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Viewing: Blog Posts Tagged with: jedi, Most Recent at Top [Help]
Results 1 - 25 of 41
1. Authors Guild Urges Limited Life

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2. Scarier Than Halloween

STATUS: The last 70 degree day. Okay, I'll admit it. I popped out early to play a round of really bad golf. The weather was beautiful. The company sparkling. Kristin shanked every shot into trees. Ah yes, I'm THAT horrible beginner on the golf course that you never ever want to play behind of.

What’s playing on the XM or iPod right now? THRILLER by Michael Jackson (I mean, duh, what else could possibly be playing on the iPod tonight.)

What's scarier than Halloween? Writers signing publishing contracts not fully understanding what they are signing.

I figured I'd devote this entry to scary clauses in contracts that actual writers have signed.

1. The option clause into perpetuity.

Such a monster! I've seen this in too many small publishing house contracts to count. Any decent option clause will allow the publisher a look at the next project (usually narrowed down to specific type and genre) and that's it. Unsuspecting writers have signed contracts where they literally have to show a publisher every work they do--even if the publisher doesn't want it. The clause obligates them to then show their next project, and then the next project and so on.

I think any writer can get out of this (and the court will rule in the author's favor) but probably not without some substantial cost and a good lawyer.

2. Low royalties based on net.

Don't get me wrong, having royalties based on net isn't necessarily egregious. It is when the publisher tries to pass off royalties based on net to be equivalent to royalties based on retail price. In other words, they offer they same as "standard" such as 10% to 5000 copies, 12.5% on next 5000, and 15% thereafter but it's based on net receipts.

Sounds good until you calculate the math. 10% of net equals about 5% of retail price. Not exactly the same thing so do your monster math.

3. Warranties and Indemnities clauses where the author is on the hook for all the costs.

The author should only be fully responsible if they are found guilty and in breach of this clause. I've seen clauses where authors are on the hook for the full cost of even an alleged breach and yet they have no say in the proceedings. Oi! Even Frankenstein got a better deal.

4. Joint accounting.

Publishers love joint accounting. That means they link the monies of multiple books together. In short, an author doesn't see a penny of royalties until ALL books in the contract earn out and only then are royalties paid. You might be waiting years and years to kill that zombie.

5. Unmodified competing works clauses.

If you aren't really really careful, you might be legally obligated to not pursue any other writing work until the books in your contract are out of print and the rights revert back to you.

This is definitely worst case scenario but depending on the language in the contract, you might have backed yourself into this corner. Talk about hamstringing your career as a writer.

For me, in this digital age, the above are way scarier than anything that might go bump in the night.

21 Comments on Scarier Than Halloween, last added: 11/3/2011
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3. Singing To My Choir!

STATUS: Monday it was 80 degrees. Today it's snowing. Tomorrow it will be sunny and in the high 50s. And beautiful again by the weekend. Not sure what shoes to keep out or put into storage.

What’s playing on the XM or iPod right now? CHINA GIRL by David Bowie

So last week, in my status, I mentioned that we had received three covers and nixed three covers. So needless to say, it's been nothing but cover talks, phone calls, and strategy ever since.

For the newer writers out there, an author does not get approval over covers unless he/she is at a very high level as an author. At NLA (and I imagine this is true for most agents), we always put cover consultation in the contract.

However, the definition of "consult" can be very loose. I've had some editors involve the author from the very first illustrative sketch to the final version. I've had some editors send it to the author when complete and simply say here it is. (To me, that's not consult and I argue it.) For most editors, they are really invested in the author liking the cover so they actually allow a lot of input.

I've been lucky this week. The editors were fully supportive, nixed the covers and sent them back to the drawing board.

And then this morning, one of my authors sent me this link to PW's Blog Shelftalker. I immediately read it and felt an overwhelming urge to say "Amen!" and "Keep singing my song!"

In the past weeks I've said everything mentioned here:

1. Misleading cover image that doesn't remotely match the novel's content.

Please, I beg you, for women's fiction, no more pictures of pastoral objects like a bike or a hammock on a lovely sun porch. Debbie Macomber already has that cover thank you.

