The equation τ = rF⊥ represents the relationship between the torque (τ) acting on an object, the perpendicular distance (r) from the axis of rotation to the line of action of the force, and the component of the force (F⊥) that is perpendicular to the line connecting the axis and the point of application of the force. This equation is a fundamental concept in the dynamics of rotational motion and understanding rotational inertia.