Tag Archives: publishing

Guest Post by J. Nathanial Corres

In retrospect, there have been hints all my life that I was destined to be a storyteller or writer of tales. My favourite class in secondary school and university was creative writing. My only obstacle was, and still is, myself. Specifically, not putting up barriers such as measuring myself versus others in terms of success. All the truly great storytellers of our time simply wrote from the heart and let all else fall into place.

To elaborate, they told their stories in their own words. This is crucial in an age where the proverbial norm has been to cookie-cutter authors and stories—follow fads instead of the readers’ hearts and desires. This leads to one of my big pet peeves with the industry. The two terms that, over the last two hundred years, have changed very little if it all and only aesthetically.

Those would be “unproven writer” and “there’s no market for this.” The big guys seem to forget the history of the industry and all the times those terms have come back to haunt them. Starting with Mary Shelley and even up to Joann Rowling. The short memory of the big publishers has cost them dearly.

Additionally, there is an article I read a while back that said publishers relied on editors for a final vote of approval despite the fact that many, it seems, have rejected perfectly good work as rubbish just to spite their employers in a vain effort to bolster themselves. Politics as usual in the corporate sector.

As for myself, I’ve not paid any heed to the criticism or rejections from such places. I never listen to criticism anyway. I write as I envision the story with minor clean-ups here and there for grammar, unless it’s for dialogue, and then everything remains unless I forget to finish my characters’ thoughts. The optimum for any writer is to excite the senses and imagination of the reader so they can see each scene as it plays out, to depict the world or setting of the tale as it takes place and bring the characters to life.

When a reader can tell me they could see the protagonists and antagonists as clearly as they can see themselves, I feel as if I’ve done my job: basically, give the reader their own personal cinematic experience without leaving the comfort of their own home.

To summarise, my idea of success is painting an effective picture with words. To me there’s no such animal as an unproven writer, especially when they have pages and pages of manuscripts either physically before them or on a computer. The difference between a good and great publisher is that a great publisher never seeks a market, they let the work create its own. Don’t believe me? Ask J.K. Rowling or Rick Riordan. Tolkien isn’t available.

Option and Right of Refusal Clauses in Book Contracts

March 24, 2014

fictorians

Business Guest Posts Publishing The Writing Life 7 Comments

A guest post by Scott Boone.

In Nancy DiMauro’s excellent post on reversion clauses from a week or so back, she mentioned the four critical clauses in your book contract: the granting clause, the payment clause, the indemnification clause and the reversion clause. This is the fifth critical clause with which you need to be extremely careful. Nancy knows all about option-type clauses, but she was nice enough not to steal the thunder from my post today.

Option-type clauses are the clauses in your publishing contract that refer not to the work being published, but to the work or works you create after the one being sold in that contract. Essentially, what rights does the publisher have in your next work or works? I’m going to talk about three main types: options, rights of first refusal, and rights of last refusal.

Publishers believe that they will not make any money off your first book. That is the received conventional wisdom. So in publishing you, they are investing in you as an author as much as or more than they are investing in that particular book. If they are going to take that risk and make that investment, they have a legitimate reason for wanting some sort of rights in the works you create after that first book. However, too often, these clauses put all the risk on the author without any risk on the publisher.

There is a question of how enforceable these types of clauses are in court. One that is unlimited in time and scope might stand a good chance of not being enforceable. The more limited in terms of time and scope, the more likely it is to be enforceable. However, you don’t want to put your eggs in that basket. None of them. If you end up in court fighting one of these, then in the big picture you’ve pretty much lost even if the court finds in your favor. Get it right on the front end during the contract negotiation.

So here are the three main types and how you need to think about with each one.

Options

Option clauses give the publisher the right to purchase a later work at already set terms. They do not give the publisher the right to look at them first and make the first offer; instead, the publisher just has the right to purchase your next work on already specified terms. You’ve already agreed to it by giving them an option.

In their worst (and perhaps too common) incarnation, they specify that the publisher has the right to buy your next work on the same terms as the first. This is bad for you for at least two reasons. First, it means you cannot get any better terms, including royalty rates and advances, in your next contract. Remember that with a true option clause, the publisher can exercise it without any need to negotiate with you on terms. Those are already set. Second, if the option clause states that they can purchase the next work on the same terms as the first, those same terms include the option clause. The option propagates forward with each book, with no escape for the author. This can be incredibly insidious, and if you dig deeply enough, you can find horror stories of new authors stuck in these sorts of traps.