2. Same Old Cover Designs That Fit The Popular Trend.

I echo Elizabeth, please, no more covers of models in gowns, young women lying down, partial face images. When we got the ARE mailing of the "hot summer books" from a variety of young adult publishers, it was clear that any one title sent in that bunch was going to have trouble standing out. Every single one had a picture of a girl in some kind of dark, mysterious background or in a dark nature setting.

But I would like to add one to the list. No more jarringly ugly covers. I literally got a cover where the colors clashed so badly, I couldn't figure out why somebody thought that color palette was a good idea.

Trust me, I'm not an art major or graphic designer but I am an avid reader and have seen my share of art through the ages. I know ugly when I see it.

In talking to one editor recently, I said, "all I have is my immediate gut reaction and right now, my gut says Oh Please No.

I could have kissed the editor when she said, "no prob; we'll throw it out."

22 Comments on Singing To My Choir!, last added: 10/28/2011
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4. Tales From The Contract Wars

Status: It’s pouring rain and the temps feel anything like spring but I’m eating ice cream right now anyway.


What’s Playing on the XM or iPod right now? DON’T GIVE UP ON ME NOW by Ben Harper


Today we officially wrapped up our negotiations on the new Macmillan boilerplate contract. It only took 6 months, 2 weeks, and 3 days from start to finish. It was worth it to get a decent contract.


Oddly enough I was excited to sell yet another book to a Macmillan imprint. THAT contract will only take several weeks. All the heavy lifting is done.


Then I get a new Random House contract in. Basically the same except for 2 rather key clauses that come at the very end of the contract but are referenced throughout.


Great. Publishers will certainly let you reserve rights but are now inserting clauses that hamstring the author from exploiting those reserved rights.


This seems to be the latest fashion.


13 Comments on Tales From The Contract Wars, last added: 5/20/2011
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5. Writers: More great advice on how to read a book contract

I’m loving this series from ex-lawyer Passive Guy, talking about how to read and understand publishing contracts.

Read his latest installment, then do yourself a favor and catch up on all the previous ones! Excellent education.

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0 Comments on Writers: More great advice on how to read a book contract as of 1/1/1900
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6. Let’s Continue Talking About Derivative Works

STATUS: Two years and two months after initial publication, HOTEL ON THE CORNER OF BITTER AND SWEET cracks the top 10 again on the NYT list. Time to celebrate.

What’s playing on the XM or iPod right now? YOU NEEDED ME by Anne Murray

I can tell by the overwhelming number of comments on my last post that discussing copyright is definitely whipping my blog readers into a verbal frenzy.

How many of you used the copyright act as a sleep aid on Monday?

But I do think it’s worth continuing the discussion. As I mentioned Monday, I could see how derivative works could be created for nonfiction work.

For example, and this is just off the top of my head and probably not the best example out there but I think it will give you a sense, is to think of a nonfiction work on decorating for the holidays. In this work, let’s say there is one chapter on table place settings. The publisher than decides to take one aspect of holiday place settings from this chapter and create a whole new gift book on holiday place settings.

That would be a derivative work, created by the publisher and they would own the copyright (at least according to this clause 6.b. in the Macmillan contract.)

In talking to my lawyer, we discussed at length how a derivative work could be a book trailer. Definition of derivative work is based on one or more pre-existing works, such as translation, musical arrangement, dramatization, fictionalization, motion picture version, sound recording, art reproduction, abridgement, condensation, or any other form in which a work may be recast, transformed, or adapted.

In talking with Macmillan, this is an example they gave as something they could create that would be covered under this clause 6.b.

More on fiction tomorrow. Hopefully I won’t run out of time.

9 Comments on Let’s Continue Talking About Derivative Works, last added: 3/4/2011
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7. So Let’s Talk Derivative Works

Status: These dang computers. I want to bang my head on my desk.

What’s Playing on the XM or iPod right now? MARRY ME by Train

About two weeks ago I mentioned that the most problematic issue in the new Macmillan boilerplate was the new clause 6. b. that granted the publisher the right to the copyright in any derivative work created by the publisher.

Just for the record, I’m not a copyright attorney and I don’t pretend to be one on TV or if I stay at a Holiday Inn Express. In other words, I’m not dispensing legal advice here; I’m simply sharing with you my general musings regarding the clause.

Since I don’t have the expertise, I sent it to my IP attorney. Now he’s not a copyright attorney either but his law firm certainly has an expert in-house so we looped him on the conversation as well.

