Revenue Sharing
/ˈrɛvəˌnu ˈʃɛrɪŋ/
Definitions
- (n.) The contractual arrangement in which parties agree to distribute generated income among themselves according to specified terms.
The parties entered into a revenue sharing agreement to divide profits from the joint venture.
- (n.) A mechanism used by governments to allocate tax income or other public funds among different jurisdictions.
Revenue sharing allows states to receive a portion of federal tax revenues for local projects.
Forms
- revenue sharing
Related terms
See also
Commentary
In drafting, specify distribution criteria clearly to avoid disputes; revenue sharing differs from profit sharing by focusing on gross income rather than net profit.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.