STATUS: Just finished up two contracts today. Always a great feeling.
What’s playing on the XM or iPod right now? CHRISTMASTIME by Stevie Wonder
With all the changes in the publishing world, this might be a buzz word you’ve heard thrown around lately. Agents are often including Most Favored Nation clauses in publishing contracts where it relates to electronic books.
It’s actually an odd term for it but including it often protects our clients. A quick stop at Wikipedia will give you an in-depth definition of the term. It’s most often used in international economic relations. In short, it means that if the US has a most favored nation status with a state, that state will not be treated less advantageously than any other country the US has trade relations with. They would get the same tariffs, quotas, or breaks etc.
And yes, it’s more complicated than that but you just need the cliff notes version for how I want to talk about it. Great. Most Favored Nations. International economics. What does this have to do with publishing and electronic books?
I’m getting to that. There are various ways to structure the clauses but in general, when an agent includes a most favored nations clause, it means the author will not be subject to a less advantageous electronic royalty rate than any other author at that Publishing house.
TGIF! Have a great weekend.