A virtual copyright party at NLA!

His biggest concern was the broadness of the clause and how derivative works is not clearly defined. If you’d like some light reading before you go to bed tonight, feel free to click here. This will link you to the copyright act in all its glory. You’ll want to click on Chapter 1 and peruse sections 102 and 103 that particularly discuss derivative works.

He also let me know that there are currently lawsuits in process that examine the scope of derivative works and what can or can’t be defined as such. Fun.

So two thoughts:
1. It’s obviously better to remove the clause and any reference to derivative works from the contract. And, if you have leverage, it can be done. But if you don’t…

2. How best to restrict this clause in such a way to make pursuit of derivative works impossible without expressed approval of the author?

Now we’re talking. My lawyer gave me some good insights and if you want to pay my lawyer fees, then I could share them on the blog. *grin*

This is why you have agents by the way.

My other big question was this: I get how a derivative work could be done fairly easily with a nonfiction project, but I wasn’t certain how it would apply to fiction. Now I am.

More on that tomorrow. Stay tuned.

More Train music on iLike

12 Comments on So Let’s Talk Derivative Works, last added: 3/4/2011
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8. By Far The Biggest Issue

STATUS: It gently snowed all day—which made Anita and I feel quite cozy here at the office.

What’s playing on the XM or iPod right now? BLUE SKIES by Tom Waits

In the new Macmillan contract is clause 6. (b) Copyright on Derivative Works. To state bluntly, this clause gives the Publisher the right to create “derivative works” based on the work they are buying from the author. And to add insult to injury, the publisher owns the copyright to any of these “new works.”

Eyebrow raise.

Yes, it is as bad as what you are thinking it means.

First, this is actually in direct contradiction to US copyright law and can’t be legally enforce but hey, what do I know.

Second, no way an author can sign a contract without amending or deleting this clause although I know some poor soul is going it alone and will end up doing just that.

For goodness sake, at the very least, get in touch with the Authors Guild before doing anything so detrimental to your intellectual property rights.

36 Comments on By Far The Biggest Issue, last added: 2/6/2011
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9. -12 Degrees

STATUS: We've got the heat cranking. Poor Sara in the loft needs a fan!

What’s playing on the XM or iPod right now? TALKIN’ BOUT A REVOLUTION by Tracy Chapman

Quite frankly, I think this entry’s title sums up the day.

Here I am with Chutney about to brave the 15-minute walk to the office with a wind chill of -20.

Is that a Dog in your pocket or are you just happy to see me? *grin*



New York is going to get hit tomorrow so we are anticipating two nicely quiet days where the phone doesn’t ring. I’ve been averaging about 3 hours a day on the phone for the last week.

Plenty of time to tackle the Macmillan contract again. With luck, I’ll make it to page 20 this afternoon! The words “electronic media” are making me nervous.


36 Comments on -12 Degrees, last added: 2/2/2011
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10. A Contract Whine

Status: The high tomorrow is going to be 3 degrees. Oh Joy. And Chutney will still not thank me when I make her wear her fido fleece.

What’s Playing on the XM or iPod right now? HEROES by David Bowie

I think this is definitely more of a whine than a rant. I’m finally negotiating the new Macmillan boilerplate because just recently I sold a novel to that publishing house. And yes, I know that they implemented that new boilerplate many moons ago. Even though I reviewed it at that time (to see what I was in for) it’s not relevant until the first negotiation happens at that house. Although many of our boilerplate items were transferred into the new Macmillan contract, so much of the language has changed (or new clauses created), it might as well be brand new.

So to be generous, I reserved 4 hours to give it a solid read and to write up my requested changes letter. After 2.5 hours of diligent labor, I had only hit page 11 of the 28 page contract.

Oh, this is going to be fun one to negotiate.

9 Comments on A Contract Whine, last added: 2/2/2011
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11. The Great Contract Delay?

Status: Freakish. It’s going to be 60 degrees tomorrow in Denver. Uh, winter, what is that?

What’s Playing on the XM or iPod right now? ALWAYS ON MY MIND by Willie Nelson

In the last 6 months, there has been a radical shift in the amount of time it will take to complete a publishing contract. At first, I chalked it up to the new contract boilerplates publishing houses are feeling the need to implement. Any time an agent has to pretty much negotiate from scratch, it’s going to take a lot more time to establish a new agency boilerplate that is fair and reasonable for the author.

