Reading only the highlighted text, I read it thusly:
“Solely for purposes of the preceding paragraph, gross income derived in the ordinary course of a trade or business includes (and portfolio income, therefore, doesn't include) the following types of income……royalties derived by the taxpayer in the ordinary course of a trade or business of licensing intangible property.”
So royalties reported on line 1, ordinary income, or on line 6 of Schedule K-1 can still be included in QBI.
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