You have finished your manuscript and a publisher is interested. Then the publishing agreement arrives, full of clauses dealing with copyright, royalties, ebooks, audiobooks, overseas rights, warranties and termination.
For many authors, the difficult part is working out which terms really matter. A contract can look fairly standard while still giving a publisher much broader rights than you expected, or making it difficult to recover those rights later.
Before signing, focus on five practical questions:
- What do you own?
- What rights are you giving the publisher?
- How will you be paid?
- How do you get your rights back?
- What legal risk are you accepting?
Reach out to our experienced Brisbane publishing lawyers if you need help answering these questions.
1. Check Who Owns the Copyright
Under the Copyright Act 1968 (Cth), an author will generally be the first owner of copyright in an original literary work. Australia does not have a copyright registration system that authors need to use before copyright exists.
However, there are exceptions. Work created by an employee in the course of their employment may belong to the employer, and contracts can change who owns or controls particular rights. A commissioned literary work also does not automatically belong to the person who paid for it simply because it was commissioned.
For most independent authors, the bigger issue arises when the publishing contract arrives. You may still technically own copyright but grant the publisher extensive exclusive rights to use the work.
That distinction matters. Owning copyright does not necessarily mean retaining control over every commercial use of your book.
If you are unsure about ownership, see our guide on how writers can protect their work.
What About Copyright Registration in the United States?
Australian copyright does not require registration. Copyright generally arises automatically when an original work meeting the legal requirements is created.
The United States also recognises copyright without registration, but registration can be important for enforcement and access to particular remedies. The rules can differ depending on whether a work is considered a U.S. or foreign work.
Australian authors publishing substantially in the United States should therefore avoid assuming that Australian and U.S. copyright procedures work in exactly the same way.
For a broader explanation of copyright and other forms of intellectual property, see our Guide to Intellectual Property Law in Australia.
2. Know Exactly Which Rights You Are Giving the Publisher
A publishing agreement rarely deals with just one right. It may cover print, ebooks, audiobooks, translations, overseas territories, adaptations and other forms of exploitation.
The mistake is to focus only on whether the agreement says you “retain copyright”. Instead, look at what the publisher can actually do with the work.
Check the agreement for:
- print and ebook rights
- audiobook rights
- territories and languages
- translation and adaptation rights
- exclusivity
- sublicensing rights
- how long the rights last
- rights relating to new technology
- generative AI and machine-learning uses.
A publisher may genuinely need Australian print and ebook rights to publish your book. That does not automatically mean it needs worldwide film, translation or audiobook rights as well.
The commercial question is whether the publisher is likely to use the rights it is asking for. If valuable rights are being granted broadly but there is no clear plan for exploiting them, that deserves closer attention.
If audiobook rights are included, see our guide to negotiating audiobook rights in Australia.
What about AI rights?
AI clauses are now an important part of publishing contracts. Authors should check whether their work can be used, licensed or sublicensed for AI training, machine learning, synthetic narration or other automated uses.
This is not something to assume is covered appropriately by older references to “future technologies”. If the clause is broad, understand what it allows before agreeing to it.
3. Do Not Judge a Royalty by the Percentage Alone
A royalty clause saying “10%” sounds simple, but the real question is 10% of what?
Royalties may be calculated on the recommended retail price, the publisher’s net receipts or another defined amount. The same percentage can produce very different payments depending on the calculation method.
Also check whether different royalty rates apply to print books, ebooks and audiobooks, and how heavily discounted sales are treated. If the publisher licenses translation, film or other subsidiary rights, the agreement should also explain how that income is divided.
Other practical questions to be aware of in your review include:
- When are royalty statements issued?
- When must the publisher pay?
- Can money be withheld against expected returns?
- Can you inspect or audit the publisher’s accounts?
- Do royalty rates increase once certain sales levels are reached?
A publishing agreement is not only an intellectual property document. It is also a commercial agreement about how your work makes money and how that money is shared.
For more detail, read our Australian guide to royalties.
