Quote:
Originally Posted by HarryT
If the contract specified that H were to pay the author 50% of what they received, and 6-8% of retail did indeed represent 50% of what H were receiving, then it perhaps is fair (or at least, in accordance with the contract, which may not be the same thing). That's for the court to decide.
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3%. Just to be clear.
H contracted with authors for 50%.
H also set up H2 as a "publisher;" H2, however, did nothing but rubberstamp paperwork. H2 received all income and paid H 6% of that. Then H paid authors 50% of THAT, = 3%. So H/H2 kept 97% of the income and paid authors 3%, which is how 50% became 3%--a process that was completely obscured from authors, agents, and lawyers (due to their royalty report practices) until some events last year instigated a closer look.
Now the court decides if what was done is legal. That'll probably take some time... (understatement)
(It's probably obvious, but yes, I write for HQ, and I do have affected contracts. It's an interesting position to be in.)
Doranna