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In this tutorial, Deborah Faust discusses the topic of royalties relevant to Realtors and contract drafting. She clarifies that she will not detail specific percentage royalties but will cover essential considerations involved in agreements that include royalty payments. A royalty payment is defined as a percentage of income derived from rights, product sales, or other forms of exploitation. Faust explains that various merchandising agreements often specify different royalty percentages based on formats, such as television, cable, satellite, or different book publishing formats like hardcover and paperback. The emphasis is on understanding the issues surrounding royalty payments when drafting contracts.