Look, it is not uncommon for a new author to get a relatively bad contract as their first contract. But an option clause that locks in future terms means that every contract after that will be a bad contract. Avoid these at all costs.

To make it clear, let’s look at them from another angle. An option clause obligates you but not the publisher. Therefore, you bear all of the risk and the publisher bears none. Let’s say your first book bombs. The publisher is not obligated by an option clause to buy your second book. On the other hand, if your first book is a big success, the publisher can buy the second book without having to give better terms. That’s a risk you bear. So you bear that risk while the publisher bears none.

If a publisher wants to lock in the right to your next work or works at set terms, then make them buy them with a multi-book contract. That way both parties bear some risk and it’s not all on you the author.

So what do you do if the contract you’re offered has an option clause? First, get rid of it. Get them to switch it to a right of first refusal or get them to make it a multi-book contract (if you are happy with the terms). If you can’t get rid of it, then either walk away or try to get the terms for the second work that are much better than the first and make sure an option clause will not be included in the contract for second work.

Further, make sure the clause is more limited than simply “your next work” or “future work.” That would include short stories, books in different series or even in different genres. If you are going to sign one, make sure it is limited to a certain form (long vs. short) and to that genre (or even better that series).

Finally, as with any clause conditioned upon the publisher doing anything, make sure the publisher has an objectively defined timeframe in which to exercise the right before losing that right.

The final word on options: Be very wary. Don’t even think of signing a contract with one unless the terms are good, do not include another option, and improve with the next work.

Right of Last Refusal

The right of last refusal is a clause that gives the publisher the right to match any offer for your future work made by another publisher. It’s a bit deceptive in how bad these are for the author. On first glance, they might seem to be not as bad as a straight option clause, but once we dig into how they work, we’ll see how they can actually be worse.

The right to last refusal basically gives the publisher the right to match any other offer. That means they have the right to buy the book at terms that match the other publisher’s terms.

They don’t seem too bad until you start to think about what such clauses do to your ability to get another offer. Put yourself in the shoes of the editor at the other publishing house. In order to make an offer to buy a book, you have to put in a lot of work. You have to read and evaluate the book. Then you have to champion that book to several other constituencies in house. Are you going to want to invest in that book, both in terms of time and workplace capital, if the first publisher can snipe the book out from under you for the same terms? Not likely.

So, while it appears that a last refusal clause gives you the ability to improve the terms of the next contract by getting a better offer somewhere else, that’s not a very realistic option.

Additionally, because the original publisher does not have to make a yes or no decision as they do with an option clause, you might actually get worse terms in the second contract. An option clause at least locks terms in. If your ability to go anywhere else is blocked because no other editor wants to invest the time to make an offer on a book subject to a last refusal, the original publisher can actually offer you worse terms because they know you don’t have any other options.

The final word on rights of last refusal: Don’t.

Right of First Refusal

The right of first refusal gives the publisher the right to be the first publisher to see your next work and the right to make the first offer on it. Unlike the option clause, the publisher cannot unilaterally purchase your next work. You have to agree to their terms. That’s not a bad deal for you as an author provided the right is limited.

You want a good and prosperous relationship with your publisher that spans multiple books. One in which both of you do well. And if you are writing a series, you really don’t want to switch publishers mid-series.

While the presence of this clause should not cause you to reconsider the contract, you should seek to limit it in at least two ways.

First, you should limit what works it covers. It should specify novels and not short works, unless your publisher does in fact publish short works and on terms you would like. It should also be limited to that specific series, or if you can’t negotiate for limiting it to that series, it should be limited to books in that particular genre.

Second, you should limit how much time the publisher has to respond once you have submitted the new work to them. The traditional publishing process is incredibly slow as it is. You don’t want it slowed down even further.

The final word on first rights of refusal: Fine if properly limited.

The Takeaway

Work to limit a right of first refusal in scope to a particular series or genre and in the amount of time the publisher has to make the offer. Avoid options and rights of last refusal.

Guest Writer Bio:
M. Scott Boone lives in Atlanta, Georgia, where he works as a law professor in order to support a clowder of cats. He writes about legal issues affecting writers at writerinlaw.com. When not writing or teaching, he is a self-proclaimed soccervangelist.

Reversion Clauses – or when do I get my story back?

