What is a publishing agreement?

A publishing agreement is a contract between the creator of a work and a publisher that grants the publisher rights to reproduce, distribute, market, and monetize the work in exchange for royalties, advances, or other compensation. Publishing agreements are used across creative industries — music publishing agreements cover songs and compositions, book publishing agreements cover manuscripts, video game publishing agreements cover finished or in-development games, and film and television publishing or distribution agreements cover audiovisual works. The common structure is the same: the creator retains authorship and often some underlying ownership, while the publisher takes on the commercial risk and receives a defined bundle of rights for a defined period and territory.

Why you should consider a publishing agreement

Reaching a wider audience. A publishing agreement gives the creator access to the publisher’s distribution channels, marketing infrastructure, retail relationships, and audience. A music publishing agreement can place a song with film and TV supervisors, a book publishing agreement can place a title in bookstores and libraries, and a game publishing agreement can secure platform features and storefront placement.

Monetizing a creative work. A publishing agreement is a primary vehicle for monetizing a creative work. The publisher typically pays the creator through advances, royalties, minimum guarantees, or revenue shares, and in exchange takes on the upfront costs of production, marketing, and distribution.

Defining the bundle of rights granted. A publishing agreement specifies exactly which rights are granted, which are reserved, and which remain with the creator. A well-drafted publishing agreement distinguishes between primary rights, subsidiary rights, derivative rights, merchandising rights, and rights in new or future media, and allocates confidential information and data where relevant to the creative work.

Allocating creative control and approvals. A publishing agreement addresses how much creative control the creator retains over edits, cover art, marketing, localization, ports, adaptations, and derivative works. These approval rights are a core commercial term, not a formality.

Protecting reversion and long-term interests. A publishing agreement generally includes term, territory, and reversion provisions that determine how long the publisher holds the rights and under what circumstances the rights revert to the creator. Without a publishing agreement that addresses reversion, a creator may find their work tied up with a publisher long after the commercial relationship has ended.

Relevant laws and regulations

Copyright Act, RSC 1985, c C-42. Canada’s federal copyright legislation, which governs authorship, first ownership, assignments, licenses, moral rights, and reversion of copyright — all of which are central to any publishing agreement.

Trademarks Act, RSC 1985, c T-13. Canada’s federal trademarks legislation, which is relevant where a publishing agreement involves the use or licensing of titles, author names, band names, series marks, or character trademarks.

Competition Act, RSC 1985, c C-34. Canada’s federal competition legislation, which can apply to exclusivity provisions, territorial restrictions, and most-favored-nations clauses that are common in publishing agreements.

Consumer Protection Act, RSA 2000, c C-26.3. Alberta’s consumer protection legislation, which can apply to the downstream sale of published works to Alberta consumers and to unfair practices in connection with the distribution of a published work.

Common legal issues

Overly broad grant of rights. A common issue in publishing agreements is a grant of rights that is broader than the creator understood. A publishing agreement may purport to grant worldwide rights in all media, known and unknown, in perpetuity, covering primary rights, subsidiary rights, derivative works, merchandising, and adaptations. The scope of the grant — including territory, term, media, exclusivity, and which subsidiary and derivative rights are included — can be the most consequential commercial term in any publishing agreement.

Royalty calculation and audit rights. Royalty disputes are a frequent source of litigation under publishing agreements. Issues include how net receipts are defined, which deductions the publisher may take, how reserves against returns are calculated, how cross-collateralization works across multiple works, how foreign income is reported, and whether the creator has meaningful audit rights. A publishing agreement that leaves royalty calculation vague tends to favor the publisher.

Moral rights and creative control. Under the Copyright Act, authors hold moral rights in their works, including the right of integrity and the right of attribution. Publishing agreements commonly require the creator to waive moral rights to enable edits, adaptations, or localization. Disputes arise where the scope of the waiver is unclear or where the publisher makes changes the creator considers a distortion of the work.

Reversion, termination, and out-of-print clauses. A publishing agreement generally addresses how and when the rights revert to the creator. Issues arise where the agreement lacks a reversion trigger, where an out-of-print definition does not account for print-on-demand or digital availability, or where termination rights are one-sided. Without a clear reversion mechanism in the publishing agreement, a creator’s rights can remain locked up indefinitely.

Derivative works and new media rights. Publishing agreements increasingly have to address rights in media that did not exist when the agreement was signed. A music publishing agreement may need to address streaming, sync, and AI training uses; a book publishing agreement may need to address audiobooks, enhanced e-books, and film and television adaptations; a game publishing agreement may need to address ports, sequels, DLC, and transmedia adaptations. A publishing agreement that is silent on these rights can produce disputes years later.

Frequently asked questions

What is the difference between a publishing agreement and a license agreement? A publishing agreement is a specific type of rights agreement focused on the reproduction, distribution, and monetization of a creative work, usually involving advances, royalties, and ongoing exploitation by the publisher. A license agreement is a broader category of contract that grants permission to use rights, which may or may not involve the publishing, marketing, and distribution functions that characterize a publishing agreement.

Does a publishing agreement transfer ownership of the work? A publishing agreement can either assign ownership of the copyright to the publisher or grant a license to exploit the work while the creator retains ownership. Which structure applies depends on the terms of the specific publishing agreement, and the distinction significantly affects the creator’s long-term rights and reversion.

What rights can a creator reserve in a publishing agreement? A creator can generally reserve any rights not expressly granted. Commonly reserved rights in a publishing agreement include foreign-language rights, audiobook and audiovisual adaptation rights, merchandising rights, and reserved territories. The reserved rights depend on the bargaining position of the parties and the industry.

How long does a publishing agreement last? The term of a publishing agreement varies widely. Music publishing agreements may last for the life of copyright subject to reversion rights, book publishing agreements may last until the work goes out of print, and game and film publishing agreements may be structured around a defined commercial window. The term of a publishing agreement is a negotiated commercial term.

Can a publishing agreement be terminated early? A publishing agreement can generally be terminated where the contract permits, including for material breach, failure to publish within an agreed period, insolvency, or other defined triggers. The termination and reversion provisions in a publishing agreement determine what happens to the rights, unearned advances, and inventory upon termination.