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. ..."

Authors Guild re: Wylie/Amazon

The Authors Guild weighs in on the Wylie/Odyssey/Amazon situation- and in doing so demonstrates a stark misunderstanding of American antitrust laws. They also, surprisingly, seem not to "get it" that in a free market the proprietors of copyrights (read as "authors and their estates") are entitled to dispose of those rights in any way they see fit, regardless of the "exclusivity" of any given deal. This is business, children, not Culture. Is the Authors Guild's position that Wylie's clients are too stupid to look out for their own interests? Wylie's deal could not have been put in place without their green light. Something tells me that the Nabakov and Mailer heirs, etc., and their advisors, are likely quite capable of making informed decisions. They, with their agent and his new imprint, have every right and perogative to proceed as their ambitions and logic dictate.

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.