Contract Review: Hospitality Design/Nielsen Business Media

As always, I'm not a lawyer; this isn't legal advice (just my opinion and interpretation); I'm providing comments on contracts, but you still need to read one of the contracts to see how everything applies to your circumstances; and you should always negotiation for the best terms you can get:

• 1 The contract is retroactive, so if you've ever written anything for any of their publications (because the contract is with the company), it will apply to that work as well.


• 2 You give them to use, publish, and distribute your work any way they want for as long and as often as they want. They can grant others the right to do the same, so they are in competition with you for reuse. At least it's not exclusive. They can make "reasonable" changes to the work and will give you credit "where possible."


• 3 You own copyright and may grant others the right to use the material, but that has to be 8 weeks after the first publication by these people.


• 4 You say that you have not infringed on copyright or any other intellectual property rights, and that you indemnify them if the work does infringe a third party's intellectual property rights.


• 5 You're independent, so not eligible for any company benefit, and you are responsible for your own taxes.


• 6 This is a strange one - they say that they have to pay you any mutually agreed upon fees, but they don't say when they have to pay them, or what triggers payment. Is it acceptance? Publication? Who knows?


• 7 This is construed under New York law, and nothing in an invoice, email, or conversation changes any of the terms of the agreement.

Time to Debut Magazine Mix and Match

Time is finally going to launch Maghound.com, which, as Folio describes, is its "Netflix-like" service:

Maghound.com allows consumers to choose titles from a variety of publishers for a mix-and-match “subscriptions” where they pay one monthly fee and have the ability to switch titles at any time. Unlike traditional subscriptions, members aren’t locked in their memberships and can cancel whenever they wish. [President of Maghound Enterprises Dave] Ventresca says that Maghound.com offers “flexibility, choice, control and personalization.”

I think this has to be a relatively scary thing for publishers to get into. Until now, people I know would make a calculation regarding a magazine subscription: If you were going to spend more on individual issues than you would on the best discounted price you could find for a subscription, you went for the subscription.

The fear? That model pushes people into getting more subscriptions than they may want. Publishers like subscriptions, because they help guarantee that much more paid circulation, and that means being able to charge advertisers more.

But with Maghound, people can swap subscriptions at any time, and it doesn't seem to cost too much more than the "$12 for 12 months" approach, except you don't get locked in. So I'm betting there are going to be magazines that start to see their subscriptions numbers slip. That will translate into even more uncertainty at publications, which could drive even loonier and more desperate attempts to "attract" readers - a scary thought, because it usually involves some complex wishful thinking and not coming up with something that you know people want, even if they don't know that they want it. That would translate into stranger assignments and more hoop-jumping. You can bet I'll go to the site to sign up - and to see which magazines I might think of avoiding.

Scientific Journal Gets Hoaxed

I actually ran this on my photography blog yesterday, but thought that readers of this blog might find it interesting: a scientific journal ran a piece about Thomas Edison supposedly being involved in the murder of a rival, even though there are enough red flags in the text to put you in the running of the bulls in Pamplona. The object lesson is that if a story smells funny, maybe you should take a deeper look before becoming the likely victim of a prank.

Contract Review: American Express Publishing

Just got one of these contracts crossing my desk - please remember:

• I'm not a lawyer.
• This isn't legal advice.
• It's always smart to at least try negotiating changes that you want.

Now that we've gone through the usual, time to look at the contract:

• Section 0 So it's not really called zero but is the first sentence in the agreement. Because the contract is between you and American Express Publishing, don't let the assigning magazine name limit your interpretation of rights clauses.


• Section 1 This is an ongoing contract covering your assignments for the publisher until one of you terminates it. Notice that they talk about articles that would be "suitable for publication in Departures and Black Ink magazine." In other words, there seems to be an assumption that it could appear in one or both.


• Section 2 You must file electronically as the editor says no later than the date in the assignment letter you get. The clause includes the phrase "time being of the essence," which means timing is so critical that even being a day late might be enough to let the publisher kill the assignment without paying you. There is no provision for getting a verbal OK from an editor to have a few more days. If they don't accept a piece, they can keep sending it back for more correction until it's the way they like, and you are agreeing in advance to meet whatever time deadline you're given for the revision, again time being of the essence.


• Section 3 They have the right to publish the work first. They get a wide range of exlcusive uses, from their acceptance to six months after first publication. Those uses include creating derivative works (book or made-for-TV movie, for examples), republishing and reprinting, translation and publication of any translation, publicly perform and display the work, license any rights in it at all anywhere in the world. Even after the exclusivity period is over, they can continue to license the work anywhere. You give up so-called moral rights, but they agree to exercise "reasonable editorial judgment to respect the integrity of the Work," a clause that is nice to see, particularly as you don't get moral rights if you're a US writer. You can use other rights as you want, but there's a big catch: "You agree to ensure that the Magazine will receive the following credit upon the exercise of any of the rights retained by you in the Works: 'First published in Departures] in 2008, which credit shall be placed in close proximity to the applicable Work and be of the same size and style as credits customarily given to first publishers of similar works." That should more reasonably be that you'd try to get that done, but you don't control the publisher and cannot ensure that the credit will actually appear. In addition, this tangles up your marketing, and you want to be able to licese a use even if the publisher won't consider a credit to another publisher.


• Section 4 Here's another secretly sticky clause. You grant them the right to use your bio, name, picture, and even voice "in connection with Publisher’s exploitation of the rights granted in this Agreement, whether in a commercial or editorial context." So, if the publisher licenses an article in a commercial context, even if it makes this look like an advertorial or worse, you can be associated with it. That could be a problem if an editorial client took objection to your doing such "commercial" work, even if you did it as editorial. Now, it's not unusual for virtually any publisher to provide reprints to companies mentioned in an article, but this is something you want to be aware of, as there is no limitation on what they can do.


• Section 5 You get paid the fee mentioned in the assignment letter on acceptance, though it doesn't say how long they have to pay. Also, they can decide to not accept a piece (apparently for any reason) and only pay a kill fee of 25 percent.


• Section 6 This gives the details of getting reimbursed for pre-approved expenses.


