As part of our work in the Society of Authors advisory team, we often assist members with queries about overdue payments and issues with reverting rights in dormant contracts, particularly when a new opportunity has arisen. It’s always concerning to hear about problems, and we do what we can to help members navigate what can be difficult situations, but the purpose of this article is to share some tips which might help keep your dealings with publishers in good order and reduce the chance of problems arising.
First, we urge all our members to keep on top of the dates when accounts are due from their publishers – rolling diary notes do the trick – and chase for statements and any payments owed as soon as they become overdue. The same applies to advances and other fees which are due to be paid when contracts are signed, during the writing process and/or on publication.
Check you’ve done what’s required of you. If you need to invoice, check what details you should include to ensure there are no hold-ups. If you need to complete double-taxation paperwork for payments from abroad, do that as soon as possible, as it can be a slow process.
When everything is in order, don’t wait passively for payment: it is in your interests to chase promptly and politely, in a businesslike way. Sadly, we find that overdue payments can be an early warning that a company is having financial difficulties and so it’s important to ensure that payments owed to you don’t mount up for future settlement.
If payment doesn’t follow your reminder and it is more than a month since the payment was due, you have the option of adding interest and a modest compensation fee to the amount owed under the very useful Late Payment of Commercial Debts (Interest) Act 1998. We usually advise that authors begin by sending notice to the late payer saying that unless they receive the payment due within, say, 14 days, they will insist on the addition of statutory compensation and interest to the amount owed. That often does the trick. There are notes explaining the Act and further steps which may be taken, if necessary, in our Guide to Chasing Payment.
Secondly, it’s in your interests to keep track of any sublicence agreements your publishers have arranged. Examples of these might be contracts for translated editions of your works, audio editions or agreements for dramatic adaptations. Whenever you hear about any of your rights being exploited in this way, be sure to ask for a copy of the contract when it is finalised, and if that’s not possible for any reason – sometimes works by more than one author might be included in a single contract – you can ask for a breakdown of the main terms. This is important as you will have details about what advance payments might be due and when, as well as when royalty accountings are due. Again, check these payments flow through to you in line with what has been agreed, as well as any author copies that are due. If you have reason to believe a sublicensed edition is selling well, ask your publisher to check whether any royalties might be due, in addition to the advance the sublicensee paid at the outset.
Sublicence agreements will often have a specific duration, so it’s also a good idea to keep track of when they are due to end. As that time approaches, it might be possible for the publisher to negotiate an extension or renewal of the agreement, and new terms sometimes include a refresher advance or fee. If the contract is to lapse, be sure to ask for a formal note of termination to be sent so there is no delay or uncertainty if a new opportunity arises in future.
Finally, be sure you have a record of the ISBNs (and ASINs, Amazon’s own identification system, if relevant) for every edition of your work. These are a checklist of the editions which should be accounted for in your royalty statements and you will also need them in order to register your works with the Authors’ Licensing and Collecting Society and Public Lending Right.
