Author Collaborations

Author Collaborations
Novelists, Inc. Conference St. Pete Beach Oct. 2014

A collaboration might consist of a single book containing a bundle of novels or novellas by different authors. The main benefit is that more experienced authors will draw attention to newer authors. It’s a cost-effective way to produce a print version of shorter works. Promotional duties will be shared among the authors. And you can learn the indie publishing process along the way.

Consider the following in drawing up an agreeement:

Distribution of royalty: How will the money be split and on what basis?
Production costs: What will each author chip in?
Format: E-book? Print? Who decides?
Distribution channels: Who decides which book retailers/outlets?
Exit strategy: How can an author withdraw?
Termination date for bundle: When will it be taken off the market?
Who administers each vendor account? Ideally, each writer should have password access.
Will you set up an LLC or Corporation? This could protect against lawsuits.
Can a single author sell her book outside of the bundle, or does the bundle have exclusive rights?
Who coordinates promo efforts?
Who spends how much on publicity?
Who controls the bank account?
Who issues 1099’s or payroll expenses? Who keeps and distributes these records?
Will the group hire an accountant?
Who is the backup for the prime member?
Is the bank account accessible to other members? It should be.
Do members wish to see copies of receipts?
Who gets the vendor reports? Every author should get one.
Will each author forgo publishing new works within a certain period of time to avoid competition? Or will new works outside of the bundle be allowed without restriction?
Will the bundle be copyrighted? If so, who will register or own this copyright? The LLC or Corporation can own it if you have one. If a book bundle is copyrighted under a Corporation, you’ll want to mention that, upon dissolution, the copyright for each respective title is assigned to the individual authors.
Who owns the cover art? Who can use the cover art?
How will disputes be handled– through mediation, arbitration, or lawsuit? And in which state?
If your book is pirated, will it be dealt with or ignored? Who will be responsible?
Will you get media or publisher peril insurance? If you don’t have an LLC or Corporation, you can get this but it can be difficult to obtain.
Consider that if a bunch of books is written by different authors under one pseudonym, all the authors could be sued under that name.

An author spoke about her box set. She had a one-page letter of agreement with her partners. She advises you to determine your goals. Is it to hit a bestseller list? Or do you wish to raise publicity for your book? What is the term limit for your box set? How much will it be priced for? What are the consequences if one member wishes to withdraw? In her case, the person withdrawing would pay for reformatting unless more than half of the members wanted out. They decided who would report sales and when, who would collect money and pay them their portion. They decided that all members would make decisions together. They agreed on a price to pay for ads. Disbandment was set for 45 days after the book went on the market. One concern she mentioned is that if the person who manages the money puts funds into her personal account, who else has access?

Publishing each other’s work in a co-op is another type of collaboration. Book View Café was cited as an example.

Regarding box sets, you need to determine the order involved. The first and last titles are premium. Should they be listed alphabetically, or should the bestselling author get the top spot? Are you allowed to sell your books individually if they’re in a box set with other authors? Are they going to be backlist titles or new titles?

Thinking these things through and discussing them with your partners ahead of time will avoid conflict down the road.

Do you have any considerations to add?

 

Literary Estate Planning

Literary Estate Planning
Novelists, Inc. Conference St. Pete Beach Oct. 2014

Copyright is for life of the author plus 70 years. You have physical assets as well as digital assets. Be aware that it can be a violation of federal or criminal laws for friends or family members to take over your online accounts. Think about what happens not only when you die, but also if you become disabled.

If you’ve done nothing and you die, the state will have an intestate succession. The statute says who inherits your assets. Your options are to gift your intellectual property, copyrights, and physical assets in your will.

Your literary attorney can work as a consultant with your family estate lawyer. If you grant items to people in your will, the recipient gets everything. Who can step into your shoes when the time comes?

An alternative is to set up a legal or corporate entity. An LLC, S or C Corporation are the options. The corporate entity could have perpetual existence. If the Corporation owns the copyright, it can affect the term of copyright.You could make your children the shareholders. But then they would run the company. Can they manage it all in agreement with each other? A third choice, and the best one, is to create a trust. You can separate the management from the revenue. The trust would be managed for the benefit of your beneficiaries. You can assign one person as trustee to manage the following, which are examples only:

Published books
Unpublished manuscripts
Rights to hire editors and other ancillary help
Management of digital assets
Rights to negotiate contracts and subsidiary rights (as well as the right to refuse offers)

This allows your identity, as the author, to continue. The trustee does not have to be the beneficiary but then he should be compensated. There are tax consequences if the trustees are the beneficiaries. It’s also important for you to have an inventory. List your book titles, contracts, termination dates, agent information, revenue sources, and location of assets. Joint works need to be explained, and you should have a written agreement with collaborators. Consider contracts with cover designers. Do you own the covers to reuse as desired?

In a trust or will, it shouldn’t be so detailed as to list individual titles. It should be broader and more encompassing to cover intellectual property. Authorize the trustee to hire an agent, formatter, publicity person, cover designer, etc. Set up a procedure for beneficiaries to select new trustees so the trust can continue.

Any publisher will freeze your account upon your death. The executor needs to provide court documentation that he is authorized to collect money. But for digital property, this might not work. Federal laws make it difficult for a third party to take over your digital accounts. Only nine states have statutes to deal with this issue. So appoint a person in your will or trust to access and manage your digital accounts. You’ll also want a power of attorney in case you are disabled.

Put the bank account where your royalties go into your trust, and put the trust name on the bank account. For a DBA, put this in your will or trust as an asset to be passed on.

If you donate your materials to a library or school, talk to them to make sure they have adequate resources to preserve your collection.

Note: Any errors in this article are due to my interpretation. This post does not constitute legal advice. Please consult your own literary attorney for your personal situation.

Contest Alert

Last Day! Win a $25 Amazon/BN gift card or free ebooks from Booklover’s Bench authors in our November contest: http://bookloversbench.com/contest/

1000 Thriller Giveaway: Enter to win a new book every week for a year: http://www.thebigthrill.org/1000-thrillers/

HANGING BY A HAIR is up for a Readers Choice BTS Red Carpet Book Award in the Mystery category. Check it out and vote here: http://btsemag.com/redcarpet/2014_ReadersChoice_Mystery.html