Need Info for Lawsuit

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RayHa2

This is a different slant from the usual does-anyone-know-these-guys query.

I'm preparing to launch a lawsuit against one of the Big Dogs (one of the top ten commercial publishing houses); I have already talked to one intellectual rights lawyer and he thought I had a credible case, but said I needed some crucial information concerning damages. I'm hoping some of you can supply general information about international royalties.

Bottom Line -- I need answers to two questions:

1) What yearly sales volume does a typical foreign publisher require to keep a book in print on the backlist? My impression of U.S. publishers is that they start thinking of remaindering what’s left in stock when yearly sales drop below two or three thousand copies. If any of you had a book published abroad (either initially or licensed by a U.S. publisher), can you tell me the sales volume the year it was taken out of print and the year before that?

2) How do typical royalties from foreign editions compare with royalties from the initial U.S. edition? A simplified example: if an author gets 15% of the U.S. edition wholesale price and the book wholesales for $20, the author gets $3/copy. If the contract calls for the author to get half of the proceeds from the licensing of foreign editions of this same book, how much is this likely to be? I’m hoping some of you with books published here and abroad can give me valid information without revealing anything proprietary. For instance, I’m hoping someone can say, “on the U.S. edition of my book, I got $3.60 a copy; on the Egyptian edition, my 50% was $2.80; and on the Japanese edition, I got $3.40.”

Primary Complaint: My publisher authorized three foreign editions over ten years ago. I thought I had received a little money from one foreign edition and assumed the others were never published. I have recently discovered all three editions have been continuously in print and are currently for sale. When I thought I received money from one of the editions, I was misreading the royalty statement. I never received any royalties from any of them.

Background:
(Intentionally vague because I worry about tipping my hand) I have had three non-fiction books published. The first of these was co-authored with a man who is now dead (which complicates the legal battle). It was in the general area of business marketing and was published by a small reputable business publisher that put out about ten titles a year.

A month or two after publication, that publisher merged with another business press that had no interest in pushing marketing topics and the book died an early death in the U.S. due to benign neglect. The second publisher was then sold to the Big Dog mentioned above. I believe these rapid business transitions resulting in sloppy bookkeeping in the royalties departments.

As far as I can tell, I received all the U.S. royalties that are due me. But the first publisher sold rights to publishers in three foreign countries and sent me three letters stating that.

The original contract states that the Publisher and the Author will divide the proceeds from any other licensed versions of the work. I never got copies of the contracts with the foreign presses. Several years ago, when I was a member of the National Writers Union, I learned the book was still in print overseas, and when I rechecked my statements I discovered I had misread them and had not, in fact, received any foreign royalties. My NWU rep contacted the Big Dog royalties dept and furnished copies of the letters I received about the sale of foreign rights and proof that the foreign editions were still in print. The manager of the royalty dept. stonewalled and said his people could not find any of the foreign contracts.

Shortly after that, I lost my day job and did not have the money to pursue a legal remedy. Now I would like to get what they owe me; any information or advice would be welcome!
 

Steven Pollack

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Talk to the attorney again. It would seem that you are entitled to an accounting from them given your contractual relationship. In other words, why should you have to prove damages to get the suit rolling? Damages should be provable through an accounting of their records.

Maybe this attorney simply wants to know what is the nominal value of the suit before taking it on contingency?
 

RayHa2

Thanks, Steven.

I think the attorney's point was that we must ask for something specific for damages if we are going to file a suit. Without the suit, we can't get them to open their records. The suit would include a discovery motion asking them to open all their contract files and royalty accounts for inspection all the way back to the date of the first letter about a foreign contract. If a judge grants that motion, I think they would settle rather than make available proprietary information.

Following your reasoning, I suppose we could start with an injunction to get access to the records. I'll pose the question to the next lawyer. (The one I talked to was in a firm too small to take contingency cases.)
 

K1P1

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RayHa2,

Most contracts include a clause that says you have the right to visit their offices and audit their records. Is this not the case in your contract? Or have they already refused to let you see them?
 

Kate Thornton

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Sue for half a million - then during discovery, find out what the true worth is and have your attorney negotiate out of court for that amount.
 

RayHa2

To K1P1 and Kate,

Unfortunately, the contract does not say I have the right to visit the publisher and audit records. Kate's suggestion of suing for half a mil and discovering the details later appeals to me because of its simplicity. I think I will find a bigger law firm and run all these ideas by them.

Thanks for the brainwork!
 

JanDarby

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It's not so much the numbers to put on the complaint; those tend to be a little random, usually the maximum the plaintiff's attorney can imagine recovering in the best of all possible worlds (or the maximum for the court level he's filing in).

It's more a matter of whether the case is worth pursuing. If the attorney is going to take this on a contingency basis, he/she is going to want to know the ballpark of the damages that are likely to be proven. At least whether it's going to be $1k vs $10K vs. $100K. He/she is not going to take on a $1-10K case, most likely, on a contingency basis, because his time and the court costs will be more than that. And you're going to want to know the recovery range too, especially if the attorney is charging by the hour, because there's no point in your writing out a check for, say, a $10K retainer if the most you can possibly recover is $5K, since in the US, each party pays his/her own attorney, regardless of who wins.

It strikes me as very odd that the publisher doesn't have a royalty-auditing provision or mediation provision for royalties. Even my tiny epub has an audit provision (although I don't expect to have to invoke it; they're great about providing information). You might want to double-check that, because it was my understanding that all of the major commercial publishers do have that in their boilerplate.

JD, not giving individual legal advice, just general information.
 

Jaws

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May I respectfully suggest that RayHa avoid responding to others' comments? He's jeopardizing his attorney-client privilege and possibly harming himself in discovery, since he's going to have to disclose all of those statements to the other side (which will find a way to use them against him, or at least harass him).

In most instances, though, there's a much simpler solution. Technically, the remedy that RayHa appears to be seeking is an equitable remedy, not a remedy at law: He seeks an accounting. In most states, when one requests an accounting one need not specify an amount at all unless there is a facial limitation on the contract's value. In fact, tactically, it may be a good idea to be as vague as possible here, because it will make the battle over removal to federal court much simpler. (N.B. I'm one of those oddball plaintiff's/author's-side attorneys who prefers federal court to state court.)

If you truly do not know the number, you're much better off not harming your credibility by guessing something outrageous. It really does matter in the end; if the judge believes you're being reasonable, he's more likely to question the typical defense delaying tactics than if he thinks your $500k demand is a couple orders of magnitude high.

Of course, this is not legal advice for your particular situation. I don't know your particular situation. It outlines a set of issues to discuss with your attorney of record.
 

MOON GODDESS

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I think you gave some good advice, Jaws. If an intellectual property lawyer can't help Ray Ha2, then maybe he should find one that's more specific to international law.
 

Rolling Thunder

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Jaws said:
Of course, this is not legal advice for your particular situation. I don't know your particular situation. It outlines a set of issues to discuss with your attorney of record.

Shouldn't this be in a very very very very very tiny font? It just doesn't seem as disclaimer-ish if I can read it without eyestrain.:)
 

RayHa2

Dear Weather People (Moon & Thunder),

Thanks for the tip and observation.
 
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