• Section 7 You agree that until the end of the exclusivity period or notification of non-acceptance, whichever comes first, you won't license an article that is "substantially similar." Remember, though, that the exclusivity only ends six months after pubication, so this could put the story and your approach on ice virtually forever. In areas that publish an international edition, that extends to 18 months. I've been asking publishers for a window - maybe a year - past which such exclusive rights and first uses go out the window.


• Section 8 You are responsible for fact-checking, and they can do so on top of what you do.


• Section 9 Here is the warranties section. You assure them that you own the work and that it hasn't been previously published or commercially used. You promise that there is nothing defamatory or obscene, that infringes someone else's rights, or that breaches a confidentiality agreement that you have signed. Because, as we'll see later, this is interpreted under New York State law, you're probably in good shape, though a "knowingly" would be nice. You agree that you'll obtain official permission for any material you don't own. Any legal permissions you get in writing you must be ready to copy and send the copies to them. Because of the phrasing, you're technically obligated, so far as I can tell, to get written permission even for quotes from people you interview.


• Section 10 Either party can, in the face of the other side's material breach of the contract, request in writing that it be cured. The other party has 30 days to do so. If they don't, the first party can terminate the agreement.


• Section 11 You agree that you'll keep a copy. (Does this mean that there are writers who send in an assignment and then not keep a copy? That is a scary thought.)


• Section 12 The publisher can go to court to protect its rights from other parties, and you have the right to join in with your own lawyer.


• Section 13 A big problem here - you indemnify the publisher both for actually breaches and alleged breaches. The alleged language should come out. The publisher can withhold money it owes you should someone have a legal claim that the publisher attributes to you and should it decide that it wants money to cover its costs.


• Section 14. This says that you are independent of the publisher and lists the things for which you are responsible.


• Section 15 You have no right to use the publisher's logos, trademarks, etc., that would imply endorsement by the publisher. So, unless you get explicit permission, forget about including a magazine cover image to go along with your article on your own web site.


• Section 16 You won't divulge the double-secret business plans of the publisher.


• Section 17 While the publisher can assign its rights and obligations to other parties, you may not. Technically that would mean you couldn't pay someone to do research for you.


• Section 18 You both agree to interpret the contract under New York State law. Furthermore, you agree not to litigate claims on a class action basis (sounds like someone trying to avoid another class action copyright suit). You also waive the ability to seek "consequential, incidental, exemplary, special or punitive damages," which means that if they could find a way to infringe your copyright on the article, you couldn't use access to extra damages, even if you had registered your copyright in time. Other than agreeing to NY law, this sounds like a section you'd want to kill.


• Section 19 This is the entire agreement, no matter what an editor might promise instead either on the phone or through an email.


• Section 20 If you both want to change the contract, it must be done in writing.


• Section 21 Some sections of the contract - for example, the rights grant - survives even a termination of the agreement. (However, if one of you terminates the agreement before they use the article, that doesn't mean they can keep the rights.)

Another User-Generated Magazine Issue Experiment

Recently Budget Travel undertook an all user-generated issue, in which it paid readers to write pieces that needed some heavy editing. Now Time Inc.'s This Old House became Your Old House for an issue, according to a story in Folio. All the photos, DIY projects, and tips in the June issue came from readers:

Executive editor Kathryn Keller says the magazine received thousands of e-mails, letters, photos and projects since editor Scott Omelianuk's first call for submissions in his December editor's letter.

In addition to the letter, the magazine created a dedicated microsite for readers to upload materials and then called for submissions at the end of magazine stories, in e-mail blasts and at the end of the This Old House television show.

Ads were up over the same issue the previous year, but so were expenses. Interestingly, the big resource sink was apparently not the editing, but building and managing the associated web site. This Old House is currently thinking of doing this on an annual basis. There's even a company that apparently is finding a way to make this pay in the long run:

8020 Publishing, which formed in June 2006, produces its two reader-generated titles Everywhere and JPG with a total staff of 19, and may be profitable by next year. The company is reportedly considering similar titles for foods and car enthusiasts, if the demand among its online community reaches critical mass.

Warning: Doubledown Media

A number of writers are complaining about difficulties getting paid by Doubledown Media, which, ironically, publishes magazines for wealthy readers. Reports include claims of multiple promises of payments that never come through. Take it with a grain of salt, of course, because I cannot independently verify these claims. However, I know some of the sources as usually highly reliable.

Contract Review: FenderBender

FenderBender is a trade publication for auto collision repair businesses. Please remember that, as always, I'm not a lawyer and this isn't legal advice, and that it's always best to try negotiation to get changes in contracts:

• Assignment Details I thought this part was thoroughly spelled out. Not only was there a working title and paragraph summary, but provided information on the publication, important reader demographics, and the general things they look for in an article.


• Section 1 - Rights Subsection a asks for First North American publication rights (note, that is not necessarily the same as FNASR). They specifically include "the rights to distribute, after publication by FenderBender, copies of the article(s) as it appeared in FenderBender, or other FenderBender publications."
  
  Subsection b allows them to "reprint or reuse" the article on the web, but doesn't pin them down to their own web site. That could be interpreted as letting them "use" it elsewhere, including on sites that aren't their own. They can also allow "limited reproduction" for non-commercial purposes, but include public broadcasting, which does normally pay for work. There is also no definition of what limited reproduction means - would 100,000 copies of an article be limited? Sure, if they don't print any more, then by one use of the word, it is limited. They can put it into a computer database, though the language here doesn't specifically allow them to sublicense that use, but it does include "published by or at the direction of FederBender," which would effectively be the same, I think. It might be good to ask for a bit more money for the database use and perhaps to keep public broadcasting out of the mix, unless you are getting a cut of those revenues. Even better - ask what they do with public broadcasting and, if they say nothing, ask to take the clause out.
  
  In subsection c, if you resell the piece to someone else, you have to tell them, at which point they can demand a credit line or forbid the use of their name in the article. On general principle, I dislike having to give a publication credit for something I wrote - they can do their own marketing. Couple that with not even knowing whether they will invoke this until after the sale is made, turning it into a condition after the fact, and this becomes a clause that should go (along with the i and ii parts).