But that’s not always the case. For example, for one recent deal, it took (literally) three months to get the first draft of the contract—and the publisher had not changed the boilerplate. Having recently done 4 or 5 contracts with this house, I rather assumed this latest one was going to be a quick process. It took 6 months before the author signed the final contract.

And it’s not like I’m snoozing at my desk. This is after repeated calls, emails, follow up, and constant nagging on my part to prod the process along.

Agent job description: Nag.

Trust me, I didn’t know that was part of the job qualifications when I got into this biz.

For another contract from a publishing house that has always been very prompt in the past, I was stunned to have to wait 4 weeks between responses. (By the way, I responded within 3 days from any communication from the publisher; it was not languishing on my desk.)

It’s enough to make you wonder if it’s me! So I started bringing it up in conversations with other agents I chat with. Lo and behold, they had the same complaint!

So I don’t know what’s up. Are the contracts departments besieged? Understaffed? Combination of of things? Is this the great contract delay conspiracy? If you’ve recently sold a novel, get ready to hurry up and wait in order to sign on the dotted line.

21 Comments on The Great Contract Delay?, last added: 1/29/2011
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12. If You Think A Publisher Will Be Filing…

STATUS: First day of fall. Makes me kind of sad. I want summer to stay awhile longer.

What’s playing on the XM or iPod right now? WONDER by Natalie Merchant

…for bankruptcy, what is the best thing an author can do?

My answer? Get your rights reverted before the filing so the books aren’t tied up indefinitely by the court as non-reverted titles will be deemed assets of the company.

By the way, this is true even if you have a bankruptcy clause in your contract specifying that rights automatically revert. Bankruptcy courts don’t perceive it that way and they trump contract clause.

I also suggest you get a full accounting, if you can, of what is owed to you. You want this for several reasons: 1) if you have to file a claim as a creditor in the bankruptcy, you’ll know for how much. 2) you might be able to take the amount loss as a tax deduction (but ask a tax expert first).

9 Comments on If You Think A Publisher Will Be Filing…, last added: 9/22/2010
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13. The One-Book Deal

STATUS: A nice and productive day. I think I want summer hours though. Leave by 1. Play in the sunshine. I know Chutney is all for it.

What’s playing on the XM or iPod right now? DO YOU SLEEP by Lisa Loeb

Today let’s tackle the single book contract. What are the advantages and disadvantages to doing just a one-book deal? Considering what we discussed yesterday, it seems ludicrous to sell just one book!

Well, not really. Most one-book deals are for literary fiction and occasionally for what we would call the “big” commercial literary fiction. Commercial literary fiction is really just literary fiction that has a commercial hook or slant. For example, WATER FOR ELEPHANTS is a good example of commercial literary. Or TIME TRAVELER’S WIFE. Or HOTEL ON THE CORNER OF BITTER AND SWEET.

Does this make sense?

And there are lots of reasons to do a one-book deal.

1. Literary fiction takes longer to write. Sometimes it’s not feasible to write a second book on a prescribed deadline so authors will contract one book at a time. Wally Lamb (SHE COMES UNDONE) is kind of known for never selling a book until it’s written and then he sells that one book only.

2. A one-book contract can alleviate the pressure on the author. The sophomore effort can be a tricky thing. I know from experience that every author hits a stumbling block with that second novel and it really doesn’t matter the genre you write in.

3. Literary fiction—especially those that lean commercial—often get undersold initially and then break out big later. If there is a sense that that could happen, why lock the author in for a certain amount of money?

4. The author might not have a second novel to propose and he/she just doesn’t want to throw ideas at the wall and see what sticks. And the author might take 10 years to write next literary novel. It happens.

5. If the author’s editor leaves and there is just a one-book contract, it can make it cleaner for the author to follow his/her editor to a new house. One’s editor tends to be really important in literary fiction. There is a certain trust that can be very beneficial to the literary writer.

Now having mentioned these things, you can kind of see the flipside to the argument.

1. A two-book contract might be preferred if there is a lot of hype and a book sells for a lot of money and then doesn’t perform. How nice would it be to have a commitment to two books already lined up if that’s the case? A chance of redemption or getting those numbers back up.

