Pub Rants

Category: Publishing Deals & Contracts

Ebook Royalty Glitch

by Kristin Nelson

STATUS: So excited! Leaving the office before 6! However, I’m just going to take Chutney for a walk and then continue working tonight as I need to read client material.

What’s playing on the XM or iPod right now? POCKET FULLOF SUNSHINE by Natasha Bedingfield

Today I was reviewing a royalty statement from a book that had been recently released. In other words, this was the first statement for the title that we had seen.

In looking at the statement, I noticed that there wasn’t a single electronic book sold in the six-month accounting period this statement encompassed.

Red flag! And you don’t even have to be a rocket scientist (or a literary agent for that matter!) to be able to look at the statement and realize that if an electronic book is available but sales are not showing on the statement, something has gone awry.

Now in this instant, the problem was easily solved. The book released right at the end of the six-month accounting period (so in late December) and the ebook didn’t release until 2 weeks later (in January) so there was no way for ebooks to show on this statement. Problem solved.

However, I bring this up because I’ve seen this issue on other statements and the above situation was not the issue.

The issue ended up being this: the ebook ISBN was not tied to the print title of the book and thus the publishing house royalty system was recording ebook sales with that ISBN but it wasn’t linked to anything. There was no way for the computer to know what author to attach it to.

The only way the problem was solved was by me ringing up the editor to get the ISBNs for the ebooks and then ringing up the royalty department to say, look, there’s an issue here. You need to tie these ISBNs to the statement for these titles. Then have the publishing house regenerate the royalty statements.

So even though you trust your agent, it’s still good idea to read your royalty statements and see if they make sense. Lots of royalty statements can come in certain months (like April/October) and heck, everyone is human and something could be accidentally overlooked. Be your own best advocate.

How Enhanced Ebooks Will Cause Havoc

by Kristin Nelson

STATUS: It’s 8 p.m. and I’m still working…

What’s playing on the iPod right now? KISS by Prince and The Revolution

In this instance, I’m not relieved to have my assumption proven right. When the first mention of “enhanced” ebook emerged, it became immediately apparent (to me at least) that an enhanced ebook is a multimedia product. A subright agents always reserve for the author.

Agents reserve these rights because in order to do a book-to-film deal, you have to be able to grant multimedia rights to the film studio as part of the grant of rights for the option.

This was reinforced for me today as I reviewed film contract with a major studio. Sure enough, in the rights reserved to the author section, I found this clause:

Electronically Read Editions: The right to publish the text of published print editions of the Property via the Internet and in the form of CD-ROM, DVD, videocassette tape or similar electronically read devices individually purchased by the end-user. Such electronically read editions may not contain moving visual images (other than the text) or audio tracks of any kind.

Look at that last sentence. Here it’s clearly stated in the film contract that the ebook cannot have any animation or sound element.

Well, guess what publishers would like to have with an enhanced ebook? Yep. We’ve got a problem, Houston. If publishers dig in on this and this is the studio’s stance, well, granting a publisher a not-clearly-defined enhanced ebook right (which is multimedia) could derail a film deal.

Luckily for me on this contract, it’s not an issue as the deal in question has a publishing contract that predates any of this recent hoopla.

But it’s clear that this is going to be an issue in the future.

In-Depth 30-Page Critique Once A Year

by Kristin Nelson

STATUS: I got one major contract off my desk and on to somebody else’s at the publishing house. Always a great feeling.

What’s playing on the XM or iPod right now? SOMETIMES YOU CAN’T MAKE IT ON YOUR OWN by U2

Yesterday I was explaining that agents don’t often have time to give detailed feedback because that would entail a critique of the manuscript and doing so is time-consuming.

Well, I should have clarified. Once a year, I always take the time to do exactly that for one lucky auction winner.

I read the 30 pages twice. First read to familiarize myself with the submission and the second read to actually write in-depth critique feedback in track changes of the Word doc. Just like I do for my clients when I read before submitting their material.

So if you want in on that action, it’s time to head over to Brenda Novak’s yearly auction to raise money for diabetes research. My critique page is here. Since I have a good friend plus a brother–in-law with diabetes, this auction is close to my heart.

Happy bidding!

And don’t forget to check out some other great items like a read/critique from Sara Megibow, lunch with Jamie Ford, and if you are a Nathan Bransford fan, he’s offering a critique with a follow up consultation.

Update Potpourri

by Kristin Nelson

STATUS: Today I worked on finishing a contract (pre-new boilerplates) which did conclude. I really tackled emails in my inbox as well. Now I just have to tackle the slew of royalty statements we get in April.

What’s playing on the XM or iPod right now? GREETINGS TO THE NEW BRUNETTE by Billy Brag

Today is a little potpourri of things.

1. Penguin Australia issued a more formal apology for Cookbook misprint. Sounds like a PR person got a hold of the situation. Grin.

2. Foreign rights co-agent did not make it to London (as you probably have already guessed). On the upside, perhaps more folks will come to BEA at the end of May. As you can imagine, reports from the LBF floor have been quiet. Great for the folks who did make it there though. Will the lack of a robust LBF deter foreign sales? Well, nothing beats conveying enthusiasm for a title in person so that’s the downside for sure. On the whole, I don’t think so. It will be hard to have the “big book of the fair” but I imagine most sales will get done via email and phone.

