Royalties

At Rodriques Law, PLLC, we help creatives, rights holders, and businesses protect and monetize their intellectual property through strategic royalty agreements. Whether you are a songwriter, producer, author, designer, or content creator, understanding and enforcing your royalty rights is essential to securing long-term income and protecting your creative investments.

What Are Royalties?

Royalties are payments made to a rights holder when their intellectual property (IP) is used or exploited. These payments are usually governed by licensing agreements or contracts and are often calculated as a percentage of revenue or a per-use fee. Common examples include:

  • Music royalties: mechanical, performance, synchronization (sync), and master use royalties
  • Film & TV royalties: residuals, distribution royalties, and streaming revenue shares
  • Publishing royalties: print and digital book royalties, subsidiary rights
  • Design & fashion: licensed use of patterns, images, or product designs
  • Software and digital content: licensing of code, graphics, and proprietary systems

Music Industry Royalties

New York City remains a global hub for music production, publishing, and performance. We assist artists and rights holders in navigating organizations like ASCAP, BMI, SESAC, and SoundExchange, and securing royalty streams from:

  • Record label agreements
  • Producer and featured artist contracts
  • Mechanical licenses (e.g., via The MLC)
  • Performance royalties from venues, radio, and streaming
  • Synchronization and master use licenses for film, ads, and TV

In the music industry, royalty structures are particularly complex. Songwriters typically earn mechanical royalties of 9.1 cents per reproduction for compositions under five minutes, while record labels may pay artists 15-25% of suggested retail price for physical sales but significantly less for streaming. For example, a platinum-selling artist might receive only $3,000-$5,000 from one million Spotify streams, highlighting why our music lawyers emphasize favorable digital distribution terms.

Performance royalties generate income whenever music is performed publicly—whether on radio, in venues, or through streaming services. When an independent artist’s song is played on commercial radio, organizations like ASCAP, BMI, or SESAC collect and distribute these earnings. Our licensing attorneys can help ensure you’re registered with the appropriate collection societies.

Film and TV Residuals & Licensing

If you are a screenwriter, director, or independent producer, you may be entitled to residual payments or backend royalties from theatrical distribution, streaming, syndication, or other licensing deals. We draft and negotiate contracts to:

  • Ensure residuals are contractually defined and enforceable
  • Clarify backend points for investors, producers, and talent
  • Protect royalty rights in co-production or work-for-hire scenarios

In film and television, royalty arrangements—often called residuals or participations—are complex and governed by contracts and union agreements. They provide ongoing compensation when content is reused or distributed beyond its original release. Our film and television royalties attorneys ensure clients receive their fair share of royalties.

Publishing Royalties

Book authors typically receive advances against royalties, with standard print royalties ranging from 8-15% of retail price for hardcovers and 6-10% for paperbacks. Digital publishing has transformed this landscape, with e-book royalties often reaching 25% of net receipts. For authors negotiating with major publishers, our firm can help secure escalation clauses that increase royalty percentages when sales exceed specified thresholds.

Technology Licensing

In the technology sector, patent royalties often follow the 25% rule, where licensees pay approximately 25% of their expected profits from the patented technology. For software and app developers, app store commissions typically claim 15-30% of revenue, with subscription-based models involving complex revenue-sharing arrangements. Our technology attorneys have extensive experience structuring agreements that protect innovation while maximizing returns.

Visual Art Licensing

Visual artists can generate income through various licensing arrangements. Fine artists might receive 3-5% of retail sales on licensed reproductions, while commercial illustrators often negotiate flat fees with additional royalties for commercial success. When an artist’s work is incorporated into merchandise, royalty rates typically range from 5-15% of wholesale. We help visual creators retain creative control while securing fair compensation.

Royalty Enforcement, Audits, and Dispute Resolution

A well-drafted royalty agreement is only the beginning. We also assist clients with:

  • Royalty audits – to uncover underpayment or non-payment
  • Contract Enforcement – Enforcing audit rights and accounting provisions
  • Resolving disputes over scope of use, payment thresholds, or term
  • Re-negotiating outdated contracts to reflect modern usage (e.g., streaming, digital downloads, AI/digital replica)

Negotiating Royalty Structures

Every licensing or distribution deal should be evaluated for its royalty structure. We regularly negotiate:

  • Revenue-based vs. usage-based models vs, unit-based structures
  • Minimum guarantee provisions
  • Advances against royalties
  • Cross-collateralization clauses
  • Territory and duration terms

Why Choose Rodriques Law

Royalty agreements directly impact your financial future and the value of your intellectual property. Our firm brings a deep understanding of entertainment, business, and IP law to every royalty matter. We’ve advised:

  • Music producers securing backend points on charting albums
  • Self-published authors negotiating Amazon KDP and subsidiary rights
  • Filmmakers protecting royalty streams during indie distribution
  • Designers licensing collections to retail brands

Schedule a Consultation

If you need help negotiating, drafting, or enforcing a royalty agreement in New York, contact Rodriques Law today. We help protect what you’ve created—and ensure you’re paid every time it’s used.

Rodriques Law, PLLC
1460 Broadway New York, NY 10036
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