Profit Participation
A contractual share of a project's revenue or profit, without copyright
Related
Profit participation is a contractual right to share in a project's revenue or profit, common for producers, investors, artists and key collaborators. It may be a share of gross income or of net profit after costs, depending on how the contract defines it.
What matters is the base, the order of recoupment and whether claims cross-collateralise: the same few per cent behaves very differently on gross and on net. The usual mistake is to equate participation with a copyright share: it is usually a contractual claim that carries no ownership. This is general information, not legal advice.
Read deeper → net profit split
Sources
- 利润参与的基数与回收顺序，参通行音乐产业教材（Donald S. Passman, All You Need to Know About the Music Business）；本文为通识说明，不构成法律意见
Used for fact-checking only; all prose is original.