No breakthrough over author e-book rights in France ahead of fair

The Bookseller: "French authors have urged culture minister Frederic Mitterrand to intecede in order to break the deadlock in their negotiations with publishers over electronic rights. For the second year running, the Permanent Council of Writers (Conseil Permanent des Ecrivains, CPE) and the French Publishers Association (Syndicat National de l’Edition, SNE) have tried and failed to conclude an agreement in time for the Paris Book Fair. ..."

Rights Time Bomb? - The Big Bump

Publishing In the 21st Century: "The Big Bump is a major copyright event shaping up for the near future. As copyright attorney Lloyd J. Jassin informed us, thanks to a provision of the US Copyright code authors will be able to terminate contracts negotiated in the late 1970s even if those contracts appear to give the publisher rights forever. 'Starting in 2011,' Jassin writes, 'the publishing and entertainment industries will be looking at the possibility of thousands of negotiations with copyright owners seeking to recapture their rights. Some call it "contract bumping." This powerful "re-valuation mechanism" found in the Copyright Act allows authors (and their heirs) to terminate contracts 35-years after the contract date. The termination right trumps written agreements — even agreements which state they are in perpetuity.'"

Frankfurt 2010: Are US Publishers Using eBooks to Undermine Territorial Rights?

Publishing Perspectives: "Frankfurt Book Fair veteran agent Andrew Nurnberg has raised the specter of e-book deals being used to undermine territorial rights in an interview with Publishing Perspectives. But his fear that some American publishers may try to use e-book negotiations to break existing rights boundaries left other agents unruffled. Arguments about the primacy of authors’ relationships with their editors, who may work at competing houses in different countries, still appear to hold sway in the case of digital deals. 'The big thing that’s in the air all the time,' Nurnberg said, 'is that territoriality is not so much about physical books. Now the question is moving toward territoriality for e-rights.'"

Agents, Publishers, Others Particpate in Useless PW Panel Discussion re: Digital Royalties

Frankly, this whole debate sounds like it was a massive waste of time. For all their bickering, the authors, agents and publishers involved seem to agree on one key idea: that in the long-term it actually matters what the "big six" publishers do as far as eBook royalties are concerned.

It doesn't.

Given how technology levels the playing field, and how the book publishing model has rapidly moved away from traditional print & bind distribution via brick & mortar outlets, the "big six" no longer possess an advantage and are not going to remain the "big six" for long.

As far as royalties go, virtually ALL of the start-ups doing the most innovative new work are exactly where the authors want them to be as regards royalties: 50% of net. A partnership.

But a partnership implies mutual risk. Thus the absence of large royalty advances from the emerging paradigm, which AG exec. director Aiken, as well as agents, clearly don't like, and which goes a long way toward explaining their love/hate relationship with the "bix six."

PW: Evolving Standard Deal for eBook Originals - No Advance, 50/50 Split of Net Proceeds

This is exactly how my firm, New Street Communications, is structuring things. Publishers Weekly: "Most e-book original publishers interviewed by PW do not offer advances, explaining that the rules in the e-books world are different from traditional print publishing. Waxman said that while he won't rule out offering an advance to the right author, currently Diversion is not giving advances. Angela James, executive editor of Harlequin's e-book original imprint, Carina Books, said something similar: 'Carina Press does not offer advances, because the digital-first business model works differently.' The new business model is different largely because it works more like a partnership: the author supplies the text, the publisher pays for production, and they split the return down the middle (after the publisher recoups production costs). That's exactly how Diversion works. 'We put up money for the production costs and we recoup those costs as first revenues. That seems to be the model that makes sense in the nascent business at this time,' said Waxman. Open Road, the most visible publisher of e-book originals, also works on a 50/50 profit share, offering no advances. James said that in exchange for sacrificing the advance, Carina authors get 'increased marketing support, higher digital royalties on cover price, and more frequent royalty payments.'"

Publishers Weekly E-Book Rights Panel Set for September 28

I'm not going. I'm not paying $49.95 to hear Aiken whine about how publishing eBook editions simultaneous with first edition hardcovers, and low eBook prices, constitute a combination that will eventually destroy all life on the planet.  E-Book Rights Panel Set for September 28: "The first event in PW’s fall discussion series is set for September 28 at Random House’s headquarters in New York City. Four panelists will discuss the hot topic of e-book rights—who owns them, who should own them and how they can best be exploited. Set to speak are Authors Guild executive director Paul Aiken, agent Scott Waxman, attorney Lloyd Jassin and Neil de Young, executive director of Hachette Digital. Breakfast begins at 8:30 with the panel discussion running from 9 until 10:30. Admission is $49.95 ... ."

