If I read it correctly, royalties are paid in the form of copies that Chaosium can sell. This means anyone publishing supplements will have to carefully calculate the "sweet spots" for their print runs. For example, it is better to print 500 copies, than 600 copies, due to the number of copies you have to give to Chaosium. The 50 copy minimum pretty much rules out small print runs.
Additionally there is the clause in the same section that allows Chaosium to purchase additional copies at 65% off the cover price, on "30-day terms". I'd say this means anyone publishing anything had better make sure the cover price includes enough profit that they're not hurt by Chaosium's 65% discount.
I don't know how common these sort of stipulations are, but all I can say is ouch! Somehow a fixed percentage of profits would strike me as being more fair, even if they're collected up front.
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