The audiobook industry is thriving, offering authors exciting new opportunities to grow their audience and diversify their income. However, navigating audiobook rights in publishing agreements can be legally complex.
By negotiating a fair agreement and maintaining control over key terms such as royalties, production, and reversion, you can ensure your audiobook contributes lasting value to your career.
This guide, prepared by our publishing law team, is tailored specifically for authors. It provides practical insights to help you safeguard your rights, maximise royalties, and ensure fair and transparent audiobook agreements.
Key Takeaways
- As the author, you are the first owner of copyright under the Copyright Act.
- Audiobook rights must be explicitly granted in publishing agreements.
- Key negotiation points include royalties, territorial rights, production control, and reversion clauses.
- Fair dealing exceptions under Australian copyright law do not apply to commercial audiobook production.
- A well-drafted agreement protects your interests, provides clarity, and helps prevent disputes.
What Are Audiobook Rights?
As the author of a literary work, you hold the exclusive right to:
- reproduce your work in various forms, including sound recordings; and
- communicate your work to the public.
Audiobook rights are a form of derivative right—meaning they involve adapting your original written work into another format.
No publisher can legally produce or distribute an audiobook of your work without your express permission. When negotiating a publishing agreement, it is essential to address audiobook rights separately to retain control and maximise your benefits.
Essential Tips for Authors Negotiating Audiobook Rights
Retain Control Over Your Rights
Before signing any agreement, carefully review the scope of rights being granted. Consider whether you want to:
- grant exclusive or non-exclusive audiobook rights; or
- retain the right to produce and distribute audiobooks independently.
If you’re unsure, speak with a publishing lawyer to ensure your rights are adequately protected.
Define Territorial Rights
Be specific about where the publisher can distribute the audiobook. For example:
- Australia only; or
- Worldwide distribution.
Limiting territorial rights allows you to negotiate separate agreements for other regions, giving you more flexibility and control.
Negotiate Royalties and Revenue Sharing
Audiobook royalties are often calculated differently from print or e-book royalties. Ensure your agreement includes:
- a clear royalty percentage (e.g., 20%–25% of net sales revenue);
- advance payments against royalties, if applicable; and
- transparent reporting obligations for sales and revenue.
You should also confirm how royalties will be calculated across different platforms (e.g., Audible, Apple Books) and whether they vary based on the distributor’s fees.
Maintain Production Oversight
As the author, you should have input into how your audiobook is produced. Negotiate clauses that allow you to:
- approve the narrator(s);
- review and approve the final production quality; and
- clarify who bears the production costs.
This helps ensure the audiobook aligns with your creative vision and maintains the integrity of your work
Include Reversion Clauses
Protect your rights by including a reversion clause in your publishing agreement. This can allow you to regain audiobook rights if the publisher fails to exploit them within a specified period (e.g., two years).
Reversion clauses are also useful if the audiobook goes out of print or fails to meet a minimum income threshold. Without this clause, your rights may be tied up indefinitely.
Why Authors Should Be Cautious About Fair Dealing Exceptions
The Copyright Act 1968 (Cth) provides limited exceptions under the doctrine of fair dealing for purposes such as:
- research or study
- criticism or review
- news reporting
- parody or satire
However, these exceptions do not apply to the commercial production and distribution of audiobooks.
Publishers must secure explicit rights from you to lawfully produce an audiobook. Failing to do so can result in copyright infringement and legal disputes.
Learn more about the fair dealing exceptions in our article on A Guide to Using Quotes and Excerpts in Your Book.
Real-World Example: Protecting Your Audiobook Rights
Imagine you sign a publishing agreement granting exclusive audiobook rights to a publisher. However, the publisher fails to produce the audiobook within two years.
Without a reversion clause, you may be unable to work with another publisher or produce the audiobook independently, even though no audiobook exists. Including a reversion clause ensures you can regain control and monetise your work effectively.
Frequently Asked Questions
Do I have to grant audiobook rights to my publisher?
No. You can choose to retain audiobook rights and produce or distribute the audiobook independently or through another provider.
What royalty rate should I expect for audiobooks?
Royalty rates for audiobooks typically range from 20% to 25% of net sales revenue, though this can vary depending on the publisher and distribution platform.
Can I negotiate separate agreements for print, e-book, and audiobook rights?
Yes. Many authors choose to negotiate separate agreements for each format, allowing greater control over how their work is exploited.
What happens if my publisher breaches the agreement?
If your publisher breaches the agreement (e.g., fails to pay royalties or produce the audiobook), you may be entitled to terminate the contract and seek damages under Australian contract law.
What is a reversion clause, and why is it important?
A reversion clause allows you to regain rights to your audiobook if the publisher fails to exploit them within a specified timeframe. This ensures your rights aren’t tied up unnecessarily, allowing you to explore other publishing or production opportunities.
Always consider consulting a publishing lawyer before signing any contract. A few clauses now can make a significant difference to your long-term rights and earnings.
