reasonable royalty, then the patent owner is entitled to a royalty up to the amount of lost profits.

Normally, a patent owner and a patent infringer will negotiate a mutually agreeable license so that the patent owner will give the patent infringer the legal right to make, user or sell the patented invention, and the patent infringer will compensate the patent owner in some manner.

If they cannot come to agreement, the patent owner may sue the patent infringer in a U.S. federal court. 99% of the cases that are filed are settled before the court reaches a decision. If the case does go to trial, however, then evidence will be presented related to validity of the patent, whether or not it was infringed, what a "reasonable" royalty is in the field of the patented invention and what the patent owner's lost profits are. Evidence will also be presented as to whether or not the alleged infringer "willfully" infringed the patent. If the court finds that the infringement was willful, then punative damages may be assessed. Punative damages may be up to three times actual damages.Template:Ref,

References

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