What term describes a fee paid to an author based on the proceeds from the use of their work?

The term that describes a fee paid to an author based on the proceeds from the use of their work is known as a royalty. Royalties are typically calculated as a percentage of sales or income generated from a creative work, such as books, music, or other forms of intellectual property. This arrangement provides authors and creators with the incentive to produce original work, as they earn a portion of the profits from its use.

In contexts such as publishing, music, or art, the concept of royalties ensures that creators are compensated fairly for their contributions, allowing them to benefit from the commercial success of their creations. This system also encourages the proliferation of new ideas and promotes creativity within the industry, as artists and authors are rewarded for their work.

While other options like commission and licensing fee may refer to payments made in similar contexts, they do not encapsulate the specific arrangement where a percentage of proceeds from the use of the work is paid to the author. Hence, royalty is the most accurate term for this particular scenario.