9) Royalty logic: “triggers,” not “good vibes”
At the conceptual level, a royalty exists because:
- A right exists (control),
- A use occurs (exploitation),
- That use falls within a category of monetizable activity,
- Payment is due under an agreement, law, or industry standard.
So it’s helpful to think of royalties as being triggered by events.
Examples of triggering events:
- A recording is distributed to the public.
- A song is publicly communicated to an audience.
- A work is reproduced, transmitted, or incorporated into a product or experience.
- A music asset is used as part of a commercial offering.
The details of how each trigger is priced and administered belong in later lessons. Here, you’re building the mental model:
No trigger, no royalty. A trigger creates an obligation to account and pay.