How to Read a Publishing Contract (Key Clauses to Watch For)
Signing a publishing contract is a significant step in any writer’s journey. While I am not a lawyer, (please consult one before signing a contract), it can be helpful to have a baseline understanding. These documents can be long, dense, and packed with legal language that isn’t always easy to decode. Whether you’re working with an agent or navigating the process independently, understanding what you're agreeing to is essential. Here are the key clauses to pay attention to before putting pen to paper.
1. Grant of Rights
This section outlines what rights you’re giving the publisher and for how long. It may include print, digital, audio, foreign, film/TV, and even merchandise rights. Look for whether the grant is exclusive or non-exclusive, worldwide or limited to certain regions. Some contracts may try to claim all rights—often called “all rights” or “blanket” clauses. Be sure it’s clear which rights are included and which you retain.
You can negotiate to keep certain rights, like film or translation, especially if the publisher has no track record in those areas.
2. Territory
This clause defines where the publisher can sell your book. Some publishers want worldwide rights but may only have distribution channels in specific regions. If they’re asking for global rights, ensure they have the capacity to sell and promote internationally.
3. Royalty Structure
Royalties outline how and when you get paid. Check whether the royalties are based on retail price or net receipts—this can drastically change your earnings. Look at print, eBook, and audio royalties separately, as they often differ.
Common royalty breakdowns:
Hardcover: 10–15% of retail
Paperback: 6–8% of retail
eBooks: 25% of net (though some independent publishers may offer more)
Make sure you understand how royalties are calculated, when they’re paid, and what deductions (like returns or discounts) may apply.
4. Advances
If an advance is offered, it’s an upfront payment against future royalties. Understand when and how it will be paid (upon signing, manuscript delivery, or publication), and whether it’s returnable under certain conditions, such as contract termination.
5. Manuscript Delivery and Acceptance
This clause sets deadlines for submitting your work and gives the publisher discretion to accept or reject the manuscript. It should be clear what happens if revisions are requested and how long they have to approve the final draft.
6. Editing and Approvals
Many contracts allow the publisher to edit your manuscript, but you should have the right to review and approve all edits, especially major changes. Watch for language that says edits can be made “at the publisher’s discretion”—clarify that your approval is required for anything substantive.
7. Cover and Title
Publishers usually reserve the final say on cover design and, sometimes, the book’s title. Still, many are willing to collaborate. If it matters to you, ask for “consultation” rights—this means they must show you the cover and consider your input, even if they make the final decision.
8. Subsidiary Rights
This includes rights to formats and uses beyond the original book, such as audiobooks, translations, film, TV, and merchandise. Some publishers will try to retain all of these, even if they don’t plan to exploit them. Consider negotiating to retain rights you or your agent could license separately.
9. Reversion of Rights
This clause is crucial. It spells out the conditions under which your rights return to you. Typically, if the book goes out of print or sales fall below a certain threshold for a specific time period, you can request the rights back. Look for a clear and realistic definition of “out of print,” and be wary of clauses that only consider availability in digital form as keeping a book “in print.”
10. Termination
Understand what conditions allow either party to terminate the agreement. This includes what happens if deadlines aren’t met, if the publisher goes out of business, or if the book isn’t published within a certain timeframe. You want a clause that protects you from a contract limbo where the book is signed but never released.
11. Option Clauses
Some contracts include an “option” for your next book. While this can be flattering, make sure it doesn’t limit your future work. Ideally, the option should only apply to a specific genre or series, and give you the freedom to negotiate with others if the publisher declines.
12. Warranties and Indemnities
These clauses say that your work is original and doesn’t infringe on others’ rights. You may also be asked to cover any legal costs if someone sues the publisher over your book. Make sure this is written fairly—your responsibilities should be limited to things within your control.
If you are reviewing a contract from a publisher, congrats! Remember, this is not legal advise and it is recommended that you consult a lawyer before signing. The intention of this information is to help inform you on what may be included in a publishing contract so that you can be prepared with questions and stipulations. At the end of day, this is your story and you get to decide who and when to partner with to bring it forward into the world.
