Royalties income

Royalty income refers to the money earned by granting permission to use a certain product, invention, or idea. This is commonly known as royalty or licensing fees. This type of income is typically earned by individuals or companies who have created or own intellectual property, such as patents, trademarks, or copyrights. The amount of royalty income received depends on the terms of the license agreement, including the length of time and scope of the rights granted, and the market demand for the product or service. Royalty income is usually considered a passive income source because the owner does not have to actively participate in the use of the intellectual property.