2. A Publisher may delay acquisition of a future book until they have sales figures for the first book. Since books easily take 18 months to publish, it’s a long time to wait to get a new contract—especially if the author is trying to earn a living here.

28 Comments on The One-Book Deal, last added: 6/25/2010
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14. One Book or Two? Maybe Three?

STATUS: I was “this close” to getting to everything on my TO DO list today.

What’s playing on the XM or iPod right now? MY WAY by Frank Sinatra and Willie Nelson

Last year, a fellow agent friend and I gave a workshop on doing a single-book contract versus a multi-book contract. I was a little surprised at how many writers showed up for it. Hey, maybe these would make a few good blog entries.

First Q: When is doing a single-book contract ideal and when is a multi-book contract best?

Answering this question takes into consideration a lot of different factors. Let’s start with the obvious. If you write genre fiction, it’s almost always to an author’s advantage to do a multi-book contract.

For example, if you write fantasy and the first book being sold is the first in an envisioned trilogy, well, it would be better to have the publisher commit to three books. That way the entire series has a shot of being published. It often takes several books for a series to pick up momentum. What’s important is the publisher commitment—even if in the end a series does well and it was “undersold” initially in terms of the advance.

More common case is that a series has to build over time with the subsequent books and then the books start to earn out. Besides, who wants to sell book 1 in a trilogy only to be left in a lurch if the publisher doesn’t pick up the other books? It’s not easy (read "nearly impossible) to sell books 2 & 3 to another house. If sales are sluggish, it’s really unlikely another house will pick it up.

For another genre such as romance, careers build best if an author can release books within 6 to 8 months from each other. That means really tight schedules/deadlines for the author to make that work so doing multi-book contracts make sense. It’s also best to do multi if the stories are “linked” (as in they stand alone but have characters that might have been introduced in first novel).

Is there an advantage or disadvantage for doing 2 books vs. 3 or 4? Sure. Lots of agents differ on their opinion of this so I can only speak for myself. In general for me, the number of books sold at one time depends on the author (how fast he/she can write), on the project (how many books envisioned) and whether I think the author was undervalued. What I mean by that is if the offer was initially too low for a 3 or 4 book deal or if I thought the monies should have been higher in the auction and I don’t want to lock the author in for too many books at the lower rate. Obviously, reverse is true. If the monies are good, then why not lock in for more books as the commitment is strong from the publisher.

As you can see, lots of factors at play. How does an agent know? We’ve been doing this long enough that we pretty much use our gut sense of what feels right as the offer unfolds. I’ve yet to be wrong.

I’ll talk about single-book contract tomorrow.

16 Comments on One Book or Two? Maybe Three?, last added: 6/22/2010
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15. Wiley (cont.) And Tidbits

STATUS: Is it Wednesday already?

What’s playing on the XM or iPod right now? LONDON CALLING by Clash

Okay, my wifi at home has gone kaput. Sometimes I don’t get a chance to blog while still at the office so then I’ll pop online via the laptop at home. Kind of difficult when it’s not working. Hopefully that will get taken care of tomorrow.

So many little tidbits to share. Most of them funny and it’s not even Friday yet.

Authors Guild and Wiley continue… Lots of people didn’t agree with the AG stance on Google but I’m still quite glad they are out there being a watch dog for authors.

In the best headline I’ve seen recently:
Cops bust woman, 74, for pouring mayo in book drop

All I can say is there must not be a lot going on in Boise, Idaho. Still, I’m dying to know the motive for this condiment crime spree. (Never imagined those three words would appear in the same sentence together.)

And best for last. You know publishing has hit mainstream when The Onion jumps in the mix. I just laughed and laughed. (It’s TWILIGHT but with Minotaurs!).

17 Comments on Wiley (cont.) And Tidbits, last added: 6/19/2010
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16. Wiley Responds and Friday Funnies

STATUS: Where has the morning gone? Eek.

What’s playing on the XM or iPod right now? HEY GOOD LOOKIN’ by Hank Williams

Today Wiley issued a press release asserting the Authors Guild is in error.

Any Bloomberg authors want to weigh in anonymously and comment, feel free.

And to kick off the weekend, the Bronte Sisters Power Dolls (courtesy of my client Laurence)! Bless youtube. Where would I be without them? Enjoy!

