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MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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Is it normal for a publisher to ask for 50% of all sales from

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Is it normal for a publisher to ask for 50% of all sales from a book, subsequent works, and any movie or tv dealings for 2years?
Thank you for the post, I am happy to assist you by answering your questions. Yes, that is a very aggressive position. Am I correct to understand that the 50% the publisher takes covers printing as well?
Customer: replied 3 years ago.

The contract states, "

The publisher agrees to provide publishing services
which include but are not limited to: 1) proofing and editing all original materials, 2) printing all
authorized and official copies of the finished product (s), 3) arranging distribution and marketing of
said product. The writer understands that he/she must pay a small initial deposit for services prior to the
completion of all publishing efforts.
It is mutually agreed to and understood that the publisher is to receive 50% of all profits
generated from the published material for a time period not to exceed two calendar years. This includes
all revenues directly derived from direct merchant sales, any revenues accrued from subsequent motion
picture or small screen, i.e. television rights contractual agreement, and all other forms of secondary
reproduction or distribution of the original published work."

Thank you LaToya, a 50-50 split on sales is actually quite favorable for a first time author, as ordinarily the publisher takes a far larger percentage. However, my concern is that in this arrangement there is a 50-50 split on profits, which means that the publishers costs will be paid before the author ever realizes any compensation from the deal and the author is being asked to pay an initial deposit, which is unusual. If the publisher publishes 15,000 copies, at a cost of 1/6th the retail value of each book sold (a standard markup), the publisher would be reimbrused the $2500 in publishing fees, the editor would be paid and all other expenses covered before there are any profits to be split with the author. Normally, there is a division of sales revenue without regard to first paying the publisher's expenses. While this is not necessarily a bad deal, it is one that could leave the author paying money without ever making a dime per this arrangement. I want ot make sure your questions are answered, if this does not naswer your questions or you have any follow up questions, please let me know. If this does answer your questions, please positively rate my answers.
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