5 Clauses to Look for in a Publishing Contract by Kelley Way

Let’s welcome back monthly columnist Kelley Way as she shares with us “5 Clauses to Look for in a Publishing Contract.” Enjoy!

***

You have a contract from a publisher — congratulations!

It’s extremely tempting to just sign your name and send it back immediately, but before you do that, it’s essential to read the contract and know what you’re signing first.

Many of my author clients have come to me because they’re unhappy with their contract, and once it’s signed, your options can be very limited.

So here are clauses in a publishing contract to look out for when you’re reading a contract.

(Note: every contract is a little different, so these provisions may be called by different names or appear in a different order.)

1. Grant of Rights.

This is, in many ways, the heart of the contract. It lays out what rights you are giving the publisher over your work.

Generally, the bigger the publisher, the more rights they will ask for.

So you could grant the publisher as little as the right to print your book in English in North America for the next five years or as much as all your copyright rights worldwide for the entire duration of your copyright.

Read this clause carefully to know how much you’re giving, and make sure you’re comfortable with it.

2. Royalties.

This one is fairly obvious, but I would be remiss if I didn’t include it. Check to see how much they’re paying you and how frequently they pay.

A few notes:

• Check to see if they’re giving percentages based on “suggested retail price” or “net sales receipts.” The suggested retail price would give you more money per book, but the publisher may lower the royalty rate if you ask to switch.
• Look to see if there’s an “audit clause” — this would give you the ability to audit the publisher to make sure they’re paying you the right amount.
• Keep in mind that a bigger advance often means a lower royalty rate.

3. Termination clause.

This is the clause that many authors wished they had in their contracts.

You want to make sure there’s a way to end this relationship if you’re unhappy with your publisher.

Many contracts only have an “out of print” clause, stating that you get your rights back when the book goes out of print.

But with print on demand, publishers can keep the book “in print” forever.

So you want to either have a way you can terminate the contract on your end or define “out of print,” so it actually has a chance of happening.

4. Dispute Resolution.

Another important clause is the “dispute resolution” clause.

Basically, it lays out how things get resolved when you and your publisher have a fight you can’t figure out on your own.

It states where a trial would be held and if you have to try a different method before you go to court (usually you do; no one likes court except the lawyers).

The two most common alternatives are arbitration (a simplified trial) or mediation (the parties sit with a mediator and try to work things out like adults).

5. Subsidiary Rights.

You may only see this with larger publishers, but it’s still an important clause if it’s there.

This clause lays out whether the publisher has a right to pursue movie deals or other works based on your books and how royalties would be split between you.

If you have questions about these clauses or you would like some help reviewing your publishing contract, please feel free to email me at kaway@kawaylaw.com.

***

Want to read more articles like this one Writer’s Fun Zone? Subscribe here.

***

ABOUT THE AUTHOR

Kelley Way was born and raised in Walnut Creek, California. She graduated from UC Davis with a B.A. in English, followed by a Juris Doctorate. Kelley is a member of the California Bar, and an aspiring writer of young adult fantasy novels. More information at kawaylaw.com.