11 Comments on Wiley Responds and Friday Funnies, last added: 6/13/2010
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17. Publishers Behaving Badly

STATUS: All my post-BEA stuff is done! Yes.

What’s playing on the XM or iPod right now? FOREVER YOUNG by Alphaville

After my blog tirade two years ago when Simon & Schuster didn’t play nice in the sandbox (by deleting the crucial last four lines of their Out of Print clause without telling anyone), you know how strongly I feel about publishers behaving badly.

Sounds like John Wiley & Sons might be doing similar if the Authors Guild strong warning is anything to judge by.

I do not have any authors impacted by the sale of Bloomberg Press to Wiley so I have not seen this letter. And for the record, I have no personal take or stake on the situation but for general purposes, I like to pass on warnings when they occur so they reach as many readers as possible.

If you’re impacted by this, you might want to touch base with the folks at the AG.

17 Comments on Publishers Behaving Badly, last added: 6/12/2010
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18. eBook Royalty: Another Way To Protect

STATUS: Not sure what is up with Mondays but they seem to be getting away from me lately.

What’s playing on the XM or iPod right now? CAPE CANAVERAL by Conor Oberst

Most authors, at this point in time, are not interested in walking away from a publishing contract over electronic book rights. The numbers are growing certainly (as we can see that statement to statement) but the numbers, in general, are still very small in comparison to traditional print sales.

Now there are certainly some exceptions. I’m very interested in seeing how it unfolds for author JA Konrath who has long blogged about making a living from electronic book sales and has decided, for his most recent novel, to go with Amazon Encore for the print with the release from Kindle coming earlier. (By the way, Mr. Konrath is embarking on this journey with his agent.)

From what I can tell from my own negotiations as well as from convos with other agents, Publishers are currently holding very firm on 25% of net receipts for the royalty structure. If they are doing an agency commission model (i.e. Apple) they are either not changing their definition of net amounts received in their contracts or they are sticking to the definition that it will be based on monies actually received by the publisher—translation: royalty of 25% of net to author calculated after 30% commission paid to third party (such as Apple). In other words, author is receiving 25% of 70% (not 100%). Reference my earlier blog entry on this topic to get up to speed.

So, if the author does not want to walk away from the offer over ebook royalty (and right now I’d have to say that’s most authors), what does an agent do?

We find another way to protect the author. One method is to include language in the publishing contract that dictates that if industry standard changes in regards to electronic book royalty rates, then the rate can be amended or renegotiated in the future to adhere to new industry standard.

Feel free to add that tidbit to your contracts file.

20 Comments on eBook Royalty: Another Way To Protect, last added: 5/21/2010
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19. When Contracts Directors Have A Sense Of Humor

STATUS: Off to a terrific start today.

What’s playing on the iPod right now? STAY UP LATE by Talking Heads

From a lot of my posts lately, I imagine that you think all my recent conversations with contract directors at the big houses have been contentious.

In reality, that hasn’t been so. I have to say, that I personally like all the contracts directors at the major houses. They are under the gun and yet they’ve handled differences of opinions with good temper, grace, and with reason—even if I don’t agree with their stance.

In fact, one of the contract directors from a big six house even made me spit coffee and sputter with laughter in our last conversation.

When I mentioned that I didn’t agree with the 25% of net publishers were currently sticking with and that I was not inclined to accept the same percentage if we were to negotiate an expanded or enhanced electronic book, the director, totally deadpanned, quipped in return that I must obviously share his opinion that the split percentage to the author should be lower for an enhanced ebook as they are more expensive to produce.

I was so surprised that I just burst out laughing as did my contracts manager. You gotta respect a contracts director with a sense of humor. Grin.

7 Comments on When Contracts Directors Have A Sense Of Humor, last added: 4/16/2010
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20. A Difference of Opinion I’m Sure

STATUS: Just a twinge of a cough remains. Kristin—9 flu—1

What’s playing on the iPod right now? HOME by Daughtry

Rumor has it that several of the big 6 publishers are coming out with new boilerplate contracts in the next couple of weeks. I know for sure that Hachette is working on a new one as is HarperCollins.

With these new “boilerplates,” I already know there is going to be a significant difference in opinion about what a Publisher thinks is a boilerplate item and what an Agent will consider as a boilerplate item versus a right that needs to be negotiated up front.

