Q&A: Timeline for textbook royalties: When should you get paid?

royaltiesQ: “I am concerned about the length of time a publisher can hold onto royalties. Mine are due in April, four months after the close of the accounting period in December. This means some monies have been held from July 1 through April — 10 months! I would think interest should be paid or royalties sent out on a more continuous basis.”

A: Steve Gillen, Attorney, Wood Herron & Evans:

“The publisher’s obligation to account for and pay royalties is set forth in the publishing agreement. While the timing of payment and the nature of information contained in the reports may be negotiable, the time to negotiate these issues is before the agreement is signed. Once the deal is done, it’s too late for the author to complain. Historically, publishers have paid royalties on an annual or semi-annual basis (providing reports and payments anywhere from 30 days to four months after the close of the relevant accounting period). I suppose there was a time when this delay was justified by the difficulty in processing returns and credits and closing the books. Now, however, it persists as custom rather than of necessity. [Read more…]