Newhouse Broadcasting Corporation and Subsidiaries, et al. - Page 5

                                                - 5 -                                                  
           "invoice price" was defined in each author contract as "the price                           
           shown on the Publisher’s invoices to its wholesaler and retailer                            
           customers from which the Publisher’s wholesaler and retailer                                
           discounts are calculated."                                                                  
                 The Ballantine standard author contract provides that "[t]he                          
           Publisher agrees to pay the Author a royalty on the retail price                            
           or, for any hardcover copies, on the invoice price of each copy of                          
           the Work sold by Publisher, less returns".  A separate paragraph                            
           of the contract requires Publisher to "render semi-annual                                   
           accountings * * * on or before February 1st for the six-month                               
           accounting period ending in the preceding September and on or                               
           before August 1st for the six-month accounting period ending the                            
           preceding March."  This paragraph further provides that "[e]ach                             
           statement rendered will be accompanied by payment of the amount                             
           shown to be due thereon, after allowance of a reasonable reserve                            
           for returns and after recoupment of [advances]."                                            
                 Both the Random House and Knopf standard author contracts                             
           provide that "[t]he Publisher shall pay to the Author a royalty on                          
           the invoice price of every copy sold by the Publisher, less actual                          
           returns and a reasonable reserve for returns".3  The Random House                           
           and Knopf standard author contracts, like the Ballantine form of                            



                  3  A few contracts in effect during the audit years, in a                            
            format different from the contracts discussed above, provided for                          
            the withholding of a royalty reserve against future returns only                           
            during the first 2 years following publication.                                            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011