Here's what you should look for in a basic contract...

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So...you want to be published, you say?

You've got readers gushing on your message boards about their favorite characters, your story has climbed the hot list and rung in hundreds of thousands or even millions of reads. Maybe a publisher has approached you or you are wondering how to get your story to be on the shelves of the local bookstore.

If you don't know how to navigate the world of publishing, we have put together this two-part guide to publishing contracts to help make sure you have as much information you need to make the best decision for yourself and your beloved story. Note that this guide tackles print publication of a single author with a Philippine publisher (and concerns a book you made for yourself, not for-hire or as a commission), so while some principles will be helpful even in other contexts, this guide was made with that specific scenario in mind.

We hope this resource empowers you when negotiating contracts with publishers -- and the most important thing to remember is that you can and should negotiate for better terms if you want them. Will all publishers be willing to negotiate? No. But that willingness or unwillingness to do so is also something important for you to discover and to factor into your decisions about the future of your story. The story is your intellectual property and you have every right to ask for terms that are important to you, and to find another publisher if you are unsatisfied.

Special thanks to Paolo Chikiamco who compiled these resources in collaboration with the National Book Development Board. Mr. Chikiamco runs Rocket Kapre, a blog dedicated to publishing and promoting Filipino writers.

Remember, this is a list of the most basic terms your contract needs -- it doesn't describe what your ideal contract should look like. For a look at some author-fair terms that you will want your contract to have, take a look at part 2 of this guide.

My story has reached a million reads and I've got tons of followers. I've just been approached by someone who wants to publish my book. What should I do first?

First things first, if you are interested in the opportunity and have done a background check on the publisher to make sure they are reputable -- for instance, checking that they are registered with the National Book Development Board -- you should ask them for a contract that will outline the terms of the publishing deal. This contract is created by the publisher and will contain the details of what they are asking from you and what you will get in return.

Know that you can ask questions or for changes and that you do not need to sign it right away, or even at all, until you have fully reviewed the contract and are confident that you understand all the terms.

A publisher has given me a contract to sign, but I don't understand what some of it means. What do I do?

Not to worry! We can work through this...and for the rest of the terms that you don't understand, don't hesitate to ask the publisher for a clarification in simpler language, or seek the opinion of someone who knows more than you about such contracts, such as a lawyer.

Now here IS what we can help you with. Listed below are terms you should look for in a contract. These terms are what certain author advocates consider to be the bare minimum that you should look for in a contract from a Philippine publisher, terms that are pre-requisites to an equitable, and reasonably enforceable contract. You should not feel shy about asking a publisher for the inclusion of the following terms / details / information. It will let the publisher know that you are informed, know what a fair contract might look like and are willing to negotiate for it.

1. The contract should include your full name and address as well as the name and address of the publisher. Even if you want to use a pseudonym on the cover of the actual book, the contract should have your real name so that no one else can claim to be the real party to the contract. After all, you have proof of your real name (birth certificate, passport, etc.) but the same can't be said for your pseudonym in most cases.

2. Copyright/Grant of Rights: this tells you what rights you, the author (the owner of the copyright of the work), is giving the publisher. Copyright is not a single right but a collection of rights. That means as an author, you must be specific about which rights you are giving to the publisher. For example, are you giving them the right to publish worldwide or only in the Philippines? The right to publish in print, digitally or both?An exclusive right or non-exclusive right?

3. Keep in mind that as a general rule the major rights listed below belong to you, the writer, under the Intellectual Property Code, and they remain with you until you assign or transfer part of these rights to another person or publisher by way of a written contract:

a) The Right To Reproduce – the right to make a copy of the work

b) The Right to Transform – This right includes things like a movie adaptation, translation, dramatization, and abridgement

c) The Right to Distribute – The right to transfer ownership or copies of the work

d) The Right to Rent

e) The Right to Public Display of the Work

f) The Right to Public Performance of the Work

g) The Right to Communicate the Work to the Public

Each of the above rights can be transferred as a whole or in part to another person or entity (ex. Publisher). It is up to you to specify if you are transferring the rights to a publisher based on language, territory, exclusivity, format, term, or contingency. For example, you could choose to limit a publisher's right to reproduce your work in the Philippines alone or limit the Right to Show to a period of 10 days.