• Section 2 - Payments Payment is within 60 days after acceptance, with the provision for "a reasonable request for revisions." Two months are overly generous terms, in my mind, though at least they're saying this up front and not pretending that it will come in 30 only to delay. But pushing back on this would be advisable. Also, there is no definition of how quickly acceptance has to happen. It would be good to add some reasonable time frame for it to occur. Ideally, you would have a provision that said after a certain amount of time, maybe 2 or 4 weeks, acceptance automatically happened.


• Section 3 - Issue Date They can hold an article for a later date. That seems fine, until you realize that if they have first publication in North America, you cannot resell in the continent until after they publish it. So perhaps something that revokes the first publication promise if it doesn't run in some reasonable window - 6 months, perhaps?


• Section 4 - Payment Penalties They want at least one week notice if the article will be late, and they consider deadlines absolute. If you don't give them that much notice, or if they don't give permission, then it's 10 percent off your fee if you're 1 to 3 days late, and if it's 4 or more days, then 20 percent and no guarantee that they will accept it. This is the type of clause that usually comes in becasue a publication has been badly burned in the past. You can try to negotiate that out, but then they will reasonably ask, "why can't you live with getting it in on time?" This might be one where you just have to be sure to be done on time or even early. You could try getting rid of the one week notification for a real last minute problem that you cannot anticipate.


• Section 5 - Kill Fee If they deem the article "unacceptable for publication for any reason," including a "reasonable revision period" if the article is submitted on time, then they pay a 20 percent kill fee and you get the rights back. The "any reason" wording is disturbing. That could technically include their changing requirements on sources or slant after they saw what you submitted. A kill fee should only be invoked when the writer submits something of less than professional quality and standards. That means if you do a professional job and cover what they requested, they shouldn't be able to turn it down.


• Section 6 - Independent Status This is pretty standard wording that you work for yourself, not them, and that you're responsible for your own taxes, insurance, and benefits.


• Section 7 - Termination Either side can immediately terminate the contract with clause, which includes (but is not necessarily limited to) a material breach of the contract or "any act exposing the other party to liability" or personal or property damage. If they terminate, they pay only "for those items The Writer has already satisfactorily completed." What items? There is only the one article described in a one-off contract. Do they mean the time spent? This is unclear.


• Section 8 - Miscellaneous This is the clean-up section, where you agree, among other things, that any dispute is covered by Minnesota law, although you don't have to take action in Minnesota.

Overall, the clarity of the opening section breaks down and you're left with some parts that should be changed for your own protection.

New Magazine Launches - Up and Down at the Same Time

Samir Husni, "Mr. Magazine" and chair of the journalism department of the University of Mississippi, watches the magazine market closely. In a relatively recent blog post, he noted that new magazines starts in the first quarter of 2008 were five titles more than the same period in 2007, but only 41 came out with the intention of at least 4-times-a-year publishing, versus 50 in 2007 and 72 in 2006:

So what does this mixed bag of numbers mean? Not much. Since I have started tracking new magazine launches, I have witnessed a two or three years’ declines after a very healthy and busy year. 2005 was a very healthy year. 1013 new magazines were launched. The decline started in 2006. We are in our third year of decline. In 2006 we have seen 901 new launches, the number dropped to 715 last year, and if the trend of the previous years continues, we will see another drop again this year before the numbers bounce back. Call it market correction if you please, but definitely it is NOT a sign that print is on its way out. History will tell us otherwise. So enjoy this quarter’s crop and look forward to more titles to come next month.

I must agree and disagree. On one hand, no, magazines aren't going to disappear overnight. However, even counting downward economic pressure, this is hardly something to make you feel comfortable. You have to find where the magazines are still strong and forget about any old mainstay that is being hit badly.

Contract Review: Custom Solutions From SmartMoney

This contract is from the custom publishing arm of SmartMoney. I'm not a lawyer, this isn't legal advice, and make sure you negotiate, because there are some terms in here that I'm betting you'd want to change. I'll review the clauses that I think might be of interest. Warning - every now and then I find a contract that seems so odious that I indulge in sarcasm and ranting. This is one of those cases:

• Clause 1 This would seem like standard "You're going to do this and the assignment schedules become part of this agreement" wording, but there's a killer sentence at the end: "However, should Consultant receive an offer to work on other projects that may be competitive to SmartMoney’s business, then Consultant must get approval from SmartMoney before accepting such assignment." Huh? Since SmartMoney is technically in the custom publishing business, you have to get flipping approval to do something that would be competitive, otherwise known as writing for any other custom publisher? No where in the agreement does it specify what SmartMoney considers its business to be. Could that include writing an article directly for a company that SM (notice the intentional allusion to pain games) might want as a client? Check their site and notice some of the work they do: magazines, newsletters, annual reports, booklets, bulletins, and web sites. To me, that's a "that goes or I go" statement, as they're trying to control your income and business without any promise of future work.


• Clause 2 It gets better and better, or not. You must perform all the work demanded "in an acceptable manner" to get paid. Also, "In the event the Materials are not accepted, SmartMoney will pay Consultant a reasonable kill fee, the amount of which shall be determined by SmartMoney in its sole discretion." That's right, it's totally up to them, even though they could deem it unacceptable because you delivered it on a Tuesday. There's no definition of the acceptance process or how long they can delay it.


• Clause 3 a) They want WMFH, which isn't surprising because, after all, they want to own your custom publishing time and prospects. They can do anything they want with what they accept. You have to wave moral rights.
  
  b) They also want "the sublicensable worldwide right to use Consultant’s name, biography and likeness in connection with the publication, use, advertising and promotion of the Materials, SmartMoney, its Custom Solutions division or its clients’ use of the Materials, and to make such other promotional use as SmartMoney, its licensees, successors or assigns may determine." In other words, your name, background, and image become a commodity that they can use again and again to promote themselves and anyone they sell the rights to, even if you would not want to be associated with said organization, product, or cause. You cannot ask to have your name withheld if they butcher your writing, yet they don't have to give you credit at all.
  
  c)You have to warrant that "SmartMoney’s exploitation thereof [of your writing] will not violate or infringe the copyright, patent, trademark, right of privacy or any other right of any person or party or be false or libelous or defamatory." That isn't just saying that your writing won't infringe copyright or be defamatory, but that their use won't be. There have been cases where people successfully sued for libel because of the way materials were used, even though the materials themselves were fine. You can't determine context, but the way I read this, you are warranting their use, which includes the context in which they use your work. Now for the indemnification: "Consultant hereby agrees to indemnify, defend and hold SmartMoney, its partners, affiliates, trustees, directors, officers, employees and agents harmless from and against any and all claims, demands, damages, costs and expenses (including reasonable attorneys’ fees and expenses) arising out of or related to a breach of Consultant’s representations, warranties and obligations hereunder or in any way to any of Consultant’s services provided hereunder..." Notice that you're not just indemnifying for a breach of the warranties, but for anything that would arise out of the services you provide, which means if they get sued and someone cites your article, you could find yourself indemnifying them. This is really bad.


