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Royalty payments are the payments for the use of holders of the patents or licence. Since the film was distributed by Walt Disney, obviously Walt Disney owns the patent or copyright and anyone who use it needs to pay the licence or royalty to Walt Disney. The question therefore is how the company obtained the film, where it use, what are the restrictions behind the granting of licence. If the Company obtained the licence in, say, China but use it in Hong Kong, there may be an infringement. It all depends on the way of obtaining the licence and condition of granting the licence.