What is royalty payable?

Royalty payable refers to the payment made by one party to another for the use of assets, such as intellectual property, Natural Resources, or proprietary technology. This fee is typically calculated as a percentage of revenue generated from the use of the asset or as a fixed amount per unit sold. Royalties are common in industries like music, publishing, and natural resources, where the owner of the asset receives compensation for its utilization by others.