• Clause 4 This is one of those idiotic confidentiality clauses so strictly constructed that technically you could not tell a source the subject matter of the article you are writing. When you stop working for them, all materials that they own, you must return. As you've done WMFH, I think that means every copy of any article you've written for them. If there is "a violation or attempted or threatened violation of this provision, SMARTMONEY may apply for and obtain, without any requirement to post a bond or other security, an injunction to restrain such violation or attempted or threatened violation..." Boom, an injunction because they think you might reveal confidential information. It doesn't matter whether it's likely that they'd do this or not, because you're bound by it should someone in the company decide to make use of the clause.


• Clause 5 You can't try to get any employee or client to leave. If you do, or if there's a threat that you might, they can again get an injunction to stop you.


• Clause 6 If the non-disclosure isn't enough, here's a gag clause (first time I remember seeing this in a publishing contract): "Effective with the signing of this Agreement, Consultant agrees to make no statements relating to SmartMoney, its affiliates or the project Consultant is working on orally or in writings which impair or disparage the reputation of SmartMoney or its clients." In other words, your opinions are now censored.


• Clause 9 I think this contract was adopted from one meant for more general services: "Consultant will comply with all federal, state and local laws regarding business permits and licenses that may be required to carry out the work to be performed hereunder." You'd need something like that if someone was doing building or renovation. But not for writing, so it doesn't apply. And, contractually, they cannot make you attend staff meetings. At least something in the contract is appealing.


• Clause 10 The contract is construed under New York State law, which is good in terms of the interpretation of libel, et. al. But if there's a contractual dispute, you have to go to New York courts.


• Clause 11 This is the entire agreement, so nothing that an editor says or writes to the contrary of any clause has any force. Similarly, don't expect any term that you include on your invoice to have force - and that means how quickly they have to pay.


• Clause 12 You cannot tell anyone that this agreement even exists and you cannot tell anyone about the services you are providing to them. "Without limitation, Consultant agrees that Consultant will not issue any press release or other information concerning Consultant’s services." Sounds like that means you cannot mention them as a client in your marketing.

Contract Review: Pet Age Magazine

A writer requested a review. As always, I'm not a lawyer, this isn't legal advice, and you should try to negotiate what you don't like about a contract. I'm focusing on the potential problem areas, for the most part.

• They pay 45 days after acceptance, but there is no definition of when acceptance happens. I'd suggest modifying the on acceptance to something like "...on acceptance, which may not be unreasonably delayed or denied."
• They want the following rights: First North American Serial; right to use the article for no additional pay in any of the publisher's other magazines; non-exclusive right to license others to use the piece electronically in any form; non-exclusive right to license reprints so long as the author agrees in writing in advance and, if the publisher doesn't get money, the writer doesn't get money, either.
• Publisher can use writer's name, image, and bio in conjunction with either the article or the magazine itself.
• You wave moral rights and will make "reasonable revisions" to the article at their request.
• You must provide source contact information and provide confirmation of all facts and keep that material for at least a year.
• You warrant, among other things, that "the Work contains no matter that is unlawful, obscene, constitutes defamation or otherwise violates the rights of any third party, including, without limitation, any copyrights, patents, trademarks, confidentiality obligations or trade secrets, privacy rights or publicity rights," which is very broad and should be constrained with the word "knowingly" or even "to the writer's best knowledge."
• The publisher wants you to indemnify not only for an actual breach of the warranted, but for alleged breaches, which is really bad, because you could be stuck even if you had done nothing.
• In case of a breach, or even an alleged breach, the publisher wants the automatic ability to ask a court for an injunction.
• If there is a legal dispute, you have to take it up in Chicago.

Contract Review: Pace Communications

Here is a recent Pace contract that a writer sent. Please remember that a) I'm not a lawyer, b) this isn't legal advice, and c) my remarks don't necessarily mean that the publisher will or will not negotiate (it's always good to try the latter):

• Clause one This gives the tentative article name and an approximate word count. Unfortunately, there are no limitations on the amount by which the count can go up, but the payment (clause 10) may be a fixed amount.


• Clause two This is the clause where you state that you aren't going to infringe anyone's copyright. However, there is a built-in indemnification "from all damages, costs and expenses which PACE may incur by reason of any copyright infringement or claim of copyright infringement." That "claim of copyright infringement" is a problem, because what if you were not guilty of it? Ask to alter the wording so that it is only for final judgments of copyright infringement in a court of competent jurisdiction after all appeals have been exhausted.


• Clause 3 This is a fairly reasonable warranty that, to the best of your knowledge, the article has nothing in it that, if published, "will be libelous, defamatory or scandalous or violate any personal or property rights of any third party." You agree to cooperate in joint defense, though, frankly, I'm not sure whether that might open you to having to bear some part of the legal costs. It's also not just for any libel or defamation, but the claim of libel or defamation.


• Clause 4 Here's where you get the delivery date and you agree that you'll keep a copy of the article around at least until the publication date. (What, someone would not keep a copy?)


• Clause 5 You have to provide phone numbers, releases, references, and so on for fact checking. Does that mean you have to send over hard copies? I don't know, but would suspect that, yes, you would. Do you have to provide your notes? I'm not sure it would be covered, and I certainly wouldn't volunteer such material, since fact checking should be independent verification that what you claim is true actually is according to someone else, which means specifically going to sources that aren't looking at your notes.


