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Authors Guild warns over S&S e-move

21.07.08 Philip Jones

The US-based Authors Guild is once again heading for a clash with the US publisher Simon & Schuster over proposed changes to its author contracts. This time the Guild has warned its members not to rush to sign a proposed amendment from Simon & Schuster setting the royalty rate on e-books at "15% of the 'catalog retail price' of the e-book". The Guild warned that the rate could be "the low-water mark for e-book royalties".

The Guild advised its members to discuss the changes with an agent or attorney, warning that the amendment may grant the publisher rights that the author would otherwise have retained. In a letter to members, the Guild wrote: "In any negotiation regarding e-book royalty rates, we suggest that you keep your powder dry: try to retain the right to renegotiate e-book royalty rates. The Authors Guild expects that 15% of the retail list price will be the low-water mark for e-book royalties. As the e-book market develops, authors with clout will doubtlessly insist on a more reasonable share of e-book revenues, and the industry will have to adapt. One glance at Amazon.com's home page, which has for months been ceaselessly promoting its Kindle e-book reader, indicates that day may be near."

Speaking to US magazine Publishers Weekly, S&S spokesperson Adam Rothberg said the amendment was sent to a "long list" of authors whose books have not yet been adapted to e-books, with most of the letters going directly to agents. He said that S&S wanted to determine what the royalty rate should be, but added that it was still "early days" in the e-book industry, and that S&S remained willing to talk to authors and agents about any questions they have about the e-book market.

This is the second time the Guild has challenged a proposed change to S&S' author contracts. Last year the association revolted against proposed changes in author contracts that would have seen S&S retain rights in books even after they have gone out of print--when rights traditionally revert to the author. A compromise agreement was eventually worked out, but not until S&S accused the Guild of putting out :serious misinformation".

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