4. Work Out How You Get Your Rights Back
Authors naturally focus on getting their book published. The part of the agreement dealing with what happens years later can be just as important.
Publishing relationships change. Sales may slow down, a publisher may stop actively marketing the title, or the book may remain technically available only as an ebook or print-on-demand product.
This is where rights-reversion and termination clauses become important.
Check:
- how long the agreement lasts
- when either party can terminate
- what counts as “out of print”
- whether minimum sales or revenue thresholds apply
- what happens if the publisher fails to publish
- what happens if the publisher becomes insolvent
- what happens to stock and existing licences after termination.
An older-style “out of print” clause can be problematic in a digital market. A book might remain technically available online for years while selling almost nothing.
A clearer commercial test may be based on minimum sales, revenue or another objective measure of whether the publisher is still meaningfully exploiting the work.
Before signing, ask yourself: if this publisher stops doing anything meaningful with my book, can I get the rights back?
5. Read the Warranties and Indemnities Carefully
Some of the most important publishing clauses have nothing to do with royalties or distribution. They deal with who carries the legal risk if something in the manuscript creates a problem.
Publishing agreements commonly require authors to warrant that they own the necessary rights, have obtained permissions and have not infringed copyright, defamed someone or misused confidential information.
The contract may also contain an indemnity, which can make the author financially responsible for particular losses or claims.
These provisions deserve extra attention if your manuscript includes real people, allegations of wrongdoing, interviews, photographs, lyrics, substantial quotations, confidential information or previously published material.
A publisher editing or accepting your manuscript does not necessarily mean the publisher has taken responsibility for every legal issue in it. In higher-risk manuscripts, a separate legal review before publication may be sensible.
Our guide to defamation in Australia explains one issue that commonly arises when authors write about identifiable people.
How to Assess a Publishing Contract Before You Sign
There is no single clause that makes every publishing agreement good or bad. The terms need to be looked at together.
A broad rights grant might be reasonable where the publisher has the experience and resources to exploit those rights. The same clause may be less attractive where valuable rights are being tied up without any obvious commercial benefit to the author.
Likewise, a headline royalty percentage tells you very little until you know what it is calculated on.
Seeking Legal Advice
A publishing offer is exciting, but a publishing contract can affect your rights and income long after the book first reaches readers.
The aim is not simply to find out whether the contract looks “standard”. It is to understand what the publisher receives, what you receive in return, what risks you are taking and what happens if the relationship eventually ends.
Prosper Law advises Australian authors on publishing agreements, copyright and publishing-related legal issues. If you have received a publishing agreement and want to understand its legal and commercial effect before signing, contact our publishing lawyers.
Frequently Asked Questions
Do Australian authors automatically own copyright in their books?
Yes, generally, the author is the first owner of copyright in an original literary work in Australia. Exceptions can apply, particularly in employment arrangements, and contracts can alter ownership or control of rights.
Should I assign copyright to a publisher?
Not necessarily. Publishing agreements can license particular rights without transferring the author’s entire copyright. The appropriate structure depends on the rights involved and the commercial deal being offered.
What are the most important clauses in a publishing contract?
Pay particular attention to the grant of rights, exclusivity, territory, royalties, accounting, AI rights, warranties, indemnities, termination and rights reversion.
If your publisher is withholding payments or royalties, here’s what to do when your publisher isn’t paying.
What is a rights-reversion clause?
It sets out when rights granted to the publisher can return to the author. The trigger is important because a book can remain technically “available” digitally even when it is barely selling.
When should a publishing agreement be reviewed?
Ideally, before it is signed. This becomes particularly important where the agreement contains broad rights grants, significant subsidiary rights, unusual royalty arrangements, extensive indemnities or unclear termination provisions.
Whether you’re self-publishing or working with a traditional publisher, our team can help you understand your rights and negotiate fair agreements. Read more about why a publishing agreement review is important.
Enquire today to make sure your book publishing rights are outlined in your agreement with your publisher.
Updated: August 2026
About the Author
Farrah Motley
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