DECA Sports and Entertainment Marketing Practice Exam

What type of payment is made for the use of copyrighted work?

1. Commission

2. Royalty

3. Fee-for-service

4. Bonus

The correct answer is: Royalty

The correct answer is royalty because this payment model is specifically designed for the use of copyrighted works. When someone uses copyrighted material, such as a song, a book, or any other creative work, they typically pay a royalty to the copyright holder. This payment is often based on a percentage of revenue generated from the use of that work or a fixed amount per usage, ensuring that the original creator is compensated for their intellectual property. This structure encourages creativity by providing financial incentives to creators. Other options, such as commission or fee-for-service, involve different payment structures typically associated with sales or specific contractual services, while a bonus usually refers to an additional payment for achieving goals or exceptional performance, none of which specifically address copyright usage.