Copyright, Ebooks and the Unpredictable Future

Insightful essay from Emily Williams in Digital Book World: "Ebook publishers have unsurprisingly been in the vanguard of offering new terms to authors, often as a way of competing against the big established print houses. RosettaBooks, under agent Arthur Klebanoff, and the new Diversion Books, established by agent Scott Waxman, both offer 3-5 year contracts based on the proven principle that the future is hard to predict and flexibility for authors is key. Richard Nash, the former publisher of print indie Soft Skull who is now setting up Cursor, a new publisher proposing an innovative crowd-sourced digital+print model, has been more vocal about overturning the copyright status quo. In a manifesto on his blog Nash laid out his own version of the change principle: 'The publishing industry is in a state of turmoil. New sales channels are arising, new formats, new terms of sale. Authors deserve the chance to renegotiate as the industry evolves.' Nash thus offers Cursor authors 3-year renewable contracts, in return for 'a fairly broad basket of rights in the license…in audio, in English-language outside the US, in magazine republication, in translation.'"

Digital Royalties: Random House Sets 40% Bar for Some Titles

Here's the thing. The so-called "big-six" no longer define the industry standard. The publishing world is fast becoming flat. The majority of small indies offer 50% royalties on new frontlist titles off the break. And the big, old-media houses bring less and less of an advantage to the publishing/distribution equation every day as paper evaporates and digital distribution comes to the fore.

Publishers Weekly:

A source confirmed that the biggest of the 'big six,' Random House, has adopted an e-book royalty that tops out at 40% for all titles covered by contracts signed before 1994. Sources said that Random is offering a starting royalty of 25% on these titles—which is the de facto standard in the industry on frontlist books—that then rises to 40%. The hike works, as one source put it, like a 'sales escalator,' jumping a certain percentage after a specified number of sales. While Random considers the agreement it has with Wylie and other agencies to be a standard, there is room for flexibility in different negotiations. The 40% royalty rate does not apply to digital editions of Random frontlist titles; that royalty remains 25%. ...

Agent Richard Curtis, president of Richard Curtis Associates, also questioned the supposed fairness of this new rate. “It’s fairer than 25%, and not as fair as 50%,” he quipped, noting that e-reads, the digital publishing company he also runs, offers, like Rosetta, a 50% royalty.

Although sources did not specify whether a similar backlist digital royalty standard has been adopted by the other big houses, agent Robert Gottlieb, chairman of Trident Media Group, said, “What Random House has done successfully is press the issue and work out a deal with Wylie that will help the other houses come to a similar conclusion.”

Certainly the presumption is that all of the big six are talking to agents about trying to come to terms on digital royalties for titles where e-rights are in question, and that agreements will closely follow the RH-Wylie settlement. The contentious issue over digital royalty rates for frontlist titles, however, remains to be resolved.

Digital Publishing To Be Center Stage @ Frankfurt Book Fair

eBookNewser: "The Frankfurt Book Fair is approaching soon, and this year, there is a more digital focus than in year's past. The event hosts about 300,000 attendees and about 7,500 exhibitors will include partnership with more technology companies, including a second year partnership with O'Reilly Media. 'The eBook has really takes off this year, especially in the U.S.,' said Thomas Minkus, VP Emerging Media & English Language Markets, Frankfurt Book Fair. 'We know that publishers from all over the world want to know what is going on with digital publishing so we hope to have a lot of companies and exhibitors addressing these issues.' ... This year will also feature six digital 'hot spots' throughout the fairground. The idea is to connect publishing professionals with the technology industry to help expand digital publishing partnerships."

