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Need help deciphering a contract clause re: revenue sharing

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JDBVideoProduct

Junior Member
What is the name of your state (only U.S. law)? California

Hello, everyone:

Can anyone help me decipher what this contract clause means? I run a startup video production company, and I am the content provider. An Internet television station sent me the clause below in a contract. i am trying to decipher what it means.

I want to know this: if the Internet TV station carries my program, and if my program has an announcement for the sale of a DVD, and if I am able to sell the DVD to individuals who have watched the show using the Internet television station, does this mean I have to pay them 80% of what I earn on DVD sales?

Here goes the clause:

"Revenue Share – Ad-supported Distributions - Advertising Content Owner Provided: After mutually agreeing to include an advertisement in Content Producer Content, Content Producer shall pay ANONYMOUS TELEVISION STATION a fee equal to eighty (80) percent of the amounts actually received by Content Producer, less any taxes, technology fees and sales commissions to third parties.

Thank you.
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? California

Hello, everyone:

Can anyone help me decipher what this contract clause means? I run a startup video production company, and I am the content provider. An Internet television station sent me the clause below in a contract. i am trying to decipher what it means.

I want to know this: if the Internet TV station carries my program, and if my program has an announcement for the sale of a DVD, and if I am able to sell the DVD to individuals who have watched the show using the Internet television station, does this mean I have to pay them 80% of what I earn on DVD sales?

Here goes the clause:

"Revenue Share – Ad-supported Distributions - Advertising Content Owner Provided: After mutually agreeing to include an advertisement in Content Producer Content, Content Producer shall pay ANONYMOUS TELEVISION STATION a fee equal to eighty (80) percent of the amounts actually received by Content Producer, less any taxes, technology fees and sales commissions to third parties.

Thank you.

**A: no, that's not exactly what it says. What is your projected yearly income from this business?
 

Some Random Guy

Senior Member
I don't see in there that the DVD customers had to watch the Internet television station at all in order to have you give away the 80%. and remember that the 80% comes out of the revenue before you pay for making the DVDs, shipping them and actually creating the content.

I would suggest that you take the price of your DVD and work out exactly how much you would profit on each DVD. I suspect its going to be very very small.
 

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