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Originally Posted by speakingtohe
Thanks for the reply.
Cannot still grasp the concept. If they signed with harlequin, and Harleqin transferred the rights to a subsiduary or other company would they stilll not get what they signed for?
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The concept is:
Harlequin signs for rights, offering author "50% of whatever we receive."
Harlequin creates "Harlequin-Subsidiary, a special overseas company." H-S is owned by people from Harlequin, and has no rights to do business other than those granted by Harlequin.
Harlequin licenses the book to H-S, agreeing that H-S gets 90% of the cover price.
Book sells for $8 list. H-S keeps $7.20, handing $.80 to Harlequin. Harlequin pays author $.40 per copy sold. At the end of the year (or whatever), H-S's profits get folded back into the main Harlequin profits. End result: Harlequin keeps $7.60 per title, and pays the staff at H-S out of that.
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And if there is no clause for ebook rights how can they sell the ebook? And if there is a clause of 6-8% you can't sue in this class action. So who can sue?
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This lawsuit is about a specific set of contracts.
In those contracts, the phrase "digital resale rights" (or something very similar) is used; the contracts that mention "ebooks" and 6-8% are so different that they're not part of this lawsuit. Those contracts had different royalty arrangements. It's not that those with 6-8% ebook royalties can't sue; they're just not part of *this* contract set and not included in this class-action lawsuit.