Contracts and incomereceived. Large book-club payments, for instance, might arrive with
a statement one thousand pages in length. Sorting out all that data
is an overwhelming task for an understaffed sub-rights department.
Worse, the audit suggested that at many major publishers author
payments that are returned because of address changes or errors
may simply be bankrolled. One house, which went unnamed, is said
to be sitting on a pool of $ 13 million! No doubt the writers to whom
that money is due could use it, yet it just sits.
The author who sued HarperCollins won her suit, needless to say.
She was paid back earnings with interest, plus her legal and audit-
ing fees. Her name? Judith Appelbaum. Her book? How to Get Happily
Published, a classic reference in the field that is now in its fourth edi-
tion. If that is what happened to her, you can imagine what happens
to authors who are less savvy.
So, back to my earlier question: what is a reasonable reserve?
Generally speaking, eighteen months or two years after publication
it is fair to assume that most of the returns are in. Any reserves
should be fully released by that time. New reprintings may occasion
new reserves; the problem for authors is then knowing where old
printings run out and new ones begin. Once again, obtaining com-
plete and accurate information is important.
When should you audit? When large sums are at stake it may be
worth bringing in the big guns. There are lawyers and accounting
firms that specialize in publishing audits and lawsuits. Contact the
Bar Association or the AAR. For authors of modest means, many
writers' organizations offer assistance, as does the AAR.
One caution: most contracts contain a "lookback" period, after
which you can no longer challenge a given statement. If you are con-
cerned about your royalty report, do not let that period of time go
idly by. Take action. The only sure way to get a fair accounting is to
demand it.
THE GREAT CANADIAN ROYALTY RIP-OFF
Now that Congress has passed NAFTA, the way is open for a true
North American free-trade zone. This is good news. Tariff barriers
will fall. Goods and services will flow freely between the U.S.,
Canada, and Mexico. Some critics fear that employment may suffer