Trident Media Group VP & Literary Agent Mark Gottlieb

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Navigating Subsidiary Rights in Book Publishing: A Comprehensive Overview

In the world of book publishing, authors and publishers often collaborate to bring literary works to the masses. As part of this collaboration, the negotiation and handling of subsidiary rights play a crucial role. Subsidiary rights refer to the various additional ways a book's content can be utilized beyond its primary publication. These rights encompass a wide array of options, from serializations in periodicals to foreign translations and audio recordings. In this comprehensive guide, we'll delve into the intricacies of subsidiary rights and their significance in the publishing industry.

Understanding Subsidiary Rights:

Subsidiary rights are the rights that extend beyond the primary publication of a book. While the publisher typically has the exclusive authority to license these rights, it is essential to clarify the specific rights that require permission from the author. In the absence of a publisher's exclusive rights, the author's consent is necessary. The author's consent cannot be unreasonably withheld.

Authors' Consent and Notice:

Authors are an integral part of the subsidiary rights process. To ensure transparency and collaboration, publishers typically are required to provide authors with at least fifteen business days' written notice regarding the terms of any proposed license. In cases of auctions for such rights, the notice period is often reduced to five business days. It's important to note that if the author does not respond within the stipulated period, it is sometimes considered as implied consent to the license on the terms stated in the notice.

Sharing of Executed Licenses:

For added transparency and clarity, authors normally have the right to request copies of executed licenses in which their share of the proceeds is $500 or greater. This practice ensures that authors are kept informed about the licensing of their subsidiary rights.

Breakdown of Subsidiary Rights:

Subsidiary rights encompass various aspects, each with its own unique revenue-sharing structure. Here is a breakdown of some common subsidiary rights and the associated shares for both publishers and authors:

  1. First Serial Rights: This entails the use of serializations or excerpts in newspapers, magazines, or other periodicals before the publication of the book. Publishers typically receive 10% of the proceeds, while authors are entitled to the remaining 90%.

  2. Second Serial Rights: These rights pertain to serializations or excerpts in newspapers, magazines, or other periodicals after the book's publication, as well as condensations, digests, and anthologies. Here, both publishers and authors evenly split the proceeds, with each receiving 50%.

  3. Book Club Rights: When book clubs seek to utilize the book, both publishers and authors share the proceeds equally, each receiving 50%.

  4. Permissions: Licensing for various uses such as quotes and excerpts. Once again, both publishers and authors share the proceeds equally, with each receiving 50%.

  5. Trade or Mass Market Paperback Rights: For the publication of the book in these formats, both publishers and authors are entitled to 50% of the proceeds each.su

  6. Other Book Publication: This encompasses a range of editions, including hardcover, large-type editions, mail order, premium, and special editions, as well as schoolbook and book fair editions. Here, both publishers and authors share the proceeds equally, each receiving 50%.

  7. Foreign Rights: This includes the translation of the book into other languages, and it may involve the rights granted elsewhere in the agreement. The share of proceeds for publishers varies from 20% to 25%, while authors receive between 75% and 80%.

  8. Verbatim Text Ebook Edition: For this type of electronic edition, both publishers and authors equally share the proceeds, with each receiving 50%.

  9. Audio Recording Rights: When the book is transformed into an audio recording, both publishers and authors are entitled to an equal share of the proceeds, each receiving 50%.

Subsidiary rights are an essential component of the book publishing landscape, enabling authors and publishers to explore various avenues for their literary works. Authors should be well-versed in the specifics of subsidiary rights and their respective shares to ensure they receive fair compensation for their creative efforts. This comprehensive overview sheds light on the various subsidiary rights, consent procedures, and revenue-sharing structures, providing a clearer understanding of this crucial aspect of the publishing industry.