Royalty points

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Royalty Points, or royalty based systems are a way of sharing profit between companies and unit holders.

Royalty Points are usually profit based, whereby a percentage of gross profit or sales of a product are shared with unit holders by some percentage.

Royalty payment is equal to the gross profit of a product, multiplied by the number of Royalty Points held and divided by the total number of Royalty Points.

Royalty Points have been used historically in the entertainment industry for music and movie distribution.