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Licensing vs Royalties (How are licensing fees and royalties different?)

Licensing vs Royalties (How are licensing fees and royalties different?)

Licensing fees and royalties are both paid to the owner of a piece of copyrighted content or intellectual property, however, there is one main difference. License fees are usually a fixed payment that allows the licensor to use an IP for a set amount of time, while royalties are percentage or usage-based payments due each time a certain piece of intellectual property is used. Royalties can be collected for content that is simultaneously licensed.

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