• Clause 6 If you don't deliver the article on time, they can cancel the contract, and there is no provision made for someone having extended the deadline. If they don't like the article, they can request one rewrite. They start payment when they "verbally accept" the article. I'd follow up with an email to establish a trail of that acceptance, as otherwise there is no way to prove the telephone conversation happened. There is no time line for them having to provide acceptance or rejection within a given guideline, and they should only be able to reject an article if it does not cover the agreed-upon topic or does so in a way that is not professional. As for a kill fee provision: "Prior to acceptance, should a rewritten Magazine Article not be satisfactory to PACE, or if PACE elects for any reason not to publish the Magazine Article, it will pay WRITER a kill fee of U.S $XXX in full and final settlement of PACE's obligations hereunder." In other words, even if you do provide something satisfactory, they can decide to kill it (maybe because of a dual assignment or because editors changed their minds) and not pay you the full amount, which is unfair.


• Clause 7 They can edit to their usual standards.


• Clause 8 They have absolute rights to how the story will be presented and and to cancel, modify, or delete any story. (Please don't ask me the difference between canceling a story and deleting it.) Paired with clause 6, that means absolute control over whether they have to pay you the full fee or not.


• Clause 9 They want 120 days of exclusive worldwide rights to all media, including electronic. During that period, "PACE is further granted the right to reprint or quote the manuscript without fee or permission for a period of one hundred and twenty (120) days after publication so long as appropriate credit to the writer is given." This wording is sticky, because, strictly speaking, it doesn't give them the right to let another use it. However, this would let them put the same article in another of their magazines, in an edited form if they wished, without paying you anything extra so long as they included your name.


• Clause 10 They state the fee for the piece, you promise that you'll work on "revisions or reasonable additions" during editing and fact checking, even if you've already been paid. You are promised credit (though it would be good to have the option to remove your name should any editing be objectionable). Payment happens through direct deposit.


• Clause 11 You state that you won't get money, gifts, or services from anyone in the article or anyone who appears in preliminary research without approval in advance from Pace, although "Advertising or promotional novelties of nominal value or bonafide business meals are excluded." In other words, are you getting comped lodging, admissions to places, or other such things? The contract probably forbids them.


• Clause 12 You're an independent contractor and responsible for your own insurance, taxes, and benefits.


• Clause 13 Neither you nor Pace can assign responsibilities to someone else. That could be taken to mean that you could not hire someone to do research for you.


• Clause 14 If any part of the contract is waived (and that has to be in writing), the remaining parts are still in force.


• Clauses 15 and 16 Both were missing from the copy I saw (which was retyped by the submitter).


• Clause 17 This is the complete understanding, so anything to the contrary in writing or said doesn't count.


• Clause 18 The laws of North Carolina govern the agreement.

Magazine Ad Trends: Products Advertised Equals Topics Covered

There's an old trick in the magazine business: if you want advertisers, then cover them editorially. I don't mean the ethically-challenged tit for tat we've all seen some publishers indulge. In this case, there's a more natural and obvious connection. If you never mention consumer electronics in your publication, then it becomes harder for ad salespeople to interest consumer electronics companies to advertise:

Ad salesperson: "This is really a great publication for you to reach your customers."

Corporate ad buyer: "But we sell nutritional supplements for older people and you have a magazine for kids. What interest are they going to have in geriatric products?"

Ad salesperson: "Ah, but one day they're going to be older, and think of all the mind share you would have built!"

Tough to make the sale if you can't show the natural interest. That's why you should take a look at this article from Crain's New York Business, which discusses the general state of magazine ads and which categories are up and down in the first quarter of this year as compared to the same time last year:

For the entire industry, rate-card-reported advertising revenue, which does not reflect discounting, came in at $5.2 billion, down 1.2% from the previous year. Ad pages—generally considered the more reliable industry bell weather—fell 6.4%, to 49,167.

The top advertising categories that actually showed growth were retail; transportation, hotels and resorts; financial and real estate; and food. "The category that includes the likes of Kraft’s macaroni and cheese and Lay’s potato chips almost single-handedly held up the magazine industry in the first quarter, according to numbers released Monday by the Publishers Information Bureau of the Magazine Publishers of America."

The categories getting hammered were led by automotive, which is no surprise in the combination of economic downturn and tightening credit market. It dropped 17 percent. Home furnishings and supplies lost 12%. The reporting is based on numbers from Publishers Information Bureau of the Magazine Publishers of America.

You might also check the numbers for how individual magazine titles did. Some of the big winners were All You, Backpacker, Cookie, Ducks Unlimited, Every Day with Rachel Ray, Family Fun, Field and Stream, Medizine Healthy Living, OK Weekly, Quick and Simple, ReadyMade, Remedy, Ser Padres, Transworld Snowboarding, Womens Health, Wondertime, and Relish.

Some of the big losers: ABA Journal, Auto Week, Boating, Businessweek, Coastal Living, Cycle World, Endless Vacation, Entertainment Weekly, Fortune Small Business, Golf for Women, Gourmet, Hemispheres, Kiplingers Personal Finance, Motorboating, National Journal, Reader's Digest, Rolling Stone, Scientific American, Tennis, US News & World Report, and the Los Angeles Times Magazine.

A caveat: these are all based on rate cards. But discounting is common, and there's no telling for sure whether the magazines that had gone up might have effectively dropped their price. (However, generally when you're selling a lot of ads, you don't have to drop rates so much.)

B&N Offers Web Site with Free How-To

How-to book authors, take note: Barnes & Noble has a new web site called Quamut.com that offers free advice and help to users. They commission pieces, have them edited and fact-checked, and add photos and drawings to make them clearer:

“Quamut.com positions Barnes & Noble as a leader in digital how-to publishing,” said Dan Weiss, publisher and managing director of Quamut.com. The company simultaneously publishes all content in two formats: as HTML content and as downloadable PDFs. In some cases, Weiss said, Quamut guides are also available as a four-to-six page laminated printed charts, available for purchase at Barnes & Noble stores and BN.com.

