Tantiemen

Tantiemen, often translated as royalties, are payments made to rights holders for the ongoing exploitation of protected works or assets. They cover a wide range of rights, including literary and musical works, films and recordings, software, patents, and trademarks. Recipients can be authors, composers, performers, inventors, publishers, or rights owners who authorize others to use their property. Licensees include publishers, broadcasters, streaming platforms, manufacturers, and distributors.

Royalties are usually calculated as a share of revenue, sales, or usage. Common models include a percentage of net receipts, a rate per unit, or a combination with minimum guarantees. The administration of royalties is often handled by collecting societies or licensing agencies, which audit usage, collect payments, and distribute funds to rights holders after deductions for administration and advances.

Legal frameworks for tantiemen rest on intellectual property law and contract law. Contracts specify the scope of rights, the calculation method, reporting obligations, and payment terms. Royalty regimes aim to provide ongoing compensation to creators for the exploitation of their works, encouraging continued creation and dissemination.

Different forms of royalties include copyright royalties for literary and musical works, patent royalties for inventions, and trademark or license royalties for brand use. Tax treatment varies by jurisdiction; royalties are typically considered taxable income for recipients, and may be subject to withholding or value-added tax in certain contexts.

Origin of the term: In Dutch and other languages, tantiemen derives from the French tantième, meaning a share or portion, historically one-tenth. The term is used broadly to describe revenue paid for the ongoing use of intellectual property and other rights.