Pro-Rata
Type: adjective, adverb
Pronunciation: /proh-ray-tuh/
Also spelled or known as: Pro Rata
Related: Royalty Split, Revenue Allocation
What does Pro-Rata mean? The proportional allocation of money, rights, obligations, royalties, or expenses based on each party’s respective share or percentage.
Within the music industry, pro-rata calculations are commonly used for royalty distributions, publishing ownership, licensing income, production costs, settlements, partnership agreements, and profit-sharing arrangements.
Pro-Rata synonyms: Proportional Allocation, Percentage Allocation, Proportional Share
Example sentence: “Mechanical royalties were distributed on a pro-rata basis according to each songwriter’s ownership percentage.”
PRE-ORDER RECORDING BUSINESS DICTIONARY