royalty-free license
Definition
A royalty-free license gives you the right to use someone else's creative work, like a photo, song, or software, without paying a fee every single time you use it. You typically pay once upfront (or sometimes nothing at all) and then can use that work as many times as you want within the rules of the agreement. The 'free' part refers to ongoing royalty payments being waived, not necessarily that the work itself costs nothing.
Example
You pay a stock photo website a one-time subscription fee and then download and use thousands of images in your marketing materials without owing anything extra each time a customer sees them.
Watch Out
Royalty-free does not mean copyright-free, so the original creator still owns the work and the license agreement will spell out specific restrictions on how you can and cannot use it.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.