I have a feeling (call it intuition—snort) that the definition of what constitutes an “enhanced ebook” or a “multimedia product” (that’s a new catch phrase I’ve been hearing as of late) will be at the center of these new boilerplate contract debates between publishers and agents.

I, myself, have yet to see a new “boilerplate” contract but am waiting with bated breath… Oh being an agent is just daily fun.

14 Comments on A Difference of Opinion I’m Sure, last added: 4/17/2010
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21. Burning Question about Agency Commission Model

STATUS: TGIF!

What’s playing on the iPod right now? BEEN CAUGHT STEALING by Jane’s Addiction

As you can imagine, I’ve been having a lot of conversations with various Contract Directors at all the major publishing houses as of late as we navigate contract negotiation.

I was in discussion with one person from a Big 6 house and we got to talking about returns with electronic books. Were they going to be allowed on the agency commission model that publishers have with entities like Apple?

According to this contracts person, the answer was yes.

So I asked what I thought was a rather pertinent question. I said, “if Apple allows returns and they’ve already deducted the 30% agency commission from the sale, how will the publisher know that the commission should have been refunded to them for the returned-sale of that title?”

Contracts person: “Good question.”

Glad I could be of some help…

8 Comments on Burning Question about Agency Commission Model, last added: 4/12/2010
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22. If You Haven’t Got Anything Nice To Say…

STATUS: Springtime in the Rockies! It was 65 degrees and sunny today and I must admit, I left the office at 2:30 in order to take Chutney out for a run and enjoy the day. In exchange, I’m working all evening.

What’s playing on the iPod right now? TOMORROW PEOPLE by Ziggy Marley and The Melody Makers

Last week, I pretty much spent every entry talking about contracts but today’s discussion tops the cake.

Just recently, a publisher made an offer for the next books from one of my clients. Excellent. But this publisher is also one of the big 6 that have announced that they are moving to the agency commission model for the sale of electronic books.

As ya’ll know based on my math lecture about net receipts last week, there are some key questions that really need to be answered about electronic books and exactly what 25% of net is going to mean.

So my contracts manager and I insisted on talking to contracts director before closing the deal.

The publisher’s response (and this is a paraphrase): they have no idea what the definition of net receipts will be and feel uncomfortable accepting the language we have put forth. Their suggestion? If the author would like to put the contract on hold until the company makes a corporate decision on this, then the author is free to do so. However, the publisher has no timeline for when this will be resolved.

Snort. That’s the solution?

Publishers. The world is changing. Quit dithering. We agents have to negotiate contracts now so maybe get on this. Telling us we can just put it on hold until you get your act together isn’t an alternative.

Rant over.

32 Comments on If You Haven’t Got Anything Nice To Say…, last added: 3/8/2010
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23. Redefining Net Receipts Where eBooks Are Concerned

STATUS: Lots to tackle today so getting the blog entry out early.

What’s playing on the iPod right now? THE BLACKEST LILY by Corinne Bailey Rae

And the fun of how electronic books are changing the publishing contract continues. Today, boys and girls, we are going to talk about net receipts in Ms. Kristin’s neighborhood.

In light of this new agency commission model where Amazon and Apple will no longer carry the product per se but have an agreement to sell titles via their site in exchange for a 30% commission on the sale (see earlier post to get up to speed), suddenly agents need to re-examine the whole definition of net receipts in publishing contracts.

The definition of net receipts (or amount received) for an electronic book is not the same as the definition of amount received for a physical book.

With the agency commission model, the biggest question is this. Will publishers deduct the 30% commission paid or will they absorb it when calculating net receipts and determining what is the total used to pay authors their 25% of net receipts? One major publisher has stated that their current thinking is that the royalty would be calculated BEFORE deducting commission. In current negotiations for contracts in play, I’m not seeing publishers as excited about redefining net receipts this way.

So what does redefining net receipts mean to the author? Let’s do a little math!

Let’s say a title will sell on Amazon or Apple’s iPad for $10.00 (might as well make it easy math).
Now let’s look at the different between net receipts if the publisher absorbs the cost of the agency commission versus if they don’t in defining and calculating net receipts.

