Royalty payments are fees paid to creators or owners of intellectual property, such as music, books, or patents, for the right to use their work. These payments are typically a percentage of the revenue generated from the use of the property, ensuring that the original creator is compensated for their contributions. In many cases, businesses or individuals who want to use someone else's work must negotiate a royalty agreement. This agreement outlines the terms, including the payment amount and duration, ensuring both parties understand their rights and responsibilities regarding the use of the intellectual property.