A royalty fee is a payment made by one party to another for the right to use a particular asset, such as intellectual property, trademarks, or natural resources. This fee is typically calculated as a percentage of revenue generated from the use of the asset or as a fixed amount per unit sold. For example, when a company wants to use a popular character from a movie or book, it may pay a royalty fee to the original creator or owner. This arrangement allows the creator to earn income while enabling the company to leverage the established popularity of the asset.