Q&A: Pseudonyms in Contracts
Question: Is there a way to legally enter into a contract with a literary agent/publisher without revealing one’s real identity? There is no problem in entering into a publishing or agency agreement under a pseudonym – it’s done frequently by writers who are prolific, or wish to switch genres, or publish in an genre that would be embarrassing (e.g. erotic), or just want to hide their...
Read MoreQ&A: Royalties
Tell me about royalties in book contracts. A. Royalty rates may vary wildly in the contemporary book publishing industry; however, typical hardcover rates are 10% – 15%, with “break points” that escalate the royalty as more copies are sold; e.g. 10% on the first 5,000 copies, 12 1/2% on the next 5,000, and 15% thereafter. Mass market paperbacks generally have between a 6% and 9% royalty,...
Read MoreReserve Against Returns
Standard publishing agreements usually contain a clause giving your publisher the right to retain a “reserve against returns” or similar language. Why? Because the book publishing world works on consignment. Nearly all commercial publishers offer books to bookstores on a returnable basis. (This is part of what separates commercial publishing from print-on-demand publishing). Unless you are an...
Read MoreQ&A: LLCs For Writers
Q. Some writers have formed limited liability companies (LLCs). What’s the advantage? A. An LLC is an entity with the advantage of limited member liability and flexible tax structure. Although a single-member LLC by default is treated by the IRS as a sole proprietorship, a single-member LLC also may choose to be treated for tax purposes as a corporation (either a “C” or an “S”). Major...
Read MoreUpdate On Copyright Issues
Two recent federal circuit court decisions have potentially turned copyright co-ownership upside down, affecting any writer who collaborates. First, in the 2007 case of Davis v. Blige, the Second Circuit undermined fundamental co-ownership of copyright principles. Although the case involved songwriting, the effects could extend to any industry – including publishing — where there are...
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