Writers get the royalty treatment

Folio: The Magazine for Magazine Management, August 1, 1995 by Jenna Schnuer

The issue of compensating authors for the electronic rights to their material continues to bedevil the publishing industry. Now, two groups are teaming up on a system that could end up reducing royalties currently going to magazine publishers.

The venture between the National Writers Union and the CARL Corporation's UnCover Company - a Denver-based fax reprint service - will provide royalties directly to creators of the work. Authors will receive about 30 percent of the $11.05 charge. The writers union began enrolling authors in july for the new Oakland, California-based unit - the Publication Rights Clearinghouse.

The unit will receive a list of articles purchased, along with a bulk check from UnCover, explains Irvin Muchnick, assistant director of the National Writers Union. The service will then dole out checks to writers, most likely on a quarterly basis. Although the royalties may not amount to much, the new source of revenue is better than what writers currently receive - which is nothing, says Muchnick.

The clearinghouse will direct funds straight to the rights-holders instead of funneling them through the publishers. Writers' groups have charged in the past that publishers are reluctant to send out checks for small denominations, and thus end up keeping some of that money meant for the writers. The newly formed Authors Registry (see "New service aims to simplify e-rights process," Folio: July 1, page 24) recently introduced a similar system.