The differences between deposits and royalties include:
1. Definition: Deposit: Usually collected by the seller or service provider from the buyer or service recipient when the contract is signed. A sum of money. This fund is mainly used to ensure contract performance, reduce potential risks, and conduct reasonable liquidation when the contract expires or is terminated. The exact amount of the deposit and the timing of payment depend on the terms of the contract. Royalties: refer to the fees paid by the licensee to the licensor in a licensing agreement (such as trademark license, patent license or trade secret license, etc.) as consideration for the use of the licensed intellectual property. The amount, timing and method of payment of royalties are usually specified in the license agreement.
2. Purpose: Security deposit: The main purpose is to reduce the risks of both parties to the contract and ensure the smooth performance of the contract. Royalties: The purpose is to ensure that the licensee pays a consideration for the use of the licensed intellectual property in order to encourage it to continue to use and promote the licensed intellectual property.
3. Payment method and time: Deposit: Usually paid in one lump sum when the contract is signed, or in installments according to the schedule agreed in the contract. Royalties: Usually paid in installments according to the schedule agreed in the contract based on the actual use and promotion of the licensed intellectual property by the licensee.
4. Legal nature and jurisdiction: Security deposit: In most cases, security deposit is a commercial behavior rather than a strict legal issue. Its processing is mainly based on contractual terms and business practices. Royalty: It is an issue in the field of intellectual property law and is usually regulated and protected by laws such as contract law, copyright law, trademark law and patent law.