A Royalty Agreement is a legal contract between two parties, typically a creator and a licensee, that outlines the terms under which the creator allows the licensee to use their intellectual property. This property can include things like music, books, patents, or trademarks. In exchange for this permission, the licensee agrees to pay the creator a percentage of the revenue generated from the use of the property. These agreements are common in industries such as publishing, music, and technology. They help protect the rights of the creator while providing the licensee with the opportunity to profit from the creator's work. Overall, a Royalty Agreement ensures that both parties benefit from the arrangement.