The important thing to keep in mind is that it is you who has the copyright, and you who has the power. The rights are yours and it's your choice which of those rights you are willing to grant a publisher and for what fee.

Secondly, you are also entitled to Moral Rights which include the following:

a) To require that the authorship of the work is attributed to you. The right that your name is indicated in a prominent way on the copies, and in connection with the public use of your work

b) To make any alterations of your work prior to, or to withhold it from publication

c) To object to any distortion, mutilation or other modification of, or other derogatory action in relation to your honor or reputation

d) To restrain the use of your name with respect to any work not of your creation or a distorted version of your work.

Note that these rights have technical meanings, so you'll need to read up on them elsewhere to truly understand what they mean -- don't couassume that common-sense or dictionary definitions apply to terms in a contract. One entry-level guide here on Wattpad is "Your Contract Has Horns: Grappling with the Law, for Writers" by Paolo Chikiamco.

4. Reservation of Rights: A clause that states that any right not specifically granted in the contract belongs to you and not the publisher.

5. Compensation: This tells you what you will receive in return for the rights granted to the publisher. This can take the form of a flat fee, royalties, or a combination of both (where the flat fee is most often in advance of the royalties). The contract must specify when these payments are due to the author and when the author is due reports on sales.

If royalties are granted, the contract must specify how these are computed.

If other rights are granted to the publisher aside from the right to publish (for example, allowing the publisher to act as your agent in trying to find a buyer interested in optioning the book as a film), the contract must state what payments are due to you for that grant -- that should not be something given away for free! Any intended use or grant of other rights must be stated clearly in the contract, along with what you're being paid for those rights. And you should be paid for those rights, because the publisher will be using them to earn money for itself.

6. Obligation to Publish: This tells you the extent of the publisher's obligation to you with regard to the work you submitted. The publisher should specify that they will, at their own cost and expense, print X number of copies of the book and make them available for sale / to the public.

TIP: Note that a publisher should NOT require the author to pay anything in this agreement. Publishers that do so are likely printers or vanity presses rather than publishers.

7. Term: This tells you how long the contract and the grant of rights is meant to last. There must be a specific term or period of time given, or if the grant of rights is meant to be in perpetuity/without end, then this must be explicitly stated.

8. Representations and Warranties: This is a promise that you, the author, do in fact own the rights for the work and that the work is not libellous or plagiarized or contains anything illegal that would get the publisher in trouble.

9. Breach and Termination: This specifies the circumstances under which the contract may be terminated by either you or the publisher due to breach of contract, and the procedure of the termination. The termination clause should also outline clearly the consequences of the termination. For example, what happens to payments or statements/reports due in the event of a termination, or to existing stocks of print books? No one enters into a contract thinking that it will have to be terminated, but every contract must prepare steps just-in-case that happens.

Termination clauses are very, very important. One of the most frequent questions authors have for lawyers is how do they get out of a contract that's gone sour -- a well-made termination clause is your exit strategy.

TIP: Make sure that this Termination Clause provides for termination of the contract by you, not just the publisher. This is a good time to outline what is very important to you in the contract and if the publisher does not comply, you have the right to terminate the contract. For example, if the contract includes a clause that the publisher will market your book by coordinating author events for you but does not comply, you can choose to terminate the contract. Or if the publisher consistently fails to reply to communications from you for an unreasonable length of time -- you need an out if your publisher suddenly decides to vanish.

10. Copyedit Approval: You should have the right to view copyedits to your manuscript and your approval should be required before any substantial changes may be made. However, a provision can be made where your approval is implied if you do not object within a set period of time, in spite of prior notice.

11. Examination of the Publisher's Records: This clause gives you or your representative the right to audit the publisher's records regarding the book's financial performance. It is essential for you to ensure that, in the case of any doubt about royalty payments, you are allowed to make sure the correctness of the basis of these royalties.

12. Notice and Recipients: The contract must specify that all appropriate notices required under the contract must be in writing, which will include electronic mail. The notices are only to be deemed valid if sent to the persons/addresses by the publisher and author in the contract itself.

I have more questions! Who can I ask?

This document is ongoing and we will be adding to it as questions arise, so please leave any questions you have in the comment section below and we will try to answer them as quickly as possible.

You can also contact the National Development Book Board via Telefax No. : 570-6198/687-1804 or email at [email protected]

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