March 18, 2014

Nancy

Business Nancy Greene Publishing The Writing Life 4 Comments

There are four critical provisions in your contact: the granting clause, the payment clause, the indemnification clause and the reversion clause. All four provisions work together to set out what you’ve given up (granting and indemnification clauses), what you get in return (the payment clause) and when you get your stuff back (the reversion clause). I’m only going to talk about the last one today but keep in mind that whether a reversion clause is unreasonable depends in large part on what you’ve given away and what you received for it.

What’s the issue?

Your work has value. After all, that’s why a publisher wants it. The value of the work is why you get paid. In return for letting the publisher print your work (and, hopefully from the publisher’s prospective, earn more money off it than they pay you) you give the publisher an exclusive right to use your words anyway that falls into the grant of rights. Start to see the problem?

No?

Okay, let’s look at it this way. I was recently shopping a story to some E-publishers. Before submitting, I checked out the contract terms as stated on the webpage. Buried in the mumbo-jumbo about submission guidelines and other facts was this gem: “Length of grant of publishing rights: Life of copyright.” What the heck?

A copyright lasts your life and another 70 years (in the US and UK. There some other countries which the copyright only lasts 50 years after your death, but it’s still a darned long time.). If you signed a contract with this “reversion” clause your publisher OWNS YOUR STORY for your life, the life of your kids, and a good chunk of your grandchildren’s life. The publisher can do whatever it wants with your story until it has no commercial value (i.e. is in the public domain) and, most likely, not pay you a penny more.

Now do you see the problem?

You might shake your head and say that “well, that was an e-publisher, the traditional houses aren’t like that.” Oh yes, they can be. If you let them. Publishers of all kinds are trying to grab as many of your right as possible, keep them for as long as possible and return as few of them to you as possible. This doesn’t make the publishers “evil.” It just means they are better at looking out for their businesses interests than most writers are. After all, they make money off the stories other people write. Of course, the publisher wants to keep those words for as long as possible.

“But wait!” you say. “Isn’t there something about my getting the rights back if the work goes out of print?”

Most contracts will have a provision that says something along those lines but the words really matter. Ambiguity is not your friend. Reversion clauses often have no definitions or meaningless ones. I’ll just highlight a few terms that MUST be clearly defined. If “out of print” isn’t explicitly defined the publisher can, and likely will, win on the argument that because your book is available on a “print on demand” basis, whether or not any copies are actually sold, the work isn’t “out of print” and the publisher still owns it.

What does “sales” mean? Can the publisher “sell” 1,000 free copies and meet the “Sales” threshold, if your contract even has one? Courts will read an undefined word consistent with its dictionary definition or its “plain meaning” as it is ordinarily used. If “sales” isn’t defined a court will likely rule that giving away free copies is a “sale” as the “plain meaning” of “sale” includes the “transfer of something to the ownership or use of somebody else.” In other words, no money or anything else of value has to change hands for a “sale” to occur. So, many of the new “reversion” clauses won’t let you get your book back until either the copyright expires, or you pay an attorney a lot of money to argue about your contract and rights. Either way, this is a lose-lose situation for the writer.

The “New Normal” of contracts is that if you aren’t careful you may never get your book back, or worse, you might pay the publisher far more than it every paid you to get your story back.

Hand in glove with the “new” non-reversion clauses are “buy back” provisions. Under these provisions you can “early terminate” the contract for a fee. One of the more egregious of these clauses I’ve seen recently was part of a horrible contract where the writer gave up all rights to her story (which was supposed to be put in an anthology) for 7 years for no advance – just a small royalty percentage. The publisher was going to reprint the story as a stand alone arguably under the same payment terms – 7.5% of the price sold. In order to get the story back before the 7 years expired the writer had to pay the publisher a predetermined amount. Given the sales-to-date this meant the writer had to pay the publisher more than 18 times what she received from the sale to get her rights back. Does this sound wrong to you? It should.

Also keep in mind that many established writers are making LOTS of money self-publishing or reselling their back list – books once in print with a publisher that have reverted to the writer. Publishers know this. For obvious reasons, publishers would prefer to keep the bulk of that money too. With a “life of copyright” grant the income from reissuing those older books would go to your publisher if the publisher even felt like reissuing your work.

What should you ask for in a reversion clause?

1. A reasonable term for the publisher to recoup its expenses and make a profit off you. This is going to vary from an e-book only, to paperback, to hardcover publishers. Hardcover publishers have more legitimate expenses in publishing your book than an e-book publisher does. Generally, the more rights you give a publisher the shorter you want the contract’s term to be. Three years is probably reasonable for an e-book only publisher. Seven to ten years may be reasonable for a print publisher.

