How to Read a Publishing Contract

So you finally got your brilliant novel published.  Congratulations!  You might be so happy about this accomplishment that you’re willing to sign anything.  However, this is a mistake.  Never sign anything when drinking celebratory champagne.  You will need your mind in tact to thoroughly examine the contract and make sure that the publishing company is being fair to you.  A contract is legally binding!  No matter your grievances, if you signed a contract then according to the United States of America you are 100% satisfied with your publishing company. 

The most important consideration is what the publisher expects from you as a writer.  Usually a publisher won’t even offer a contract unless the story generally fits into its requirements.  However, the company may still expect the writer to do some rewrites.  In the case of a writer-for-hire scenario, then the terms should be made clear as to what kind of material the writer is expected to write, what style it will be delivered in, any rewriting promises and how much payment is expected.

Other considerations include whether or not a byline is given, and if the author has the right to remove his or her byline if there is a disagreement.  Speaking of disagreements, how will they be handled?  Will the author get to have approval of the final copy?  Before the final copy is printed, usually authors are sent “galleys” to read over and request any changes.  However, you should ask if you have the right to request changes for substance as well as proofreading errors.  It’s not entirely impossible that the book publisher will want to change a part of the story line or certain points in the book that will alter your original vision.  In fact, it’s quite common in publishing.  Will you be able to work this way and rewrite the changes yourself?  If you insist on no changes at all then you might have to part ways with the company and start from scratch. 

You will be dealing with a variety of “rights” in contract negotiation.  The friendliest contract in publishing is probably “First North American Serial Rights.”  This type of contract guarantees only that the publisher is allowed to release the book exclusively and repeatedly for a limited period of time.  You might also be confronted with issues of the material being reproduced for serialization, television or even film.  Don’t be so generous with these rights.  You stand to make a lot of money as the copyright owner if the manuscript should be produced for the screen.  Some publishing companies may demand 50% or more of all profits in the event of a film adaptation.  Be weary about signing any contract that gives total power to the publisher.

The issue of Electronic Rights will also be of concern.  While the technology is currently growing, in the coming years, electronic publishing could well take off and transform the entire medium.  As a knowledgeable writer try to ensure that (a) e-publishing rights are limited to a reasonable time; (b) that you get a fair share of the revenue of all online sales (some have suggested as high as 50% of revenue is acceptable, as this is different from publishing royalties); and (c) that you get some profit out of total hits in addition to direct online sales.

Lastly, remember that you will be looking to license the use of your work in any medium, not sign all the rights away even if it’s for a handsome reward.