Participation & Ownership Principle
At Pro Rata Production, we believe that everyone who contributes to a creative project deserves not only fair remuneration but also a stake in the project’s success. Our Ownership Principle ensures that every participant becomes a co-owner of the final work, whether it’s a film, music album, stage production, or any other creative output. This approach aligns with our mission to foster collaboration and equity in the entertainment industry.
How the Participation & Ownership Principle Works:
Budget Allocation as the Basis of Ownership
- Each project starts with a detailed budget that outlines the total costs, including time contributions (e.g., labor hours), financial investments, and equipment or resources provided.
- Every participant’s contribution is accounted for, whether it’s unpaid work, financial investment, or the provision of equipment and other resources.
Establishing Ownership Percentages
- Ownership shares are determined proportionally, based on each participant’s contribution to the project budget.
- For time contributions (unpaid work), ownership is calculated based on the number of hours worked, recorded and confirmed each day.
- For cash and equipment investments, a special coefficient of 2x is applied. This means that any direct financial investment or equipment provided will count twice toward the ownership calculation, reflecting its crucial impact on making the project possible.
Example of Ownership Distribution:
Imagine a project with a total budget of $100,000, divided as follows:
- Unpaid Labor: $60,000 (e.g., actors, technicians, writers)
- Cash Investments: $20,000
- Equipment Provision: $10,000
- Miscellaneous Costs: $10,000
When determining ownership:
- The $20,000 cash investment is doubled to $40,000.
- The $10,000 worth of equipment provided is doubled to $20,000.
- This brings the adjusted total budget to $130,000.
Ownership percentages would then be:
- Unpaid labor: $60,000 / $130,000 = 46.15%
- Cash investments: $40,000 / $130,000 = 30.77%
- Equipment provision: $20,000 / $130,000 = 15.38%
- Miscellaneous contributors: 7.69%
Ongoing Ownership Rights
- Ownership of the final work is not limited to an initial phase. As a co-owner, each participant retains rights to future revenues, royalties, licensing deals, and any additional value generated by the project over time.
- Ownership also extends to creative decisions, allowing contributors to have a voice in how the work is marketed, distributed, and adapted in the future.
Why the 2x Coefficient for Cash and Equipment?
- Direct financial support and equipment provision are critical to the success and production quality of a project. By applying a 2x coefficient to these contributions, we recognize the higher risk and resource allocation involved in making a project viable.
Benefits of the Participation & Ownership Principle
- Empowerment: Contributors gain not just remuneration but also equity, making them true stakeholders in the project’s success.
- Collaboration: This model encourages teamwork and shared responsibility, as everyone has a vested interest in the project’s performance and longevity.
- Sustainability: By creating a system where participants own a share of the work, we aim to foster sustainable careers and ensure long-term value for all involved.
The Participation & Ownership Principle is fundamental to Pro Rata Production’s commitment to equitable, transparent, and empowering practices in the creative industry. We believe that when everyone owns a piece of the project, everyone is driven to make it the best it can be.
