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Royalty-free licenses don't require an ongoing payment for use of the work you're licensing and are often used for licensing photographs, songs, and other media.
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So Nintendo may not be manufacturing all those backpacks,
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but I can guarantee they're making a few bucks every time somebody buys one.
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That's a royalty payment, this continual payment based on sales or usage
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of the thing being licensed.
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But there are also royalty-free licenses
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ones that don't require those continued payments.
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Many stock photography websites, for example,
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issue royalty-free licenses.
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You pay for a photograph once,
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and then you can use it on your website without having to pay them everytime someone sees it.
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