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An author-publisher agreement is a legally enforceable contract between the author and a publisher. The publisher pays royalties to the author in exchange for exclusive publication rights. The author receives a percentage of the cover price for each book sold. Royalty rates are typically 7.5-8% for paperback and hardcover editions, but experienced or bestselling authors may receive higher payments. Some publishers provide incomplete or false royalty information to authors, misleading them about payment terms.