The Bitcoin blockchain allows for arbitrary data to be included in a transaction via OP_RETURN script. This data can include information about the transaction, such as a description of the product or service being sold and the terms of the royalty agreement.
By embedding royalty information in an OP_RETURN output, it becomes part of the blockchain and can be used to enforce royalty payments. This can be done by having the inscriptions code associated with the royalty agreement reference the OP_RETURN data when determining if a payment is due, and the terms of the payment.
The use of inscriptions in Bitcoin allows for a decentralized and tamper-proof way of managing royalty payments, providing transparency and traceability.