Penguin in "Conversation" with Andrew Wylie Over Odyssey Titles

theBookseller.com: "Penguin has confirmed that it is negotiating with agent Andrew Wylie over books that have been included in the agent's digital offshoot Odyssey Editions over which Penguin has print rights. The news follows the truce declared between Random House and Wylie, with reports suggesting that a deal was struck after the adoption of a new royalty rate based on a sliding scale. ... Penguin refused to elaborate on its discussions with Wylie, but has two books—Saul Bellow's Adventures of Augie March and William Burroughs' Junky—for which it holds global rights in print, and one further title Brideshead Revisited, where it has UK and Commonwealth rights. A statement from the publisher read: 'Penguin Group has had conversations with Andrew Wylie regarding the books in the Odyssey Editions program and those conversations are ongoing.'"

What Can We Take Away From Random House's Backlist eBook Deal With Andrew Wylie?

DailyFinance: "What does the Wylie/Random House deal mean for the future of digital publishing ventures? The flippant answer is that no one really knows yet, even as Amazon's newest version of the Kindle sells out faster than any other device they've made and the e-book market continues to grow. The more nuanced response is that Odyssey Editions was always a one-of-a-kind venture, hovering well outside the ever-expanding horizons of a most exciting -- and unpredictable -- future for existing and still nascent e-book ventures."

Random House Has Caved to Wylie on eBook Royalty Rates

Told you so: "While Applebaum held the line on the question of the digital royalty rate--he said that 'Random House has been engaging in ongoing and productive conversations relating to e-book rights for certain Random House backlist titles and the arrangement reached with The Wylie Agency to now publish these particular titles as e-books in the United States is consistent with agreements we've reached with other literary agents'--one high-placed source with direct knowledge of the rights talks said the house has quietly been offering agents a better deal on backlist e-book rights for a brief period now. The source said Random is offering a royalty built around a sliding schedule on e-book rights for backlist titles that can approach 40% 'rather quickly.'" - Publishers Weekly

Maybe Andrew Wylie Actually Won the Random House/Odyssey War

Fast Company: "Publishers are concerned about losing their relevance in the digital age. Production costs of e-books are declining thanks to online distribution (Amazon, iTunes, Barnes & Noble), and literary agencies are more and more considering breaking from traditional publishers. The Wylie Agency was one of the first to perform this coup, launching a line of e-books through Odyssey Editions, an e-publishing firm the agency started that attracted authors with offers of higher royalties. As reported by the Associated Press, traditional publishers typically offer 25% royalties for e-books--agents and authors are now hoping for 50%. But today, the situation has been resolved, though not in the Wylie Agency's favor."

How do we know that this was not settled in the favor of Wylie and his clients? The terms of the agreement between Wylie and Random House are sealed. It is entirely possible that Random House blinked and Wylie got the 50%. Also note this from the Financial Times: "Mr Wylie was not immediately available to discuss where the truce left his plans for a new imprint, but told the Financial Times last month he was principally trying to make a point about the importance of getting the right terms in the e-book era."

The only clear loser in this particular deal is Amazon, which loses its two-year exclusives on the 13 Random House titles. But by my count, that leaves them with seven more Wylie/Odyssey exclusives still in hand.

Random House/Odyssey Editions (Wylie) Tiff Settled

The NY Times's headline suggests that Random House has "won" the standoff. But since neither party is willing to disclose financial terms of their agreement, my guess is that the jury is actually still out on the question of win/lose. NYTimes.com: "'We are pleased to announce that the Wylie Agency and Random House have resolved our differences over the disputed Random House titles which have been included in the Odyssey Editions e-book publishing program,' said a joint statement signed by Markus Dohle, the chairman and chief executive of Random House, and Mr. Wylie. It added: 'We both are glad to be able to put this matter behind us.' The dispute erupted in July, when Mr. Wylie announced that he was starting Odyssey Editions, which would release e-books exclusively through Amazon.com. ... Stuart Applebaum, a spokesman for Random House, declined to disclose the financial terms of the agreement but said they were consistent with agreements that Random House had reached with other literary agencies on backlist e-book rights. He said Mr. Wylie met with Mr. Dohle alone at the Random House headquarters in Manhattan on two occasions, most recently last Friday. ..."

Cory Doctorow on DRM, Lockdowns and Authors' Rights

Cory Doctorow in Publishers Weekly: "... I've been ... attempting to discover which online booksellers exist to serve the interests of copyright owners, like me, and which ones are seeking to unfairly bind copyright holders (and consumers) to their platforms and, as a result, diminish our negotiating power. I'm happy to say that after much work, I have persuaded three major retailers to offer my e-books without any technology or license conditions that would prohibit my customers from moving the e-books they've purchased to a competitor's device: Amazon, Barnes & Noble, and Kobo. ..."

