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Damnation Books

Kensington

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I feel really sorry for Damnation's authors caught up in such a tangle. It's all about kill fees. What a shame.
 

CaoPaux

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Since this is the same publisher as the Eternal Press thread, could both threads be amalgamated into one?
Perhaps, but they won't be.

And I'm a hair away from locking both.
 

luvreading

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Eternal Press was based in Canada with Australian contracts when it was taken over by a US company this year. They sent the following addendum to authors. My question is, if the authors refused to sign this, what would the legal position be?

Damnation Books, LLC/Eternal Press
P.O. Box 3931, Santa Rosa, CA 95402-9998
(707) 543-6227 [email protected]
2010 Amendment to Author Contract with Eternal Press
This amendment is hereby issued by Damnation Books LLC/Eternal Press. Contact Officer: Kim Richards Gilchrist, CEO on 01-01-2010.
The contract between __________________________ (Author) and Eternal Press, formerly located at 206-6059 Pandora St. Burnaby, BC, V5B-1M4, which was last executed by the parties on _____________ is hereby amended as follows:
The Author acknowledges that Eternal Press is now a division of an American Company, Damnation Books, LLC in the State of California, USA whose mailing address is P.O. Box 3931 Santa Rosa, CA 95404 and is physically located at 1817 Slater Street, Santa Rosa, CA 95404 in Sonoma County.
This amendment and the afore-mentioned contract are considered legal and binding in all countries. Should a legal dispute arise, the laws of the State of California, USA shall apply.
The Author understands that should they reside now, or in the future during the term of this contract, in the United States of America that a tax form W-9 must be on file with the offices of Damnation Books, LLC/Eternal Press.
The Author acknowledges the dates of quarterly payments has changed beginning on 01-01-2010 to coincide with those of Damnation Books, LLC. and are subject to further change with ninety days (90) written notice by Damnation Books, LLC/Eternal Press at any time.
No royalties of any kind shall be paid to the Author until this Amendment (and for US residents, this includes the W-9 tax form) has been completed, signed and received by Damnation Books, LLC/Eternal Press.
This document constitutes an amendment to the afore-mentioned contract. All provisions of that contract, except those which are explicitly changed above by this amendment shall remain in full force and effect.
ACCEPTANCE AND APPROVALS
By the Author:
Type Name: ____________________________
Pseudonym: __________________________
Current Address: _______________________________________
Current Telephone:_________________
Current Email:____________________
__________________________ _____________
Signature (Authorized Official) (Date)
 

Bubastes

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The addendum is not "ALL of the documents" involved in this issue, so it's impossible to say what the legal position would be based on the limited information available here.
 

Soccer Mom

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It is impossible to say what there legal position would be. Please stop asking for legal opinions. The answer would involve the original contract and Austrailian contract law.

I am a lawyer, but I am not offering any opinions in this thread. Not having the contract in front of me nor being an expert on international or Austrailian or Canadian law, it would be foolish of me to offer an opinion.

Please stop asking others to do so.
 
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Kensington

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Aren't there some writer's advocate sites where legal advice can be obtained, free of charge? I seem to recall someone posting the details on the Eternal Press thread. I can understand an author being reluctant to shell out for legal fees, or hiking for miles to a university law clinic. But the Internet may have made this process a whole lot easier and author friendly. They could just email the contracts in question.
 
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brainstorm77

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I agree with the mods here. Seek out legal aid. It's better to talk to an actual lawyer then to just speculate.
 

Sugertime

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I agree with the mods here. Seek out legal aid. It's better to talk to an actual lawyer then to just speculate.


No doubt about it. But then even lawyers don't always agree, and their interpretations may differ. Hence the need for court, and a Judge to decide. But even then there are appeals...
 

pagerette

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It's not worth getting lawyers involved unless there are big bucks at stake. Damnation is strictly nickel and dime stuff. Alex did the right thing. He didn't agonize over contracts, he simply published his book elsewhere. I hope it's a great success.
 

Stacia Kane

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It's not worth getting lawyers involved unless there are big bucks at stake. Damnation is strictly nickel and dime stuff. Alex did the right thing. He didn't agonize over contracts, he simply published his book elsewhere. I hope it's a great success.


