What Are Gross Participation and Net Profits in Motion Pictures?

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Some of the salient provisions in any contract including entertainment-related agreements concern money. In fact, the way various participants might or might not be paid based on their reasonable expectations is at the core of negotiations. "Gross Participation" and "Net Profits" are the two terms people involved in creation of a motion picture most often hear about with respect to their compensation. These two terms and their definitions are as fluid and versatile as you can imagine. Hence, it behooves entertainment participants of any stripes to understand the concepts to protect their contractual rights in negotiations.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Doron Eghbali, Law Advocate Group, LLP | Attorney Advertising

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