You’re about to sign your first publishing contract, and along with all the other puzzling legal terms are these things called “subsidiary rights.”
Now, you shouldn’t gloss over any terms in your publishing contract (or any legal contract, for that matter), but you’ll definitely want to make sure you understand these rights.
In this post, we’ll demystify what exactly subsidiary rights are, who gets them, and how you should negotiate them so you can close your publishing deal with confidence.
What Are Subsidiary Rights in Book Publishing?
In the publishing industry, subsidiary rights are all the rights enjoyed by the author as copyright holder. They give the author the right to exploit their book in other media, and they cover every form of the book that does not include the physical book itself.
Subsidiary rights fall into two categories: primary and secondary. In most publishing contracts, publishers will reserve all primary subsidiary rights to themselves (which usually includes the rights to publish your work as a print book and ebook).
Secondary rights, on the other hand, are more often negotiated. The publisher might reserve them, the author might keep them, or they might be split between the two parties.
Secondary rights typically include the rights to publish and sell translations of a work, make and sell audio versions, or make a screen adaptation. If you’re an author, these all represent potential income opportunities for you, in addition to whatever you make from the sale of your physical book.
Examples of Subsidiary Rights
The following are examples of subsidiary rights that you may wish to grant to your publisher or agent, or reserve for yourself or an outside party.
- Serial rights: This is the right to use content from the book in serializations, excerpts, or periodicals. “First serials” are released before the book is published, whereas “second serials” are released after publication.
- Translations: Foreign language translations of a book are also considered subsidiary rights. Further limits can sometimes be placed on specific territories (for example, Portuguese rights for Portugal versus rights for Brazil).
- Audio recording: This includes the rights to record and distribute any audio recording of the book.
- Performance Rights: Performance and dramatic rights include film and television adaptations, plays, and any performance of the manuscript.
- Merchandising: This includes the right to make and distribute merchandise (T-shirts, key chains, bookmarks, and any physical goods) bearing the title of the book, characters, depictions of scenes, etc.
- Subscription book clubs: In subscription-based book clubs, subscribers usually don’t pay the full price for the book, and some services even print their own versions, which is why this is considered a subsidiary right.
Should You Grant Subsidiary Rights to Your Publisher?
Granting subsidiary rights to your publisher or literary agent can be beneficial if you believe they are well-suited to negotiate on your behalf.
If your agent or publisher can sell the rights to your book, they have more opportunities to pitch and sell it to filmmakers, foreign editors, and many other professionals. But they can’t sell something they don’t have the rights to!
Most large publishers have the expertise and experience needed to sell the rights to your work in overseas markets. However, not all have the connections necessary to secure things like film, television, or merchandising deals.
Remember that you do not have to grant all or even any subsidiary rights to your publisher. They are your rights, and you can reserve them if you believe they can be better exploited by someone else.
Think carefully about which subsidiary rights you wish to grant to your publisher, and make sure your contract specifies those rights and nothing more.
You’ll also want to specify how long subsidiary rights will be granted. The right period for you will depend on how confident you are in your publisher, but if you’re hesitant, you can grant subsidiary rights for only two to five years, then renew as desired.
An alternative option is to grant subsidiary rights to your publisher on a “use-it-or-lose-it” basis, which means that if the granted rights have not been exercised within a specified period, those rights will revert back to the author.
Generally, your share of subsidiary rights income will be much higher than your share of royalties because the publisher isn’t losing money to produce the material. For most subsidiary rights revenue, a cut of 20–35% to the publisher is considered reasonable, but as always, the split comes down to the negotiation between you and the publisher.
What Is a Subsidiary Rights Manager?
A subsidiary rights manager usually works for a traditional publishing company and is in charge of licensing both foreign and domestic rights.
They present and license the publisher’s titles to foreign publishers, audio publishers, producers, and others who may be interested in using the work for subsidiary purposes.
Do Book Publishers Own Movie Rights?
The publishing contract should clearly state which party retains the rights to any film adaptations (either the publisher or the author).
Movie rights are among the most frequently negotiated subsidiary rights, since if any adaptations do come to fruition, they can be extremely lucrative (just look what happened to Harry Potter!). Many publishers want them, but if an author puts up a fight, the publisher might let go and move on without them.
Always Read the Fine Print
Before you sign any contract or legal document, it’s important that you read the fine print, and seek professional assistance for clarifying any terms you don’t fully understand. Please note that this article is not a substitute for professional legal advice.
If you’re curious about what publishing with TCK is like, check out our FAQ section and a summary of our contract terms, including information on subsidiary rights.
Did you find this post helpful? Let us know in the comments below!
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As a blog writer for TCK Publishing, Kaelyn loves crafting fun and helpful content for writers, readers, and creative minds alike. She has a degree in International Affairs with a minor in Italian Studies, but her true passion has always been writing. Working remotely allows her to do even more of the things she loves, like traveling, cooking, and spending time with her family.
