Royalty means that someone is of rank, power or in the position of king or queen. People of royalty include those who are related to the king or queen, or of a lineage that has sovereign power.
The first known usage of the word "royalty" was in the 14th century. It is derived from the Old English word "roialte" as well as the Anglo-French words "realté" and "roialté."
An alternative meaning of royalty is a payment, made to an author or composer for every share of their work that is sold. Royalties may also be used in an oil or mining lease to pay the grantor.