NATIONAL WRITERS UNION GUIDE TO BOOK CONTRACTS by Philip Mattera, NWU National Book Grievance Officer Maria Pallante, Former NWU Executive Director Revised by Christine Ammer <For NWU Members only> ©1995. All rights reserved. Revision © 2007 No part of this publication may be reproduced, displayed, performed, stored in a retrieval system, or transmitted in any form, in whole or in part, including without limitation by electronic or mechanical means, without the prior permission of the National Writers Union. National Writers Union/UAW Local 1981 113 University Place, 6th floor, New York, NY 10003 (212) 254-0279; e-mail: [email protected] January 1995, November 2007 TABLE OF CONTENTS Introduction and Acknowledgments . 5 I. RIGHTS AND COPYRIGHT . 8 1. Copyright . 8 — Works Made for Hire . 8 2. Publishing rights . 11 a. Grant of rights--format . 11 b. Grant of rights--duration . 11 c. Grant of rights--geographical scope . 12 3. Subsidiary rights . 13 a. Granting vs. reserving rights . 13 b. Notification; reversion of rights . 14 c. Flowthrough/passthrough . 15 d. Income splits . 15 i. Paperback reprint rights . 16 ii. First serialization . 16 iii. Second serialization and anthology rights . 16 iv. Book club rights . 16 v. Translation & foreign English-language rights . 17 vi. Audio rights . 17 vii. Merchandising rights . 17 viii. Performance rights . 17 ix. Electronic rights . 18 x. Miscellaneous and unspecified rights . 20 II. ROYALTIES . 20 1. Method of calculation . 20 —Freight Pass-Through . 21 2. Advances . 22 a. Size of the advance . 22 b. Schedule of advance payments . 23 c. Bestseller clause . 24 3. Royalty rates . 24 a. Hardcover editions . 25 b. Paperbacks . 25 c. Special sales/deep discount . 26 d. Mail order . 27 e. Foreign sales . 27 f. Small print runs and low sales . 27 g. Book club sales . 27 h. Audio cassettes . 28 i. Electronic versions . 28 4. Royalty statements . 28 2 a. Flowthrough/passthrough . 29 b. Auditing . 29 c. Reserve for returns . 29 d. Basket accounting . 30 e. Skipped royalty statements . 31 f. Deferred payments . 31 III. MANUSCRIPT DELIVERY . 31 1. Subject, length and form . 31 2. Deadlines . 32 3. Supplementary materials: Illustrations . 33 4. Permissions . 34 — Permissions vs. Fair Use . 34 5. Author's next work . 35 6. Manuscript acceptance . 35 a. Standards and revisions . 36 b. Reversion of rights . 37 c. Disposition of the advance . 37 c.1 First-proceeds clauses . 37 7. Change of editor . 38 IV. FAILURE TO PUBLISH . 39 V. PRODUCTION AND PROMOTION . 39 1. Editing and typesetting . 39 2. Production decisions . 40 3. Promotion . 41 4. Author's copies and discount . 41 VI. WARRANTIES & INDEMNIFICATION . 42 1. General provisions . 42 2. Withholding of royalties . 43 3. Choosing counsel . 44 4. Libel insurance . 44 a. Media perils insurance . 44 5. Copyright infringement by other parties . 45 VII. OPTION CLAUSE . 45 VIII. COMPETING/CONFLICTING WORKS CLAUSE . 47 IX. OUT-OF PRINT (OR TERMINATION) CLAUSE . 47 X. REMAINDERING . 50 3 XI. REVISED EDITIONS . 51 XII. BANKRUPTCY . 53 XIII. SUCCESSORS & ASSIGNS . ..