Stephen Windwalker re: The Wylie/Amazon Deal

Seeking Alpha's Stephen Windwalker hits the nail on the head: "So, the power shift in the publishing industry continues, and we're seeing some signs that there's an A-list of players holding the trump cards: authors, agencies and Amazon."

John Sargent, Macmillan CEO, Joins the Random House Rant Against Wylie/Amazon

John Sargent, CEO of Macmillan, has joined the powers-that-be at Random House in being apoplectic about the Wylie/Amazon deal. You can tell these guys feel quite powerless - rather like Lear raging against the elements. But they are not powerless. They could stop much of what they hate simply by giving authors the 50% royalty they deserve for eBooks, including digital editions of backlist titles. By not doing so, they have invited the current situation.

Random House Agonistes

As punishment for abandoning the sinking Random House square-rigger, RH announces that it will not invite Wylie back aboard. Wylie, in turn, speeds away in a new state-of-the-art motor yacht. At least that's what he should do. Stay the course, Andrew.

NYTimes.com: "The literary agent Andrew Wylie announced on Wednesday that he had started his own publishing venture and would produce e-book editions available exclusively on Amazon.com for 20 titles, including those by Philip Roth and Vladimir Nabokov. Now Random House, which had previously staked a claim for the e-book rights to most of those books, has issued a forceful response: it will stop doing business with the Wylie Agency. ...Mr. Wylie said he was taken by surprise by Random House's move and was not sure how he would respond. 'I'm going to think about it a little bit,' he said."

Big Surprise: Random House Disputes the Wylie/Amazon eBook Deal

From eBookNewser: "Random House is not happy about the Wylie Agency's exclusive eBook deal with Amazon that was announced this morning. The publisher released the following statement from spokesman Stuart Applebaum: 'We are disappointed by Mr. Wylie's actions, which we dispute. Last night, we sent a letter to Amazon disputing their rights to legally sell these titles, which are subject to active Random House publishing agreements. Upon assessing our business options, we will be taking appropriate action.'"

RH did not have a leg to stand on when it came to e-rights for the Styron backlist, hence that list's movement to Open Road. Neither will they have a leg to stand on when it comes to these other contracts, all of them negotiated long before e-publishing was ever envisioned, or the term eBook coined.

Amazon Content Coup: Two Year eBook Exclusive on Select Roth, Mailer, Bellow, Ellison, Hunter Thompson, Nabokov, Rushdie and Updike Backlist Titles

From the Los Angeles Times: "Amazon.com now has exclusive rights to sell the e-book versions of some of the best-known titles from top literary authors Philip Roth, Norman Mailer, Vladimir Nabokov, John Updike and more. In an announcement late Wednesday -- shortly after midnight Thursday, East Coast time -- the online retailer revealed that a deal with the powerful Wylie Agency will give Amazon.com the exclusive e-book rights for two years to books such as 'Lolita.' The e-books will only be available through the Kindle store."

How's this for scoring a significant content-advantage over Apple, Google, and all other contenders? Also note the very important element of agent Andrew Wylie bypassing "publishers" per se, creating his own imprint, and cutting a deal directly with the eBook retailer. This is the kind of thing that has many publishers shaking in their boots. According to the New York Times, Wylie's new venture is called Odyssey Editions.

In making the announcement Mr. Wylie opened a new front, and a possible negotiating tool, in a debate over e-book rights for what are called backlist titles. Many traditional publishers have said they own the electronic rights to those books, but some authors and their estates have disagreed, arguing that since the books were published before e-books existed, the digital rights were not explicitly sold to the publishers.

“The fact remains that backlist digital rights were not conveyed to publishers, and so there’s an opportunity to do something with those rights,” Mr. Wylie said in an interview.... Mr. Wylie declined to disclose the financial terms that Odyssey had reached with authors or their estates, but he said they were more favorable than the terms that other publishers were offering.

Apple take note: The Kindle eBooks will be priced at $9.99.

Granted, the exclusive is only for two years. However, the next two years are going to be critical for all players in influencing the longterm retailer and ecosystem choices for hoards of new eBook readers; a monopoly on high-demand backlist items won't hurt at all.