Publishing Contracts: Red Flags and Warnings

Today, we're going to discuss contracts.

For crissake, get your fingers out of your ears and quit making "lalalalala" noises at me. If you want to make a living as a writer, contracts are part and parcel of the "not fun" part of writing.

So suck it up, buttercup, and deal with it. Once you understand them, believe me, they are NOT as scary as they appear.

You do, however, HAVE TO READ THEM.

Publishing contracts can sometimes be tricky to decipher, especially from traditional publishers. However, contracts for most indie publishers, especially if they offer digital-only, or digital plus print-on-demand, aren't so difficult the average writer can't decipher them. The truth is, unless your family lawyer is experienced in publishing law, they might be less than helpful to you for some of the clauses.

Off the bat, here is a quick checklist of things to look/look out for:

• Finite contract length should be specified in years and NOT dependent on flimsy sales thresholds or "in print" statuses that are easily rigged by the publisher to benefit them. Beware of "perpetual renewal" clauses. (Different from automatic renewal, which can be ended after the initial contract period.)
• Copyright must be retained by author. (And the contract cannot be for the "life of the copyright.)
• Rights the publisher exercises should be clearly specified, not broadly grabbed in non-specific, future-looking ways. Rights the publisher doesn't exercise should be specifically awarded to the author. (Note: Contracts that are overly broad in terms of grabbing all languages and all print binding types, as well as all media types, and merchandising, are definitely a red flag.)
• Royalty payment and royalty statement delivery timeframes should be clearly specified. (ie. every quarter, with the quarter end date specified, and a maximum number of days after that, such as 30 days after end of quarter, etc.)
• "Net" royalties should be clearly defined. (ie. the publisher says they pay you a percentage of the actual amount of money they receive, not some cloudy "net profit" with poorly defined expenses -- expenses should be borne by the publisher, not the writer, and already figured into their selling price)
• Payment method should be stated. (ie. wire transfer, check, fund type -- important especially for authors dealing with publishers in different countries and using different monetary types)
• Audit clauses. Do NOT sign any contract without an audit clause.
• Non-compete clauses. It is highly recommended you do NOT sign a non-compete clause, unless it's for a specific pen name you've already set up to write for that particular publisher. (That is not an uncommon occurrence, for a writer to contract a series under a pen name to a specific publisher, and it's also not a "bad" thing. AS LONG AS you understand up front what you're getting into and it doesn't limit you in any way to write similar types of books under other pen names for other publishers or self-published.) Any non-compete clause that limits you in what and how and where you can publish fiction under other pen names can be dangerous to your career if you don't understand it. For example, my pen name Tymber Dalton is now exclusive to my publisher for a set number of years for my fiction, but they allow me to self-publish non-fiction tutorials as Tymber. However, it does NOT limit me in any way to other pen names, publishers, genres, etc. Also, I participated in two special series with two different pen names created exclusively for the publisher, for those special series. Nothing in the contracts prohibited or restricted me under my other pen names.
• First refusal clauses and next book clauses. Make sure these are specific to a book/series, and not broad by genre/pen name.
• Kill fees.

Want some more info? Run a Google search for "publishing contract red flags" and you'll find a bunch. Here are just a few resources:

EPIC's Red Flag/Yellow Flag List

A Contract Primer: Red Flags

Your Book Deal and Publishing Contract... Red Flags to Watch Out For!

Writing Contract Red Flags

Contract Red Flag: Net Profit Royalty Clauses

There are plenty more sites out there, those are just some of the top ones.

Never be afraid to go back to a publisher and ask for clarification on a clause. And if there is a clause in a contract that you don't like? Ask to strike or change it. If they won't, don't be afraid to walk away.