2. Clear language as to when and how you get your rights back. Again, ambiguity is not your friend.

3. A definition of “out of print” that sets a sales threshold for e-book publishers, and excludes e-books (for traditional publishers), and print on demand copies and audio books for all publishers.

4. A definition of “sales” that excludes the transfer of your work for no monetary consideration and has a specific number threshold.

5. A renewal clause so the publisher can keep using your Work if it is selling and has to pay you a set amount (an additional royalty) for renewing the contract.

6. If there is a “buy-out” provision, a purchase price that takes into account the publisher’s actual costs, potential lost profits and what it paid you. The reality is if your book is selling well with Publisher X you are unlikely to want your rights back. These provisions come into play when you disagree with what your publisher is doing with your work or the work simply isn’t selling.

7. You don’t want a lengthy notice provision. If you opt to take your rights back, you should get them almost immediately upon notice. This keeps the process from being drawn out and keeps a vengeful publisher from trashing your work – bad cover, bad press – while you wait to get it back.

8. The term “Notice” needs to be defined. The Notice of your intent to take your rights back and the actual return of those rights should not be dependent on the publisher’s actions. Let’s say your reversion clause says you get your rights back 30 days after you notify the publisher: what happens if the publisher doesn’t pick up that certified letter or respond to your email? You might be stuck. “Notice” may mean “actual notice” and you may have to show that the publisher actually received your letter or email. All ambiguity does here is open the door to litigation or an extortion attempt by your publisher who now wants you to buy back not just your rights but also all the copies of your book in the warehouse. If you think I’m exaggerating check out Doranna Durgin‘s post on Writer Beware at http://accrispin.blogspot.com/2011/10/guest-blog-post-fitzhenry-and-whiteside.html

9. A provision that automatically reverts your rights if your publisher files bankruptcy, has an involuntary bankruptcy filed against it, has a receiver appointed or makes an assignment for the benefit of creditors. If any of these things happen your publisher has or is likely going out of business. You don’t want to be caught up in lengthy and expensive litigation to reclaim your rights from a Bankruptcy Trustee or receiver. The likely result if you are pulled into the bankruptcy or receivership is that you will have to buy your story back to help pay off your publisher’s creditors. Again, getting enmeshed in a legal fight is something you want to avoid happening.

What’s the solution?

While a new writer won’t often have the clout to get everything he should in a reversion clause educated writers will push the publishers to stop overreaching. You MUST know what your contract says and how it affects you. Consult with an Intellectual Property (IP) lawyer. This is a very technical and niche area of the law. Your agent likely doesn’t have the knowledge he needs to advise you. The average family law or traffic lawyer does not have the knowledge to advise you. I’ve been practicing business law for nearly 20 years and I still check with an IP lawyer. Consult with a lawyer. Yes, we charge a lot. An IP lawyer may cost you $500 an hour or more. But, the alternative is potentially giving away thousands, if not millions of dollars, over your writing career. The expense of a lawyer is worth the investment.

But the most important solution –

Don’t accept bad contracts.

Don’t accept ambiguous contracts.

Don’t accept “reversion” clauses that don’t actually give you the rights back to your work.

Here’s the secret – Shh – You don’t need traditional publishers as much as they need you. You can self-publish. Publishers need writers to give them content. See, the power has shifted. We can still get our stories to an audience without a publisher. The publisher can’t operate without writers. Don’t get me wrong. I want to be traditionally published. I understand the finances that drive Publishers (e- and traditional) to ask for the provisions they do. But that doesn’t mean I have to accept all proposed terms.

Sometimes walking away is the best thing you can do for yourself, your story and your career.

The bottom line?

Know when and how you get your rights back. If this isn’t clear, hire an attorney to help you understand. If the contact still isn’t clear or acceptable renegotiate it. If you can’t get reasonable terms you may want to walk away.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. No attorney-client relationship has been created. Legal information is not the same as legal advice — the application of law to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional advice.

Literary Agents are Still a Good Idea . . . Sometimes

March 10, 2014

Frank Morin

Business Frank Morin Publishing 1 Comment

When the ebook revolution first began a few years ago, people rallied into two very distinct camps: one was the camp of the revolutionaries who pomoted the ebook-only route and
proclaimed the death of traditional publishing and teased those who still believed in the ‘old ways’ of being dinosaurs.

