Translation Rights?

[KDude]

Would any kind person out there like to explain how this works?

Say an author's publisher sells translation rights to a few countries. Ok, so the publisher takes -- let's say -- 20%, and the rest is stacked against the author's advance. Enough of these deals will recoup the author's advance, non?

If the money brought in from the translation rights (minus the publisher's cut) builds up and then exceeds the author's advance, does that mean the author gets this extra money (even if the book isn't out yet)?

Then what happens? Are these monies "advances against royalties" from other countries. I mean, if Slovakia Publishing goes on to recoup the money they paid for the Slovakian translation does the author/original publisher get a percentage of it?

[Jaws]

It depends.

Sorry. That's the correct answer to any broad hypothetical; I've seen exceptions to every one of the so-called "rules" on accounting for secondary and derivative rights.

Most often in trade fiction, the fee paid to the US publisher by the foreign publisher is a one-time fee with top-up at certain sales levels. For example, when one of my clients' books was recently licensed to [unspecified European market] by the US publisher, €8000 was sent by the licensee to the US publisher. Of that, €2000 was retained as the publisher's 25% share, and the remaining €6000 was applied to the unearned advance. Had, say, €5000 sufficed to clear the advance, the remaining €1000 would be payable to the client within thirty days (regardless of the royalty reporting periods).

If the book sells more than [confidential] copies in that market, the licensee will pay an additional €5000, split as described above.

Three key points: Most of the time, publishers "forget" to pay out immediately, and instead roll money into the next royalty statement. However, foreign licensing payments are ordinarily not "royalties" and should be paid (or credited, as the case may be) within thirty days of receipt.
Different agreements have different splits between the publisher and author for different kinds of foreign markets. Some authors retain all their foreign rights, but this is extremely difficult to do in trade fiction for unseasoned authors.
Some foreign licensing agreements are an advance-and-royalties basis; that is most common in media fiction, but not unheard of elsewhere in fiction (although I'm not aware of a noncelebrity nonfiction work done on that basis in the last few years, it probably happens in that category on occasion, too).

[Cathy C]

What Jaws said . . . ;)


However, it's useful to note that the publisher CAN be taken out of the equation with proper writing of the initial contract. By retaining the foreign rights, the deal is between the author and the foreign publisher. It skips that 25% cut to the publisher (although the agent still gets theirs, if there's an agent.) Only do this if you feel you (or your agent) can adequately negotiate and sell those rights, though.

[KDude]

Thank you both for taking the time to answer my question.

[aruna]

I don't know if this is any help to you now but my books sold through an agent and the original publisher did not get any cut from the sales. The agent got 20%: 10% for herself, 10% for the subagent in the country of sale.

[JA Konrath]

Based on your contract, your advance may be paid out over two or three payments.

If you earn out your advance through foreign rights sales, you'd begin to receive royalty checks that coincide with your statements, along with your advance checks (which are cut when you turn things in--the signed cotnract, the accepted manuscript, the outline, etc.)

[TeddyG]

I have no clue if this helps or not...

And I am sure someone is gonna say its not correct..but...
If your original contract with a publisher "gives away" translation rights, and most good agents wont do that, then the publisher usually has an expert on rights and sales in house and then it is up to what your contract says or more important does not say.

If your agent did not give away such rights, then usually either the agent's office deals with foreign rights, or the agent sub-contracts out to another agent who is an expert in that part of the world where the translation will take place. There are, interestingly enough, quite a few really respectable agents who came from the foreign rights desks at major publishers.

Jaws is totally correct in the way it usually works unless you are on the top of the NY Times bestseller list.

BTW...some countries (or should I say publishers in certain countries?) are notorious for not paying on time or paying very little for such rights. You should always use an agent and if lacking one use a lawyer. I would never advise you to deal with foreign publishers on your own. That is a quick way to an ulcer.

Teddy

[aruna]

Some foreign licensing agreements are an advance-and-royalties basis; that is most common in media fiction, but not unheard of elsewhere in fiction (although I'm not aware of a noncelebrity nonfiction work done on that basis in the last few years, it probably happens in that category on occasion, too).


Jaws, just wanted to add: I retained all of my foreign rights, as well as the US and media rights. My books were sold to four foreign publishers, and in each case, it was on an "advance and royalty paying" basis, ie exactly the same as with the British contract. As far as I know this is standard in the UK.
Thus, even though my British contracts never earned out, I received quite a lot from the French publishers in royalties, which all went into my own pocket.
The advances paid by most of the foreign publishers was quite low, so I am getting royalties from three of them. The Greman advance was high, and never earned out.

[aruna]

I

BTW...some countries (or should I say publishers in certain countries?) are notorious for not paying on time or paying very little for such rights. You should always use an agent and if lacking one use a lawyer. I would never advise you to deal with foreign publishers on your own. That is a quick way to an ulcer.

Teddy

My French publisher is notorious for paying late. They only pay royalties once a year, for a start; supposedly on 31st December, but they give themselves 3 months time to pay. The first year, I expected that I'd be paid sometime in January but no, they drew it out till the very last date. And then it had to go first to the French subagent, then to my british agent, then to me. So I didn't get my December-due royaties till mid April. I find this preposterous; after all, that money is earning interest for them all along; meanwhile, I really needed the money and had to take out a loan till it got to me.
The next time I sign a contract with this publisher you can be sure this will change. Either I get paid in January, or I get interest!

[TeddyG]

Just try dealing with a publisher in Israel if you think thats bad!
Hell you are lucky you saw the check in the same year!