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Under a typical breeding contract, the owner of the stud dog is compensated in some manner - pick of the litter, one or two puppies, etc. This is not to be construed as legal advice.
If one person has a female they want to breed and another person has the male, who gets the litter of pups? Legally, the pups belong to their mom's owner. There is a folk custom that the sire's owner gets one puppy, ?pick of the litter??whichever one they want.
The owner of the mother gets the income. They are the ones doing all the work. A stud fee or pick of litter is usually the fee for stud service.
The stud owner may request a cash fee, ?pick of the litter,? one or more puppies from the resulting litter, or other similar method of compensation. The collection of the stud fee is the stud owner's responsibility.
In the breeds I am familiar with, the owner of the stud gets either cash equivalent to the price of one show quality puppy or gets the pick of one puppy from the litter (decided at the time of breeding).