Sorry, but that is absolutely NOT "the right thing," and it could conceivably lead to a lot of legal trouble for him. You cannot simply publish your book yourself when you have signed a contract assigning those publication rights elsewhere. Alex's own lawyer told him that Damnation has the right to publish his work.


IANAL, but let's please not tell others that violating a contract you signed is "the right thing" to do. It is not, and I certainly hope Alex doesn't find that out the hard way.
 

Kensington

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IANAL, but let's please not tell others that violating a contract you signed is "the right thing" to do. It is not, and I certainly hope Alex doesn't find that out the hard way.

If the contract is bonafide, I agree. But in the case of Damnation there seems to be so much confusion with a contract crossing international boundaries three times, etc. There's got to be a legal clinic or something where an author can simply email all the documents involved, without having to pay an arm and a leg for the advice.
 

Stacia Kane

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If the contract is bonafide, I agree. But in the case of Damnation there seems to be so much confusion with a contract crossing international boundaries three times, etc. There's got to be a legal clinic or something where an author can simply email all the documents involved, without having to pay an arm and a leg for the advice.


In Alex's own words (itals mine):


...They were unwilling to negotiate, so I asked to be released from my contract. At this time, they sent me a letter charging me a $800+ “termination agreement.” ... When I refused to pay the fee, Kim Gilchrist told me that unless I paid it they would go on and publish the book without my support.

Believe me—I tried everything to negotiate—I even offered to PAY some of the legitimate fees in order to see a new cover designed for the book—but they refused. It was either, “Pay us 800 or shut up and sit down.” I also spoke to a lawyer—he agreed with Ms. Strauss in myself: Damnation Books would never get away with a kill fee in court, but they did have the rights to publish the work. So as of now, despite my pleas, Damnation will be publishing “The Berserk” in March (you can find it on damnation’s website).


There is no confusion. Alex signed a contract assigning publishing rights to Damnation. He requested the termination of that contract and his request was refused. A lawyer who has presumably seen all the documentation has confirmed that his contract is still in force.

The only confusion as to what is and is not valid is largely coming from commenters here who are not in fact attorneys and are not educated in contract law. The opinion of the only attorney whose opinion truly matters in this case--Alex's own attorney--is that the contract is valid.

What Alex is doing is in violation of the contract he signed. It is not "the right thing." There is no actual evidence that the contract is not valid for any reason. We've seen people--usually PA authors--advised to do this same thing, or play the "Just change the title and they'll never know" game, many times here and our advice is always the same: Do not do this. You could be sued. Get the rights back in writing, or wait out the contract term, or move on to another project.


And for those who asked:

http://www.publishlawyer.com/


They aren't supercheap, but if several people go in on one consultation that could work.



.
 
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Kensington

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In Alex's own words (itals mine):





There is no confusion. Alex signed a contract assigning publishing rights to Damnation. He requested the termination of that contract and his request was refused. A lawyer who has presumably seen all the documentation has confirmed that his contract is still in force.

The only confusion as to what is and is not valid is largely coming from commenters here who are not in fact attorneys and are not educated in contract law. The opinion of the only attorney whose opinion truly matters in this case--Alex's own attorney--is that the contract is valid.

What Alex is doing is in violation of the contract he signed. It is not "the right thing." There is no actual evidence that the contract is not valid for any reason. We've seen people--usually PA authors--advised to do this same thing, or play the "Just change the title and they'll never know" game, many times here and our advice is always the same: Do not do this. You could be sued. Get the rights back in writing, or wait out the contract term, or move on to another project.


And for those who asked:

http://www.publishlawyer.com/


They aren't supercheap, but if several people go in on one consultation that could work.



.

Thanks, Stacia. I should have explained in my message that I was referring to the authors with older contracts, which were signed with an Australian or Canadian EP. Alex signed up fairly recently. And that's interesting that his contract does not have a termination fee clause. Damnation has only been in business since September, yet their current contract is for a five year term with a one thousand dollar kill fee. Kim must have added that a couple of months ago. Hmmm...BTW, Alex will email a copy of his contract to anyone who is interested.
 

