Auditing a publisher?

thethinker42

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Does anyone have experience with exercising an audit clause? I'm putting feelers out to find an auditor and see what my options are, but this is all kind of new territory. Trying to figure out if it's worthwhile, how long it'll take, etc.

It's a relatively small press (as in, not Big 5, but large for its niche-ish genre) based in the US, mostly ebooks with audio and POD print, and I've had books with them for 10 years. The two books in question have earned roughly $27,000 combined, and the publisher has admitted that at least my most recent royalty statement had an error thanks to a computer glitch (suuuuure it was) that caused it to show $0.01/copy for one title. So I have reason to believe there have been "errors" and "glitches" in the past, and I'm not exactly quibbling over a book that's earned $50.

So... have you audited a publisher? Was it worth it? Can you tell me anything about the process?
 

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I have no experience but certainly hope you get what you've actually earned. Has there been any mention of them on WriterBeware's FB page?
 

thethinker42

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I have no experience but certainly hope you get what you've actually earned. Has there been any mention of them on WriterBeware's FB page?

I'm not sure, but I know someone was going to submit something to them. The entire genre is certainly spreading the word, and there was an update in B&BG on AW today.
 

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The only times I've ever seen this done successfully was when a literary agency was involved, as it had the resources and contacts to get the job done right.

If you have an agent, hand it over to her. If you don't, consider approaching one of the larger authors' associations for advice.

You have to tread very carefully. Note that if widescale "glitches" are uncovered the publisher's debts might force it out of business, which is going to cause you more problems if you have lots of books with them.

I hope you get the help you need.
 

thethinker42

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I've no idea how much an auditor would cost you, but the other thing to weigh up is how much hiring an auditor will cost compared to any possible gains you might get back.

That's the part that keeps making me hesitate, especially since the publisher is already having financial problems.
 

thethinker42

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You have to tread very carefully. Note that if widescale "glitches" are uncovered the publisher's debts might force it out of business, which is going to cause you more problems if you have lots of books with them.

The prevailing theory is that's going to happen anyway. The company has already had to take out a loan in order to pay royalties which... does not bode well for the future. So even if I audit them and find out they owe me money, the odds of them actually paying it are slim to none.
 

frimble3

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How is your contract on 'reversion of rights' (if I've got the term right?), so that if they are circling the drain, you can get your books back? This might be better than fighting to get money that, as you say, they likely don't have.
 

thethinker42

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How is your contract on 'reversion of rights' (if I've got the term right?), so that if they are circling the drain, you can get your books back? This might be better than fighting to get money that, as you say, they likely don't have.

There's a clause that if the publisher closes or declares bankruptcy, my rights revert. Under the kind of bankruptcy where they reorganize, they can offer me a new contract, but I have the right to decline. So at least there's that.
 

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There's a clause that if the publisher closes or declares bankruptcy, my rights revert. Under the kind of bankruptcy where they reorganize, they can offer me a new contract, but I have the right to decline. So at least there's that.

I would talk to a lawyer if I were you, and before they file for bankruptcy. I'm not entirely sure, once they file for bankruptcy, they'll be able to revert you rights if those rights are considered a corporate asset.

ETA: IANAL, which is in part why I strongly suggest you talk to one.
 

thethinker42

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I would talk to a lawyer if I were you, and before they file for bankruptcy. I'm not entirely sure, once they file for bankruptcy, they'll be able to revert you rights if those rights are considered a corporate asset.

ETA: IANAL, which is in part why I strongly suggest you talk to one.

I'm in touch with one. He's reviewing my contracts.