What Is a Royalty Fee in Licensing Agreements?

The correct answer is C, royalty. In licensing agreements, the licensor grants the licensee the right to produce and sell their product in exchange for a royalty fee. This fee is a percentage or fixed amount paid on every unit sold by the licensee. For example, if a company licenses its technology for manufacturing widgets, it might receive a 5% royalty on each widget sold by the licensee.