Sugertime

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In Alex's own words (itals mine):

There is no confusion. Alex signed a contract assigning publishing rights to Damnation. He requested the termination of that contract and his request was refused. A lawyer who has presumably seen all the documentation has confirmed that his contract is still in force.

The only confusion as to what is and is not valid is largely coming from commenters here who are not in fact attorneys and are not educated in contract law. The opinion of the only attorney whose opinion truly matters in this case--Alex's own attorney--is that the contract is valid.


.

Okay, I must be missing something here. Alex said he wanted out, and he was hit with a termination fee demand in the amount of some $800.00, when there is no termination fee clause in the contract he signed with Damnation. Yet, Alex just has to put up and shut up and wait out the contract term???????

I don't think so.

Let's try: Kim should be charged with attempted extortion. She is in the wrong here, not Alex.
 

DaveKuzminski

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No royalties of any kind shall be paid to the Author until this Amendment (and for US residents, this includes the W-9 tax form) has been completed, signed and received by Damnation Books, LLC/Eternal Press.
This document constitutes an amendment to the afore-mentioned contract. All provisions of that contract, except those which are explicitly changed above by this amendment shall remain in full force and effect.
Bolding mine.

I don't care what an amendment states, the publisher who took over a contract is bound by the original terms until all parties to it sign the amendment changing those terms. So until that happens, the original contract terms remain in force.

This in effect is a form of blackmail that a reasonable court would refuse to enforce. So, until you sign the amendment, Damnation Books and Eternal Press are required to comply with the original contract and you don't need an attorney to figure that out. Why else does anyone think they want your signature?
 

Stacia Kane

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Okay, I must be missing something here. Alex said he wanted out, and he was hit with a termination fee demand in the amount of some $800.00, when there is no termination fee clause in the contract he signed with Damnation. Yet, Alex just has to put up and shut up and wait out the contract term???????

I don't think so.

Let's try: Kim should be charged with attempted extortion. She is in the wrong here, not Alex.


*shrug* Talk to Alex's attorney. I'm not saying it's good or ethical or that the kill fee is appropriate or that Damnation is even a decent place or anything of that nature. I think this is a terrible situation and I think it's awful that he's in it.

All I'm saying is, he was told by his legal advisor that the contract is in force and so he is deliberately violating the terms of that contract, and that's never "the right thing" to do. He's already got problems with this situation and I don't want to see him or anyone else end up with more.


.
 

Kensington

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This is the contract Alex signed with Damnation Books. I have his okay to post it here. As you can see there is no termination fee clause:


