Royalties are payments made to creators or owners of intellectual property, such as music, books, or inventions, for the use of their work. These payments are typically a percentage of the revenue generated from the sale or use of the property. For example, when a song by Taylor Swift is played on the radio, she receives royalties for that use. In many cases, royalties are outlined in contracts between the creator and the user. This ensures that the creator is compensated fairly for their work. Different types of royalties exist, including mechanical royalties for recorded music and performance royalties for live performances.