What Does “Royalty-Free” Actually Mean?

The term “royalty-free” can be misleading. Most people assume it means that whatever creative material is designated as royalty-free - including music, images, design, and other intellectual property - is material that can be used without paying any fees. 

However, the truth is more complicated. Read on to learn more about what “royalty-free” actually means. 

Royalty-free materials are those that can be used after paying a one-time fee. 

After you pay the fee, you may use the material as many times as you like without having to pay additional fees for each use. 

Royalty-free licenses have conditions.

People incorrectly assume that a royalty-free license indicates the user can do what they wish with the material after they’ve paid the fee. But royalty-free licenses come with a set of conditions under which they can be used, and the license holder can sue if those conditions are violated.

There are different kinds of licenses.

There are three types of royalty-free licenses: Editorial-use only, commercial use, and extended license. An editorial license allows for materials to be used in publications; a commercial license indicates that materials can be used in business and commerce, with restrictions, and an extended license allows both for commercial use and for the resale of material that uses the royalty-free work. 

Royalty-free does NOT mean copyright-free.

The creator still owns the work itself, as a copyright is attached to any material at the moment of its creation. A royalty-free license allows buyers to use the photo, music or other work, but they do NOT have ownership of the material. 

Thinking of Selling Your Work?

There are many websites that pay photographers, artists, and musicians to license their work for consumers to use as royalty-free. If you are thinking about working with these companies, be sure you understand what you’re agreeing to under the agreement and know your rights!

It’s important to understand the different licenses that govern the use of intellectual property.

If you are unclear on the licensing terms of a particular image, piece of music, or other creative work, it’s best to consult with an attorney experienced in intellectual property law.

Contact The Law Office of Katherine Kim at 214-814-5123 or admin@katherinekimlaw.com to book a consultation today!