Royalty distribution
Royalty distribution is the process of allocating royalties among the people entitled to them, for example among co-owners of a patent, members of a band, or a licensor and its sub-licensors. Who receives what is set by the licence and any co-ownership or partnership agreement, and for certain copyright uses by collective societies that collect and distribute royalties to rights holders.
How BC law treats it
Distribution is mainly a matter of contract. For certain uses of music and other works, collective societies collect royalties under tariffs certified by the Copyright Board of Canada and distribute them to rights holders under the Copyright Act, RSC 1985, c C-42.
What it means for your business
If several people contributed to a product or work, agree in writing how royalties will be split before money starts flowing.
Risks and common mistakes
Without a written split, co-owners are left with uncertain default rules that rarely match what anyone expected, which often leads to a dispute.
For the full explanation, see our entry on Royalties.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
