A top drive system for use with a tool for handling tubulars on a drilling rig includes a motor unit; a coupling unit that transfers torque to the tool; a torque measurement device (TMD) coupled to at least one of the motor unit, the tool, or the coupling unit, wherein the TMD includes a sensing member coupled to an evaluation unit, wherein the sensing member is configured to measure a magnetostrictive effect and the evaluation unit is configured to calculate a magnitude of the torque reaction force based on the magnetostrictive effect.
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