-6-
(except during the months of February, May, and December) meeting
with prostitutes at the brothels.
Using the material that he gathered during these meetings
(hereinafter sometimes referred to as interviews), petitioner
produced a manuscript called "Searchlight, Nevada" which he
submitted for publication. On October 13, 1993, petitioner
entered into an agreement for its publication with Northwest
Publishing, Inc. (Northwest).5 In pertinent part, the agreement
provided that,
(1) Petitioner was to pay Northwest $4,375 to publish
10,000 copies of his book;6
5Before submitting his manuscript to Northwest Publishing,
Inc. (Northwest), petitioner consulted "Writer's Market '93" a
publication describing various publishers. In it, Northwest is
described as a book publisher that,
Publishes hardcover, trade paperback and mass market
originals and reprints. Publishes 40-50 titles/year.
Receives 700-800 queries and 500 * * * [manuscripts]/
year. 85% of * * * [manuscripts] from first-time
authors, 95% from unagented writers. Pays 10-15%
royalty on retail price. Publishes book 4 months
after acceptance of * * * [manuscript].
6In a letter to petitioner confirming receipt of this pay-
ment, Rick Devey, the marketing director of Northwest, described
it as a "joint-venture payment". In another letter to peti-
tioner, Jim Perkins, Northwest's operations officer, explained
that "the payment you made of $4,375 (your share of the joint
venture) represents approximately one fourth of the total cost of
producing and marketing ten thousand copies of your book".
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