SFWA Contracts Committee Advisory on No-advance ContractsThe publisher in question is Fireside Press.
Recently, SFWA's Contracts Committee was made aware of a situation in which a well-liked publisher canceled the publication of a number of books it had contracted to publish. The publisher said the decision was made because of "unexpected changes" at the company. The Committee has reviewed the contract in use, which lacked a provision for such a cancellation. The Committee believes that canceling a contracted book that satisfies the author’s obligations is at odds with the spirit of the contract. Making this situation worse is the fact that these were no-advance contracts. Because no advance was paid, the publisher could make this decision without financial penalties. The authors' books, were, in effect, put in limbo for many months and the authors received nothing but an apology. Besides depriving the authors of the ability to sell the books elsewhere during this delay and putting off any income from the books into the indefinite future, the authors careers suffer as a result.
Publishers of all sizes may find themselves unable to live up to their contractual commitments for a wide variety of reasons, some of which could not have been reasonably anticipated. Hence, the Contracts Committee urges writers to think carefully about signing a contract that provides no advance, or only a nominal advance, while tying up their work for a lengthy period of time. Critically, payment of an advance gives an indication the publisher actually has the financial resources to meet its obligations. Publishers who do not pay advances or pay only nominal advances should include language in their contracts specifying how they can cancel a book and what happens if they should cancel a book, including a specified amount of compensation to the author.
SFWA Contracts Committee
October 25, 2019
Legal Disclaimer: The contract alert should not be understood to be legal advice. The issues presented by contract law are complex. Authors should consult a competent attorney familiar with the business of publishing as well as contract law before signing any contract.
The statement from Chizine neglects a number of salient facts, such as the moment in July 2018, at Necon, when I explained to Brett Savory that my partner was facing a layoff, our cat was ill, we were in severe financial distress, and I had *never* been paid a single cent of royalties in what was at that time almost two years for a moderately successful book. He actually grinned and said, "Things are hard for everyone right now" before walking away. The following morning it was reported to me that Sandra was loudly complaining in the dealer room about me having asked about my royalties, and of course the two of them went on a whirlwind trip around the world a few weeks after that, showing us all that things weren't so rough for them, after all.Kurtz's experience was not isolated.
In fact, I'd asked after my royalties several times and was rebuffed or given excuses every single time (usually something wrong with their accounting software or something similar, which I later learned they’d been saying to authors for years). I only went to the HWA after several other frustrated CZP authors (one of whom hadn't been paid in five years!) strongly encouraged me to do so. I expressed fear of bullying and/or retaliation, and some of these authors promised me they'd have my back (they didn't). And yes, a lot of us got paid through my efforts, though it is untrue I'm paid in full. I was never paid royalties for the months of my first year of publication, 2016, though CZP continues to claim I was. I just gave up on this.
WA should be on your watchlist, too. An AB5-like bill was just re-introduced in the Senate there, even though it had been defeated last year. It, too, requires writers and other freelancers and independent contractors be hired as employees when their works contribute to the normal business of their clients. The bill ignores a study of independent contractors that was prepared by the Dept of Commerce after the bill's defeat. The study documents that 3/4 of the independent contractors in WA don't need or want the employee benefits touted by the bill's advocates. Between their own efforts and those of their families and friends, they're doing fine. Read the study yourself then write to Sen. Karen Keiser about your opposition to being made employees against your will.A similar law may be in the works in Illinois.
The study: https://app.leg.wa.gov/committeeschedules/Home/Documents/26113?//20902
Senator Keiser: karen.keiser@leg.wa.gov
Dear ________,A number of the cancellations affected books that had been completed, turned in, and scheduled for publication, with some authors having already made promotional plans. Others interrupted series whose first installment hadn't yet been published--with Henery holding on to the yet-to-be-published book and reverting rights to the rest. Cancellation of a series before it's completed can be tough--another publisher may not want to buy into a series mid-stream, and while followup titles can be self-published, it's difficult to promote a series when it's split up like this.
Before entering 2020, we felt it prudent to review future projections for _______ series, taking into consideration recent releases and overall performance. To provide an unbiased professional opinion and guidance in our 3-year strategic plan, we hired a consulting firm with experience in the industry. This allowed us to analyze not only your specific series, but also the competitive landscape and industry as a whole.
Unfortunately the sales of _______ series do not justify the publication of future titles beyond 2020. We know this is disappointing. The market has become beyond saturated (especially in mystery fiction), with all leading indicators pointing to even more intense competition for consumer dollars in the next cycle and beyond....
Although we don’t have a pathway forward with your new titles, we will continue to sell and support your backlist titles as usual under the terms of our original publishing agreement. To be clear, we will not be reverting the rights on any of your already published title(s), only future titles specifically outlined in the addendum to follow in the next week.
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