What is an E-Book?

An e-book is simply a book. The difference lies in the construction; rather than going though the print process, an electronic book is formatted to fit on your computer screen, e-book reader or a device like a Palm Pilot, in a variety of programmes. E-books can be printed out or read on your computer, reader or laptop screen or they can be stored on diskettes, CD-ROMS or downloaded and viewed on your computer screen, on a PDA, or on an electronic reading device like a Rocket eBook. Simply put, e-books are books presented in a digital format instead of traditional ink and paper. The new reading platforms, called e-book readers, are small, lightweight, battery-operated, rechargeable devices that have enough memory to store several e-books at one time. PDA's were the forerunners of the technology behind the latest e-book readers, first pioneered by Apple Computer which introduced the Newton MessagePad in 1993. Short for 'personal digital assistant', these are handheld devices that combine computing, telephone/fax, and networking features. A typical PDA can function as a cellular phone, fax sender, and personal organiser. Unlike portable computers, most PDA's use a stylus (pen) rather than a keyboard for input.
Print and electronic publishing are not dissimilar. An author still has to write, edit and submit a book in whatever format; the book is then either accepted or rejected by the publisher or e-publisher. The real difference lies in the final product: a tangible product like a book that you can hold in your hand or an electronic version. The fact still remains that the final product in both cases can be good or bad. Most e-publishers have been so inundated with manuscripts they have to close submissions for a period of time. They can afford to be selective with more than ninety percent of submissions ultimately being rejected.
There are close to four million PDA's in use, notably COM's Palm Pilot and so it would be reasonable to project that this could rise to at least ten million in 2001. The software to display large text files is available in all PDA's, and a steadily increasing numbers of PDA owners now use these devices to read documents and books.
E-books can be printed out and read like a traditional book or read on the screen of a desktop or laptop computer, a PDA or a dedicated e-book reader. There are special formats for reading e-books on your computer, e-book readers and PDA's . This format makes many e-books available to people who do not own an e-book reader

E-Book Rights

E-book rights are a complicated issue. But it is important that authors get to grips with the subject and understand the issues involved. The debate involves the link between electronic rights and royalties and why they should be negotiated separately. Royalties for e-books are much higher than for print books, and therefore you will need to clarify the distinction bearing in mind the industry standard for e-books seems set to peak at 50%, against an average 10% for print books. If you sign over your electronic rights to your publisher under a normal print contract not only will you be giving away electronic royalties, at the same rate as print royalties, you will no longer be free to publish the material anywhere else. It is strongly recommended that you negotiate electronic rights and royalties, accordingly, as a separate issue to other rights.
The trend appears to be that an author will be asked for electronic rights with the issue of a new contract. The Society of Authors recommends that authors should retain all electronic rights, but they also need to know how to negotiate these rights in a controlled way.

Contract

Most e-publishers provide a copy of their contract on site (if they don't ask them to supply one). However, this doesn't count for much if you don't understand the elements within a contract. Most e-book publishing contracts seem to be reasonably fair. Generally, there are no costs to the author, although there are many exceptions to this rule. Royalty rates range from 25-70%, paid quarterly in most instances and they usually ask for electronic rights for a specific term. All of these, however, vary from site to site and one must consider all the key points. Remember that although email agreements are binding, it is better to use a contract.

Royalty Rates

Royalties are simply an agreed percentage paid to the author on the sale of each e-book. So if your e-book is priced at £3.50 and the royalty rate is 50% you will get £1.75 for each e-book sold and the e-publisher will get £1.75 on each sale. So you need to find out what a particular e-publisher's royalty rate is. It should be somewhere between 20-50%. Royalties are generally paid at regular intervals, normally quarterly. All of these points should be clearly stated in the contract. There is an argument which suggests that royalty rates should be much higher on the internet when one considers how little work some e-publishers put into producing and promoting works and a standard rate of 50% seems the likely outcome.

Grant of rights

Electronic rights give the e-publisher the right to publish your e-book in electronic form. If they ask for all rights then you will not be allowed to publish the work elsewhere, including in print. If they ask for print rights find out if they are going to publish the manuscript. Most e-publishers ask for electronic rights alone, leaving you free to pursue a print-based publisher. Be very careful that you know exactly what rights the contract stipulates.

Contract Period

The contract period signifies how long the contract will be binding once you have signed it. Find out how long the contract period lasts, when it starts and when it ends. Will they allow you to end the contract by giving a period of notice or do you have to see the contract out? Will they release you immediately if you find a print-publisher?

Costs

The contract should clearly state what fees are involved. Most e-publishers don't charge anything for e-publishing a book, some charge for cover art or formatting material, others charge for editing. Find out what expenses you may have to pay and if there are any hidden charges. Do you have to pay for promotion, for instance?

Copyright

Authors should retain the copyright of their work on the internet just as they do in print.

Creative Control

If the e-publisher you are interested in undertakes no editorial work, the author should retain creative control by default. This means you must have the final say on the content of your work.

Termination

Every contract should have a termination clause that protects both the publisher and the author. This means if the publisher does not pay your royalties on time or at all you can terminate the contract at short notice. If you do not keep your side of the bargain then the publisher has equal rights to terminate the contract.
E-publishing contracts should state the above categories as an absolute minimum, but you may find that they will also include sections on Sales, Promotion, and Format.
These elements are equally as important; you will need to know how your chosen e-publisher is planning to sell your e-book, promote it and what formats it is likely to be available in. However, an author should take nothing for granted and must become actively involved in the promotion and marketing of their e-book; some e-publishers insist on it as part of the contract.