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Deals with the Devil? Publishers and Authors.
Elizabeth Haylett
Speaker Event - November 23rd
2005.
On the 23rd
November 2005, Society of Authors advisor Elizabeth Haylett spoke to
East Anglian Writers about the current issues facing publishers and
how they will affect authors. Elizabeth Haylett advises members of
the Society of Authors on their publishing contracts and on other
business issues. She also works in the Society's Literary Estates
Department and is secretary of the Educational Writers Group.
1. Ottakars and Waterstones
After a
management team proposed to buy-out Ottakars (with a view to
updating the chain’s old computer systems), the HMV group made a
higher offer for the chain. This would see the same group that owns
Waterstones also owning Ottakars which, in terms of stockholding
bookshops, would account for over half the book stores in the UK
under a single ownership.
However, the main concern for authors is that the combined group
will reduce the number of buyers, concentrating the decisions to
stock (or not to stock) books into the hands of a few. They are also
likely to use their dominance of the market as leverage to greater
discounts, therefore, reducing the amount that authors receive in
royalties.
With reduced competition, and therefore a potential smaller range of
books on shelves, it is also feared that publishers will be more
cautious about taking on mid-list and more quirky books.
The Society of Authors encouraged authors to express their concerns
to the OFT and ask that any potential buy-out be referred to the
Competition Commission.
Update: The OFT has decided to refer the case and a
text of its referral can be read by
clicking here. The Competition Commission is expected to report
on 22nd May 2006.
2. Google Print and digitalization of texts
Undoubtedly many authors have benefited from the internet as a
research tool and as a window into the wider world. However, the
search engine Google’s plan to digitalize complete books, under
licence from libraries or publishers, to allow free searches of the
text is a development that has the potential to change the entire
publishing industry. (Click
here for an example) Amazon also offers a similar service where
you can search inside many of the books they stock (click
here for an example).
It is maintained that Google will take steps to ensure the security
of text and the extracts, and that the amount any one individual can
read may be limited, depending on the copyright situation for each
title. Google argues that the system can only expand the number of
readers an author has and will introduce their work to a potentially
new audience.
It seems that academic publishers are generally receptive to the
Print Publisher initiative, seeing it as a way of drawing attention
to books that are not usually stocked in bookshops. Trade
publishers, however, tend to be more wary, sharing the Society of
Authors’ concerns about digital security and the effects that the
broad search facility might have on book buying.
In the USA, the Writers Guild is suing Google for copyright
breaches, because it disagrees with Google’s interpretation of the
copyright law. In the UK, copyright law is different and, so far, it
has not been considered necessary to consider legal action. Writers
who do not want their work to be available via Google’s Print
Library scheme may opt-out by contacting Google direct.
These developments mean that writers may have to find new ways to be
paid for their work, although it is still too early to say what the
best solution might be.
3. Used book sales
The expansion of the second-hand book market is also of concern to
both writers and publishers – but the focus is not really bookshops
and charity bookshops, but the seeming availability of large numbers
of copies of books being sold as ‘second-hand’ around the time of
publication, particularly through website sales. Anecdotal evidence
seems to suggest that these sales have a genuine effect on sales and
therefore on writers royalties and publisher’s returns.
The biggest question is where these additional copies come from.
There are several theories, and traditionally it was thought that
the copies were probably unwanted review copies sent out by
publishers, but the volume is too great. It has been suggested that
there may be wide spread shoplifting, or that over-printing is
occurring and there may be leakage from warehouses or via other
unorthodox routes. Another source seems to be that dealers offer a
book online which they do not yet own, and if someone orders it they
buy a copy and sell it on. The high discounts available even on
books that have only just been published make there kinds of sales
viable.
The Society of Authors recommends writers ask their agents and
publishers if they are concerned about this situation. It is also
suggested that writers might also check Amazon and Ebay when their
book is first published and see if there are cheap copies available
and report back to the Society with their findings.
4. Audio Downloads
Downloads from the internet of audio versions of books has the
potential to be a new, and possibly substantial, source of income
for writers. However, it is felt that the terms given in many
contracts are unfair to writers because much of the financial
investment that publishers were faced with where traditional methods
of manufacture are concerned are not involved in selling the
electronic equivalent. Without a physical product, there is no
longer a need to cover the cost of shipping, warehousing, packaging,
etc.
