For Your “Consideration” – Royalties in Anthology Contracts

This month’s RMFW #PubLaw post continues our ongoing series on writing for anthologies. Specifically, it’s time to show me the money – and look at royalties in the anthology world.

When it Comes to Royalties, Anthologies Vary. Know the Terms Before You Commit.

Some anthologies pay contributing authors a royalty on copies sold. Some anthologies do not. Always ask–and get a clear answer–about the royalty structure before you agree to contribute your work to an anthology. Also, make certain your contract states, with clarity, how sales proceeds will be handled and whether or not you receive a royalty share. If the anthology doesn’t pay royalties to authors, the contract should state who receives the money earned on anthology sales.

What Does it Mean if the Contract Says I Receive “Consideration”?

“Consideration” is the legal term for value a person receives in return for entering into a contract. By law, consideration can be money, rights, an exchange of promises, or a unicorn–essentially, any (legally permitted) object or value the person signing the contract agrees to accept. One court famously stated that “even a peppercorn will do” if that’s what the signatories to the deal agree on.

In many publishing contracts, the “consideration” is money, but where the author is not receiving royalties on sales of the work, the anthology language may look something like this:

CONSIDERATION, AUTHOR COPIES. Consideration of the Work for possible publication in the Anthology and, if appropriate, inclusion of the Work in the Anthology constitutes the full and complete compensation due to Author by [Publisher], under this Agreement or otherwise. No additional compensation is due Author whether or not [Publisher] ever Publishes, distributes, markets, or sells any copies of the Anthology. If the Work appears in the Anthology, [Publisher] will also provide Author with [some real number of] complimentary copies of the first edition of the Anthology, in printed format, after publication. Author acknowledges that no royalties are due, payable, or owed to Author on sales of the Anthology, regardless of the number of copies of the Anthology produced, printed, and/or sold. All receipts, revenues and profits from the Anthology will belong to [Publisher] exclusively.

Note that the language includes the important elements mentioned above:

1. What the author receives: “inclusion in the Anthology (if appropriate) and author copies.” This is the author’s consideration.

2. Whether or not the author receives royalties (here, no): “no royalties are due, payable or owed to Author…”

3. Who does receive the money earned on sales of the anthology: “All receipts, revenues and profits…belong to [Publisher] exclusively.”

The contract may also allow the author to purchase copies of the anthology at a reduced price, and may specify whether or not the author can re-sell those copies at a profit.

Whether or Not to Participate in Non-Royalty-Bearing Anthologies is a Business Decision for the Author Alone.

If you ask three different people whether or not you should publish your work in a non-royalty bearing anthology, you’ll get at least three different answers (more, if one of them is a lawyer).

Sometimes, it makes business sense to participate in a non-royalty bearing anthology.

People do die of “exposure,” but for authors seeking a jumpstart publishing credit, anthologies may offer a chance for the kind of exposure that earns revenue by another means. Publication alongside more established authors exposes the newer author to readers who may then purchase the newer author’s works as well.

Sometimes, non-royalty bearing anthologies provide a financial benefit to important nonprofit organizations. Contributing to these anthologies helps authors “give back” to groups that provide education and other helpful services to the larger community–and contributing work on a non-royalty bearing basis allows the author to contribute to the nonprofit’s activities.

Finally, non-royalty bearing anthologies may offer an author a chance to participate in a project with other like-minded authors in circumstances which were never designed to generate a profit. Some groups publish anthologies at cost, or free of charge, as a service to certain communities or to readers. In this case, the author knows from the start (and the contract should state) that the anthology will be sold “At cost” and that its existence is not intended to generate significant profits. (Note: even here, the contract should state what happens to any profits or proceeds the anthology does generate.)

Some authors never contribute to anything which doesn’t pay royalties. Others may choose to publish in non-royalty bearing projects now and then. As long as you know up front what kind of situation you’re entering into, the choice is yours–and yours alone–and you should treat it as a business decision, taking all of the relevant facts and circumstances into account.

Has your work been published in an anthology? How do you feel about royalties in anthology situations?

Susan Spann is a California transactional attorney whose practice focuses on publishing law and business. She also writes the Shinobi Mysteries, featuring ninja detective Hiro Hattori and his Portuguese Jesuit sidekick, Father Mateo. Her debut novel, CLAWS OF THE CAT (Minotaur Books, 2013), was a Library Journal Mystery Debut of the Month and a finalist for the Silver Falchion Award for Best First Novel. BLADE OF THE SAMURAI (Shinobi Mystery #2), released on July 15, 2014. When not writing or practicing law, Susan raises seahorses and rare corals in her marine aquarium.You can find her online at her website (http://www.SusanSpann.com), on Facebook and on Twitter (@SusanSpann), where she founded and curates the #PubLaw hashtag.