August 25, 2024

Royalties

(#222)

Question

Salam ‘alaykum, a designer imagines the concept of a legal tangible product which will be produced industrially and marketed in large numbers. Does the designer have the right to receive a percentage of the price? Because the company could edit the product millions of times, for several years after delivery of the designer’s work. I feel like it would be fair to continue paying the designer for the exploitation of his idea. Wa Allahu taâla a’lam. Shukran

Answer

بسم الله الرحمن الرحيم

السلام عليكم و رحمة الله و بركاته

حامدا و مصليا و مسلما

Muhtaram

We have received your query regarding royalties, we apologise for the belated reply, our response is as follows:

The view of the Darul-Ifta is the impermissibility of receiving payment for royalties, due to the sale of royalties being tantamount to the sale of a mere right which is intangible.  It is not permissible to sell a right or an intangible asset in terms of Shar’i law, hence such a sale is impermissible.

 (Ahsanul Fatawa Vl 6, pg. 528).

And Allah Ta’ala knows best

Answered by:

Muhammad Irshad Motara

19th Safr 1446

25th August 2024