Royalty payment in the context of License

A songwriter is a person who creates musical compositions or writes lyrics for songs, or both. The writer of the music for a song can be called a composer, although this term tends to be used mainly in the classical music genre and film scoring. A songwriter who mainly writes the lyrics for a song is referred to as a lyricist. Pressure from the music industry to produce popular hits means that songwriting is often a collaborative process with tasks shared among multiple people. For example, a songwriter who excels at writing lyrics might be paired with a songwriter with the task of creating original melodies. Pop songs may be composed by group members from the band or by staff writers – songwriters directly employed by music publishers. Some songwriters serve as their own music publishers, while others have external publishers.

The old-style apprenticeship approach to learning how to write songs is being supplemented by university degrees, college diplomas and "rock schools". Knowledge of modern music technology (sequencers, synthesizers, computer sound editing), songwriting elements and business skills are significant for modern songwriters. Several music colleges offer songwriting diplomas and degrees with music business modules. Since songwriting and publishing royalties can be substantial sources of income, particularly if a song becomes a hit record; legally, in the US, songs written after 1934 may be copied only by the authors. The legal power to grant these permissions may be bought, sold or transferred. This is governed by international copyright law.

The American Society of Composers, Authors and Publishers (ASCAP) (/ˈæskæp/) is an American not-for-profit performance-rights organization (PRO) that collectively licenses the public performance rights of its members' musical works to venues, broadcasters, and digital streaming services (music stores).

ASCAP collects licensing fees from users of music created by ASCAP members, then distributes them back to its members as royalties. In effect, the arrangement is the product of a compromise: when a song is played, the user does not have to pay the copyright holder directly, nor does the music creator have to bill a radio station for use of a song.

Unreal Engine (UE) is a 3D computer graphics game engine developed by Epic Games, initially made for use in the 1998 first-person shooter video game Unreal. Originally developed for PC first-person shooters, it has since been used in a variety of genres of games and has been adopted by other industries, most notably the film and television industry. Unreal Engine is written in C++ and features a high degree of portability, supporting a wide range of desktop, mobiles, console, and virtual reality platforms.

The latest generation, Unreal Engine 5, was launched in April 2022. Its source code is available on GitHub, and commercial use is granted based on a royalty model, with Epic charging 5% of revenues over US $1 million, which is waived for games published exclusively on the Epic Games Store. Epic has incorporated features in the engine from acquired companies such as Quixel, which is seen as benefiting from Fortnite's revenue.