The business is supported through three revenue streams: advertising through display ads and Google AdSense, the sale of full-color PDFs ($2.95), and the sale of laminated printed charts ($5.95 each). Many ads on the site are for books related to the subject at hand; for instance, the guide to stretching features an ad for books about stretching, with the line “Learn more with these titles from Barnes & Noble.”

This can't be good news for the many authors who write for the how-to series books. Even if the pieces are short (the downloadable PDFs generally run from 2 to 8 pages, many people buy how-to books to learn something specific. Break it out and you suddenly don't need the entire book - and I'd bet that the Quamot authors aren't getting royalties on either advertising or downloads. Or maybe I'm getting it wrong, and the free material online does just the opposite - sets up an interest in buying the book. B&N advertising full titles on the pages with the how-to content.

Contract Review: Delight

Someone sent this contract for Delight, published by Idea Outpost, for both my amusement and bemusement. You'll see why in a moment. Remember, I'm not a lawyer, this isn't legal advice, and I'd never personally assume that contract terms are immutable until proven otherwise:

• Receitals This sort of thing is generally straightforward, but I thought it was worth noting that the publisher works "in print and in electronic form on the World Wide Web and on DVDs and CDROMs" to create lifestyles and television programming magazines.


• Clause 1 The writer is an independent contractor and not an agent, employee, or partner of the publisher. Fair enough.


• Clause 2 Everything is work made for hire or, if it doesn't qualify, you have to sign over copyright. But the range of things they want to own is pretty scary: "newspaper articles, stories, reports, memoranda, drawings, photographs, ideas, suggestions,
  themes, plots, characterizations, dialogue, titles, designs and other work." Titles? Ideas? Suggestions? Oh, wait - I have a suggestion...


• Clause 3 A separte paper explains the topic - understood.


• Clause 4 Think having ideas be someone else's property is bad enough? "All Work is submitted on 'spec' and will only be remunerated upon acceptance by Publisher." You might wonder how different that is from most contracts that say work has to be accepted. As I repeatedly say, I'm no lawyer, but it seems to me that when you have a contract requiring acceptance, there is often an understanding that acceptance is something that must actively be denied, because the article didn't meet expectations. But with spec, things more become a matter of whim, as normally a publisher has no obligation toward spec work at all, and there isn't a legal contract. Maybe a court would say that these people are redefining spec, but it's an uncomfortable addition. Here's another: pay is 60 days after invoicing, and you don't get to send an invoice until the editor in chief asks for it. No indication of how long the EIC can delay in deciding if your work is accepted.


• Clause 5 There is a "time is of the essence" term, which, as they explicitly state, means that if you don't finish "in a timely manner," they can cancel the agreement. Timely would mean that they give you a date and you miss it. No provision for working out a new deadline because of problems.


• Clause 6 Here are the warranties, and some of them are a bit odd. For example, "Publisher shall not be required to make payments to any third party in connection with Publisher's use or exploitation of the Work or any portion thereof." That's way too broad, as you have no control over how they use what you write. What if they do something that gets them sued, like totally rewriting your piece and adding information you didn't provide? You're essentially saying that no matter what they do, they can't be forced into paying anyone else money. They'd probably claim that they don't want to pay for something you include in your article, but the wording is more far reaching than that. You must additionally promise that the "Work does not and will not infringe upon or violate any intellectual property right or other right of any person or entity." But this extends far beyond copyright alone.


• Clause 7 This reiterates that they can do anything with what you write at all, and use it in any medium.


• Clause 8 You have to "conform to general readability standards in the computer and high technology field" (not sure that's necessarily all that desirable, given that this would include every bad user manual in existence) and you must turn in something in Microsoft Word. (Forget the fact that Word can read text and RTF, or rich text format, files.) Now check this: "The Writer acknowledges and represents if the Work fails to conform to the general readability standards of the computer and high technology field, Publisher has the sole and unilateral right to refuse to compensate the Writer and/or publish any said Work." And/or publish? Does this mean that they could go ahead and publish anyway and still refuse to pay? Sure reads that way.


• Clause 9 If you breach "any term and condition" of the agreement, they can cancel the contract. But who referees if there really was a breach? What if it's a minor breach? Why not time to fix a breach if possible, a very common inclusion in contracts?


• Clause 10 This is pretty straightforward in saying that you're not an employee and are responsible for your own taxes, et. al.


• Clause 11 If they need you to fill out paperwork so they can own what you write, you have to.


• Clause 12 This is the entire contract, so no matter what an editor tells you, it all applies. It's interpreted under Wisconsin law, but you are not required to take up legal action there.


• Clause 13 "Writer agrees to hold Publisher harmless from and against all damages, losses, costs, expenses (including reasonable attorney's fees and costs) which Publisher may suffer or incur by reason of the breach of any of the representations, warranties or agreements made herein." I'm including the whole of this clause because, to my eyes at least, it doesn't really make sense. Holding the publisher harmless would typically mean that you don't blame the publisher if specific things happen. But how do you hold a publisher harmless from and against damages which the publisher might suffer? I think they wanted an indemnification clause.

Contract Review: More

Someone asked me to review a recent MORE publication contract. Please remember that I'm not a lawyer, that this is not legal advice, and that it's always possible to try and negotiation contract changes with publishers. Also, be aware that Meredith is known for having multiple contracts, so my review of this version may not be of help if you get a different one.

• Introductory paragraph: Although there is an indication at the top of this contract that the magazine is More, this contract is with Meredith for any writing you do for the company.


• The Works: This clause indicates that you're signing a master agreement, because it covers any writing you do for the company, and that you retain ownership of the writing you do. So, the next time a Meredith editor tells you that the company only has a work made for hire contract, tell them, at least as of the first quarter of 2008, you know that to be incorrect. Also, be careful if you also write for the custom publishing arm, which, I believe, is WMFH. You want to be sure that any subsequent contract does not restrict your ownership rights in the regular publications.


• Schedules: This says that you get an additional paper for each assignment that will have the specifics, like length, subject, and date. The second sentence is confusing: "Each Schedule shall set forth a description, due date(s) and fee for the Work(s), and a term (the "Term") if Creator is a contributing editor." I'm not sure what the term is, and it's not clear whether being a contributing editor applies only to that last part or the entire thing. However, as this License Agreement governs all work you do for them, I'm guessing that it's the term part that only applies to contributing editors. Meredith would still have to explain what it wanted and what it was paying.


