Which statement about royalties is true?

Royalties provide ongoing revenue to the licensor because they are typically structured as a percentage of sales or a fixed fee that the licensee pays to the licensor for the continued use of intellectual property, such as patents, trademarks, or copyrights. This means that as long as the licensee continues to use the licensed material or generate revenue from it, the licensor will continue to receive payments. This ongoing revenue model incentivizes licensors to enter into licensing agreements, as it can create a stable income stream as long as the product or service remains in use.

Other statements about royalties do not capture the dynamic nature of these payments. For example, royalties are not just a one-time payment; they are intended to be recurring as long as the contract is in effect. Additionally, royalties are indeed included in licensing contracts, as they define the financial terms and obligations between the parties. Lastly, royalties are typically not fixed for life; they can evolve based on terms negotiated within the contract or changes in the market, depending on the specific agreement made between the licensor and licensee.