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. ..."