If Publisher absorbs commission:
eBook price: $10.00
25% of net royalty (all the rage with publishers as of late)
Royalty to author: $2.50 per title sold

If Publisher does not:
eBook price: $10.00
$7.00 received by publisher (after 30% sales commission to retailer)
25% of net royalty
Royalty to author: $1.75 per title sold

Yep, definitely worth the time to find out exactly how this term is going to be defined in the contract when it comes to electronic books.

10 Comments on Redefining Net Receipts Where eBooks Are Concerned, last added: 2/26/2010
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24. eBooks and Royalty Statements

STATUS: Remember when I said we were reading a lot? Yeah, that was before the Olympics began. Bad Kristin but I can’t tear myself away from the TV in the evenings!

What’s playing on the iPod right now? HOLDING BACK THE YEARS by Simply Red

As you know from a previous post, I’m not all that enthusiastic about this move by Publishers to switch an eBook royalty rate based on retail price to a royalty percentage based on net amount received.

As I ranted about this topic previously, my issue is the lack of transparency on the statement. It’s impossible to track actual amount received by the publisher unless you can get more detailed accounting info

So what have we been doing? Asking Publishers to included language in the agreement that contractually obligates them to provide more accounting information upon request. The only way to verify the accuracy of the Publisher’s stated amount received is to get info such as a list of customers purchasing and disseminating the electronic product, the business model used (wholesale or agency commission or maybe something not even invented yet), the actual retail price, the discount, any deductions made to establish the Amount Received figure from which the royalty calculation will be based.

And I could go on.

Notice that yet again, the onus is on the author/agent to go out of their way to request this information. It won’t necessarily or automatically be stated on the statement.

If we are having such a revolution in publishing over the electronic book, is it too much to ask that publishers have a revolution regarding the info provided on a statement? You got to change the system anyway to account for these new royalty structures. Why not make the whole reporting process more transparent. Heck, why can’t all this info be readily available online and the author can access it at anytime.

Now that would be a step in the right direction.

9 Comments on eBooks and Royalty Statements, last added: 2/26/2010
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25. You Need A Reserve For Returns For eBooks Like You Need A Hole In Your Head

STATUS: I had a To Do list a mile long but I buckled down and just concentrated on it. The fact that I only got 70 emails rather than my usual 120+ today made a big difference in accomplishing what I did.

What’s playing on the iPod right now? HEY, SOUL SISTER by Train

It’s been awhile since we’ve talked about contracts. I know. Your favorite thing but to be honest, contract language is ALL I’ve been thinking about for the last 3 weeks since Apple made their big iPad announcement, Amazon pulled the links for Macmillan titles to flex some muscle, and publishers such as Macmillan and Hachette moved solely to an agency commission model for the sale of eBooks. (See sidebar tags for “publishing contracts” and “electronic books” to get up to speed on these past events.)

The hardest part about being an agent right now is figuring out what dang language to put in the contract when terms are changing, literally, every week.

But today’s topic is a no brainer when it comes to contract terms that need to be revisited in light of the ever-changing eBook landscape.

Publishers, in the old school world of actually selling physical copies of the book, like to hold a reserve for returns on any given title. This reserve is usually specified on the royalty statement (although some publishers do not include that info and then we as the agency have to specifically request it). Because publishers sell books to booksellers who can then later return them for full credit or refund, they have to hold a certain percentage in reserves to account for the possibility of all these returns. Publishers like to hold reserves on each specific edition of the title.

Got that?

But here’s the interesting thing. Some publishers are holding a reserve on the eBook edition.

Right. Explain to me how somebody would return an electronic book. They can’t. eBooks are non-returnable so why would a publisher be holding a reserve for returns on an electronic edition?

What a good question. They shouldn’t be. So now we’ve implemented policy here at the agency to make sure that no reserves are being held for eBooks on any past contract where that was not specified (which means we are having to ask when each roy. statement arrives and make sure reserves are not held). Oh what fun!

And on future contracts, we are including specific language that no reserves will be held on the electronic edition. And yes, if you don’t specifically raise a ruckus about this, some publishers are holding a reserve on the eBook (not all, mind you, but some are).

Oh, I’m going to be ranting about this kind of stuff all week so stay tuned. Those of you who are agented authors, aren’t you glad somebody is worrying about this stuff on your behalf?


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