How a Non-Assignment Clause Can Hinder Growth
When the owner of a book publishing company decides to sell their company, they will need to establish the value of the business they have built. The sale price will be based on the company's discounted cash flow, the goodwill associated with the company's trademarks, and the soundness of its author agreements.
This article is about the most costly mistake neophyte publishers make - a simple drafting mistake that can preclude the business's eventual sale.
A well-drafted publishing agreement allows for the sub-licensing of rights and the assignment of the contract itself. However, when starting out, some cash-strapped publishers rely on contracts found online or slavishly copy ones found in a book.
Aside from creating a unique brand, protecting your intellectual property, and insuring against media perils, investing in a well-drafted publishing agreement is the best way to add value to your company. Not only will it protect you against unnecessary legal risks, but it will allow you to reap what you have sown.
Lloyd J. Jassin is a publishing attorney and entertainment lawyer. He counsels clients on contracts, licensing, copyright, trademark, unfair competition, defamation, right of privacy, and general corporate law matters. His practice includes drafting and negotiating publishing and entertainment industry contracts, intellectual property due diligence, trademark prosecution, dispute resolution, and litigation. A Benjamin N. Cardozo Law School graduate, he is co-author of The Copyright Permission and Libel Handbook (John Wiley & Sons). He can be reached at 212-354-4442 or via email at Jassin@copylaw.com.
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