What Are Electronic Display Rights In Publishing?

Every publication contract specifies the author’s rights to her publisher. Although electronic rights are frequently included in that award, they are not always referred to as "electronic rights."

The following is an example of typical electronic rights-granting language:

• Author grants to Publisher the exclusive right to print, publish, market, distribute, and otherwise exploit the Work in any manner and any and all media and formats, whether now known or hereafter known or developed.

• Author grants to Publisher the exclusive right to print, publish, market, distribute, and otherwise exploit the Work in any manner and any and all media and formats, whether now known or hereafter known or developed.

• Author grants to Publisher the exclusive right to license the display of the Work in any manner designed to be read, in whole or in part, by any means, method, device, or process now known or later developed, including but not limited to online or off-line electronic displays, mechanical visual recordings or reproductions, microfilm, microfiche, data retrieval and storage systems, computer software systems, and all other forms of copying, recording or transmitting the A.

Any format now known or developed is the essential phrase in either the relatively basic first clause cited above or the more sophisticated second clause. Those lines are intended to give the contract legs, as both parties recognize that their agreement will stand the test of time as technology advances.

Authors should pay special attention to the royalty paid for electronic rights to make a publishing arrangement lucrative throughout time and technological change. The majority of early electronic royalty agreements paid authors the same percentage as they did for print works (sometimes as low as 4 percent for mass-market paperbacks.)

Some writers have successfully claimed in recent years that because electronic publishers do not have to purchase raw materials, physical print books, warehouse inventory, or ship items, they should pay higher royalties on electronic copies. Some authors have successfully negotiated royalties of up to 25% or even more.

As always, authors should read the language in their royalty terms carefully. The difference between royalties calculated on the "cover" sales price and royalties computed on the "net" price might be significant (after electronic delivery costs, marketing, discounts, etc.) 

Furthermore, some publishers insert "most favored customer" terms in their contracts, specifying that royalties will only be paid on the lowest-priced electronic copy available. Higher royalty rates, of course, magnify the disparities in a payout even more.

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