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Royalty Reporting
Glossary

Royalty amount

Royalty amount: The royalty amount is the dollar value owed to a licensor for a specific reporting period, calculated by applying the royalty rate to net sales and adjusting for advance recoupment, returns, and contractual deductions.

// In practice

For a period with $250,000 in net sales at a 10% royalty rate, the gross royalty amount is $25,000. After amortizing $10,000 against an outstanding advance, the net royalty amount owed for the period is $15,000.

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