A fundamental principle of book contracts is that the grant of rights is limited. Publishers acquire only the rights that they bargain for; authors retain rights they have not expressly granted to publishers. E-book rights, under older book contracts, were retained by the authors.The post goes on to say:
A federal court in 2001 examined this precise matter in Random House v. Rosetta Books. Judge Stein of the Southern District of New York was unequivocal in his 10-page decision: authors did not grant publishers the e-book rights in the old book contracts at issue.The post notes that times are hard in the publishing industry, but adds:
It's regrettable and unhelpful that Random House has chosen to try to intimidate authors and agents over these old book contracts. With such a weak legal hand, it would be well advised to stick to its strength -- the advantages that its marketing muscle can provide owners of e-book rights. It should also start offering a fair royalty for those rights.Click over to read the full post on the Authors Guild site.