• Grant of Rights: The first subsection, (a), states that the following rights are exclusive, so be careful, because what you sign away you don't have. There is the first right to publish (first to be in print) in More. They keep that exclusive for six months after the actual publication date. If they delay, you cannot exercise other rights that would have the article in print until they finally do put it into the magazine. So, for example, if they delay by three months, you cannot license the use in another magazine anywhere in the world, although you could allow a movie adaptation. They also want "the right to reproduce and distribute the Work as part of the issue of the Magazine in which it appears, in print and electronic forms and in any other device, medium or mode of communication, whether now known or hereafter developed, throughout the World." That means they can reprint the magazine or put the magazine into an electronic database. But because that's as part of the issue of the magazine, the exclusivity of that is fine, because you can't reproduce it as part of the magazine without their permission anyway.
  
  The next part gets a little slippery. The have the first as well as the ongoing right to publish the article in electronic form on their web site. The right to put it on the web is also exclusive "from the date hereof until six (6) months after the first publication of the Work by Meredith." The question is what "first publication" means. They don't say print publication, so the minute they put it on the web, the clock on online use starts ticking for them, whether it's appeared in the magazine or not. After six months, they get non-exclusive rights to have it on the web. Personally, I'd try negotiating for one month exclusivity, online or print, and then try to compromise at two to three months instead of six, which seems too grabby. But that's me. Happily, they specifically mention the site address - www.more.com - so they can't use it on any other Meredith-owned site during that period. Then there is subsection (b).
  
  After the exclusivity period, you grant an ongoing non-exclusive license "to use the Works, including, but not limited to, the right(s) to print, publish, display, perform, reproduce and use the Work in all forms, works and derivative works." That "but not limited to" is a tricky phrase, because it means they can essentially do anything with the Work that they want, including creating new materials based on it (even a screenplay if they wanted). I think that would also let them use the article on any other of their web sites, so it would probably be wise to explicitly limit them to putting articles only on more.com and not on other magazine web sites.
  
  The next part is "to edit, abridge, adapt, translate or modify or alter the Works," so they can change it however they want without your permission. Next, "to publish or authorize the publication of the Works and distribute and sell the Works in all devices, media or modes of communications, whether now known or hereafter developed, throughout the World." So they could sell it to people using an ebook reader like Amazon's Kindle, or even on the Amazon site, as a standalone article. That's what the "authorize the publication" does - let them tell others they can publish it.


• Waiver of Moral Rights: Although US writers don't have so-called moral rights, writers in many other countries do, so if you're in Canada or the UK, you're giving up protections that you would otherwise have.


• Payment: Payment is on acceptance, but there is nothing in the contract that indicates when that happens. A modification like "acceptance, which will not be unreasonably delayed or denied" could be useful if they are looking at it promptly.


• Kill Fee: This is not a great version of a kill fee clause. The company may pay "at its option" a 25 percent kill fee, should it not accept an article. But that means an editor could decide not to pay. All rights immediately return to you if they pay the kill fee, but it actually doesn't explicitly say that rejection means all rights revert. I don't see how any court could keep you from taking the rights if they rejected the piece and didn't pay, but better to have these bases covered explicitly so you never have to get into a legal hassle. If they accept the piece, then they have to pay, but they don't have to use it and they retain their rights. That essentially puts the piece on ice. It would be good to add a clause that if they accept it, they have some period of time, maybe six or nine months, in which to make use of their exclusive rights or to lose them. If you own the piece, why should you lose all future value that they acknowledge you should have just because they don't do anything with it?


• Verification: You are responsible for doing all the research and turning in a piece "in accordance with Meredith's customary deadlines," but there is nothing about what those deadlines are, so be sure they are explicitly put into the assignment. You have to retain all notes, drafts, etc. for three years, and you have to cooperate with their editing process and make all "reasonably requested" changes.


• Subject Exclusivity: You cannot "write, publish, or cooperate in the publication of another work in any medium now known or hereafter developed on the same or a similar subject as any Work until the earlier of a) ninety (90) days after the date of the first publication of such Work by Meredith; or b) twelve (12) months after submission of the final version of the Work to Meredith." That should be restricted to directly competing publications. Why should you not cover the same topic for a completely different type of publication and audience? And there is a competitive publication clause later on.


• Republication: If you resell an article, you have to credit them. Get them to change that to you'll make best efforts or, better yet, strike the clause. You cannot control what another publisher will do, even if it agrees to such a clause, and the insistence could make it impossible for you to make a sale, which is unreasonable.


• Competitive Publications: This is a hidden stinker. You can't allow a magazine or web site "competitive to the Magazine or Site" to run the piece at any time, unless that magazine or site is owned by Meredith. There is a list that they include as an addendum, but they go on to say that this isn't limited to that list. Let them be satisfied with the list. By saying that you can allow republication in another Meredith title, I think they are essentially admitting that they don't have the right to run the article in another of their magazines, which would potentially be a contradiction to the material in the rights section. In short, push to say that they will only use it in the More magazine and web site earlier on.
  
  If you're a contributing editor, this is even stickier, because there is a separate clause stating that you cannot have anything you write appear in any competitive publication without their written approval. Not just something that you wrote for Meredith, but anything you write.


• Use of Creator's Name: They can use your name, a bio that you approve, and your likeness to promote the article, no matter what Meredith magazine or web site it's in. A positive note is that they don't have the right to authorize another to use them.


• Representations and Warranties: You say that what you write is original and not previously published or, if previously published, you have the right to license the material on an unlimited basis. If you got any part from a third party, you need written consent to use the material on an unlimited basis. This last part is actually a little tricky. That would technically include quotes from an interview, because once you record or write down what the other person says, they have a copyright interest in it. You could say that giving the interview is tacit approval, but this section of the agreement says that you need written consent, so to meet your obligation, you need a release for every interview subject. I'm not saying that the editors realize this, but, at least from what I can see in the wording, that is your obligation. There is the standard stuff about having the authority to sign this agreement and the full unencumbered rights to license the rights that Meredith seeks.
  
