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Survey Executive Summary

The BISG Rights Committee stated objective is to identify the most important rights-related problems facing the publishing industry, identify areas of consensus where standards or best practices would be valuable, and lead online and in-person events to inform the broader rights and publishing community.

IYKYK: Royalty Statement Review is a pain point within Publishing Companies and in Literary Agencies

In seeking to explore the problems and possible solutions, the committee chose a prevalent clearly defined common use case -- the translation rights royalty statement – and asked a series of questions. [FYI, survey results showed that more than 60% of the statements received (for sub-deals) were for translation rights deals.]

Survey Objectives:

How much time used within publishers/agencies reviewing royalty statements?
What are the specifics within this process that cause concern and require staff time?
Can standards be a solution?

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Respondents

72 survey respondents

Approx 70% worked in publisher’s - in the Rights Department or in finance/accounting
Approx 21% worked in a literary agency

Companies of all sizes represented

11 % under $1 million annually
24% $1-5 million
17% $5-10 million
8.4% $10-50 million
5.6% $50-100 million
8.4% $100 million - $1 billion
2.3% over $1 billion

43% of respondents report that 3 or more people within the company are responsible for receiving reviewing recording processing and storing royalty statements

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Responses and Data

Magnitude of statements received

28% receive 100 (or fewer) statements per year
32% receive between 101 and 500
15% receive between 501 and 1000
23% receive more than 1000

Time spent on review of statements

Unearned: Earned:

25% do not review 15% do not review

44% spend < 10 mins 22% < 10 mins

27% spend 11-30 mins 44% 11-30 mins

4.8% spend > 30 mins 19.5% >30 mins

What is the most time spent?

Of 30 respondents who answered: 8 reported that they have spent weeks or months reconciling a statement – 77% reported that they have spent a full day or more on single statements.

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Responses and Data (Part 2)

What drives the need for prolonged review, protracted follow ups?

58% of respondents said that 1 out of 3 statements received requires follow up with the sender. Questions typically involve a need for

Clarity around the titles being included on the statement (more specific topics cited in this category include):

Print vs electronic titles
Author name missing
Title of work only in local language (original title in English not stated)

Clarification of the calculation presented on the statement (more specific topics cited in this category include):

Sales Discount applied
Currency conversion
Taxes
Returns
Royalty rate applied
Previous periods missing or balances not matched

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BISG RIGHT COMMITTEE STANDARD ROYALTY STATEMENT*�(*use case = Book: foreign language licensee reporting to back to original language Rights Holder/Licensor)�

9. Original Title of work in original language

Author(s) Name
Licensee Title of work (in translated language)
Original advance amount
Original advance currency
Balance of advance at start of this royalty period
Total Life to Date net units sold reported at end of previous period

Licensee Name
Licensee full address and contact info
Payor Name (if different from Licensee) i.e. accounting contact
Payor Full Address and contact info
Name of imprint under which book was published
Royalty Statement Date
Royalty period Start Date
Royalty period End Date

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BISG RIGHT COMMITTEE STANDARD ROYALTY STATEMENT*�(*use case = Book: foreign language licensee reporting to back to original language Rights Holder/Licensor)�

Net Units sold in period (Gross less returns)
Total sales receipt amount (local currency)
Total Royalty amount earned for period from Licensee sales (local currency)
Net Units sold Life of Book (sum of prior period end plus this statement, AKA Life To Date units)

Licensee ISBN-13 (listing sales for each ISBN separately) NOTE: listing sales for sets, kits, and other special sales items should be included/defined on the statement
Product Type (i.e. format: print/ebook/audio)
Publication date of (each) Licensee ISBN
Cover Price of each (Local Currency) aka list price; catalog price; public price
Royalty Rate %
Royalties’ basis description (net received or cover price)
NOTE: this info will match with royalty clause details in publishing contract

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BISG RIGHT COMMITTEE STANDARD ROYALTY STATEMENT*�(*use case = Book: foreign language licensee reporting to back to original language Rights Holder/Licensor)�

31a. Remaining overall unearned Advance at end of period (Licensor Currency) – for Licensee’s editions (including sub-license earnings if any)

31b. Payment due to Licensor (Licensor Currency)

Conversion rate (for converting local currency to contract currency) NOTE: rate can vary from period to period; this is the rate for this statement.
Date of conversion rate

If sub-licenses have been executed

Other Income Type (if sub-licenses have been executed)
Name of sublicensee
Other income amount (local Currency)
% share of other income due to Licensor
Amt of “Other Income” due to Licensor (local currency)

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