Royalty - Definition - Law Dictionary Home Dictionary Definition royalty

Definition :

Royalty, a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee. It is usually a payment of money, but may be a payment in kind, that is, of part of the produce of the exercise of the right, Jowitt's Dictionary of English Law, 2nd End., p. 1595.

In the legal world, is known as the equivalent or translation of jura 'regalia' or 'jura regia'. Royal rights and prerogatives of a sovereign are covered thereunder. In its secondary sense, the word 'royalty' would signify, as in mining leases, that part of the reddendum, variable thought, payable in cash or kind, for rights and privileges obtained, Inderjeet Singh Sial v. Karam Chand Thapar, (1995) 6 SCC 166.

Royalty, is not a tax. Simply because the royalty is levied by reference to the quantity of the minerals produced and the impugned cess too is quantified by taking into consideration the same quantity of the mineral produced, the latter does not become royalty. The former is the rent of the land on which the mine is situated or the price of the privilege of winning the minerals from the land parted with by the Government in favour of the mining lessee. The cess is a levy on mineral rights with impact on the land and quantified by reference to the quantum of mineral produced. The distinction, though fine, yet exists and is perceptible, State of West Bengal v. Kesoram Industries Ltd., (2004) 10 SCC 201: JT (2004) 1 SC 375.

Royalty, is not a term used in legal parlance for the price of the goods sold. It is a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee as held in Titaghur Paper Mills Co. Ltd., State of Orissa v. Titaghur Paper Mills Co. Ltd., 1985 Supp SCC 280: (1985) SCC Tax 538.

Means to compensate the owner of a right or a property and it cannot exceed the concept of compensation, Pradeep C. Mody v. Sashikant C. Mody, AIR 1998 Bom 357.

Royalty, known as the equivalent or translation of jura regalia or jura regia. Royal rights and prerogatives of a sovereign are covered thereunder. In its secondary sense the word 'royalty' would signify, as in mining leases, that part of the reddendum, variable though, payable in cash or kind, for rights and privileges obtained. It is found in the clause of the deed by which the grantor reserves something to himself out of that which he grants, Inderjeet Singh Sial v. Karam Chand Thapar, (1995) 6 SCC 166.

Means a compensation or portion of the proceeds paid to the owner of a right, as a patent or oil or mineral right, for the use of it and also an agreed portion of the income from a work paid to its author, composer, etc., usually a percentage of the retail price of each copy sold, Unabridged Random House Dictionary.

Means compensation for the use of property, usually copyrighted material or natural resources, ex-pressed as a percentage of receipts from using the property or as an account per unit produced. A payment which is made to an author or composer by an assignee, licensee or copyright-holder in respect of each copy of his work which is sold, or to an inventor in respect of each article sold under the patent. Royalty is share of product or profit reserved by owner for permitting another to use the property. In its broadest aspect, it is share of profit reserved by owner for permitting another the use of property, Black's Law Dictionary, 7th Edn., p. 1195.

Royalty, payment to a patentee by agreement on every article made according to his patent; or to an author by a publisher on every copy of his book sold; or to the owner of minerals for the right of working the same on every ton or other weight raised.

1. A payment to an another or inventor for each copy of a work or article sold under a copyright or patent 2. A share of product or profit from real property, reserved by grantor of a mineral lease in exchange for lesses's right to mine or drill on land, Black's Law Dictionary, 7th Edn.

It is obvious that royalty which follows the expression 'lease amount' is something other than the return to the lessor or licensor for the use of the land surface and represents as it normally connotes the payment made for the materials or minerals won for the land, H.R.S. Murthy v. Collector of Chittoor, AIR 1965 SC 177: (1964) 6 SCR 666.

'Royalty' is a feudalistic euphemism for the 'price' of the timber, State of Madhya Pradesh v. Orient Paper Mills Ltd., AIR 1977 SC 687: (1977) 2 SCC 77: (1977) 2 SCR 149.

'Royalty' is not a term used in legal parlance for the price of goods sold. 'Royalty' is defined in Jowitt's Dictionary of English Law, Fifth Edition, Volume, 2 page 1595, as follows: Royalty, a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee. It is usually a payment of money, but may be a payment in kind, that is, of part of the produce of the exercise of the right. Royalty also means a payment which is made to an author or composer by a publisher in respect of each copy of his work which is sold, or to an inventor in respect of each article sold under the patent, State of Orissa v. Titaghur Paper Mills Company Limited, AIR 1985 SC 1293 (1336): (1985) Supp SCC 280: (1985) 3 SCR 26.

Royalty on timber brought from private forests imposed by executive committee of Jowai Auto-nomous District Council is in fact a compulsory exaction of money by a public authority for public purposes enforceable by law and is not a payment for services rendered. It is truly, in the nature of a tax. It is not royalty since forest does not belong to the District Council. 'Royalty' according to Jowitts' Dictionary of English Law means a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee, District Council v. Dwet Singh Rymbai, AIR 1986 SC 1930 (1938): (1986) 4 SCC 38: (1986) 3 SCR 569. [United Khasi and Jaintia Hills Autonomy District (Management & Control of Forests) Act, (1 of 1959)]

Royalty is a tax, India Cement Ltd. v. State of T.N., AIR 1990 SC 85: (1990) 1 SCC 12: (1989) Supp 1 SCR 692.

In general connotes the State's share in the goods upon which the rights of its exploitation are conferred upon any person or the group of persons. If the royalty cannot be claimed by any individual, much less the controversial items being its attribute, even if assumed, can be claimed by a citizen, State of Himachal Pradesh v. Raja Mahendra Pal, (1999) 4 SCC 43: AIR 1999 SC 1786 (1795).

Royalty, was defined to mean, a payment reserved by the grantor of a patent, lease of a mine or similar right, and payable proportionately to the use made of the right by the grantee, which shall be on payment of money, but may be a payment in kind being the part of the produce of the exercise of the right, State of Orissa v. Titaghur Paper Mills Co. Ltd., 1985 Supp SCC 280: (1985) SCC (Tax) 538: AIR 1985 SC 1293.