  Now we have another tricky part: "that the Works do not contain any scandalous, libelous, or unlawful matter; and that the publication of the Works will not infringe on any third party's copyright or other rights, including, without limitation, the rights of privacy and publicity." When writers question such clauses, editors say, "Why can't you guarantee that you won't plagiarize?" But while the clause says that you won't infringe copyright, it goes a lot farther, mentioning, without any limitation, other rights. Rights of privacy and publicity depend greatly on the specific law governing them. In this case, as the contract states later, the applicable laws are of New York State, so even if someone takes offense and takes up legal action in Canada or the UK, the definition of these rights would have to be examined under New York law. Also, it should be that what you write "will not knowingly infringe."
  
  You have to use best efforts to check the accuracy of non-fiction work and to avoid appearance of conflict of interest. There is also a sentence where you say "Creator will hold Meredith harmless for any breach of these warranties and agrees to cooperate fully with Meredith in responding to or defending against any third-party claims relating to the Works." Good news is there is no indemnification (the lack of which doesn't mean that a publisher cannot sue you if it thinks it is spending money for a big mistake on your part). The hold harmless is for any breach of the warranties. As you are making the warranties, I think that you would have to be the one to breach them, and if you do, you cannot sue Meredith for that. However, if there is a problem because Meredith made a change that caused the problem, I don't think you'd be limited from suing them.


• Termination: Either party can terminate the agreement or any of the schedules (read that as assignments) with 45 days notice. So, you could get an assignment and, if it were due longer than 45 days out, have an editor cancel it.


• Confidentiality: You can't talk about what you know is coming up in the magazine, or about story ideas or sources that don't end up in an article. Also, you're not allowed to discuss or disclose the terms of this contract, a type of clause I don't particularly like, as writers talk and should be able to.


• Independent Contractors: You say that you're not an employee, you're responsible for your own benefits and taxes, and you get paid as an independent person.


• Entire Agreement: If an editor says, "Oh, don't worry about that clause, we wouldn't enforce it," worry. This clause says that no such comment, whether verbal or written, would have any bearing on the contract as it is.
  
• Governing Law: New York State law governs the agreement, which is good. But if there is any kind of legal dispute, you are agreeing that you have to resolve things in the courts of either Des Moines, Iowa or New York City.

Long Story of a Writers' Mag

No big epiphany here, but thought that people might find an AP article on Writers' Digest interesting, as it goes through the history of the publication.

Warning: Natural Solutions Paying Slowly

If you write on alternative medicine and other non-conventional approaches to health, Natural Solutions (formerly Alternative Medicine Magazine) might seem a natural, but according to recent reports from freelancers, doing so could do some serious damage to your cash flow.

What brought the topic up was a flood of posts on the Freelance Success board from people who said that payment was taking upwards of five months. For example, one writer told me that she had written a piece in the summer and told to invoice on September 2007. The contract, which I've seen and reviewed, says that payment is supposed to come in 45 days. This writer was finally paid in early February. Even if we assume that the invoice arrived toward the middle of the month, that is still 4 1/2 months to be paid for a piece that was already accepted.

Another writer mentions having completed two pieces in November. One of the pieces, slated for the April issue, was a short for which the writer had heard no feedback. "I repeatedly attempted to get feedback or invoice info from my editor, and finally did on 4-Feb, when I was told to send my invoice," the writer says. The person has not been paid. However, the lack of feedback meant that acceptance was withheld, so payment was now not technically due until mid-March (it still hasn't arrived as of the time of writing). As there were no questions to the writer, the piece could have been accepted as was back in November, suggesting that a January payment would have been reasonable. Yet a third writer completed a "rush job" in November, and the piece ran in the March issue, but as of yet has not been paid. Even more disturbing was a writer who had pitched a story idea in November. Three months later, in February, she followed up. Apparently the magazine decided to use the pitch as is as a short piece, and the writer says she was never contacted about this. She immediately sent in an invoice but has yet to be paid.

I spoke with Natural Solutions editor in chief Linda Sparrowe, who came in about three years ago when the magazine, under the former name of Alternative Medicine, was going through a change in ownership and many writers were complaining about late payments. She admits that there have been "some absolutely slow payments," though she says that at least some writers have been paid on time. Sparrowe says that payments have appeared to get slower over the last few months, which coincides with a redesign, which apparently has caused the company to be "short of cash."

"Of course I know who gets paid and who doesn’t get paid," Sparrowe says, though she also stated that she was surprised that many writers were complaining. "It is a concern to me." She does stress that everyone has been paid, though obviously not under the terms of the contract. Sparrowe also says, "I try really hard to get [freelancers] paid," but that she is not in control of cash. Check runs are every two weeks, and she puts in a list of who she needs to pay, but the ultimate decision of who is paid and who isn't is up to company management.

I brought up the issue of the contract. I double-checked with publishing attorney Anthony Elia about my suspicion that when payment continues, on a wide basis, significantly beyond the contractual terms, then there may well be grounds of claims of fraud. Generally contract breaches do not rise to the level of fraud, but when there is a pattern of behavior that shows a company is making promises that it reasonably well knows it will not keep, that it is not doing business in good faith, and that could make the breach a fraudulent action. She expressed surprise and concern about that and said she would talk to management and alter the contract going forward to include a more realistic payment deadline. She said that without speaking to management, she could not say what that period should be, but that I could contact her next week for an update.

I've never done business with the magazine or editor, and don't know the inner workings. However, I will say that a significant increase in time to payment is a classic indication of financial trouble, particularly when the editor says, "We're paying out as much as we're taking in." In my opinion, that would mean there is no cash cushion to allow for smoother operations, and that puts business operations into a risky state. My suggestion would be first to not query the publication until a contract showed a realistic time scale for payment. That might be a longer time than you are willing to wait, but better to know it up front. Second, my own inclination in such a situation would be to hold off for a significant period of time - at least six months if not a year - and wait to see if payments started to come more quickly. Continued slow payment would suggest consistently poor cash flow, which could mean that the client was not financially stable and you could potentially find yourself lining up with many others, dealing with a bankruptcy court. Just ask the people still waiting well over a year for payment from the company that used to publish Pages.