What is the term for ongoing payments based on sales after initial term?

What is the term for ongoing payments based on sales after initial term?

• A. Royalty
• B. Advance
• C. Residuals
• D. Commission

Answer: (C)

Residuals are ongoing payments to rights holders for continued use or sales of a work after the initial term. This term captures the idea of earnings that keep coming in from repeats, syndication, streaming, or other post-release uses, ensuring creators benefit from the ongoing popularity of the work. An advance is upfront money paid before any sales and is typically recouped from future earnings, so it isn’t about post-term payments. A royalty is a broad ongoing payment for using IP, which can occur during or after the initial term, but the specific post-term, recurring earnings for performers and rights holders are best described as residuals. A commission is a fee earned by a salesperson based on sales they generate, not tied to the continuing use of a work after its initial term.

Residuals are ongoing payments to rights holders for continued use or sales of a work after the initial term. This term captures the idea of earnings that keep coming in from repeats, syndication, streaming, or other post-release uses, ensuring creators benefit from the ongoing popularity of the work. An advance is upfront money paid before any sales and is typically recouped from future earnings, so it isn’t about post-term payments. A royalty is a broad ongoing payment for using IP, which can occur during or after the initial term, but the specific post-term, recurring earnings for performers and rights holders are best described as residuals. A commission is a fee earned by a salesperson based on sales they generate, not tied to the continuing use of a work after its initial term.