"Author Agreement for Novels and Novellas Damnation Books
Page 1 of 3
Damnation Books, LLC
P.O. Box 3931
Santa Rosa, CA 95402-9998
(707) 543-6227
[email protected]
Author Agreement for Novels and Novellas
_____________________________________________________________________________________________
THIS AGREEMENT made the 15th day of December, 2009 by and between Alex Smith, hereafter called the Author and Damnation Books, LLC, hereinafter called the Publisher. This contract is considered legal and binding in all countries. Should a legal dispute arise, the laws of the State of California, USA shall apply.
WITNESSETH that the Author and the Publisher for the considerations named agree as follows:
Work
This contract is for the fiction work titled, Swimmer, written by the Author. The Author guarantees this work is free and clear of any counts of libel, plagiarism, breach of privacy, misrepresentation of facts and there is no legal action pending regarding this work. The Author further guarantees the work is not in the public domain; that they are the sole owner and copyright holder with full power to enter into this contract. _____(Author initials)
Rights
This contract grants the Publisher worldwide electronic, worldwide digital, 1st North American and 1st UK print rights for a five year period from the date of release. At the end of that five year period, the Publisher has the option to renew this contract with the Author at a payment rate of 40% net royalties on books sold. Upon termination of this contract, all rights return to the Author. Some distributors require book availability for a five year period and both parties acknowledge this must be honored even upon termination of this contract. ________(Author initials) ________ (Publisher initials)
Publisher
The Publisher will provide editorial services, the cover art, book ISBNs (International Standard Book Number) and an electronic Author copy of the finished book. ISBN’s will be obtained under the name of Damnation Books. The Publisher will set the retail price of the work, based upon length, comparable works, and format. The publisher retains the right to raise or lower the price as needed to stimulate sales.
The Publisher reserves the right to contact distributors, bookstores, vendors, organizations and ebook outlets to sell the work in association with Damnation Books.
Author
The Author will provide the completed story, their contact information, and biography. The Author is authorized to use the cover image for promotional purposes and may not alter it in any way other than dimensions (size) for the duration of this contract. Upon termination of this contract, all art rights revert back to the Artist.
Reasonable deadlines for completion will be determined by the ongoing publishing schedule. Failing to meet deadlines can result in the book publication being delayed until a later time or as grounds for termination of this contract in the case of multiple missed deadlines.
The Author has the right to burn exact text copies of electronic versions of the Work onto CD to sell copies at book fairs, signings and other author events, provided they pay Damnation Books 60% of the net sales, due quarterly. Damnation Books
Author Agreement for Novels and Novellas Damnation Books
Page 2 of 3
does not accept returns of any Author created digital copies or Author discounted print copies of the work. The Author may sell print copies of the work they have purchased at an author discount. The Author is responsible for reporting any royalties from resale to taxation authorities and the Publisher shall be held harmless for any underreported royalties caused by the Author’s failure to report royalties earned through resale.
It is the Author’s responsibility to inform the Publisher of any change in tax information or contact information including Paypal email address. Any royalties paid which are not received as a result of the Author’s failure to keep up-to-date contact information with the Publisher will be held until update has been received or this contract expires . The Publisher agrees to attempt contact through existing contact information (telephone number, email address or mailing address) before unilaterally withholding payment. If this contract expires, the Publisher will attempt another contact via telephone, email and postal mail. If ninety days pass from final contact attempt and still there is no response from the Author, the Publisher is no longer liable for those payments.
Editing and Proofreading:
The Publisher’s editors will identify problems and make suggestions to resolve the problems and improve the work. The Author is not required to use the suggestions, however the problems must be resolved before the manuscript is considered complete. The Publisher retains the right to release the Author from this contract if, in the Publisher’s judgment, failure to make such changes would make the work un-marketable or damage the Publisher’s reputation.
The Publisher will make no major changes to, additions to or eliminations from the work without the Author’s permission; with the exception of minor grammatical and typographical errors.
Copyright
The Author is responsible for registering the copyright if they so choose. The Author shall hold harmless and indemnify the Publisher from any recovery finally sustained by reason of any violations of copyright. The Publisher will place a copyright notice on all versions of the work.
Infringement
During the terms of this agreement and any renewal terms thereafter, should the copyright on the work be infringed upon, the Publisher may, at its own expense, take legal action in the Author’s name as may be required to restrain such infringement or seek damages. The Author hereby agrees to provide the Publisher with reasonable assistance in the prosecution of any such action. The Publisher is not liable for any expense incurred by the Author. If the Publisher chooses not to take legal action, the Author may do so at their own expense. In the event of money damages recovered for an infringement, legal fees, and court costs shall be deducted and any remaining monies be equally divided between the Author and the Publisher.
Contract Price
The Publisher shall pay the Author 40% net royalties on books sold, paid quarterly beginning from the date of release. All payments will be transacted through PayPal unless prior arrangements are made.
U.S. authors only: The publisher will issue a 1099 MISC statement of royalty earnings. Payment of taxes on royalties is the sole responsibility of the Author. U.S. residents must fill out a form W-9. These forms must be returned with the signed copies of this contract. No royalties will be paid out until the forms are signed and on file with Damnation Books.
Promotion
The Author and Publisher mutually agree to promote and market this work to the best of their abilities. The Author is expected to take an active role in promotion of this work and agrees to provide a link from their website to the Publisher’s website. The author is responsible for their own promotional materials.
The Publisher agrees to submit the work for review at no less than five reviewers. The Author is encouraged to submit copies for review on their own. No royalties will be paid on review copies. The Publisher will provide the Author with coupon codes for obtaining electronic review copies. Damnation Books will not provide print copies for review or for competition entries. The Author may use their own purchased author copies for reviews or contest entries if they so choose.
Author Agreement for Novels and Novellas Damnation Books
Page 3 of 3
Bankruptcy or Insolvency
Should Damnation Books, LLC be legally declared bankrupt or liquidate the business, this contract shall be automatically terminated and all rights returned to the Author.
This contract shall be binding upon and inure to the benefit of the heirs, executors, administrators, and assigns of the Author and upon and to the successors and assigns of the Publisher.
Signed this ______ day of ________, 20____ Signed this ______ day of ________, 20____
__________________________________ ____________________________________
Kim Richards Gilchrist, CEO Author
[email protected] Pseudonym:___________________________
Damnation Books, LLC Address: _____________________________
P.O. Box 3931 City, State, Zip Code__________________________
Santa Rosa, CA 95402-9998 Paypal address:_________________________
(707) 543-6227 Telephone number:______________________
Social Security #: _______________________
(US only; for tax purposes)"
 

