We've just completed our annual IT strategy day which is becoming an ever more important prelude to the budget round which follows. One of the issues is how to simplify our royalty system without compromising its accuracy and reliablity.
At one point in my career the royalty system being used didn't work properly. The angst, fury, management time, author damage and cost were staggering and I never want to suffer that again.
The problem is that the concept of royalties is a fair one but that the changes in our business have made it, in its present form (a percentage of the UK published price of a book), unwieldy and unrealistic.
The percentage is linked to a price which applies in only a minority of cases. It doesn't apply to all sales overseas; it doesn't apply to nearly all sales made in supermarkets, Internet bookshops and many bookshop chains.
In educational and academic publishing houses the system has been radically simplified by the almost universal application of royalties based on publishers' gross income rather than retail price.
However, literary agents and many authors' organisations have set themselves against this because they fear that somehow a change would work against authors' interests. I don't think there is anything to fear and there is an enormous amount to be gained from the simplification, transparency, auditability, and shared motivation to reduce average discounts to retailers. How about agreeing new equitable royalty rates based on real money not a notional recommended retail price?