Thursday, November 08, 2007

Lawsuit: D'oh, Or Not D'oh?

I can't tell if these authors are committing publishing suicide (by overestimating their own popularity), or have a reasonable beef that needs correction. I suppose I should be on the side of the plaintiffs (fight the man!), but I think it would be better, in this case, if the litigiousness bankrupts everyone involved:
Five authors have sued the parent company of Regnery Publishing, a Washington imprint of conservative books, charging that the company deprives its writers of royalties by selling their books at a steep discount to book clubs and other organizations owned by the same parent company.

In a suit filed in United States District Court in Washington yesterday, the authors Jerome R. Corsi, Bill Gertz, Lt. Col. Robert (Buzz) Patterson, Joel Mowbray and Richard Miniter state that Eagle Publishing, which owns Regnery, “orchestrates and participates in a fraudulent, deceptively concealed and self-dealing scheme to divert book sales away from retail outlets and to wholly owned subsidiary organizations within the Eagle conglomerate.”

...In the lawsuit the authors say that Eagle sells or gives away copies of their books to book clubs, newsletters and other organizations owned by Eagle “to avoid or substantially reduce royalty payments to authors.”

...“They’ve structured their business essentially as a scam and are defrauding their writers,” Mr. Miniter said in an interview, “causing a tremendous rift inside the conservative community.”

...In Regnery’s case, according to the lawsuit, the publisher sells books to sister companies, including the Conservative Book Club, which then sells the books to members at discounted prices, “at, below or only marginally above its own cost of publication.” In the lawsuit the authors say they receive “little or no royalty” on these sales because their contracts specify that the publisher pays only 10 percent of the amount received by the publisher, minus costs — as opposed to 15 percent of the cover price — for the book.

Mr. Miniter said that meant that although he received about $4.25 a copy when his books sold in a bookstore or through an online retailer, he only earned about 10 cents a copy when his books sold through the Conservative Book Club or other Eagle-owned channels. “The difference between 10 cents and $4.25 is pretty large when you multiply it by 20,000 to 30,000 books,” Mr. Miniter said. “It suddenly occurred to us that Regnery is making collectively jillions of dollars off of us and paying us a pittance.” He added: “Why is Regnery acting like a Marxist cartoon of a capitalist company?”

In an e-mail statement, Bruce W. Sanford, a lawyer with Baker Hostetler, a Washington firm representing Eagle and Regnery, said: “No publisher in America has a more acute marketing sense or successful track record at building promotional platforms for books than Regnery Publishing. These disgruntled authors object to marketing strategies used by all major book publishers that have proved successful time and again as witnessed by dozens of Regnery bestsellers.”

...The authors argue that because at least a quarter and as much as half of their book sales are diverted to nonretail channels, sales figures of their books on Nielsen BookScan, which tracks about 70 percent of retail sales but does not reflect sales through book clubs and other outlets used by Eagle, are artificially low. Publishers use these figures when determining future book deals, and the authors argue that actions by Eagle and Regnery have long-term effects on their careers.

...Joel Mowbray, author of “Dangerous Diplomacy: How the State Department Threatens America’s Security,” said he was particularly disappointed in Regnery and Eagle because they had so championed conservative authors. “These guys created the conservative book market,” Mr. Mowbray said. “Before them, conservatives were having to fight, generally unsuccessfully, to get books published.”

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