It is recommended that the minimum a writer receives should be a
minimum of 50% of the publishers’ receipts where the sale is made
direct. Where publishers licence the rights to a third party, the
Society argues that the audio producer should pay at least 50% of
receipts to the original publisher (possibly rising to 80% once the
initial costs have been recouped) and that the original publisher
should take no more than an agents’ commission of 10-20% passing the
balance on to the author. As the market and technology changes
rapidly, it is recommended that wherever possible writers should
only licence these rights for a two or three year period.
5. Print on Demand
Print on Demand (POD) is technology that enables publishers to print
single copies of a book at a time, removing the need for long print
runs or danger of running out of stock. Probably because the
investment involved in making a work available in this way is much
lower, it seems as if fewer authors are considering vanity
publishing now. POD is also starting to be taken up by both trade
and specialist non-fiction publishers, which see the advantages of
being able to keep works available for longer without the expense of
warehousing.
If you are entering into a contract with a new publisher be aware
that the contract will rarely make it explicit that the work will be
printed on demand, so it is worth asking at the outset what the
publisher has in mind. Companies operating on a POD basis from the
outset have very low company overheads, possibly little more than
maintaining a website and fulfilling prepaid orders, so even if you
are not being asked for money, do be cautious. This means you should
make enquiries about the quality of the cover, bindings and paper
(perhaps ask to see a book that they have already printed by this
method) and also seek assurances about how quickly orders will be
fulfilled. Writers should also make sure that the publisher is
prepared to list the title in the catalogue and on the internet
properly, and link to your own website. Licences should be limited
to 1 to 2 years only. Also note that POD books will not be stocked
in bookshops, so be realistic about how potential readers will come
across the book.
As an alternative to POD, authors might consider self-publishing.
That way they have complete control over production and keep 100% of
the profit. Antony Rowe Publishing has been recommended by some
authors. Self-publishing can be good news for authors with the
rights to their out-of-print back catalogue who still do a lot of
public engagements as a writer, or who are able to market their
works direct to a specific readership (as is sometimes possible with
specialist non-fiction). Note, though, that if your book was
published less than 25 years ago, the original publishers have
rights in the typesetting, so if you want to make a facsimile
reproduction you will need to get permission.
For authors whose work is under contract with publishers, POD means
a careful watch over termination clauses in both new and old
contracts. POD could mean that your book may never be out-of-print
again and therefore, termination clauses should allow the author to
request reversion of rights or a reprint if stock falls below and
agreed level or if a minimum level of sales isn’t reached over, say,
two consecutive accounting periods.
The Society of Authors is happy to offer further advice on all these
matters to members.
Other matters raised in discussion:
The technological changes facing the publishing industry makes the
handling of rights even more important than it was. This may have
contributed to the increase in agents’ commission because of the
sheer complexity of negotiating contracts. And although it is hard
to get an agent, it is worth approaching them before approaching
publishers (if you have already spoken to all the publishers, there
isn’t much more for an agent to do).
Elizabeth has seen a dramatic change in the contracts issued by
publishers issue. They have become longer and the duties of the
author seem to increase. Also, ‘all rights’ contracts are becoming
ever more the norm (territory schedules, which list the countries
where the publisher has the right to distribute copies are few and
far between). UK contracts are edging ever closer to the 20-page
documents that are common with US publishers.
Rights management has become increasingly important for publishers
and at the international book fairs the ‘rights centre’ dominates a
huge area of floor space and will be the centre of attention for
publishers and agents alike.
Small, independent publishers that seem to be on the rise at the
moment. Publishers like Grove Atlantic, Cannongate, and Profile, are
all able to be innovative and flexible enough to chase bright ideas
and put them into action quickly. By working cooperatively in some
areas, they are also able to benefit from the economies of scale.
This event was reported by Benjamin Scott for East
Anglian Writers.
We are very
grateful to Elizabeth Haylett for speaking to us and to the Society
of Authors for the support in organising the event. We are also thankful to the New
Writing Partnership for enabling us to use the New Museum of
Contemporary Art as the venue for our event.
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