Proper accountability

The dispute concerned a request for payment of copyright formulated by the author of the book White Earth Green*, against LBS Sélection editions. Indeed, by publishing contract signed on May 11, 2020, the author had assigned the exploitation rights of his work to his publisher. In return, the publisher undertook to pay remuneration calculated at 10% of the sales price excluding tax for the first 10,000 copies and 12% beyond, as well as 10% for any sound version used. The publisher also traditionally had to report sales annually and pay royalties within three months following the closing of the accounts.

Despite these commitments, the author indicated that he had never received royalties since the publication of his book. After sending a formal notice which remained unanswered in September 2023, he had to refer the matter to the Lille Judicial Court to claim the sum of 1,575 euros corresponding to his copyright calculated on 900 copies sold, as well as a symbolic euro damages for moral injury. Despite this procedure, the publisher did not appear.

On the request for payment of copyright

The court recalled the legal principles governing publishing contracts, in particular article L.132-17-3 of the Intellectual Property Code, which requires the publisher to report annually on sales to the author in a manner transparent and pay him the corresponding rights. Thus, the publisher is required for each book to report to the author the calculation of his remuneration in an explicit and transparent manner. To this end, the publisher sends to the author, or makes available to him by an electronic communication process, a statement of accounts mentioning:

When the book is published in printed formthe number of copies manufactured during the financial year, the number of copies in stock at the beginning and end of the financial year, the number of copies sold by the publisher, the number of copies excluding rights and destroyed during the financial year financial year and, if the publishing contract provides for a provision for returns of unsold copies, the amount of the provision established and its calculation methods.

When the book is published in digital formincome from unit sales and each of the other modes of book exploitation.

In any casethe list of transfers of rights made during the financial year, the amount of the corresponding royalties due or paid to the author as well as the bases and rates of the various remuneration provided for in the publishing contract. And the rendering of accounts is carried out at least once a year, on the date provided for in the contract or, in the absence of a date, at the latest six months after the closing of the accounts.

If the publisher has not fulfilled its accountability obligation, the author has six months to give notice to the publisher to do so. When this formal notice is not followed up within three months, the contract is automatically terminated. In this case, the contract signed between the parties provided that the copyright would be paid within three months following the closing of the accounts, set for December 31 of each year. These obligations were not fulfilled by the publisher.

To support his claims, the author produced the screenshot of the site Edistat establishing that at least 860 copies of his book had been sold since its publication. The calculation of copyright amounting to 10% of the sales price excluding tax resulted in a sum due of 1,505 euros. The court therefore ruled that this request was well-founded.

The basic principles of accountability

This judgment illustrates the contractual and legal obligations of publishers towards authors, particularly in terms of accountability and payment of royalties. He underlines the importance for publishers to scrupulously respect the terms of publishing contracts, under penalty of condemnation.

This decision, although modest in the amounts involved, reminds us that authors have legal means to assert their rights in the face of publishers’ failures. It also highlights the importance of transparent sales management and regular reporting, essential obligations to preserve trust between the parties in the context of publishing contracts.

*White Green Earth. The tragic saga of Medieval Greenland by Cédric Gouverneur was republished in November 2024 by Erick Bonnier Édition.