Kensington

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And this is the kill fee demand. Once again, I have Alex's permission to post it here.


"Premature Contract Termination Agreement Damnation Books, LLC
Page 1 of 2
Damnation Books, LLC
P.O. Box 3931
Santa Rosa, CA 95402-9998
(707) 543-6227
[email protected]
CONTRACT TERMINATION AGREEMENT
The terms for premature termination of the author contract between Damnation Books, LLC, hereafter referred to as The Publisher and Alex Smith, hereafter referred to as the Author. The contract being terminated is for the novella by the Author titled, The Berserk (formerly titled Swimmer) originally signed on December 15, 2009. The original contract is for a five year period.
Fees:
The Author will be charged the following fees before any books are removed from publication and rights returned. These fees are required to compensate those persons and companies who have already provided necessary services for this work in preparation for publication:
Title:
Fee for editing services completed @ $3.00 per page: (95 pages) $285.00
Fee for production and layout @ $25.00 per hour (5 hours) $125.00
Fee for staff compensation due to loss of sales: $250.00
Fee ISBN #(X 2. 1 for ebook; 1 for print): $ 50.00
Printer set up fees: $ 75.00
Original cover art fees: $ 50.00
Total due for contract termination: $835.00
The Author acknowledges that rights to the work return to him on the 61st day from the date the fees are collected in full and the Publisher signs this Termination Agreement. The Author agrees that this work may not be published with this or any alternate title, in any form for six (6) months from the date the Publisher signs over rights of the work to The Author. The Author acknowledges that all rights in full or any portion thereof, of the cover art are returned to the artist and any use by the Author is copyright infringement. The Publisher will exercise their right to prosecute on behalf of the artist should art copyrights be violated.
The Publisher will grant that rights are returned the author on the 61st day from the date the fees are collected in full and the Publisher signs this Termination Agreement. The Publisher has sixty (60) days from the date fees are paid and the Publisher signs this Termination Agreement., to terminate the public sale of the works. *note, some retailers may take time to remove the books from their systems as they only do updates once every two to four weeks for such revisions. The publisher will do everything in its power to see that the works will no longer be made available as soon as possible. The Publisher will also also deactivate all ISBN numbers associated with these titles at the time of removal from the Publisher’s distribution.
ALL conditions and agreements within this document are considered legal and binding. Should a legal dispute arise, the laws of the State of California, USA shall apply.
Premature Contract Termination Agreement Damnation Books, LLC
Page 2 of 2
CONTRACT TERMINATION REQUEST AND SIGNATURES
I, the undersigned (AUTHOR) am hereby requesting to prematurely terminate the following eBook and Print contract
with the publisher, Damnation Books, LLC. I understand that my rights will not be returned until sixty days after all fees
have been paid in full to the publisher.____(author’s initial) I understand that the ISBN numbers and cover art are no longer available to me and that I must remove them from all promotional materials and online venues. ____(author’s initial) I understand that I cannot publish this work in any form, under any title for six months from the date my rights are returned to me. ____(author’s initial) Once payment is received the publisher will then sign over and return rights to the works. Thereafter the author may use the works as they see fit in their current edited text at their own discretion and with the right to resubmit such edited work for publication anywhere.
Total fees required for contract termination: $835.00
Author Name: Alex Smith
Book Title: The Berserk (formerly titled Swimmer)
Signature: __________________________________
Date: ___________ ______________
Send two copies of this signed form via the postal service. Payment of fees can be made through PayPal at [email protected] or a US dollar money order payable to Damnation Books LLC. P.O. Box 3931 Santa Rosa, CA 95402-9998
The Publisher, Damnation Books LLC, hereby grants that rights are returned to the author mentioned below for the following titles.
Author Name: Alex Smith
Book Title: The Berserk (formerly titled Swimmer)
Damnation Books LLC
Kim Richards Gilchrist
CEO, Eternal Press and Damnation Books LLC
P.O. Box 3931
Santa Rosa, CA 95402-9998
(707) 543-6227
Publisher Signature: _________________________________
*only to be signed by the publisher upon payment of fees*
Date fees received:___________________
Date: ___________ ______________"
 