The other was the traditionalist camp scoffing at the young upstarts and their wild west approach to books, promising that no good end could come to those who started down that dark and unproven path.

It was a pretty exciting (some might say nerve-wracking) time, and no one was sure which camp would ultimately win the war of words.

The situation reminded me of the Reeses Peanut Butter Cup commercials arguing about chocolate vs peanut butter. And like the commercial, reality seems to have found a way to bring those two great approaches to book publishing together. It is no longer an either/or discussion.

The most recent evidence suggests that the market is stabilizing. Ebooks now make up a large part of the new landscape, particularly the US market, while traditional publishing has survived the coup and has stabilized. The good news is that more books are being sold through both mediums. As of today, neither ebooks nor traditionally published physical copies appear to be heading the way of the dodo any time soon.

That’s great news for writers.

But the world has definitely shifted and writers need to approach this new world intelligently. The two markets are different, and different types of books tend to fit better in different slots, so writers need a plan.

As Brandon Sanderson, best-selling fantasy author recommends, it is a good idea to take shorter novels that can be produced more quickly (every 6 months max) and publish them as ebooks while taking longer novels like epic fantasy and publish those via traditional publishing, probably at the rate of one book per year. It makes so much sense that most of the authors I speak with are considering or actively pursuing the Reeses Approach, trying to establish a presence in both markets to leverage different strengths in each.

That is the approach I am taking.

Last year I entered the ebook world with an urban fantasy novella, Saving Face. This year I will complete and e-publish a trilogy set in the same urban fantasy setting. Those books are the beginning of my indie publishing market penetration, the chocolate in my Reeses.

At the same time, I still chose to secure the help of an agent, and am working with him to find a traditional publisher for my big fat epic fantasy novel, and another large YA fantasy novel. The signs are promising, so hopefully deals will be struck with both of those series this year. These are the beginning of my traditional publishing market penetration, the peanut butter side to the equation.

Some people ask, “Why do I need an agent now that we have ebooks?”

The answer is, “You may not.”

If you are convinced your only road to publishing is to directly e-publish your own novels as an indie author, or perhaps go with an ebook-only publisher like Musa Publishing, then an agent is not going to be able to add any value to you.

But in the traditionally published book world, agents still make a lot of sense. They not only have access to many publishers that authors just cannot reach, but they have established relationships with sub-agents to sell their authors’ works internationally. Those international sales can provide a huge advantage for authors, as the ebook revolution has not made such inroads in much of the rest of the world and physical copies still make up the majority of book sales there.

So when a writer decides to pursue traditional publishing for some of their works and they find an agent who extends an offer of representation, the next step is to establish the writer/agent relationship.

This generally results in a short legal document that both parties sign that lays out the agreement between them. It should include the percentage commission the agent expects to receive from the various types of media through which the books can be marketed. For example, a common commission rating is:

US Rights: 15%
UK or Foreign Rights: 20% inclusive of sub-agent’s commission. 15% if direct.
Translation Rights: 20% inclusive of sub-agent’s commission. 15% if direct.
RADIO 15%
THEATRE 15% Subject to negotiation
TELEVISION 15% Subject to negotiation
NEWSPAPER & MAGAZINE ARTICLES, S,SHORT FICTION,ANTHOLOGY 15% when applicable (7.5% when contract vetting only)
FILM 15% Subject to negotiation

The agreement should also include a termination clause, which allows for either party to terminate the agreement, usually with a month’s prior notice. Generally the agent still collects commission on those works which were sold through them, and will collect commission for any works sold within a set period of time after the termination of the contract if they were the ones who submitted those works to publishers (usually 90 day window).

Given that many authors now follow the hybrid Reeses Approach, it is a good idea to include a clause in any agreement signed that explicitly states that those books which the author directly e-publishes on their own instead of traditionally publishing through the agent and a publisher who will produce physical copies are exempt. But any ebook royalties on the electronic sales of those books published through traditional publishers and negotiated with the help of the agent are included in the commissions they would expect to receive.

The agreement should be short, simple, and clear. I am not a lawyer, but that is my opinion.

So yes, I am a believer in the Reeses Approach to book publishing. I did sign with an agent and I am anxious to sign that first deal with a traditional publisher that he is working to line up for me because I see value in getting hard copies into bookstores and gaining access to the international markets that would be difficult to penetrate as an indie-only writer. I am also loving the indie publishing route and am looking forward to completing the new trilogy, getting those books online, and participating in all of the exciting marketing opportunities for indie writers.