I don’t envy their journey home…

3. Business has resumed in Poland. We’ve been careful about waiting but today we got emails from folks in that territory so we felt comfortable resuming communication, negotiations, etc.

4. In watching Deal Lunch for the last couple of months, I’m starting to see quite a few more sales listed than I have in the past months. This is a good sign as I take it to mean that editors are starting to get back to buying.

International Events Impact Foreign Rights Sales

by Kristin Nelson

STATUS: TGIF although I’m working this weekend at the Missouri Writers Guild Conference in St. Louis. If you live in town, maybe I’ll see you there.

What’s playing on the iPod right now? CHERRY BOMB by John Mellencamp

Here in the United States, we are often insulated from world news but events of the past two weeks have had a huge impact on publishing in the international arena. Even as US agents, we have to be aware and sensitive to all that is going on abroad.

Case in point, Post-Bologna, we were negotiating some new foreign rights deals when the huge tragedy in Poland hit the newswires. Immediately, we put everything on hold in that territory (and there was a lot going on!). The whole country is in mourning. Now is not the time.

And then this past Wednesday, a Volcano erupts in Iceland. Probably just a blip on your radar until one realizes that most transatlantic flights crossover Iceland to get to Europe and the London Book Fair is supposed to start next week. LBF is not as big as Frankfurt for translation deals but it’s big enough. According to the Fair officials, they plan to stay on schedule despite the near impossibility it will be for people to actually reach London in time for the fair.

Of all the things that could disrupt travel to an international event, I can’t imagine any agent had “volcanic ash” on the list for travel interruptions. All I can say is that as much as I love being in London, I’m glad I had no plans to be at the fair this year as I was just in Bologna. This is not true of our foreign rights co-agent who I know was en route. I’m trying to find out if she made it there or not.

I really want next week to be a quiet one in terms of news items…

When Contracts Directors Have A Sense Of Humor

by Kristin Nelson

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.

A Difference of Opinion I’m Sure

by Kristin Nelson

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.

Burning Question about Agency Commission Model

by Kristin Nelson

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…

Bologna Children’s Book Fair—Day One

by Kristin Nelson

STATUS: A rainy start to the day.

What’s playing on the iPod right now? KIM THE WAITRESS by Material Issue

Well, I do foresee a few problems with blogging this week but I will try my best. I will be spending the majority of my time in the Agents Centre and it does not have wifi. Yes, you read that correctly. Nor can I plug my computer in for the internet. It just doesn’t have it.

And the hotel’s definition of “high speed” internet greatly differs from mine. Working on my network is physically painful it’s so slow. I’ve also looked around for an internet café and geographically they are not handy. So we’ll muddle long as best as possible. In good news, the vino rosso is lovely and the formaggio even more so.

So this morning I’ll be heading over to the Fairgrounds around 11 a.m. to visit the Agents Centre and have my table assigned. I spent 2 weeks trying to figure out when they would send me my table number. At London, you get your assignment when you registered. Finally an agent friend took pity on me and mentioned that the table doesn’t get assigned until the fair begins. Aha. Seems a little inconvenient for the people trying to meet with me but when in Bologna….

Today is the SCBWI Bologna Symposium. I’m participating in a first pages agent panel. This is the workshop where the conference volunteer reads the first page of a variety of submissions and the agents then comment on it.

Hey, writers wanting to be gluttons for punishment is international! Grin. Seriously though, just remember that no matter how an agent responds to your pages today, this is not the make or break moment of your career. The greatest thing about writing is that you can grow and mature in your ability.

Since the fair hasn’t actually begun, I have very little to report but I do have two fun pics to share:

From a bookstore on Via dell’Indipendenza, the Italian bestseller, which is currently sitting at #7 on the list, IL GUSTO PROIBITO DELLO ZENZERO:

The Forbidden Taste of Ginger. Look familiar? Yes, it’s the Italian version of Hotel On The Corner Of Bitter And Sweet.

And four ladies take a Venetian Gondola by storm. I must say Antonio looks distinctly unimpressed.


From left, author Sarah Rees Brennan, her friend Natasha, and me. Ally Carter snapped the pic. I have other great shots but guess who forgot to bring the cord for her camera so I could download the pictures off of it….

We Interrupt This Q&A

by Kristin Nelson

STATUS: Off to Italy tomorrow but I will try and blog.

What’s playing on the iPod right now? TELL ME WHAT by Fine Young Cannibals

To give you a real rant. Today I found out that Penguin is no longer sending out final contracts electronically in locked PDF.

Why? Because some unethical agent decided to tamper with the e-lock and then make unauthorized changes in the contract before sending on to a client for signing.

Now the rest of us have to go back to the stone age of having things mailed (unbelievable!) to us.

Unethical agent, I want to hunt you down and slap you upside the head.

Now, I have argued with Penguin to create an “approved agents list.” I’m sure there are many agents like me who have more than proven that we don’t contract tamper and can be trusted with a locked electronic PDF for final contract.

I’m so annoyed by this, I can barely type. And other publishers, please don’t take this step backwards. There is a lot of technology out there that could resolve this issue. Use it. Going back to snail mail is costly—and I do mean in actual dollars.