446: Reading a Book Contract

Jess here with Sarina Bowen to help simplify and demystify author contracts. Let’s start off with a wonderful resource called The Authors Guild. They have sample contracts on their website 

The Authors Guild Sample Contract

ONE You’re not “selling” your book. You’re licensing it.

TWO Grant of rights

Term length

Which territories

Which formats

Territories

• North American
  
  
• World English
  
  
• World
  
  

Formats and sub rights

• Print and digital and audio
  
  
• Sub rights like “first serial”
  
  
• Translation MAYBE
  
  

Time limits

• X years
  
  
• The life of the copyright
  
  

AG says: The standard license term for traditional trade publishing deals is "the whole term of copyright"

THREE Financial remuneration: advances and royalty rates. WHEN is it paid? What percentages?

Advance and payment schedule

• On signing
  
  
• On acceptance of the work (after an edit)
  
  
• On publication
  
  
• A year after publication
  
  

FOUR Manuscript delivery and acceptance. What happens if people are unhappy.

FIVE Other clauses

Copyright stipulation

The Option Clause

The Next Published Work Clause

Cover approval vs consideration or collaboration

Narrator approval vs consideration

Indemnification

What are reserves against returns?

Reversion terms: bankruptcy, failure to publish, failure to pay, and out of print

Red flags:

• Film rights, even if they say “non exclusive”
  
  
• Derivative works
  
  
• Lack of reversion language