showme

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Bolding mine.

I don't care what an amendment states, the publisher who took over a contract is bound by the original terms until all parties to it sign the amendment changing those terms. So until that happens, the original contract terms remain in force.

This in effect is a form of blackmail that a reasonable court would refuse to enforce. So, until you sign the amendment, Damnation Books and Eternal Press are required to comply with the original contract and you don't need an attorney to figure that out. Why else does anyone think they want your signature?

Thanks so much for this, Dave. It's exactly what I thought.
 

Stacia Kane

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This is the contract Alex signed with Damnation Books. I have his okay to post it here. As you can see there is no termination fee clause:


What I see, and I suppose it's possible I missed it, is that there is no termination clause at all (save the wordage about how if the author fails to meet deadlines the publisher can then terminate the contract).

Again, I am not a lawyer. The lawyer Alex consulted about this presumably is. He offered his opinion. I don't understand why I'm suddenly at the center of controversy for suggesting that Alex should follow the advice and counsel of his attorney, because I don't want to see him or anyone else get sued.

.
 
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Ravenwing

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Just an FYI most lawyers, and many online legal services, will write letters for around $50 to $75. If several authors sent those regarding her demands it might serve as a wake up call that she can't blackmail her authors this way.


She's none too savvy about legal matters. She's just a greedy opportunist, who saw a chance to buy up contracts from the bankrupt Canadian publisher, and sell them back to the authors who wanted out. The fact that these contracts did not contain termination fee clauses didn't stop her demanding kill fees anyway. (amateur night) She issues amendments, then when they're not signed, says it doesn't make any difference, because she doesn't need them anyway. (Hello!) Then why ask for them to be signed in the first place? This is a mickey mouse outfit out to scam writers, but it doesn't even do that well.
 
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brianm

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That contract is a binding agreement between two parties. If Alex signed that contract, he is bound by the terms and conditions until he has written termination from the publisher or a court orders the contract terminated.

The termination agreement document is meaningless unless he signs and returns it.

I strongly urge Alex to pull the other version of the book that he is offering for sale and to seek the counsel of an attorney who specializes in intellectual property law.

~brianm~
 

luvreading

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That contract is a binding agreement between two parties. If Alex signed that contract, he is bound by the terms and conditions until he has written termination from the publisher or a court orders the contract terminated.

The termination agreement document is meaningless unless he signs and returns it.

I strongly urge Alex to pull the other version of the book that he is offering for sale and to seek the counsel of an attorney who specializes in intellectual property law.

~brianm~

I can't see Damnation scaring up enough cash to push this in court. And even if they did, the court would be likely to take a dim view of the kill fee attempt, considering Alex's contract does not contain such a clause. Kim would have to explain herself, as to why she tried to wring money out of an author like that. This is one unscrupulous lady.

I can also bet that Damnation is kept so busy with aggrieved authors that Alex will get lost in the crowd. I doubt the glare of publicity onto their doings would be to their liking, at all.
 
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